EU and China Prepare for Beijing Talks as Trade Tensions Rise

The dispute centres on European concerns that Chinese imports are putting key industries under growing pressure. The EU has toughened its stance to defend businesses against what it considers unfair competition, including in cars, according to World News CNA.

The pressure extends beyond established manufacturing sectors. Japan Times reported that Chinese firms moving into more high-tech manufacturing are threatening traditional EU industries. The Beijing talks are an attempt to address those tensions before they turn into a wider trade war.

On October 5, Arab News reported that EU trade chief Maros Sefcovic would travel to Beijing for two days of meetings with Chinese officials. The negotiations were presented as an effort to stave off a trade war.

That same day, France and Germany called for a new EU trade instrument to respond more quickly to market distortions. Euronews reported that their proposals also included retaliation planning and an overhaul of trade defence tools. According to South China Morning Post, the proposed instrument could cut off access to the EU market when third countries cause severe distortions.

On October 6, China pushed back. Its commerce ministry urged France and Germany to uphold openness, cooperation and free trade, according to World News CNA. Beijing characterised the proposed tools as protectionist.

By October 7, the focus had sharpened on what negotiators could deliver. The Guardian News reported that EU negotiators were seeking to curb cheap imports of hybrid electric cars, while member states were hardening their demands for protection against Chinese imports.

Expectations were nevertheless restrained. Le Monde reported on October 7 that Paris and Berlin were anticipating limited results from the October 8 and 9 talks and beginning to prepare for what would follow.

As of October 7, the talks remain ahead, not concluded. South China Morning Post reported that EU negotiators were departing for Beijing on Wednesday, with expectations in Brussels measured about what two days of intensive negotiations would produce.

The EU is weighing tougher measures while still pursuing negotiations. Euronews reported that Brussels had yet to find a way to curb Chinese imports and that EU leaders were demanding results. France and Germany's proposed tools are proposals, not measures reported as adopted in the supplied coverage.

The immediate test is whether the October 8 and 9 meetings produce concrete progress on the trade relationship, including the concerns over hybrid electric car imports reported by The Guardian News.

The next decision is how the EU responds if progress is limited. Le Monde reported that Paris and Berlin want existing trade defence instruments used more extensively and strengthened. Their preparations for the period after the talks make that policy response another development to watch.