EU Trade Committee Chair Says October China Deadline Unrealistic for Binding Deal but Framework Possible

German MEP Bernd Lange, chair of the European Parliament's trade committee, said Friday that the October deadline set by the European Commission for tangible results in trade talks with China is not realistic if the goal is a binding agreement. Lange told Euronews that a framework agreement on main points could be reached by October, but a dedicated legal text cannot.

"Discussions are good, agreements are better," he said.

"The deadline should be met with some kind of framework where we agree on the main points. " Negotiations between the European Commission and China began last Monday. EU Trade Commissioner Maroš Šefčovič set the October target for tangible results.

The European Commission holds a mandate from EU leaders to address cheap Chinese imports through dialogue with Beijing while reviewing the bloc's trade defence tools. The European Union runs a 1 billion euro daily trade deficit with China. Lange said about 4.5 percent of China's GDP goes to mostly illegal subsidies that create unfair competition.

The EU has adopted 80 measures against low-cost Chinese imports in the steel sector alone. Lange noted that the EU's dependence on China for rare earths stems from European companies shutting down processing operations to take advantage of lower costs in China. Last year Europe faced shortages after China restricted rare earth exports during its trade war with the United States.

Lange said the current licensing system for European companies is not optimal but much better than some months ago. Rare earth materials exist worldwide, but processing and refining remain the core issue, Lange said. The EU needs to secure at least a second supplier for those steps quite quickly.