China signals willingness to reduce EU trade surplus amid escalating tensions

During talks in Brussels this week, Chinese Commerce Minister Wang Wentao indicated to EU trade chief Maros Sefcovic that China is open to exploring ways to reduce its massive trade surplus with the European Union. Beijing is considering purchase agreements for European goods and lowering tariffs on EU-made products, marking a rare acknowledgment that the surplus—amounting to a billion euros per day—has become a political issue. Surprisingly, China is also open to slowing its export surge to the 27-member bloc, which has sparked fears of European manufacturers being undercut by cheap, high-quality Chinese goods. However, Wang expressed more enthusiasm for increasing imports from Europe. Publicly, Beijing has downplayed the trade gap, attributing it to market demand. In previous meetings, Chinese officials cited Dutch export controls on semiconductor-making machines as an obstacle to rebalancing trade. The EU is weighing new trade tools and pressing for tangible progress by October.