Beijing is waiting! Senior EU official: Restricting imports of Chinese petrol and electric vehicles is only the first step to resolve the imbalance

EU Economic Commissioner Valdis Dombrovskis. (Bloomberg)

[Compiled by Lu Yongshan/Comprehensive Report] "Bloomberg" reported that EU Economic Affairs Commissioner Valdis Dombrovskis said on the 13th that the imbalance of trade between the EU and China is not limited to the automobile industry. The agreement reached by the two sides on restricting the import of Chinese gasoline-electric hybrid vehicles is only the first step in solving the problem.

Dumbrowski said in an interview in Bangkok: "We also need to continue to promote this work in other different fields." However, he did not disclose the industries that may be involved in the next negotiation, nor did he specify the specific time of the follow-up agreement, but said that negotiations with China will continue and the EU will strive to achieve concrete results as soon as possible.

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Dumbrowski pointed out that the EU's trade deficit with China in 2025 will be approximately 360 billion euros (approximately NT$13 trillion), which is equivalent to a deficit of 1 billion euros (approximately NT$36.1 billion) almost every day. This trade relationship is extremely unbalanced and cannot be sustained, and trade balance needs to be re-established.

China and the EU held negotiations in Brussels last week and reached a 16-point consensus covering trade and investment, export controls and intellectual property rights.

A senior EU official said on the 12th that the EU will limit the import of Chinese gasoline-electric hybrid vehicles to 350,000 units per year. The upper limit will be implemented for four years from 2027 and will increase by 6% annually from the second year.

Dumbrowski said the agreement also includes providing more opportunities for European companies to enter the Chinese market.

EU leaders will hold a summit in Brussels on the 15th to discuss the recent proposals put forward by Germany and France to give the EU new powers to exclude products from China or other countries from the EU's single market.

Dumbrowski said that the EU already has many tools available. The trade and investment dialogue aims to find solutions through negotiations. Unilateral actions will put the EU into a more difficult situation. But he also stressed that if rapid progress cannot be made through negotiations, the EU is ready to use trade defense tools if necessary.

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