Brussels is pressing Beijing to accept quotas on Chinese exports as negotiations enter their final stretch, with the EU threatening trade measures unless tangible progress is made by next month.
Brussels and Beijing are fighting over quotas that would limit Chinese imports to the EU market, as the Europeans seek to rebalance their trade relationship with China, Euronews has learned.
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Both started intense negotiations last June over EU and Chinese access to each other’s markets, with an October deadline set by the European Commission to reach "tanglible" results. However, China is pushing hard against the EU's attempts to protect its market.
According to one person familiar with the matter, the Commission, which is negotiating on behalf of the 27 EU countries on trade issues, wants China to accept quotas on specific products.
However, it is unclear how China would accept and respect such quotas.
Trade defence mechanisms delayed
According to media reports, so-called “voluntary export restrictions” have been pushed by the Commission for electric vehicles. But Beijing’s trade minister rejected them in a statement earlier this month.
If China accepted such a system of restrictions, it would mean that it voluntarily limits its exports to the EU on the basis of a deal negotiated with the Commission, sparing the EU from adopting defensive trade measures that might be seen as an aggressive move by China.
Technical negotiations are in their final stretch as the October deadline is approaching.
Director General of DG Trade at the Commission, Ditte Juul Jørgensen, travelled to China last week for two days of heated discussions, and EU Trade Commissioner Maroš Šefčovič is due to be in Beijing on 8 and 9 October for political talks, ahead of a key meeting of EU leaders in Brussels.
To give negotiations a chance, the Commission has delayed the adoption of trade defence mechanisms aiming to protect the EU chemical industry, according to another person familiar with the matter. The chemical industry is one of the sectors most threatened by Chinese competition in the EU.
However, the threat also targets other sectors, making the rebalancing of the trade relationship “existential” for the Europeans, EU Industry and Trade Commissioner Stéphane Séjourné told Euronews last week.
According to the Commission, the EU already lost 250,000 industrial jobs last year, particularly concentrated in energy-intensive sectors and automotive supply chains.