Intensive China-EU Talks Aim to Avoid 'Trade War'

China has urged the European Union to avoid slipping into a "trade war," as economic relations between the two sides grow increasingly tense amid escalating disputes with Beijing, while the European Commission stated it is observing "genuine engagement" from China in trade negotiations.

On Tuesday, European Union Commissioner for Trade and Economic Security, Maroš Šefčovič, said the EU sees "genuine engagement" from China in bilateral trade talks.

Šefčovič told reporters in Brussels: "Of course, what will matter is moving from rhetoric to tangible results, because that is clearly what is expected of me. I need a reliable outcome."

Chinese Foreign Minister Wang Yi said China and the EU must find a way to avoid a trade confrontation as the deadline for resolving their trade disputes approaches.

Wang, during a phone call Monday with his German counterpart, Annalena Baerbock, stated that China and the EU are "comprehensive strategic partners, and should not engage in a trade war with each other," according to a statement issued by Beijing and reported by Bloomberg.

He expressed hope that Germany would maintain a "rational and pragmatic stance" and encourage Brussels to "stay on the right path of open cooperation, dialogue, and consultation."

Tensions Mounting

Wang’s remarks come as trade disputes between China and the EU reach a more sensitive point, while Beijing also faces rising trade tensions with the United States ahead of Chinese President Xi Jinping’s visit to Washington this week to meet his U.S. counterpart, Donald Trump.

The EU and China agreed in June to seek tangible progress on several trade issues by October, establishing a mechanism to monitor trade flows and increase consultations on contentious matters.

Trade negotiations cover China’s growing trade deficit, European companies’ access to the Chinese market, Chinese export restrictions on certain critical materials, intellectual property issues, and reform of World Trade Organization rules.

European Trade Commissioner Maroš Šefčovič said after a prior meeting with Chinese Commerce Minister Wang Wentao that the current situation is "unsustainable," and maintaining the status quo is no longer an option, but he emphasized Brussels’ desire to achieve concrete results through dialogue.

The dispute extends beyond the trade balance. Earlier in September, Šefčovič and Wang discussed Chinese export controls to the EU, European firms’ access to the Chinese market, and restrictions on rare earth exports—issues increasingly tied to European supply chain security and industrial capacity.

EU leaders are scheduled to meet on October 15 to discuss trade relations with China, the trade deficit, and tools the bloc could use to respond to what it views as unfair trade practices.

Expanding Trade Deficit

China’s widening trade gap is one of the EU’s primary concerns. The EU’s goods trade deficit with China reached €359.9 billion in 2025, according to European Commission data.

European Commission President Ursula von der Leyen warned in her State of the Union address on September 16 that the EU’s trade deficit with China amounts to nearly €1 billion per day, calling it "a turning point."

She said: "Let me be clear: we will use all available tools to rebalance our relationship," adding that "words are good, but actions are better."

She also cautioned against Europe’s heavy reliance on China for critical raw materials, noting the bloc depends on China for over 80% of some such materials and nearly 90% of certain rare earth metals.