China and EU agree to annual trade talks as deficit widens

EU trade commissioner invited to Beijing as deficit reaches $410 billion

China and the European Union will hold ministerial-level trade talks once or twice a year, China’s Commerce Ministry said Thursday, as the two sides work to increase and rebalance trade.

The announcement followed a meeting Monday in Brussels between EU Trade Commissioner Maroš Šefčovič and Chinese Commerce Minister Wang Wentao, after which Šefčovič said he planned to travel to Beijing in the fall. Under the newly agreed China-EU trade and investment consultation mechanism, Beijing formally invited Šefčovič to visit China this autumn, ministry spokesperson He Yadong told reporters.

The agreement comes as the EU faces growing pressure to reduce its trade deficit with China, which widened to about 360 billion euros ($410 billion) last year — nearly 1 billion euros a day. Chinese-made cars and batteries are among the products increasingly exported to Europe. He said the two sides also intend to boost their collaboration in areas including artificial intelligence and the transition to renewable energy.