Mariusz Szefczakowicz, the European Union's Trade Commissioner, presented his strategy for engaging with China to EU ambassadors last July and warned governments to refrain from imposing strict trade measures against Beijing. In an interview, he noted that starting a trade war may seem popular to many, but ending it is very difficult.
Historic Agreement in Beijing
Three months later, Szefczakowicz succeeded in reaching a significant agreement in Beijing, under which imports of Chinese hybrid cars will be significantly reduced. This agreement limits imports to 350,000 cars per year and is seen as a major concession from Beijing, which has pressured the European market with its competitive vehicles in recent years. This initial success is a step towards stabilizing trade relations, which Brussels believes have reached a dangerous point.Read more: CEO of Engie Warns of Return to Green Energy Contracts
Challenges and Prospects
Szefczakowicz, who reached a tariff ceasefire agreement with Donald Trump last year, sees this new agreement as a sign of the success of his strategy of engagement and the threat of strict trade measures. In a meeting with China's Commerce Minister, Wang Wentao, in Brussels in late June, he agreed to initiate trade talks. He hoped that by focusing on the automotive sector, where the EU still has influence, he could achieve a confidence-building success. Szefczakowicz has also sought to garner support from European governments to strengthen the EU's trade protective measures. By threatening tougher actions, he has bolstered his negotiating position to reduce the EU's trade deficit with China, which reaches one billion euros a day. The hybrid car agreement is just the beginning of a larger competition. EU leaders will gather in Brussels on Thursday to review the situation and decide whether to respond to requests for more protective measures for the European industry. In an interview in August about the risks of a trade war, Szefczakowicz said, "You are facing the same partner at the negotiating table, and if you can avoid it, it is much better." He placed his first step in an area where Europe still has influence: access to its market of 450 million people. While Chinese manufacturers have become global powerhouses, they face weak domestic demand. Foreign markets have become especially important for them, as the United States has restricted Chinese imports and Europe has remained one of the last profitable markets for Chinese manufacturers. Szefczakowicz believes that Beijing would prefer to accept export restrictions rather than risk losing access to the European market entirely. He has focused on the automotive sector, where Chinese manufacturers have rapidly entered. In 2024, the share of Chinese manufacturers in the European hybrid and plug-in hybrid car market was only 2 percent, but according to statistics, this share is expected to rise to 14 and 25 percent by the first half of 2026. The Commission is prepared to restrict hybrid car imports even without an agreement, but the negotiated solution also gives Szefczakowicz a political advantage: proving that dialogue with Beijing can lead to tangible results. The negotiations have been intense and both sides have worked hard in this regard.Read more: The Border and His New Labor Minister Defended Pension Reforms · Cyprus Seeks to Join the Schengen Area
