MNI BRIEF: EU Concerned By China Trade Deficit - Dombrovskis

The E.U. does not seek perfectly balanced trade with China but wants to address issues behind the trade deficit's rapid increase, according to Valdis Dombrovskis, E.U. trade commissioner.

Speaking at a press conference in Beijing on Tuesday, Dombrovskis said he understood natural factors such as the division of labour and economic structure, had driven the trade deficits, but China must improve market access for European firms.

"The E.U. market is more open to Chinese firms than the other way round, we needed more reciprocity," he said. On the topic of Chinese electric vehicle manufacturers planning EU local manufacturing, Dombrovskis said the EU will not force localisation but it will provide a clear, rules-based environment for automakers.

During his visit to China this week, Dombrovskis met with European Chamber of Commerce in China President Jens Eskelund to discuss issues facing European firms in China. Eskelund recently told MNI international corporations operating in Mainland China have grown increasingly concern over the country's economy and lack of macro-economic policy response. (See: MNI: China FDI Outlook Down As Economy Weakens - Chambers - Bonds & Currency News | Market News)