China-EU talks push to keep trade ties stable

The 16-point consensus reached by China and the European Union during high-level talks in Beijing last week underscored the willingness of both sides to manage differences through dialogue, thereby helping to prevent trade frictions from escalating, observers and business leaders said.

Covering trade and investment, export controls, intellectual property rights and World Trade Organization reforms, the outcomes highlighted the two sides' ability to address disputes through negotiation and to maintain stability in their economic and trade relations, they added.

At the second meeting of the China-EU trade and investment consultation mechanism, which was held in the Chinese capital on Thursday and Friday, the two sides reaffirmed their commitment to maintaining stable and balanced economic and trade ties and pledged to address differences and each other's concerns in a balanced manner within the framework of WTO rules, according to the Ministry of Commerce.

Progress on electric and hybrid vehicle trade helped to safeguard the export interests of Chinese companies. The two sides also agreed to explore tariff reductions on certain goods and hold technical discussions on the EU's Foreign Subsidies Regulation, the ministry said in a joint statement issued after the meeting.

Jens Eskelund, president of the European Union Chamber of Commerce in China, said the chamber welcomes the broad scope of the joint statement and the potential benefits for European businesses operating in China.

"A potential tariff reduction on several European products could create more market opportunities for European producers in the agriculture, food and beverage, fashion and automotive sectors," Eskelund said.

"European businesses in China are encouraged that the two sides have set clear deadlines to track progress on their commitments," he said, adding that this indicates an understanding of the need to turn commitments into tangible action.

Ding Chun, director of Fudan University's Center for European Studies in Shanghai, said the close integration of Chinese and European industrial and supply chains provides a solid foundation for both sides to manage differences and expand economic cooperation.

Ding said sustained dialogue on market access, export controls and trade regulations would help address long-standing concerns, reduce business uncertainty and create conditions for more balanced bilateral trade.

Despite differences between the two sides, China-EU trade rose 8.1 percent year-on-year to 4.2 trillion yuan ($627.05 billion) in the first eight months of 2026, while China's imports from the EU grew 2.2 percent on a yearly basis, data from the General Administration of Customs showed.

For European companies, the latest consultation outcomes could enhance policy certainty, supporting deeper investment, research and technological collaboration in China.

Yin Zheng, executive vice-president of China and East Asia operations at Schneider Electric, said the French company will continue to increase local investment, strengthen research and development capabilities and deepen collaboration with Chinese industrial partners to support the upgrading of China's manufacturing sector.

China's vast market, comprehensive industrial supply chains and dynamic innovation ecosystem provide favorable conditions for technological development and the large-scale application of artificial intelligence, creating further opportunities for Schneider Electric to expand its operations in the country, Yin said.

Seeking to tap into advances in China's rapidly developing humanoid robotics industry, German industrial company Freudenberg Group, which operates 30 plants in China, has made the country a base for its humanoid robotics research and development and opened a co-creation center in Shanghai last month.

Claus Moehlenkamp, Freudenberg's CEO, said the company aims to build a broader innovation ecosystem in China, combining its expertise in materials science with local technological advances to develop solutions for industrial applications and international markets.