Brussels,BeijingSetFrameworkforStrainedTradeTies

China and the European Union agreed to create a new ministerial trade and investment consultation mechanism, opening a structured channel to manage disputes over market access, export controls and a widening trade imbalance.

Chinese Commerce Minister Wang Wentao and European Commission trade and economic security chief Maroš Šefčovič chaired the first meeting at EU headquarters in Brussels on Monday and issued a joint statement afterward.

The initiative reflects a push by both sides to prevent commercial tensions from escalating as the EU grows more vocal about its trade deficit with China and Beijing complains that European restrictions are disrupting normal business ties.

The mechanism will cover four areas: trade and investment balance, export controls, intellectual property and World Trade Organization reform. The two sides also agreed to set up a joint monitoring system to exchange trade data, track trade flows and identify sudden import or export surges.

Šefčovič told European media after the meeting that Brussels could not accept an “unsustainable” rise in the deficit and wanted concrete results before his planned visit to China in October. He said a roadmap of expected outcomes would be released in the coming days, with an initial progress review expected in September.

The two sides exchanged lists of market-access concerns and agreed to seek gradual solutions, including possible tariff and non-tariff steps. They also said they would deepen discussions on export controls, including rare earths, other critical raw materials and minerals, while taking further facilitation measures to help keep global supply chains stable.

Wang raised concerns about EU measures including restrictions related to inverter financing, proposed revisions to the Cybersecurity Act and the Industrial Accelerator Act. He said China was not the source of Europe’s problems but a partner in solving them, and urged Brussels to avoid steps that could intensify trade friction.

Šefčovič said China remained a key economic and trade partner for the EU and that the bloc did not want to expand disputes. But he said trade balance was a central concern and that engagement had to produce tangible outcomes.

According to Eurostat figures cited in the discussions, China’s exports to the EU exceed EU exports to China by about 1 billion euros ($1.2 billion) a day. In 2025, the EU exported 199.6 billion euros in goods and services to China and imported 559.4 billion euros, leaving a deficit of 359.9 billion euros.

The joint statement said both sides saw value in closer cooperation on WTO reform and in using the existing EU-China intellectual property working group to address systemic issues and improve the efficiency, fairness and transparency of IP protection and enforcement.

Officials were instructed to continue work under the four tracks and prepare for the next ministerial meeting, which the two sides agreed to hold in autumn 2026.

Contact editor Han Wei (weihan@caixin.com)