EU and China cool trade tensions

Following trade talks in Brussels, both sides agreed to continue negotiations and establish a joint monitoring mechanism, even as the EU keeps the threat of retaliation on the table

Welcome back to What’s Happening in China, your weekly China brief.

After this week’s meeting in Brussels between EU trade chief Stéphane Séjourné and Chinese Commerce Minister Wang Wentao, they agreed to continue talking.

In a joint press statement, the two sides said they would “establish a joint monitoring mechanism to exchange relevant data, monitor trade flows and support technical work with a view to improving transparency, enhancing mutual trust and managing trade frictions” while agreeing to “meet again at ministerial level in Autumn 2026.”

“Dialogue is essential, but the dialogue has to deliver,” said Ursula von der Leyen, president of the European Commission, on Friday, hinting at retaliation depending on Beijing’s response to EU complaints about unfair trade practices.

“We are basically prepared for everything, and we have all the instruments on the table, and we are thinking about other possibilities if necessary,” she said.

As they enter the hottest months of the year, the EU …