China and EU trade envoys seek ways to ease tensions over growing imbalances

HONG KONG (AP) — The top trade envoys for China and the European Union wrapped up two days of talks Friday aimed at calming escalating tensions over growing imbalances between the two giant economies.

China’s commerce ministry said in a statement that both sides had reached “an understanding” on hybrid car trade and agreed to continue exploring the possibility of lower tariffs on some products.

The statement did not specify the details, and the ministry said the two sides would next meet again in January by video conference and then in person in March.

EU trade chief Maros Sefcovic, who traveled to Beijing, said it was crucial that the negotiations deliver “tangible outcomes” in rebalancing trade between China and the 27-nation bloc.

It was unclear, however, if the two sides would find the will to resolve key factors behind China’s growing trade surplus, which hit 360 billion euros ($410 billion) last year.

China is pushing for the EU to stop blocking its imports of advanced computer chipmaking machines, restrictions imposed on national security grounds at Washington's behest.

Sefcovic said the talks this week were the culmination of three months of intensive work. He had set an October deadline for meaningful results on trade rebalancing.

Earlier in the week, the Chinese Commerce Ministry issued a statement urging the EU to avoid protectionist measures, warning that such moves could backfire.

Trade tensions have grown in recent months, with both sides imposing or considering curbs on each other’s imports.

The EU has moved to limit imports of Chinese-made electric vehicles and EV batteries and enacted measures to protect the European steel industry. It also is limiting duty-free imports of e-commerce small parcels, essentially targeting Chinese fast fashion firms.

Last week, China launched an anti-dumping investigation into imports from the EU of p-nitrotoluene, a chemical compound used in dyes and pharmaceuticals.

Chinese officials and businesses have raised concerns over reports some EU members are pushing for new measures to protect local industries.

Worries over surging Chinese exports to Europe and other parts of the world in what some are calling a China shock 2.0 have deepened as the U.S., especially since President Donald Trump returned to the White House, has raised tariffs and enacted other measures to try to reduce its own huge trade deficit with Beijing.

Despite the backlash from some of its trading partners, China's global trade surplus hit $1.2 trillion in 2025 and is forecast to surpass $1 trillion again this year.

The EU's trade deficit with China widened to 103.34 billion euros (about $116 billion) in the April-July quarter, as imports rose to 153.63 billion euros ($172.3 billion), while European exports to China climbed to 50.3 billion euros ($56.4 billion), according to EU statistics.

____

McNeil reported from Brussels and Kurtenbach reported from Mito, Japan. AP journalists Borg Wong in Beijing and Chan Ho-him in Hong Kong contributed