(Seoul, Berlin = Yonhap News) Reporter Kwon Sook-hee and Correspondent Kim Gye-yeon = China announced on the 9th that it has reached an agreement on hybrid vehicle trade issues through trade negotiations with the European Union (EU).
According to China Central Television (CCTV), Chinese Minister of Commerce Wang Wentao and EU Commissioner for Trade and Economic Security Maros Ševčovic held the '2nd China-EU Economic and Trade Consultations' in Beijing for two days starting the previous day and issued a joint statement that day.
According to the joint statement released by China, both sides agreed to continue to review the possibility of reducing tariffs on some products within the framework of the World Trade Organization (WTO).
In addition, the two sides announced that, through intensive negotiations, they had reached an understanding on hybrid vehicle trade in a manner that complies with WTO norms.
According to Bloomberg, Commissioner Ševčovic said at a press conference, "We have reached a common understanding to regulate exports of Chinese hybrid vehicles (HEV) and plug-in hybrid vehicles (PHEV) to the EU. This opens the possibility of reducing Chinese exports by more than half."
He added that China has decided to reduce tariffs on some products, including EU auto parts and olive oil, which will save at least 225 million euros (about 338 billion won).
China's hybrid car exports are the biggest issue in the trade conflict between the two sides. The EU has imposed an additional tariff of up to 35.3% on Chinese electric vehicles in 2024 to prevent China's electric vehicle volume offensive, but hybrid cars and plug-in hybrid cars are only subject to the basic tariff of 10%. Last August, Chinese products accounted for a quarter of European hybrid car sales.
Ahead of the current trade negotiations with China, the EU has put pressure on China by leaking to the media that it is considering safeguard measures to limit the import of Chinese hybrid vehicles into the region.
Previously, the EU requested China to voluntarily restrict exports of hybrid cars, but China opposed this, saying it violated WTO norms.
Both sides announced that they will continue to proceed with price commitments and reexamination procedures related to the electric vehicle anti-subsidy investigation.
The two sides also agreed on the importance of increasing the predictability and stability of global industrial chains and supply chains, and China stated that it is willing to continue to provide convenience in the review of rare earth and permanent magnet export permits to the EU through the so-called 'green channel' mechanism.
The EU has decided to continue to provide facilities with member states to resolve issues related to licensing of exports of dual-use items to China.
China and the EU also agreed to continue dialogue on medical device market access issues.
In addition, both sides have made progress in working to resolve structural intellectual property rights issues and agreed to continue cooperation in the future with a focus on protecting intellectual property rights, enforcing laws, and enhancing transparency and predictability.
In a joint statement, the two sides reaffirmed their position that, as key trading partners, they will appropriately handle differences within the framework of WTO norms and strive to continue to stabilize bilateral economic and trade relations while developing them into a more balanced relationship, CCTV reported.
Accordingly, it was decided to maintain close communication by holding a ministerial-level video conference in January next year, followed by a regular meeting in March next year.
