On October 8-9, Chinese Commerce Minister Wang Wentao and European Commission Executive Vice-President for Trade and Economic Security Maros Sefcovic co-chaired the second meeting of the China-EU Trade and Investment Consultation Mechanism in Beijing.

The two sides held equal, professional, and constructive talks on issues including trade and investment balance, export controls, intellectual property rights, and WTO reform, comprehensively reviewed the consultation situation and various progress since the first meeting of the mechanism, and reached consensus on outcomes. A responsible official of the European Affairs Department of the Ministry of Commerce provided an interpretation of the relevant outcomes.

On China-EU Economic and Trade Relations

First, both sides reaffirmed the positioning of stable and balanced key trade partners between China and the EU, and confirmed that they will handle economic and trade differences and mutual concerns in a balanced manner within the WTO rules framework, explore deepening mutually beneficial cooperation, and promote upward balance and forward development of China-EU trade.

Second, both sides agreed that the mechanism operates smoothly and efficiently, and the successful convening of the second meeting is a new starting point, not an endpoint. The consensus outcomes reached by both sides fully demonstrate that China and the EU have both the willingness and the wisdom to manage and properly handle differences through dialogue and consultation, effectively avoiding escalation of frictions.

Third, both sides believe that stable and healthy China-EU economic and trade relations not only benefit enterprises and people on both sides and serve the common interests of both parties, but also inject certainty and positive energy into global economic growth and the stability of production and supply chains.

On Trade and Investment Balance

Both sides adhered to the principles of mutual respect, equality, and mutual benefit, conducted intensive consultations, and held in-depth discussions on issues including medical devices, cosmetics, pharmaceuticals, inverters, and agri-food products regarding how to address each other's concerns on an equal basis, expand two-way market access, and promote dynamic balance in China-EU trade.

First, both sides agreed to leverage the role of the trade monitoring mechanism, explore the possibility of reducing tariffs on certain goods within the WTO rules framework, and conduct technical dialogue on the EU's Foreign Subsidies Regulation, creating a fair, transparent, and predictable environment for China-EU trade and investment cooperation. Both sides are willing to exchange views on market access issues in areas such as medical devices and agricultural products on the basis of previous good cooperation, and continue to maintain communication on issues including the EU's guidance document on financing for inverter projects and cosmetics and pharmaceutical regulation.

Second, based on the basic principles of respecting facts, non-discrimination, and WTO compliance, both sides held in-depth discussions on trade in electric vehicles and hybrid vehicles, avoiding escalation of the situation and effectively safeguarding the actual export interests of Chinese enterprises and the stable development of China-EU hybrid vehicle trade. At the same time, both sides reviewed the previously reached general guidance document on price undertakings for the electric vehicle anti-subsidy case, and the European side will actively advance the relevant procedures for enterprise price undertakings and review in the electric vehicle case.

Third, both sides positively looked forward to future cooperation, believing that China and the EU have enormous cooperation potential in areas such as new energy, artificial intelligence, trade in services, the digital economy, and green and low-carbon development, and can further tap new opportunities and expand new space. Both sides agreed to explore two-way investment cooperation. China, as always, welcomes EU enterprises to invest and do business in China and continuously improves the business environment, while expecting the European side to create a fair, transparent, and predictable business environment for Chinese enterprises, effectively safeguard the legitimate rights and interests of Chinese enterprises, and enhance the confidence and expectations of Chinese enterprises in investing and operating in Europe.

On Export Controls

Since the establishment of the China-EU Export Control Dialogue Mechanism, both sides have maintained close communication at all levels. Both sides agreed to further leverage the role of the export control dialogue mechanism, strengthen policy communication, and maintain the stability and smooth operation of 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 push for progress in resolving key licensing cases for China in the dual-use field. Both sides discussed the possibility of introducing mutual facilitation measures around compliant trade in China-EU dual-use items, and the European side will consider possible facilitation measures for China. Both sides also agreed to strengthen communication on the issue of sanctions listing and delisting in the field of export controls, and to support and substantively launch mutual delisting procedures within their respective legal frameworks.

On Intellectual Property Rights

China and the EU have maintained long-term friendly cooperative relations in intellectual property protection and have continuously made progress. Both sides are willing to continue deepening exchanges and expanding cooperation space. China hopes the European side will attach importance to China's demands and actively promote their resolution. Both sides believe it is necessary to set phased goals and continue to give full play to the main channel role of the China-EU Intellectual Property Working Group, deepen cooperation, and monitor progress.

On WTO Reform

Both China and the EU are firm supporters and active contributors to the multilateral trading system. Both sides emphasized the value of the rules-based multilateral trading system, supported WTO reform, and stressed the importance of complying with WTO rules. Both sides agreed to further strengthen communication and cooperation in an open and constructive manner, and conduct discussions on all relevant issues of WTO reform with a view to promoting substantive progress in reform.

On Follow-up Work Outlook

For the next stage of work, both sides will continue to step up work on important economic and trade issues of common concern and jointly promote the implementation of the consensus outcomes reached at the second meeting. Both sides also agreed that the third meeting of the mechanism will be held in March 2027, and before that, both sides will maintain close communication at all levels, including a ministerial-level video conference in January.