China, EU Envoys Seek to Ease Tensions 10/09 06:36

   The top trade envoys for China and the European Union were wrapping up two 
days of talks Friday aimed at calming escalating tensions over growing 
imbalances between the two giant economies.

   BEIJING (AP) -- The top trade envoys for China and the European Union were 
wrapping up two days of talks Friday aimed at calming escalating tensions over 
growing imbalances between the two giant economies.

   EU trade chief Maros Sefcovic traveled to Beijing saying 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.