China is ready to work with the European Union to address global economic imbalances and strengthen coordination between the two countries, Chinese Finance Minister Lan Fang said. Beijing is ready to make full use of the financial dialogue and other existing mechanisms with the EU, as well as to participate in talks to improve global economic governance.
China's position was presented against the backdrop of growing pressure from European countries to limit the trade deficit and growing exports from China. According to data cited by Reuters, the EU's deficit in goods trade with China reached 360.6 billion euros in 2025, an increase of 15% in a year. The difference amounts to more than 1 billion euros a day.
Beijing urges broader view
People's Bank of China Governor Pan Gongsheng called for global imbalances to be viewed from a "more comprehensive analytical perspective". He said attention should not be limited to the current account, which includes trade in goods and services, but should also encompass financial flows.
He added that global imbalances cannot be resolved through changes in exchange rates alone. The position is part of a defense of Chinese policy after European officials stepped up pressure for a stronger yuan and a change in a growth model that they say relies too much on exports.
EU combines dialogue and trade protection
The European Union insists that talks with Beijing must lead to measurable results. European Commission President Ursula von der Leyen said in September that Brussels would use all available tools to balance relations with China.
EU leaders supported the continuation of the dialogue, but at the same time called for a more active use of trade protection mechanisms and the development of new tools against economic imbalances. European institutions point to limited access for European companies to the Chinese market, overproduction and state support for Chinese industry as problems.
Last week, the EU and China reached a preliminary agreement to limit imports of Chinese hybrid cars. According to the assessment of the European Trade Commissioner Maroš Šefčovič, the agreement could lead to a drop of more than half of the exports of these cars from China to the European market. The next meeting between the two sides on trade issues is planned for March 2027.
Beijing presents the agreement as proof that disputes can be resolved through consultations. For Brussels, it is only the first step towards a broader restructuring of economic relations, in which the European deficit continues to grow.
Sources: reuters.com, investing.com, uk.marketscreener.com