October China deadline 'not realistic'

 German MEP Bernd Lange, chairman of the European Parliament's trade committee, said the October deadline set by the European Commission to reach tangible results in trade talks with China is "not realistic at all" if the EU wants a binding agreement, reported Lyons' Euronews.

The EU is under pressure from a EUR1 billion (US$1.14 billion)����ay trade deficit with China that threatens jobs across the bloc. Negotiations began last week with Trade Commissioner Maros Sefcovic setting October as a target for progress, but Mr Lange said only a framework could be agreed by then, not a legal text.

He urged Brussels to prioritise tackling unfair subsidies, noting that about 4.5 per cent of China's GDP is spent on subsidies that distort competition. He said investigations are ongoing but a broader solution is needed.

European industries have raised more cases of dumping and subsidies, with the steel sector alone prompting 80 EU measures against Chinese imports. However, the bloc's leverage is limited by its dependence on rare earths, vital for green technology, automotive and defence.

China restricted rare earth exports during its trade war with the US, causing shortages in Europe. Mr Lange said the current licensing system is better than before and downplayed the threat, but added Europe must quickly find alternative suppliers as processing capacity has shifted to China.