EU Weighs Tough Trade Measures Against China as Deficit Fuels Alarm

The European Union's trade envoy is meeting Chinese officials in Beijing as the bloc seeks to reduce a 360 billion euro trade deficit with China. France and Germany have proposed making it easier to use the EU's Anti-Coercion Instrument, a never-used tool for restricting trade and investment. European lawmakers voted 454 to 86 for a resolution demanding economic reciprocity and a proportionate response if China does not open its markets.

Maroš Šefčovič, the European Commission’s lead trade official, is set to meet China’s commerce minister, Wang Wentao, in Beijing for two days. They aim to reduce a 360 billion euro deficit; Šefčovič had earlier given Beijing an October deadline to show progress.

European Parliament members backed a resolution 454 to 86, seeking reciprocal access and a proportionate EU answer if China keeps markets closed. France and Germany have urged easier use of the Anti-Coercion Instrument, an unused mechanism to limit trade and investment. Spain has taken a less confrontational line, while an unusual alliance of far-right and left-wing legislators opposed the resolution.