China and EU strengthen trade talks amid US tariff threats

[WORLD] China and the European Union have discussed strengthening economic and trade cooperation in response to US tariffs, the Chinese Commerce Ministry said on Thursday. In a video conversation on Tuesday, China's Commerce Minister Wang Wentao addressed with European Trade and Economic Security Commissioner Maros Sefcovic the resumption of trade talks and the early commencement of negotiations on electric vehicle price promises, according to a Chinese ministry statement.

The discussions between China and the EU come at a critical juncture, as global trade tensions escalate amid shifting geopolitical dynamics. Both sides have expressed mutual concerns over the potential ripple effects of U.S. trade policies, which could disrupt supply chains and inflate costs for businesses and consumers. Analysts suggest that closer Sino-EU collaboration could serve as a counterbalance to unilateral tariff measures, fostering a more stable trade environment.

The chat occurred soon before US President Donald Trump's extra tariffs on China went into force. In a surprise turnaround, Trump announced on Wednesday that he would temporarily drop the high tariffs he had just imposed on dozens of countries. He, however, increased pressure on China, threatening to hike tariffs on the world's second largest economy to 125%.

The U.S. tariff threats have intensified scrutiny over China's export strategies, particularly in high-growth sectors like electric vehicles, solar panels, and semiconductors. European policymakers, while wary of China's industrial subsidies, are also cautious about aligning too closely with U.S. trade measures that could harm their own economies. This delicate balancing act underscores the complexity of trilateral trade relations between the U.S., EU, and China.

Wang told Sefcovic that China is willing to expand trade, investment, and industrial cooperation with the European Union. Wang urged China and the EU to work together to protect the rules-based multilateral trading system and promote trade liberalization and facilitation, which "will inject more stability and certainty into the world economy and global trade," according to a ministry statement.

Recent data shows that China remains the EU's largest trading partner for goods, with bilateral trade exceeding €2.3 billion daily. However, the EU's growing trade deficit with China has fueled debates within Brussels about the need for stronger defensive measures. The resumption of talks on electric vehicle pricing signals a potential compromise, but experts warn that long-term solutions will require addressing structural imbalances in market access and intellectual property protections.

China and the EU also discussed improving the business environment for firms and trade transfer challenges. According to the ministry statement, they would continue to increase communication within the framework of the World Trade Organization and work together to advance WTO reform.

At the end of October, the EU levied additional duties of up to 35.3% on China-made electric vehicles as part of an anti-subsidy inquiry, in addition to the bloc's usual 10% car import tariff.

The provisional EU tariffs on Chinese EVs have drawn mixed reactions, with German automakers—who rely heavily on the Chinese market—voicing concerns over retaliatory measures. Meanwhile, French and Italian manufacturers have largely supported the move, citing unfair competition from subsidized Chinese imports. The outcome of the ongoing negotiations could set a precedent for how the EU navigates its economic ties with China amid rising protectionist trends globally.

The trade ministry announced last week that the two sides had agreed to reopen negotiations on minimum price guarantees for Chinese EVs, but did not indicate when they would resume.