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Beyond hybrid cars, the EU must rebalance trade with China in other sectors too

    15 October 2026
    Economics&Markets
    energynomics

    The agreement halving imports of Chinese hybrid cars into Europe will need to be followed by a rebalancing of trade in other sectors, as well as improved EU access to the Chinese market, European Commissioner for Economy Valdis Dombrovskis said on Wednesday, Reuters reports.

    According to Dombrovskis, the agreement on hybrid cars—concluded last week in China by European Trade Commissioner Maroš Šefčovič—was the result of a firmer approach, following a year in which Europe’s trade deficit with China reached an unsustainable level of one billion euros per day, Agerpres notes.

    “These imbalances are not limited to the motor vehicle trade. They affect a wide range of sectors, and therefore we indeed need to continue discussions on rebalancing in other areas as well,” Dombrovskis told Reuters on the sidelines of the annual meetings of the International Monetary Fund and the World Bank in Bangkok.

    Dombrovskis did not specify which other sectors he has in mind, but EU officials involved in the talks have cited chemicals, furniture, industrial machinery, steel, and wind turbine components.

    “We need results; otherwise, we will have to take other measures. We must remedy the imbalance,” Dombrovskis said, adding that the EU is also seeking better access for its companies to the Chinese market. According to the European Commissioner, there is a consensus among decision-makers in Brussels that the bloc must move beyond long-standing discussions with Beijing and toward concrete policies. “What matters in this dialogue is achieving results. We cannot limit ourselves to endless discussions. We must also take action,” said Dombrovskis.

    EU heads of state and government are gathering in Brussels on Thursday to discuss boosting the bloc’s competitiveness and trade relations with China. EU leaders are also likely to discuss a Franco-German initiative calling on the European Commission to develop a new, faster EU-level trade defense instrument, potentially modeled on the US measures outlined in Section 301 of the US Trade Act. This section empowers the US Trade Representative to investigate and take action against countries engaging in unfair or discriminatory trade practices.

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