▲ Maros Sefcovic, European Commission Executive Vice-President for Trade and Economic Security
The European Union (EU) and China, which have been escalating their confrontation over trade imbalances, have set October as the deadline to resolve their differences.
Maros Sefcovic, the EU's Executive Vice-President for Trade and Economic Security, and Chinese Minister of Commerce Wang Wentao met in Brussels, Belgium, on June 29 (local time) and reached this agreement during the first EU-China Trade and Investment Mechanism meeting.
The two sides have decided to enter into three months of intensive trade negotiations to avoid an imminent trade war.
In a joint statement following the meeting, the EU and China stated, "Both sides noted the importance of properly addressing challenges affecting bilateral economic and trade relations and agreed to seek practical and feasible solutions."
The joint statement included an agreement to focus working-level discussions on four key areas: trade and investment balance, export controls, intellectual property rights, and World Trade Organization (WTO) reform. They also agreed to hold another ministerial-level meeting this autumn.
Both sides agreed to enhance transparency, foster mutual trust, establish a joint monitoring system to manage and control trade frictions, and exchange trade data.
Furthermore, based on the recognition that expanding market access contributes to balanced trade, they exchanged lists of requirements regarding tariffs, non-tariff measures, and market entry.
The joint statement added that they also shared views on the need to strengthen dialogue on export controls for critical raw materials such as rare earths, the necessity for substantive progress in WTO reform to enhance the organization's authority and effectiveness, and the need to improve the efficiency of intellectual property protection and law enforcement.
The meeting between Sefcovic and Minister Wang took place at a time when the EU, which is running a massive trade deficit with China, is attempting to raise trade barriers, while China has vowed to retaliate, deepening the rift between the two.
After the meeting, Sefcovic told reporters, "Not all problems will be solved or corrected," but added, "Between now and October, there is enough time for our working teams to produce concrete results (in negotiations with China)."
This remark reflects the expectation that a solution to at least partially address the growing trade imbalance with China can be prepared by that time.
China has invited Sefcovic to Beijing this October.
Sefcovic further emphasized, "China's exports to the EU market continue to grow, while our market share in China continues to shrink," adding, "This trend is not sustainable, and maintaining the status quo is not an option."
However, he positively assessed the fact that China provided assurances that its export controls on rare earths would not disrupt the EU's supply chain.
Last year, the EU recorded a deficit of 360 billion euros (approximately 634 trillion won) in goods trade with China, a 15% increase from the previous year.
With the deficit in trade with China accumulating at a rate of 1 billion euros (approximately 1.7 trillion won) per day, voices within the EU calling for an urgent resolution to the trade imbalance have grown louder recently.
(Photo: AP, Yonhap News)
※
Copying, redistribution, and unauthorized use in AI training are strictly prohibited.