EU and China Begin Two-Day Beijing Talks to Avert Trade War

What changed

EU trade chief Maros Sefcovic will lead two days of talks with Chinese officials in Beijing on Thursday, in an effort to prevent a trade war. The European Union has hardened its stance toward China over what it sees as unfair competition in critical sectors, including cars, while European leaders and observers increasingly warn of “China Shock 2.0” as Chinese companies move into high-tech manufacturing.

Why it matters

This is a negotiation over how much room European businesses will have to compete as Chinese firms push further into advanced industries. Cars are the clearest pressure point named so far, but the broader concern reaches traditional EU industries facing more technologically sophisticated Chinese competitors.

The outlook is uncertain: the talks could ease tensions, but their outcome, demands and timetable for any agreement remain unknown. For now, Beijing is where the next move will be tested.