China EU Seek Dialogue as Trade Tensions Rise Over Supply Chains

(MENAFN) China has called for dialogue with the European Union to address trade concerns, emphasizing the close links between the two economies and their shared dependence on integrated industrial and supply chains.

The Chinese Foreign Ministry said Tuesday that economic relations between China and the 27-member EU remain closely connected and mutually beneficial, urging both sides to resolve differences through consultations rather than confrontation.

“Between China and the EU, the industrial and supply chains are highly integrated and mutually dependent, and our economic and trade relations are mutually beneficial in nature,” China’s Foreign Ministry spokesman Guo Jiakun said in a written statement.

“It is hoped that the EU will work with China in the same direction and resolve each other’s concerns through dialogue and consultation, so that the two parties can jointly keep the global industrial and supply chains stable and unimpeded and promote the sound and steady development of China-EU economic and trade relations,” he said.

The statement followed calls from France and Germany for the European Union to strengthen its trade policy tools. The two countries argued Monday that existing mechanisms may no longer be sufficient to address the challenges confronting the bloc’s trade system.

French President Emmanuel Macron and German Chancellor Friedrich Merz said in a joint letter to European Commission President Ursula von der Leyen that the EU was facing “unprecedented challenges.”

The two leaders proposed measures aimed at reducing European economic dependencies, addressing excessive concentration within supply chains and preventing new areas of strategic dependence from emerging.

The letter comes as European officials seek to reassess the bloc’s economic relationship with China while maintaining access to Chinese goods, components and manufacturing capacity.

EU Trade Commissioner Maros Sefcovic is due to travel to Beijing for discussions with Chinese Commerce Minister Wang Wentao. The visit comes amid efforts by both sides to make progress on several unresolved trade issues.

Wang and Sefcovic are scheduled to meet Thursday and Friday. Their talks will be their first direct meeting in three months after their previous discussions in Brussels.

Sefcovic has said the EU wants progress in several key sectors, particularly automobiles, medical devices and agri-food products.

The European commissioner has also indicated that Brussels could consider using defensive trade measures if negotiations fail to produce sufficient progress, highlighting the possibility of further tensions if the two sides cannot resolve their differences.

Trade between China and the EU remains substantial despite growing disagreements over market access, industrial policy and supply-chain dependence.

In 2025, the EU imported €559.4 billion worth of goods from China while exporting €199.6 billion to the Chinese market.

That resulted in a €359.8 billion goods trade deficit for the EU, underscoring the significant imbalance in merchandise trade between the two economic partners.

China’s latest call for consultations comes as European governments seek greater resilience in strategic supply chains while Beijing emphasizes the economic benefits of maintaining close commercial ties.

The upcoming meetings in Beijing are therefore expected to provide an opportunity for both sides to address specific trade disputes while discussing broader questions surrounding supply-chain stability and the future direction of China-EU economic relations.

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