EU trade chief Maros Sefcovic arrives in Beijing to confront China's 'unsustainable' billion-euro-a-day deficit

From the Newshound archive · first published 8 October 2026 · last updated 9 October 2026.

European Commissioner for Trade Maros Sefcovic has begun two days of talks in Beijing with Chinese commerce minister Wang Wentao, warning that the EU's trade deficit with China — worth roughly a billion euros every day — is 'unsustainable'. European industry groups are calling for urgent action, while Macron and Merz have jointly demanded a 'credible instrument' to hit back fast if negotiations fail. Brussels is weighing measures that could shut Chinese firms out of the European market within 24 hours if talks collapse.

China's foreign ministry warned Europe that 'industrial and supply chains are highly integrated', hinting Beijing could weaponise its rare earths monopoly.

Beijing issued a blunt defiance over the threat of a trade war: 'Let them try.'

The EU is pressing China to moderate its flood of hyper-competitively priced exports in sectors from cars to chemicals, accusing Beijing of state subsidies and price dumping.