A first step, but no real rebalancing in the European Union’s trade deal with China

Bruegel's Alicia García-Herrero writes that Trade Commissioner Maroš Šefčovič returned from the 8-9 October EU-China Trade and Investment Consultations in Beijing with three 'shared understandings'[2]. It notes, however, that Europe's bilateral trade deficit with China is €360 billion, and Chinese automotive exports to the EU are worth around €15 billion.[2]The think tank says China's lower tariffs on car parts, olive oil and footwear, saving some €225 million in duties[2], are also small next to the deficit. It adds that a rare-earth "green channel" does not guarantee the provision of rare earths when needed[1].Bruegel argues that China's main interest is preventing the European Council from implementing its trade tools[1]. It also writes that Beijing secured a technical dialogue on the EU Foreign Subsidies Regulation[2]. One EU official told the outlet that it is "quite a good deal, but I am afraid it might create relaxation at the European Council"[3].Šefčovic himself called the deal "a crucial first step, but only a first step in the process of rebalancing,"[4] EU Perspectives reports.According to Euronews, Šefčovič is due to hold a video call with his Chinese counterpart in January, followed by another round of political talks in March.[3]