Sefcovic in Beijing: Pressure on 'Untenable' Trade Deficit

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The economic relations between the EU and China have been tense for months - and EU Trade Commissioner Maros Sefcovic is flying personally to Beijing to change that. On Thursday afternoon (local time), he is meeting China's Trade Minister Wang Wentao there.

The focus, according to matching agency reports, is a growing problem: the EU's high trade deficit with China. Sefcovic has called it "untenable." Brussels reportedly wants to convince Beijing to voluntarily limit Chinese exports to Europe.

What this means for you: What comes out of this meeting will, in the medium term, impact prices, supply chains, and competition in the European single market - whether as cheaper shelves or as pressure on domestic manufacturers.

What Sefcovic specifically plans in Beijing

According to Tagesschau, Sefcovic wants to try to resolve the trade dispute in the talks. The agenda, according to Ad-hoc-news, includes two points: reducing the trade deficit and better market access for European companies in China. Yahoo Finance sums up the direction like this:

The EU wants to convince China to voluntarily limit its exports to Europe, because the trade deficit is growing and cheap Chinese providers are crowding out European competitors from the market.

Why the deficit puts Brussels under pressure

China has for years exported significantly more to the EU than vice versa. The consequences go in opposite directions: on the one hand, cheaper goods on the shelves, on the other hand, growing pressure on European manufacturers competing with cheap imports. According to n-tv, Sefcovic is pushing for progress against this "untenable" deficit.

How China is positioning itself

The Chinese side, according to available reports, presents itself as open to talks. China is "banking on dialogue," MSN, Stern, and GA.de write in agreement, citing dpa. Concrete commitments to reduce the deficit are not yet discernible from the available sources - the negotiations have only been underway since Thursday.

Eva Lamby-Schmitt prepared the background for Tagesschau.