BRUSSELS, October 8 The story begins with Maroš Šefčovič, the European Union’s top trade envoy, preparing to fly to Beijing for a two-day meeting with Chinese Commerce Minister Wang Wentao. This comes as the EU’s trade deficit with China has grown to exceed $1 billion per day, deepening economic anxiety across the 27-nation bloc. At its heart, the visit is an effort to address a widening imbalance that has now reached 360 billion euros, or approximately $410 billion, in the most recent reporting period.
What unfolded earlier in the year was Šefčovič setting an October deadline for China to deliver meaningful progress on reducing the trade gap. That deadline is now upon us, and the pressure is mounting.
In a European Parliament debate in Strasbourg, lawmakers voiced widespread concern over the consequences for European industry, particularly in steel, automotive, and manufacturing sectors where job losses are feared.
The debate culminated in a vote of 454 to 86 on a resolution calling for ‘economic reciprocity and a proportionate EU response if China does not open its markets.’ Belgian MEP Hilde Vautmans, who led the resolution, declared that ‘Europe has economic power, it’s time we used it.’ Her words reflected a growing consensus among legislators that stronger action may be needed to counter what they see as unfair trade practices. Despite this unity in Parliament, the EU’s ability or willingness to enforce stronger measures remains uncertain.
The bloc has already taken steps, implementing trade measures against Chinese steel imports and e-commerce small parcels. Meanwhile, France’s High Commission for Strategy and Planning previously recommended swift action, including 30% tariffs on many Chinese exports and a euro devaluation against the yuan — though it is unclear if such steps will be adopted. On the ground, German automakers have reported declining sales in China, while Chinese state-subsidized exports threaten to undercut European competitors on price.
This pressure has contributed to mass layoffs at major manufacturers like Volkswagen, illustrating the real-world stakes of the imbalance. The EU’s approach reflects a broader strategic shift, as China has redirected exports to Europe and other markets following tariff increases imposed by the United States. Looking ahead, all eyes will be on the talks in Beijing to see whether China agrees to meaningful concessions that could ease the deficit.
If no progress is made, the EU may face renewed pressure to adopt more assertive trade policies, even as internal divisions persist over how far to go. The outcome could shape not only economic relations but also industrial policy and employment prospects across the continent for months to come.
