China, EU navigate path between trade balance, protectionism

China and the European Union held high-level talks in Beijing in October 2026 to address a massive merchandise trade deficit and growing protectionist measures on both sides.

EU trade chief Maros Šefčovič and Chinese Commerce Minister Wang Wentao reached a preliminary understanding covering seven specific tariff lines for hybrid and plug-in hybrid vehicles, aimed at curbing surging Chinese hybrid imports after earlier EV tariffs. Both sides agreed to continue ministerial-level talks, with a video conference scheduled for January 2027 and a full ministerial meeting planned for March 2027.