China willing to work with EU to stabilize trade ties

China expressed its willingness to work with the European Union to enhance the stability of their economic and trade relations, as stated by Vice Premier He Lifeng during a meeting with French diplomat Emmanuel Bonne in Beijing. This comes after recent trade consultations between China and the EU, including a deal that could significantly reduce Chinese hybrid car exports to the bloc.

During the second meeting of the China-EU trade and investment consultation mechanism, Chinese Minister of Commerce Wang Wentao and European Commissioner for Trade and Economic Security Maros Sefcovic reaffirmed their commitment to stable and balanced trade ties. They agreed to address differences and concerns in a balanced manner within World Trade Organization (WTO) rules, explore deepening mutually beneficial cooperation, and promote balanced growth. The consultation mechanism was described as operating smoothly and efficiently, marking a new beginning for resolving differences through dialogue.

Discussions covered various topics including medical devices, cosmetics, pharmaceuticals, inverters, agri-food products, and trade in electric and hybrid vehicles. Both sides agreed to explore the possibility of reducing tariffs on certain goods and hold technical dialogues on the EU's Foreign Subsidies Regulation. They also reaffirmed commitments regarding export controls, with the EU expected to make progress on licensing cases involving China in the dual-use sector.

Both China and the EU see significant potential for cooperation in new energy, artificial intelligence, trade in services, the digital economy, and green development. China reiterated its welcome for EU companies investing in China and its commitment to improving the business environment, while expecting the EU to provide Chinese companies with a fair and predictable environment.

Foreign Minister Wang Yi stated that China and the EU are capable of managing trade differences through dialogue, highlighting the positive progress in recent consultations. Emmanuel Bonne, French President's Diplomatic Adviser, indicated that Europe does not seek a trade war or decoupling from China and is ready to be a credible partner. A Chinese Foreign Ministry spokesperson also urged the EU to work with China to keep global industrial and supply chains stable and unimpeded, emphasizing the high integration and mutual dependence of their industrial and supply chains.