Phoenix 24
Brussels is demanding measurable progress before escalating its economic response.
BRUSSELS, BELGIUM
The European Union has warned China that it must present concrete proposals by October to reduce the growing bilateral trade imbalance or face tougher European measures. Trade Commissioner Maroš Šefčovič said the negotiations have become a political test of whether dialogue can protect European industry from subsidised competition and increasingly restricted access to the Chinese market.
Brussels and Beijing agreed to an intensive consultation period after China’s trade surplus with the EU reached record levels. Every EU member state currently records a goods deficit with China, while the bloc’s quarterly deficit increased to approximately €103 billion in the second quarter of 2026. European officials attribute much of the imbalance to Chinese industrial subsidies, excess production capacity and barriers encountered by European companies operating in China.
Šefčovič is expected to hold a video conference with Chinese Commerce Minister Wang Wentao in mid-September before travelling to China in October. Brussels recognises that a comprehensive agreement cannot be completed within that period, but it expects at least a credible framework showing how Beijing intends to increase European market access and address distortions in sensitive sectors.
The Commission has not specified which measures it would adopt if negotiations fail. Available instruments include anti-subsidy investigations, tariffs, import restrictions and safeguards protecting strategic industries. Brussels is also developing a diversification mechanism intended to reduce excessive dependence on China. Automobiles, medical devices and agricultural products are among the sectors receiving particular attention.
Describing the deadline as an ultimatum may overstate its legal character because China has not been presented with a formal sanctions package. It nevertheless represents unmistakable political pressure. The EU is attempting to preserve commercial engagement while demonstrating that unrestricted access to its market cannot continue without greater reciprocity. A confrontation could provoke Chinese retaliation against European exports, but continued inaction could accelerate industrial decline and deepen strategic dependence.
Detrás de cada dato, la intención. / Behind every data point, the intention.