Brief
EU trade envoy Maroš Šefčovič heads to Beijing to tackle $1 bn‑daily deficit with China
The EU aims to narrow a daily €1 billion deficit as lawmakers push for tougher measures against Chinese subsidies.
By Felo News Desk · Published
The European Union’s top trade envoy, Maroš Šefčovič, is traveling to Beijing on Thursday for a two‑day meeting with Chinese Commerce Minister Wang Wentao, seeking to reduce the bloc’s daily €1 billion trade deficit with China, Fortune reported.
What happened
Šefčovič’s visit follows a European Parliament resolution passed on Wednesday, 454‑86, calling for “economic reciprocity” and a proportionate EU response if China does not open its markets. The resolution was driven by concerns that Chinese subsidies and low‑cost exports threaten core EU industries such as steel and automotive manufacturing.
What the reports add
Fortune notes that the EU’s deficit with China totals €360 billion ($410 billion) annually, and that earlier this year the Commission gave Beijing an October deadline to produce “meaningful results.” The article also cites a letter seen by the Associated Press in which France and Germany propose a sweeping rethink of EU‑China policy, including easier use of the bloc’s “trade bazooka,” formally known as the Anti‑Coercion Instrument. While France’s high‑commission plan calls for 30% tariffs on many Chinese goods and a euro devaluation, Spain’s Prime Minister Pedro Sanchez has taken a more conciliatory stance, having visited Beijing four times in three years.
What was said
Hilde Vautmans, the Belgian lawmaker who led the parliamentary resolution, told Fortune, “Europe has economic power, it’s time we used it.” The article also references a French‑German letter urging the Commission to deploy the Anti‑Coercion Instrument, though no direct quotation is provided.
How it came about
EU officials have already taken steps against Chinese steel imports and e‑commerce parcels. Earlier this week, the European Parliament debated the China issue in Strasbourg, and the Commission’s trade chief arrived in Beijing for talks on the deficit and rare‑earth curbs, as covered in Felo’s article EU trade chief arrives in Beijing for talks on deficit and rare‑earth curbs. The current mission builds on those discussions and on ongoing concerns about Chinese hybrid‑car exports, which the EU has asked China to curb voluntarily.
Key facts
- EU daily trade deficit with China exceeds €1 billion. (fortune.com)
- Maroš Šefčovič will meet Wang Wentao in Beijing on Thursday and Friday. (fortune.com)
- European Parliament voted 454‑86 for a resolution demanding economic reciprocity with China. (fortune.com)
- France and Germany propose using the EU’s Anti‑Coercion Instrument, dubbed a ‘trade bazooka.’ (fortune.com)
- Spain’s Pedro Sanchez has visited Beijing four times in three years, showing a less adversarial stance. (fortune.com)
Sources
- [1] fortune.com — originally reported as “France and Germany float 'trade bazooka' against China as the EU sends envoy to Beijing”
