China's Ministry of Commerce on Saturday elaborated on outcomes of the recently-held second meeting of the China-European Union bilateral trade and investment consultation mechanism, covering consensuses on trade and investment balance, export controls, intellectual property rights and World Trade Organization (WTO) reform.
Chinese Minister of Commerce Wang Wentao and European Commissioner for Trade and Economic Security Maros Sefcovic jointly chaired the second meeting of the China-EU trade and investment consultation mechanism in Beijing from Thursday to Friday.
At the meeting, the two sides engaged in pragmatic and productive discussions and agreed on a list of outcomes.
In a press release posted on the official website of the Ministry of Commerce, an official said that both sides reaffirmed the positioning of China and the EU as each other's stable and balanced key trading partners, agreed on addressing economic and trade differences and mutual concerns in a balanced manner within the framework of WTO rules, and exploring ways to deepen mutually beneficial cooperation, to strive for upward balance and continued growth of bilateral trade relations.
Both sides agreed that the mechanism has been operating smoothly and efficiently, and that the successful convening of the second meeting marks a new starting point, not an end point.
The consensuses reached demonstrate that China and the EU possess both the willingness and the wisdom to manage and properly handle differences through dialogue and consultation, thereby effectively preventing escalation of friction.
The two sides agreed that a stable and sound economic and trade relationship not only benefits enterprises and people in both China and the EU and serves their shared interests, but also injects certainty and positive energy into global economic growth and industrial and supply chain stability.
Regarding the balance of trade and investment, the two sides held intensive consultations based on mutual respect, equality and mutual benefit.
In-depth discussions were made on medical devices, cosmetics, pharmaceuticals, inverters, as well as agricultural and food products, delving into how to address each other's concerns on a reciprocal basis, expand two-way market access, and promote dynamic balance in China-EU trade.
China and the EU agreed to leverage the trade monitoring mechanism to explore the possibility of lowering tariffs on certain goods within the framework of WTO rules, and conduct technical dialogue regarding the EU's Foreign Subsidies Regulation, aiming to foster a fair, transparent, and predictable environment for China-EU trade and investment cooperation.
Building on their existing sound cooperation, both sides expressed willingness to discuss market access issues in sectors such as medical devices and agricultural products, and to maintain communication on matters including the EU’s guidance document on inverter project financing, and the regulation of cosmetics and pharmaceuticals.
The two sides conducted thorough discussions on trade in electric vehicles (EV) and hybrid vehicles based on the fundamental principles of respecting facts, non-discrimination and compliance with WTO rules.
China and the EU have prevented escalation of the situation and effectively safeguarded the practical export interests of Chinese enterprises and the steady development of bilateral trade in hybrid vehicles.
The two sides reviewed the previously-agreed-upon general guidance document on price undertakings regarding the EV anti-subsidy case, and the EU will actively move forward procedures related to corporate price undertakings and reviews in the EV case.
The two sides looked ahead to future cooperation and recognized that China and the EU boast enormous cooperation potential in new energy, artificial intelligence, trade in services, the digital economy, and low-carbon development, amongst other fields.
Both sides agreed to explore two-way investment cooperation.
China said it welcomes investment and business development by EU enterprises in the country as always, and will continuously improve the business environment.
It also hopes the EU will provide a fair, transparent and non-discriminatory business environment for Chinese enterprises to invest and do business in the bloc, effectively safeguarding their legitimate rights and interests, and boosting their confidence in and expectations for investing and operating in the EU.
On export control, the official pointed out that since the establishment of the China-EU export control dialogue mechanism [in 2023], both sides have maintained close communication at all levels.
They agreed to further leverage the mechanism and strengthen policy communication, to safeguard the stability and smooth functioning of global industrial and supply chains.
Both sides reaffirmed their commitment to addressing each other's concerns regarding export controls, with the EU side pledging to continue making progress on key dual-use export license cases involving China.
Discussions were held regarding the possibility of introducing mutual trade facilitation measures for military-civilian dual-use items, and the EU side agreed to consider potential facilitation measures for China.
Furthermore, the two sides agreed to enhance communication on adding entities to export control lists and removing export-control measures on some entities.
And within their respective legal frameworks, the two sides aim to support and promote substantive progress in initiating the process for removing export-control measures on each other’s entities.
According to the official, China and the EU, which have maintained long-term, friendly cooperation and continued to make progress on intellectual property rights, stand ready to deepen and expand cooperation.
China hopes that the EU attaches importance to its concerns, and actively find a resolution.
Both sides agreed that it is necessary to establish interim targets and use the China-EU intellectual property working group as the main channel to deepen cooperation and monitor progress.
As for WTO reform, the official said both China and the EU are staunch supporters of and active contributors to the multilateral trading system.
Both sides emphasize the value of a rules-based multilateral trading system, support WTO reform, and stress the importance of adhering to WTO rules.
They pledged to deepen bilateral communication and cooperation in an open and constructive manner, engage in the reform process and discuss all relevant issues with a view to achieving substantive progress.
Going forward, both sides have tasked their working teams with advancing follow-up work and promoting the implementation of the agreed outcomes.
The two sides also agreed to hold the third meeting of the China-EU trade and investment consultation mechanism in March next year and maintain close communication at all levels, including through a ministerial video conference in January 2027.
China's Ministry of Commerce elaborates on outcomes of China-EU trade, investment consultations
