New mechanism to keep trade with EU on right track

The launch of the China-EU trade and investment consultation mechanism is expected to provide a regular platform for dialogue to address bilateral economic differences, said market watchers and business leaders.

While trade frictions between China and the European Union may persist in the near term, the new mechanism could help prevent disputes from escalating and keep bilateral economic relations on a more predictable track, they added.

According to a joint statement issued on Tuesday, Chinese Commerce Minister Wang Wentao and European Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency Maros Sefcovic identified four initial work streams during the inaugural meeting of the China-EU trade and investment consultation mechanism in Brussels on Monday.

The work streams cover trade and investment balancing, export controls, intellectual property rights and World Trade Organization reform, the statement said.

Zhao Yongsheng, a professor of European studies at the University of International Business and Economics in Beijing, said that the mechanism comes at a time when both sides continue to face structural differences over trade and industrial policies.

Huang Yiping, dean of Peking University's National School of Development, said those differences reflect broader questions about whether traditional industrial powers can adapt as China's competitiveness expands.

"Those structural differences are unlikely to disappear, but dialogue can keep competition manageable and preserve space for cooperation where interests continue to overlap," said Huang, the dean.

Business leaders noted that China and the EU remain important trading partners, as robust trade flows continue to demonstrate the resilience of bilateral economic ties.

Speaking at a monthly news briefing in Beijing on Tuesday, Wang Yifei, a spokeswoman for the China Council for the Promotion of International Trade, said Chinese businesses hope that China and the EU will resolve trade issues through dialogue, ensuring a fair, transparent and nondiscriminatory business environment.

For businesses in the EU, maintaining communications has become more important than ever because both economies remain deeply intertwined, especially in the manufacturing, investment and technology sectors.

In a recent interview with China Daily, Michael Schumann, chairman of the German Federal Association for Economic Development and Foreign Trade, said: "Europe cannot be (economically) independent from the United States, and it cannot be independent from China. Our economies, technologies, supply chains and security structures are far too deeply interconnected."

Christophe Lauras, president of the French Chamber of Commerce and Industry in China, said that France and China have a highly complementary relationship in sectors such as aerospace, advanced engineering and healthcare. "The next stage requires deeper integration to achieve mutually beneficial cooperation," Lauras said.