Notably, both parties assess the causes of their trade issues differently. The European Union sees the rapidly growing trade deficit with China as one of the biggest bottlenecks and wants to see visible changes in this area over the next three months.
Kilos and Euros
China, on the other hand, emphasizes that a trade relationship cannot be evaluated solely based on a deficit in goods trade. According to Chinese experts, that approach does not provide a full picture of the economic relationship between the two parties. Trade relations are more than just kilos and euros, the Chinese trade delegation conveyed to the Europeans.
A Broader Package
To give the talks a structured framework, the European Union and China have established the Trade and Investment Consultations. The agenda for these talks is broad. In addition to the trade balance, both parties discuss investments, export controls, intellectual property protection, and World Trade Organization reforms. Through this, they aim to tackle several sensitive dossiers simultaneously.
Promotion
Registration
Furthermore, the European Union and China have agreed to immediately set up a joint (registration) mechanism to monitor trade flows between the two economies. This system should make unexpected changes in imports and exports more quickly visible so they can be discussed and addressed.
Improvements
For the European Union, it is crucial that European companies and employment are protected when imports of Chinese products suddenly increase sharply. Brussels expects that the new talks will lead not only to discussions but also to concrete improvements.
European Trade Commissioner Maros Sefcovic wants to be able to determine by October at the latest whether tangible progress has been made in reducing the current imbalances. At that point, it should become clear if the new discussions yield more than previous talks between the two parties.
Consultation Model
Despite ongoing disagreements, the European Union and China have chosen to continue talks rather than further escalate. Both parties express the ambition to make the trade relationship more stable and balanced, although they still clearly differ in opinion on how the existing trade issues should be assessed and resolved.