The United States and China have agreed to extend their trade truce until January, providing a temporary reprieve from ongoing trade tensions. Meanwhile, the European Union and China continue to grapple with significant trade imbalances, with key issues including voluntary export limits and the need for industrial policy reforms. Global attention was focused on the high-stakes US-China summit held in Washington from September 23 to 25, where the two nations agreed to prolong their trade truce by two months. Now, the focus has shifted to Beijing, where the EU and China are preparing for a crucial round of trade talks aimed at addressing these imbalances. On October 8 and 9, trade negotiators from both sides will meet in Beijing for the second session of the newly established EU-China Trade and Investment Consultations Mechanism (TIC). Launched in June of this year, the TIC marks a significant step in re-establishing an institutional framework for dialogue on trade and investment, following a period of limited engagement. This upcoming meeting is more than a routine discussion—it will be the first real test of the TIC's ability to stabilize EU-China relations and prevent a potential trade war. The most challenging and pressing issues are on the table, divided into four working areas: trade and investment balancing, export controls, intellectual property rights, and WTO reform. The EU has requested that China implement voluntary export restraints, but Beijing has resisted, arguing that such measures would violate World Trade Organization (WTO) rules. The EU has also rejected a Chinese proposal to boost European product purchases through public procurement as a way to reduce the trade deficit. The EU's trade deficit with China reached €360 billion in 2025 and is expected to rise further in 2026. This deficit is seen as unsustainable, prompting the EU to consider alternative measures to rebalance the relationship if negotiations fail to yield tangible results. The TIC's four working areas offer multiple potential pathways for progress, though some issues may be more challenging to resolve than others. Certain complex bilateral problems may require a broader multilateral approach rather than being settled through direct negotiations. The WTO reform track could provide a practical avenue for long-term cooperation. China has submitted policy proposals on WTO reform, and experts suggest that both sides could benefit from using the WTO reform track to identify shared interests and develop a concrete agenda for collaboration. China and the EU were among the WTO members that joined the initiative to create the Multi-Party Interim Appeal Arbitration Arrangement (MPIA) in 2020, a temporary alternative to the WTO’s dispute settlement system. Their participation highlights that bilateral disagreements do not necessarily prevent cooperation within the WTO. A similar approach could be applied to some of the substantive issues currently under negotiation.