EU vows to fix 'China Shock 2.0' via talks with Beijing
SPY•EU ministers said the bloc should focus on dialogue with Beijing to curb imports and rein in a goods trade deficit exceeding €1 billion a day. An investigation into safeguards for plastics appears closest to launch, Trade Commissioner Maros Sefcovic said.
1. Dialogue with Beijing
EU ministers said the bloc should prioritize dialogue with Beijing on imports of products including chemicals and machinery. Irish Foreign Minister Helen McEntee said all EU members wanted the European Commission to continue talks, while existing trade-defence tools could also be used to address imbalances.
2. Plastics measures considered
Sefcovic said an investigation into safeguards for plastics appeared to be the next to launch, though officials were still checking whether requirements were met. The potential measures relate to imports of PET, a plastic widely used in packaging.
3. Trade deficit grows
The EU's goods trade deficit with China exceeded €370 billion in 2025 and was on course to surpass €400 billion this year. Earlier this month, Sefcovic agreed with Beijing to cut EU imports of hybrid vehicles from China by more than half. European industry says rising imports are contributing to factory closures and job losses, including 100,000 positions set to go at Volkswagen.
