The EU's upcoming trade talks with China have to deliver results, European Commission head Ursula von der Leyen has warned, as the bloc weighs action to address its trade imbalances with Beijing.

Despite acknowledging severe stakes, leaders struggle to agree on tangible steps to address a massive trade deficit and Chinese state subsidies.

"We are basically prepared for everything, and we have all the instruments on the table," Ursula von der Leyen said, hinting at retaliation against China. The EU has imposed an…