The head of the European Department of the Ministry of Commerce interprets the results of the second regular meeting of the China-EU Trade and Investment Consultation Mechanism

On October 8-9, Chinese Minister of Commerce Wang Wentao and European Commission Commissioner for Trade and Economic Security Maroš Sefcovic co-chaired the second regular meeting of the China-EU Trade and Investment Consultation Mechanism (hereinafter referred to as the mechanism) in Beijing. The two sides conducted reciprocal, professional and constructive talks on trade and investment balance, export control, intellectual property rights, WTO reform and other issues, comprehensively took stock of the consultations and progress since the first meeting of the mechanism, and formed a consensus on the results. The person in charge of the European Department of the Ministry of Commerce explained the relevant results.

1. About China-EU Economic and Trade Relations

First of all, the two sides reaffirmed the stable and balanced positioning of China and Europe as key trading partners, and confirmed that they will handle economic and trade differences and mutual concerns in a balanced manner within the framework of WTO rules, discuss deepening mutually beneficial cooperation, and promote China-EU trade to be more balanced and develop forward.

Second, both parties agreed that the mechanism operates smoothly and efficiently, and the successful convening of the second regular meeting is a new starting point, not the end. The consensus reached by both sides fully demonstrates that China and the EU have the will and wisdom to manage and properly handle differences through dialogue and consultation, effectively avoiding the escalation of friction.

Third, both sides believe that stable and healthy China-EU economic and trade relations not only benefit Chinese and European enterprises and people, but also serve the common interests of both sides. It also injects certainty and positive energy into global economic growth and the stability of production and supply chains.

2. Regarding trade and investment balance

Adhering to the principles of mutual respect, equality and mutual benefit, the two sides conducted intensive consultations, focusing on topics such as medical devices, cosmetics, pharmaceuticals, inverters, agricultural and food products, and conducted in-depth discussions on how to reciprocally resolve each other's concerns, expand two-way market access, and promote the dynamic balance of China-EU trade.

First, the two sides agreed to play the role of the trade monitoring mechanism, explore the possibility of reducing tariffs on some goods under the framework of WTO rules, and conduct technical dialogue on EU foreign subsidy regulations to create a fair, transparent and predictable environment for China-EU trade and investment cooperation. The two sides are willing to communicate on market access issues in fields such as medical devices and agricultural products on the basis of previous good cooperation, and continue to communicate on the EU's financing guidance documents for inverter projects, cosmetics and drug supervision and other issues.

Second, the two sides conducted in-depth discussions on the trade of electric vehicles and hybrid vehicles based on the basic principles of respecting facts, non-discrimination and compliance with WTO rules, avoiding the escalation of the situation and effectively safeguarding the actual export interests of Chinese companies and the stable development of China-EU hybrid vehicle trade.

At the same time, the two sides reviewed the previously agreed general guidance document on price commitments in electric vehicle countervailing cases, and the European side will actively promote the relevant procedures for enterprise price commitments and review of electric vehicle cases.

Third, both sides actively look forward to future cooperation and believe that China and Europe have great potential for cooperation in the fields of new energy, artificial intelligence, service trade, digital economy, green and low carbon, and can further explore new opportunities and expand new space. The two sides agreed to explore two-way investment cooperation. China, as always, welcomes EU companies to invest and operate in China and continuously improves the business environment. At the same time, it hopes that the EU will create a fair, transparent and predictable business environment for Chinese companies, effectively safeguard the legitimate rights and interests of Chinese companies, and enhance the confidence and expectations of Chinese companies in investing and operating in Europe.

3. About export control

Since the establishment of the China-EU export control dialogue mechanism, the two sides have maintained close communication at all levels. Both sides agreed to further leverage the export control dialogue mechanism, strengthen policy communication, and maintain the stability and smoothness of the global industrial and supply chains. The two sides reiterated their commitment to resolving each other's concerns in the field of export control, and the EU will continue to promote progress in resolving key licensing cases with China in the dual-use field. The two sides will explore the possibility of mutually introducing facilitation measures around the compliance trade of dual-use items between China and the EU. The EU will consider taking possible facilitation measures towards China. The two sides also agreed to strengthen communication on the issue of sanctions transfer orders in the field of export control, and support and substantively launch the mutual transfer orders process within their respective legal frameworks.

4. About intellectual property rights

China and the EU have maintained a long-term friendly cooperative relationship in intellectual property protection and have continued to make progress. Both sides are willing to continue to deepen exchanges and expand cooperation space. China hopes that the EU will pay attention to China's demands and actively promote resolution. Both sides believe that it is necessary to set phased goals and continue to play the role of the main channel of the China-EU Intellectual Property Working Group to deepen cooperation and monitor progress.

5. Regarding WTO reform

China and the EU are both firm supporters and active contributors to the multilateral trading system. Both sides emphasized the value of the rules-based multilateral trading system, supported WTO reform, and stressed the importance of abiding by WTO rules. Both sides agreed to further strengthen communication and cooperation in an open and constructive manner and conduct discussions on all issues related to WTO reform with a view to promoting substantial progress in the reform.

6. Regarding follow-up work

Looking forward to the next stage of work, both sides will continue to further intensify work on important economic and trade issues of common concern and jointly promote the implementation of the consensus reached at the second regular meeting. The two sides also agreed to hold the third regular meeting of the mechanism in March 2027. Prior to that, the two sides would maintain close communication at all levels, including holding a ministerial-level video conference in January.