According to a report by European News Network on September 28th, as negotiations enter their final stage, the EU is pressuring Beijing to set quotas for Chinese exported goods. It has also threatened that if no substantial progress is made by next month, trade measures will be taken.
While seeking to rebalance trade relations with China within the EU, Brussels and Beijing are engaged in negotiations over quotas for restricting Chinese goods from entering the EU market.
Since June this year, both sides have been conducting intensive negotiations regarding the entry of the EU and China into each other's markets. The European Commission has set October as the deadline, demanding "substantial" results by then. However, China strongly opposes the EU's "protectionist" measures.
A source familiar with the matter revealed that the European Commission, which conducts trade negotiations on behalf of the 27 member states of the EU, hopes for China to accept export quotas set for specific products.
The European Commission has been trying to introduce so-called 'voluntary export restrictions' for electric vehicles. However, earlier this month, the Chinese Ministry of Commerce issued a statement rejecting this proposal.
According to reports, if China accepts this restriction mechanism, it means that under the agreement reached with the European Commission, there will be voluntary restrictions on exports to the EU. In this way, the EU does not need to take trade defense measures that might be seen as aggressive by China.
As the October deadline approaches, the technical negotiations have entered a final stage.
The Director General of the EU Commission's Trade Department, Ditte Juul Jørgensen, visited China last week for two intensive days of negotiations. EU Trade Commissioner Maroš Šefčovič will visit Beijing from October 8th to 9th to hold political-level discussions. After that, EU leaders will hold an important meeting in Brussels.
Another source familiar with the situation revealed that in order to give negotiations some leeway, the European Commission has postponed the implementation of trade defense measures aimed at protecting the EU's chemical industry. The chemical industry is one of the sectors in the EU most affected by Chinese competition.
However, this competitive pressure also affects other industries. European Union Industry and Trade Commissioner Stéphane Séjourné said in an interview with Euronews last week that rebalancing trade relations with China has become a “survival issue” for Europe.
According to the European Commission, the EU lost 250,000 industrial jobs last year, mainly in energy-intensive industries and the automotive supply chain.
The Chinese Ministry of Commerce stated that such voluntary export restrictions seriously violate WTO rules and go against the principles of market economy and fair competition. China firmly opposes this. China's position is consistent. Any solution between China and Europe must ensure a balance of interests, comply with WTO rules and domestic laws, and fully take into account the interests of both parties' industries.
