EU and China in trade dispute: Europe's industry struggles with price pressure and dependency – Open markets are not a one-way street
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Prefer Xpert.Digital on GoogleⓘPublished on: October 25, 2026 / Updated on: October 25, 2026 – Author: Konrad Wolfenstein
EU and China in trade dispute: European industry struggles with price pressure and dependency – Open markets are not a one-way street – Creative image on the topic, created with AI: Xpert.Digital
Rare earths, overcapacities, market access: Why EU parliamentarians are traveling to China
European companies under pressure: The EU seeks concrete progress in China
Trade deficit and unequal markets: What the EU delegation in China wants to achieve
Industrial overcapacity, access to critical raw materials, and unequal competitive conditions are exacerbating trade tensions between the European Union and China. A delegation from the European Parliament's Committee on International Trade will therefore travel to Beijing, Hangzhou, and Shanghai from October 27 to 29, 2026. Led by Committee Chair Bernd Lange, the MEPs will discuss the consequences for European companies and jobs with their Chinese counterparts – and explore whether concrete progress can be made on issues such as rare earth elements, market access, and trade in hybrid vehicles. A fundamental question will also be addressed: How can Europe deepen its economic relations with China without making its own industry more dependent on key raw materials and technologies?
EU and China: Europe's industry caught between price pressure and dependency
The European Union and China face fundamental questions regarding their trade relations: industrial overcapacity, access to critical raw materials, and unequal market conditions are straining the relationship. A delegation from the European Parliament's Committee on International Trade will meet in Beijing, Hangzhou, and Shanghai from October 27 to 29, 2026, to discuss how these tensions affect European companies and jobs, and where concrete progress is possible.
The trip is being led by Bernd Lange, the German chairman of the Committee on International Trade (INTA). This is the second visit to China by a delegation from this committee; the previous trip took place in 2018.
Raw materials, overcapacities and blocked market opportunities
The focus is on China's industrial overcapacity and the resulting market imbalances, as well as the EU's dependence on critical raw materials and technologies. Access to rare earth elements is a particularly pressing issue that Lange intends to discuss with his Chinese counterparts.
Added to this are the unequal access opportunities for European companies to the Chinese market and the increasing influx of inexpensive Chinese goods into the EU. The talks are therefore intended to address both competitive conditions in Europe and the business opportunities for European companies in China.
Also on the agenda are the planned European law to accelerate industrial competitiveness with its "Made in Europe" rules and the recent agreement on trade in hybrid cars. This agreement was reached on October 9, 2026, as part of the trade and investment talks between the EU and China.
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EU trade deficit: Urgent need for action
Discussions with politicians, business leaders, and technology companies
The delegation plans direct talks with Chinese counterparts and representatives of national and regional authorities, including the Ministry of Commerce. Meetings with the EU Chamber of Commerce are intended to provide a more detailed insight into the difficulties faced by European companies in China.
The program also includes meetings with representatives from the International Monetary Fund and the World Bank. Visits to the innovative companies Unitree and BrainCo are planned in Hangzhou, a major Chinese technology center.
Lange demands results instead of more waiting
Bernd Lange views the trip as an important step in a crucial phase of relations. For him, the agreement on hybrid cars is merely a beginning; questions regarding industrial overcapacity and the supply of rare earth elements remain on the agenda.
Lange estimates the EU's daily trade deficit with China at one billion euros. He cites Chinese import restrictions as one of the reasons, as they make it more difficult for European companies to access the market.
The delegation intends to continue direct dialogue, work towards a breakthrough, and achieve tangible results as soon as possible. Crucially, the recent agreement on hybrid cars will depend on whether it can serve as a starting point for progress on other trade issues.
Twelve members of parliament for dialogue with China
Besides delegation leader Bernd Lange, a member of the Social Democratic S&D group, eleven other MEPs are participating in the trip. The group thus unites representatives from several political groups and member states
– Pascal Canfin (Renew, France), Permanent Rapporteur on China of the Committee on International Trade.
– Juan Ignacio Zoido Álvarez (EPP, Spain).
– Kathleen Van Brempt (S&D, Belgium).
– Enikő Győri (PfE, Hungary).
– Jaak Madison (ECR, Estonia).
– Markéta Gregorová (Greens/EFA, Czech Republic).
– Rudi Kennes (The Left, Belgium).
– Angelika Niebler (EPP, Germany).
– Jörgen Warborn (EPP, Sweden).
– Brando Benifei (S&D, Italy).
– Engin Eroglu (Renew, Germany), Chair of the Delegation for Relations with the People's Republic of China.
Close trading partners with unequal conditions
China is the EU's third-largest trading partner in goods and services combined; conversely, the European Union is one of China's most important trading partners. At the same time, the European trade deficit with China has grown, and the differing rates of market opening are considered a significant imbalance in economic relations.
The trip was preceded by talks between EU Trade Commissioner Maroš Šefčovič and Chinese representatives, as well as consultations among European heads of state and government. This trade delegation is the fourth European Parliament delegation to travel to China in 2026.
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