EU ministers said on Friday that the bloc should negotiate agreements with Beijing to limit imports in sectors including chemicals, machinery and pharmaceuticals. The ministers advocated talks as the EU faces a damaging goods trade deficit with China. The EU's goods trade deficit with China exceeded €370 billion ($415.07 billion) in 2025. The deficit is heading well above €400 billion this year. European Commission President Ursula von der Leyen has described the situation as "unsustainable".
European Trade Commissioner Maros Sefcovic agreed with Beijing earlier this month that the EU would reduce hybrid vehicle imports from China by more than half. The agreement aims to address a deficit exceeding €1 billion ($1.12 billion) daily and help Europe's struggling carmakers. Irish Foreign Minister Helen McEntee said dialogue with China could enable efforts to address the imbalance in additional industries and sectors.
China needs overseas customers for relatively inexpensive, state-subsidised products that domestic consumers cannot absorb. The EU faces a choice between accepting those imports to lower living costs and restricting imports to rebuild the bloc's factories. European industry says the export surge, known as China Shock 2.0, is already causing factory closures and job losses, notably 100,000 positions due to disappear at Volkswagen. China has previously said China is a partner in addressing the EU's problems, rather than the underlying cause.
Von der Leyen said this week that concerns about chemicals and machinery were increasing. Lithuania's Foreign Minister Kestutis Budrys said on Friday that pharmaceuticals could also be covered. Ministers did not discuss possible short-term EU measures that could accompany negotiations with Beijing.
Greece's Deputy Foreign Minister Haris Theoharis said years of EU talks with China had produced no results, but results were now emerging. Theoharis urged continued engagement while retaining every option before the trade ministers' meeting. France's junior trade minister Nicolas Forissier said dialogue had become possible because the EU was presenting a united position. Forissier said Chinese authorities respond to clarity, frankness and firmness.
EU Ministers Seek Talks with Beijing to Address Trade Deficit with China
FLASH AIShare
Summary
Altcoins to watch are gaining attention as EU ministers push for trade negotiations with Beijing to curb China’s export dominance in chemicals, machinery, and pharmaceuticals. The EU’s trade deficit with China crossed €370 billion in 2025 and could hit €400 billion in 2026. Trade Commissioner Maros Sefcovic aims to slash Chinese hybrid car imports by over half to tackle a daily deficit above €1 billion. European industry warns of "China Shock 2.0," with job losses and factory closures rising, notably 100,000 at Volkswagen. China insists it is a partner, not the problem. No immediate trade measures were discussed alongside the negotiations, as the fear and greed index among traders remains volatile.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.