EU, China set trade working group; EU goods deficit hit €360 billion last year

According to CNBC, the European Union and China issued a rare joint statement on Monday aimed at balancing trade and addressing market access issues, with European trade chief Maros Sefcovic saying disputes over trade imbalances, export controls and intellectual property should deliver “tangible results” by October. The two sides agreed to set up a bilateral working group to monitor trade flows, and Beijing gave “reassurance” that existing export controls on rare earths and permanent magnets will not disrupt EU supply chains. CNBC reported the EU’s goods deficit with China grew 15% to €360 billion ($410 billion) last year and expanded to €98 billion in the first quarter, the highest since 2022, as a heat wave boosts demand for Chinese-made air conditioners; Midea Group reportedly said orders for its PortaSplit unit topped 200,000 this year as of Monday, double 2025’s pace.