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China is negotiating with EU over its steel trade measures, Chinese commerce ministry says - Finance news and analysis from Global Banking & Finance Review
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China is negotiating with EU over its steel trade measures, Chinese commerce ministry says

Published by Global Banking & Finance Review

Posted on May 28, 2026

1 min read

· Last updated: May 28, 2026

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Finance Markets International trade

China and EU in WTO Talks Over New Measures on Steel Trade and Imports

China-EU Negotiations on Steel Trade at the WTO

Background of the Negotiations

BEIJING, May 28 (Reuters) - China is negotiating with the European Union within the framework of the World Trade Organization over the bloc's new limits on duty-free steel imports, a spokesperson for China's commerce ministry said on Thursday.

Potential Impact on Steel Trade

The EU measures will impact bilateral steel trade and affect the stability of the global supply chain, ministry spokesperson He Yadong said, adding that China hopes to achieve a win-win outcome through negotiations. 

Reporting and Editorial Credits

(Reporting by Joe Cash and Jing Xu; Editing by Joe Bavier)

Key Takeaways

  • China has formally initiated World Trade Organization-level negotiations with the EU over its newly established steel import curbs, aiming for a mutually beneficial outcome—commerce ministry spokesperson He Yadong said on May 28, 2026; Beijing flagged risks to bilateral trade and global supply‐chain stability. (scmp.com)
  • The EU’s new steel safeguards cut tariff‑free imports nearly in half to 18.3 million tonnes annually and impose a steep 50% duty on out‑of‑quota volumes, measures due to apply from July 1, 2026; traceability rules such as the “melt‑and‑pour” requirement add further scrutiny. (consilium.europa.eu)
  • Amid escalating tensions, China has warned of potential countermeasures and is also pursuing a broader trade strategy—reaching a 'soft landing' on EV tariffs, expressing willingness to boost EU imports, and seeking to prevent politicization of economic ties. (bloomberg.com)

References

Frequently Asked Questions

Why is China negotiating with the EU over steel trade?
China is negotiating with the EU due to the bloc's new limits on duty-free steel imports, which impact bilateral trade.
What framework are the China-EU steel negotiations taking place under?
The negotiations are happening within the framework of the World Trade Organization (WTO).
How do the EU measures affect global steel trade?
The EU measures impact bilateral steel trade and may affect the stability of the global supply chain.
What does China hope to achieve through these negotiations?
China hopes to reach a win-win outcome that benefits both parties and supports the global supply chain.

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