EU Trade Chief Heads to Beijing for High-Stakes Talks to Avoid Trade War

European Union trade chief Maros Sefcovic will travel to Beijing on Thursday for two days of talks with Chinese officials as Brussels seeks to ease growing trade tensions and prevent a wider confrontation between the two sides.

The meetings come as the EU takes a tougher position on Chinese competition, particularly in industries such as automobiles, machinery, metals and chemicals. European officials have raised concerns that a growing flow of Chinese goods into the bloc is putting pressure on domestic manufacturers.

EU leaders and trade experts have increasingly referred to the risk of a “China Shock 2.0”, describing the expansion of Chinese companies into higher-value and more advanced manufacturing. The term recalls the early 2000s, when cheaper Chinese exports contributed to significant pressure on manufacturers in Europe and other parts of the world.

EU and Chinese officials have been negotiating since June to address Brussels’ concerns over the trade imbalance. The EU is also preparing additional trade defense measures, while Beijing has warned that it could retaliate against actions aimed at Chinese companies.

Sefcovic increased expectations for this week’s talks during the summer by saying the EU wanted to see “tangible results by October”. Analysts, however, have cautioned that a major agreement is unlikely.

“There may be a few crumbs, but I would not expect any kind of major breakthrough,” said Penny Naas, director of the Brussels office of the German Marshall Fund of the United States.

Zhu Tian, a professor of economics at the China Europe International Business School in Shanghai, said the two sides could reach agreements on individual issues rather than settle their broader trade relationship.

A central EU objective is to reduce its trade deficit with China, which reached about 360 billion euros in 2025. The bloc is seeking to limit sudden increases in Chinese exports, particularly in sensitive industries, while also expanding European exports to China.

Brussels also wants a system for licensing Chinese exports of rare earths and other products. China introduced restrictions on some such exports last year, raising concerns among European manufacturers over access to key materials.

The EU is considering voluntary limits on some Chinese exports, including hybrid vehicles, although Beijing strongly opposes import quotas.

European officials are also preparing new trade instruments that could be presented to EU leaders in December. France and several other member states have supported a European version of the US Section 301 mechanism, which allows Washington to investigate foreign trade practices and impose measures in response.

China has already warned it would respond to what it considers discriminatory restrictions. Beijing previously imposed duties on European cognac and launched trade investigations into European pork and dairy products.

The EU is also working on financial support to help companies diversify suppliers in critical industries, reflecting growing concern over dependence on Chinese imports.

Germany remains cautious because of its deep economic ties with China, although Berlin has become increasingly concerned about Chinese industrial overcapacity and its impact on Germany’s export-driven economy.