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China ready to cooperate with EU in tackling global imbalances - Finance news and analysis from Global Banking & Finance Review
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China ready to cooperate with EU in tackling global imbalances

Published by Global Banking & Finance Review

Posted on October 16, 2026

2 min read

· Last updated: October 16, 2026

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China Signals Readiness to Cooperate with EU on Tackling Economic Imbalances

China's Approach to EU Economic Relations and Global Imbalances

Dialogue and Communication with the European Union

BEIJING, Oct 16 (Reuters) - China is ready for dialogue with the European Union to improve communication on aspects of global economic governance and macro policy coordination, its finance minister told key bloc officials in Bangkok on Friday.

Key Participants in the Meeting

Finance Minister Lan Foan made the remarks in a meeting with Valdis Dombrovskis, the EU economy and productivity commissioner, Christine Lagarde, the president of the European Central Bank and Kyriakos Pierrakakis, the Eurogroup president.

Addressing Global Economic Imbalances

Complexity of Economic Structural Issues

Global imbalance was a "complex economic structural issue" that was increasingly influenced by non-economic factors such as geopolitics and protectionism, Lan said, according to a statement from his ministry.

Call for Comprehensive and Objective Views

"All parties should view imbalances comprehensively, objectively," Lan added, urging open cooperation and coordination of macroeconomic policies, it said.

Recent Developments in China-EU Trade Relations

Hybrid Car Export Deal and Trade Deficit

Friday's meeting comes a week after a deal struck by China and the European Union to limit Chinese exports of hybrid cars to the bloc. The EU seeks to shrink its trade deficit with China that ballooned to €360 billion ($400 billion) in 2025.

(Reporting by Liz Lee and Qiaoyi Li; Editing by Jacqueline Wong newsroom;)

Key Takeaways

  • China proposes enhanced macro‑policy coordination with the European Union amid structural and geopolitical strains on global imbalances, as voiced by Finance Minister Lan Foan in Bangkok alongside EU, ECB and Eurogroup leaders.
  • The meeting follows a recent EU‑China agreement to limit Chinese hybrid car exports—capping at approximately 350,000 units annually starting from a 2025 baseline—to help address the EU’s widening trade deficit.
  • China emphasises a comprehensive approach to global imbalances, extending beyond exchange rates to include financial flows and structural factors, as echoed by PBOC governor’s comments at the G20 forum.

Frequently Asked Questions

What did China's finance minister discuss with EU officials?
China's finance minister discussed improving communication on global economic governance and macro policy coordination with EU officials.
Why are global economic imbalances a concern?
Global economic imbalances are seen as complex structural issues increasingly affected by geopolitics and protectionism.
What recent deal was reached between China and the EU?
China and the EU recently struck a deal to limit Chinese exports of hybrid cars to the EU bloc.
What is the EU's main economic concern regarding China?
The EU aims to shrink its trade deficit with China, which has grown to €360 billion.

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