The European Union's industry chief has described the bloc's trade imbalance with China as an "existential" challenge, warning that failure to rebalance could cost hundreds of thousands more jobs. In an interview with Euronews, Stéphane Séjourné, the Commission's Executive Vice-President for Prosperity and Industrial Strategy, stressed the urgency of the situation.
Customs data from July show the EU's trade deficit with China running at more than €1 billion per day, a figure Séjourné called "unsustainable." He noted that the bloc lost 250,000 industrial jobs last year, particularly in energy-intensive sectors and automotive supply chains, and that the trend is continuing.
"Today we're losing thousands of jobs every week," Séjourné said on The Europe Conversation. "It's urgent that we act, and urgent that we rebalance."
Negotiations with Beijing
Brussels and Beijing opened formal talks in June, with an October deadline for concrete results. EU Trade Commissioner Maroš Šefčovič is due in the Chinese capital on 8–9 October to press for commitments from Beijing to curb its exports to the EU.
"The European Commission has put forward a proposal to the Chinese side to discuss this sector by sector and look at how we can rebalance things," Séjourné explained. "This imbalance isn't sustainable, not for China or for the EU."
So far, however, Beijing has resisted calls for voluntary export restraints. Séjourné insisted that negotiation will be given a chance, but he made clear that the Commission is prepared to act if talks fail.
"Trade defence tools are on the table," he warned. "Today we need credibility in how we use these tools, and we won't hesitate to use them to rebalance things."
Those tools include anti-dumping duties and countervailing tariffs on goods such as electric vehicles and solar panels, where Chinese state subsidies have been a long-standing concern for European manufacturers.
Rare earths and the risk of retaliation
Brussels is walking a tightrope, however. Chinese retaliation could restrict exports of rare earths, which are vital to several EU industries, including defence. The bloc is also watching the upcoming summit between US President Donald Trump and Chinese President Xi Jinping, which begins this week in the United States.
"We need a constructive dialogue between China and the United States," Séjourné said. "As we saw last year, the trade escalation between Washington and Beijing on these issues could spark a trade war, one that could even affect the European economy."
Last year's tit-for-tat tariff war saw the US impose duties of up to 145% on Chinese goods, with Beijing retaliating at 125%. For Europe, such a conflict is particularly damaging because high US tariffs divert Chinese exports towards the EU market, flooding it with cheap goods.
The trade truce between Washington and Beijing is due to expire on 10 November, adding urgency to the talks. The outcome could have direct implications for Europe's economic interests, as Séjourné noted.
Meanwhile, the EU is also pursuing other trade agreements, such as the recent pact with the Philippines, as part of a broader strategy to diversify its economic partnerships. But the China relationship remains the most pressing challenge, with Séjourné calling it a matter of survival for European industry.
