China, EU agree on steps to stabilize trade ties

Chinese Vice-Premier He Lifeng met with European Commissioner for Trade and Economic Security Maros Sefcovic in Beijing on Friday, exchanging views on China-European Union economic and trade relations.

The vice-premier said that China consistently attaches great importance to developing economic and trade relations with the EU, urging the two sides to leverage the bilateral trade and investment consultation mechanism to handle differences.

On his part, Sefcovic noted that China is a key economic and trade partner of the EU, expressing willingness to continue advancing trade and investment consultations and jointly foster cooperation.

China and the EU agreed on a package of measures to ease trade frictions, improve market access and strengthen the stability of industry and supply chains, according to a joint statement released by China's Ministry of Commerce on Friday.

The two sides also agreed to continue to explore the possibility of reducing tariffs on certain goods within the framework of World Trade Organization rules.

The progress was made during the second meeting of the China-EU trade and investment consultation mechanism, which was co-chaired by Commerce Minister Wang Wentao and Sefcovic on Thursday and Friday.

The Commerce Ministry said China and the EU will hold the third meeting of the consultation mechanism in March 2027, with a ministerial video meeting scheduled for January. The two sides reached an understanding on hybrid vehicle trade in a manner consistent with WTO rules, according to a list of agreed outcomes attached to the statement.

Both sides recalled the guidance document on price undertakings in the EU's anti-subsidy investigation into electric vehicles and agreed to continue the relevant procedures concerning company-specific price undertakings and reviews in the case.

On export controls, China expressed its willingness to continue facilitating export license approvals for rare earths and permanent magnets destined for the EU through a "green channel" mechanism.

The list said the EU, together with its member states, will continue facilitating the resolution of priority licensing cases involving dual-use items exported to China.

China and the EU also emphasized the importance of improving the predictability and stability of global industry and supply chains, and agreed to strengthen communication on export control policies and explore structural measures to facilitate compliant trade in dual-use items, according to the agreed outcomes.

In addition, China and the EU agreed to continue dialogue on market access for medical devices, cosmetics and pharmaceuticals, as well as technical discussions concerning the EU's Foreign Subsidies Regulation.

The two sides also committed to strengthening cooperation on intellectual property protection and WTO reform, and exploring investment cooperation to support their respective economic development.

Huang Ping, assistant dean of the School of Public Policy at The Chinese University of Hong Kong, Shenzhen, said beyond resolving trade frictions, deeper cooperation in technology, localized manufacturing and supply chains could help Chinese and European businesses expand opportunities, support employment and strengthen their long-term economic ties.

Yu Xiang, a researcher of international relations at the Chinese Academy of Social Sciences in Beijing, said despite growing competition, China and the EU remain closely connected through trade, investment and industry and supply chains, making regular dialogue increasingly important for managing differences and maintaining stable economic ties.