After hybrid car deal, EU needs to rebalance China trade in other sectors, Dombrovskis says

A deal halving Chinese hybrid car imports into ​Europe will have to be followed by the rebalancing ​of trade in other sectors and ‌better ​access to the Chinese market for the EU, European Economic Commissioner Valdis Dombrovskis said on Wednesday.

Dombrovskis said the hybrid car deal, struck by EU Trade Commissioner Maros Sefcovic in ‌China last week, was the result of a more determined approach after Europe's trade deficit with China reached an unsustainable €1 billion a day last year. "Those imbalances are not limited to the automotive trade. They go across a broad range of sectors ‌and therefore indeed, we have to continue discussions on the rebalancing also across a range of other sectors," Dombrovskis ‌told Reuters on the sidelines of the International Monetary Fund meetings in Bangkok.

Dombrovskis did not name the other sectors, but EU officials close to the talks have mentioned chemicals, furniture, industrial machinery, steel and wind-turbine components. "We need to deliver those, we need results, or we will have to take ⁠other measures. ​We have to address ⁠the imbalance," Dombrovskis said, adding the EU was also keen on getting better access for its companies to the Chinese market.

He said there was ⁠a clear sense among EU policymakers that the 27-nation bloc had to move from discussions that it has been conducting with Beijing for ​a long time to policy action. "What is important in this dialogue is that it delivers. We cannot ⁠just have endless discussions. We need to take action from our side," he said.

EU leaders meet on Thursday in Brussels and boosting the bloc's competitiveness ⁠and ​trade with China will be discussed. The leaders are also likely to discuss a Franco-German call for the European Commission to develop a new, swifter defence instrument in EU trade, potentially modelled on US measures under Section 301 of ⁠the US Trade Act, which give the US Trade Representative the authority to investigate and take action against countries engaging ⁠in unfair, unreasonable, or discriminatory trade ⁠practices.

Chinese Vice Premier He Lifeng meanwhile told French diplomat Emmanuel Bonne in Beijing that China was willing to work with the EU to inject more stability and positive energy into ‌economic and trade ‌ties, the official Xinhua news agency said on Wednesday.