EU Ministers Push Beijing Talks to Curb China Shock 2.0, Deficit Tops €1B a Day

European Union trade ministers agreed Friday to pursue deals with Beijing limiting imports in chemicals, machinery and pharmaceuticals, as the bloc confronts what Commission President Ursula von der Leyen called an "unsustainable" goods trade deficit with China exceeding €1 billion ($1.12 billion) a day. Trade Commissioner Maros Sefcovic this month secured Chinese agreement to cut EU imports of hybrid vehicles by more than half, aimed at easing pressure on Europe's automakers. The EU's goods deficit with China swelled past €370 billion ($415.07 billion) in 2025 and is on course to exceed €400 billion this year. European industry says the export surge, dubbed "China Shock 2.0," is driving factory closures and job losses, including 100,000 positions set to go at Volkswagen. Irish Foreign Minister Helen McEntee said dialogue could extend to more sectors to address the imbalance. Lithuanian Foreign Minister Kestutis Budrys said pharmaceuticals could be added. Ministers offered no short-term measures alongside the Beijing talks. Greece's deputy foreign minister, Haris Theoharis, said years of talks had produced no results but were now progressing.