Finance
China cannot profit from low tariffs and shield own market, EU trade chief says
Published by Global Banking & Finance Review®
Posted on February 20, 2026
2 min readLast updated: February 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 20, 2026
2 min readLast updated: February 20, 2026
EU trade chief Maroš Šefčovič says Chinese firms’ MFN low‑tariff access should hinge on reciprocity and market openness. Ministers in Nicosia also flagged WTO reforms ahead of MC14 in Cameroon.
By Philip Blenkinsop
NICOSIA, Feb 20 (Reuters) - The European Union should make low-tariff access to its markets for Chinese companies conditional on the openness of the Chinese economy to European businesses, European Trade Commissioner Maros Sefcovic said on Friday.
The EU's goods trade deficit with China was 359 billion euros ($423.2 billion) last year, according to EU statistics agency Eurostat, second only to a record in 2022 and at a level Sefcovic said was "not sustainable".
The EU trade chief said the World Trade Organization, whose 166 members will meet in Cameroon next month, needed to restore fairness to global trade.
"Some WTO members have dramatically expanded their share of global trade while keeping their own markets relatively closed," Sefcovic told a news conference after a meeting of EU trade ministers in Cyprus.
China has grown rapidly since entering the World Trade Organization in 2001 as its exports have benefitted from 'most-favoured nation' (MFN) import duties, which are set by each member and apply to all other countries in the WTO.
Sefcovic said there needed to be a "serious, honest conversation" about how the system functioned.
"When a member's global trade weight rises significantly, but its obligations do not evolve accordingly, we have to ask hard questions," he said. "There must be a clear link between MFN and the actual level of market openness."
The European Commission wanted active discussion to find a solution, Sefcovic said.
Sefcovic said engagement with China had delivered some results, such as on the issuance of licences to export rare earths, but long-standing structural imbalances remained.
($1 = 0.8482 euros)
(Reporting by Philip Blenkinsop;Editing by Elaine Hardcastle)
The EU is signaling a tougher stance on EU China trade by linking low‑tariff MFN access for Chinese firms to reciprocity and actual market openness in China. ([ft.com](https://www.ft.com/content/2f5e1b1c-07f8-4316-ab40-fd4e1482df9f?utm_source=openai))
A large and persistent EU goods trade deficit with China—around €359 billion in 2025—has heightened concerns over market access and fairness, prompting calls for WTO‑aligned reforms. ([elpais.com](https://elpais.com/economia/2026-02-13/el-deficit-comercial-de-la-ue-con-china-subio-un-15-en-2025-el-ano-de-la-guerra-arancelaria.html?utm_source=openai))
EU ministers met in Nicosia on Feb 20, 2026 to prepare for the WTO’s MC14, scheduled for March 26–29, 2026 in Yaoundé, Cameroon, where reform debates will intensify. ([gov.ie](https://www.gov.ie/en/department-of-foreign-affairs/press-releases/minister-mcentee-to-attend-informal-foreign-affairs-council-on-trade-in-cyprus/?utm_source=openai))
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