EU and China trade chiefs meet in Paris to avert trade war

EU trade chief Maros Sefcovic is set to meet China’s international trade envoy, Li Chenggang, in Paris on Thursday in a bid to de-escalate tensions that have pushed the two economies to the brink of a trade war. The talks will occur on the sidelines of an Organisation for Economic Co-operation and Development (OECD) ministerial meeting, setting the stage for intensified engagement ahead of Chinese Commerce Minister Wang Wentao’s visit to Brussels on June 28-29. EU sources indicated both sides aim to establish a new platform for discussing trade and investment issues, even as Brussels prepares a more hardline stance on Chinese economic practices.

The EU has been working to streamline its dialogue with China, consolidating an estimated 60 existing working groups into a more manageable single consultation mechanism. On Saturday, China’s Ministry of Commerce confirmed discussions around a “trade and investment consultation mechanism.” Adding to the diplomatic momentum, China’s Vice-Commerce Minister Ling Ji, responsible for Europe, is expected in Brussels next week to meet Ditte Juul Jørgensen, the bloc’s new director general for trade. These meetings come as trade tensions soar, fueled by China’s forceful response to the EU’s plans to adopt stronger policies addressing economic imbalances.