EU and China continue talks to correct trade imbalance, common understanding on HV cars

[Beijing Current Affairs] European Union (EU) Commissioner for Trade and Economic Security Šefčović and Chinese Minister of Commerce Wang Wentao concluded two days of ministerial-level trade talks in Beijing on the 9th. Both sides announced a total of 16 outcomes in a joint statement and agreed to continue discussions. In addition to reaching a common understanding on trade in hybrid vehicles (HV), China has indicated that it will continue to facilitate export permits for materials such as rare earths to the EU.

According to the joint statement, both sides confirmed that they would "handle the trade of hybrid vehicles in accordance with the rules of the World Trade Organization (WTO)." The EU has been calling for quantitative restrictions on exports of Chinese-made plug-in hybrid vehicles (PHVs), but the WTO prohibits quantitative restrictions in principle. However, details have not been disclosed.

In terms of export controls, China will continue to facilitate procedures for export licenses for rare earths and permanent magnets to the EU, while the EU will also support the resolution of individual cases regarding export licenses for dual-purpose items to China. The two sides also agreed to hold a ministerial-level video conference in January next year and the next round of talks in March.