The head of the European Department of the Ministry of Commerce interprets the results of the second 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 Malos Shevchovich co chaired the second meeting of the China Europe Trade and Investment Consultation Mechanism (hereinafter referred to as the Mechanism) in Beijing. Both sides held equal, professional, and constructive talks on issues such as trade and investment balance, export controls, intellectual property rights, and WTO reform. They comprehensively reviewed the consultations and progress since the first meeting of the mechanism, and reached a consensus on the results. The head of the European Department of the Ministry of Commerce interpreted the relevant achievements.

1、 Regarding the Economic and Trade Relations between China and Europe

Firstly, both sides reaffirm the stable and balanced positioning of China and Europe as key trading partners, and confirm that they will handle economic and trade differences and mutual concerns in a balanced manner within the framework of WTO rules, explore deepening mutually beneficial cooperation, and promote the upward balance and forward development of China Europe trade.

Secondly, both parties agree that the mechanism operates smoothly and efficiently, and the successful convening of the second meeting is a new starting point, not the end point. The consensus reached by both sides fully demonstrates the willingness and wisdom of China and Europe to manage and resolve differences through dialogue and consultation, effectively avoiding the escalation of friction.

Thirdly, both sides believe that a stable and healthy China Europe economic and trade relationship not only benefits Chinese and European enterprises and people, but also injects certainty and positive energy into global economic growth and stable supply chains, in line with the common interests of both sides.

2、 About Trade and Investment Balance

Both sides adhered to the principles of mutual respect, equality, and mutual benefit, and conducted intensive consultations on topics such as medical devices, cosmetics, drugs, inverters, and agricultural and food products. They deeply explored how to address each other's concerns on an equal footing, expand two-way market access, and promote dynamic balance in China Europe trade.

One is that both sides agree to play the role of a trade monitoring mechanism, explore the possibility of reducing tariffs on some goods under the framework of WTO rules, and engage in technical dialogue on EU foreign subsidy regulations to create a fair, transparent, and predictable environment for China EU trade and investment cooperation. Both parties are willing to exchange views on market access issues in the fields of medical devices and agricultural products based on their previous good cooperation, and continue to maintain communication on EU financing guidance documents for inverter projects, regulation of cosmetics and drugs, and other issues.

Secondly, based on the basic principles of respecting facts, non discrimination, and complying with WTO rules, both sides had in-depth discussions on the trade of electric vehicles and hybrid vehicles, avoiding the escalation of the situation and effectively safeguarding the actual export interests of Chinese enterprises and the stable development of China Europe hybrid vehicle trade.

At the same time, both parties reviewed the general guidance document on price commitments for electric vehicle anti subsidy cases previously reached, and the European side will actively promote price commitments and review procedures for electric vehicle case companies.

Thirdly, both sides have actively looked forward to future cooperation and believe that there is enormous potential for cooperation between China and Europe in areas such as new energy, artificial intelligence, trade in services, digital economy, and green and low-carbon, which can further explore new opportunities and expand new space. Both sides agree to explore bilateral investment cooperation. China continues to welcome EU enterprises to invest and develop in China, and continuously improves the business environment. At the same time, we look forward to the EU creating a fair, transparent, and predictable business environment for Chinese enterprises, effectively safeguarding their legitimate rights and interests, and enhancing their confidence and expectations in investing and operating in Europe.

3、 Regarding Export Control

Since the establishment of the China Europe Export Control Dialogue mechanism, both sides have maintained close communication at all levels. Both sides agree to further leverage the role of the export control dialogue mechanism, strengthen policy communication, and maintain stable and smooth global industrial and supply chains. Both sides reiterated their commitment to addressing each other's concerns in the field of export controls, and the European side will continue to promote progress in resolving key dual-use licensing cases against China. Both sides will explore the possibility of mutual facilitation measures regarding compliant trade of dual-use items between China and Europe, and the European side will consider taking possible facilitation measures towards China. Both sides also agreed to strengthen communication on the issue of sanction transfer orders in the field of export control, and to support and substantially initiate the mutual transfer process within their respective legal frameworks.

4、 Regarding Intellectual Property

China and Europe maintain a long-term friendly and cooperative relationship in intellectual property protection, and continue to make progress. Both sides are willing to continue deepening exchanges and expanding cooperation space. China hopes that the EU will attach importance to China's demands and actively promote solutions. Both sides believe that it is necessary to set phased goals and continue to leverage the main channel role of the China Europe Intellectual Property Working Group to deepen cooperation and monitor progress.

5、 Regarding the Reform of the World Trade Organization

Both China and Europe are staunch supporters and active contributors to the multilateral trading system. Both sides emphasize the value of a rules based multilateral trading system, support WTO reform, and emphasize the importance of complying with WTO rules. Both sides agree to further strengthen communication and cooperation in an open and constructive manner, and engage in discussions on all relevant issues of WTO reform, with the aim of promoting substantial progress in the reform.

6、 Regarding the follow-up work

Looking ahead to the next stage of work, both sides will continue to intensify their work on important economic and trade issues of common concern, and jointly promote the implementation of the consensus reached at the second meeting. Both sides also agreed to hold the third meeting of the mechanism in March 2027, and prior to that, close communication will be maintained at all levels, including a ministerial level video conference in January.