The European Parliament's trade committee broadly supported the new EU-China Trade and Investment Consultation (TIC) but pressed the Commission for concrete results and credible escalation measures if dialogue fails, during a debate on 14 July 2026. DG Trade Deputy Director-General Denis Redonnet presented the state of EU-China trade, highlighting a €360 billion deficit in 2025 (up 15% in value) driven by China's state-led model, overcapacity, and export controls on critical minerals. He outlined the TIC launched on 29 June with four work streams: trade balancing, export controls, IPR, and WTO reform, stressing that dialogue is one pillar alongside continued use of trade defence instruments and horizontal de-risking policies.
MEPs from across the political spectrum welcomed the dialogue but demanded specifics and backup. Pascal Canfin (Renew, France) asked how the Commission would build member-state consensus for escalation if talks stall. Juan Ignacio Zoido Álvarez (EPP, Spain) questioned the TIC's compatibility with China's 15th Five-Year Plan and requested details on market access barriers removed. Kathleen Van Brempt (S&D, Belgium) urged focusing on critical sectors like steel, EVs, and quantum rather than aggregate trade value, and called for faster trade defence procedures. Hermann Tertsch (PfE, Spain) argued China is deceiving the EU and that internal divisions weaken Europe's stance. Bogdan Rzońca (ECR, Poland) insisted on including human rights and Christian persecution clauses. Marie-Agnes Strack-Zimmermann (Renew, Germany) asked why the EU is not using existing tools like the Anti-Coercion Instrument, the International Procurement Instrument, and the Foreign Subsidies Regulation.
Next steps include a ministerial meeting in Beijing in early October, preceded by contacts in September. The debate exposed a cleavage between those prioritising dialogue and those demanding immediate use of defensive tools. Affected stakeholders include EU steel, automotive, pharma, and critical raw materials sectors, as well as companies with dual exposure to EU and Chinese markets. The Commission faces pressure to demonstrate that the TIC delivers tangible outcomes or risks losing parliamentary support for further engagement.