EU and China Race to Fix Trade as US Buys Only 2 Months of Peace
Brussels and Beijing hold urgent talks in the Chinese capital as Germany and France demand tougher trade defenses, while Washington and Beijing extend their tariff truce by just two months.
EU Trade Commissioner Maros Sefcovic met Chinese officials in Beijing on Thursday, with both sides saying they are working hard to rebalance trade between the European Union and China [257771]. The talks focused on reducing the EU's large trade deficit with China, though no new agreements were announced [257771].
The negotiations come as Germany and France, the EU's two largest economies, jointly called for stronger EU trade protections. German Chancellor Friedrich Merz and French President Emmanuel Macron made the call in an open letter, warning that the global trade system faces serious threats including the "weaponisation of trade," market-distorting practices, and global economic imbalances [255291].
The push for tougher measures reflects growing European concerns as negotiators prepared for critical talks this week, with a potential trade war looming over the discussions [255291].
Across the Pacific, the United States and China produced a limited result from their recent summit: a two-month extension of the Kuala Lumpur trade truce, which now ends on January 10 next year [255293]. This delay eases fears of immediate tariff increases and shows that talks between heads of state can still slow down a worsening confrontation [255293].
However, the short timeline reveals the deep gap between the two sides' priorities. China has made its position clear: it wants all punitive tariffs and restrictive measures removed [255293].