On October 16, Foreign Ministry spokesperson Mao Ning presided over a regular press conference. A reporter asked whether, although China and the EU have reached an agreement on the trade of hybrid vehicles, there are reports that the EU is preparing new trading measures to reduce its trade deficit with China. What is China's comment on this?
Mao Ning pointed out that China-Europe economic and trade relations are essentially based on mutual benefit and win-win outcomes. The positive progress made during the second regular meeting of the China-Europe trade and investment consultation mechanism indicates that the two sides can properly handle their differences through dialogue.
Mao Ning stated that we hope the EU upholds its commitment to freedom and openness, adhering to WTO rules, avoiding protectionist and discriminatory policy measures, working together with China to advance trade toward a balanced and sustainable development model, and jointly maintaining stable and smooth flow of global supply chains.
According to previous reports, after several days of intensive negotiations, China and Europe have finally made progress on a series of difficult trade issues.
According to the Chinese Ministry of Commerce, the second meeting of the China-EU Trade and Investment Consultation Mechanism was held in Beijing from October 8th to 9th. The consensus reached by both sides covered four areas: trade and investment balance, export controls, intellectual property rights, and reforms within the World Trade Organization. Both sides reaffirmed their commitment to handle differences properly within the framework of WTO rules, in order to promote more stable and balanced bilateral economic and trade relations.
The most notable achievement comes from the automotive sector. The consensus list published by the Chinese side states that after intensive negotiations, both parties reached an understanding regarding the trade of hybrid vehicles in a manner that complies with WTO rules.
According to Reuters report dated October 14th, local time, European Commission Vice President for Economic Affairs Ombrovsakis stated that after reaching an agreement between China and Europe in the field of hybrid vehicles, the EU still needs to promote a trade “rebalancing” with China in other industries, including chemicals, furniture, industrial machinery, steel, and wind power equipment.
He stated that the EU needs to achieve tangible results in trade discussions with China. If the dialogue progresses less well than expected, the EU may take other measures. Reuters also mentioned that EU leaders will discuss how to accelerate the use of trade defense tools, including possibly adopting the approach outlined in Article 301 of the US Trade Act of 1974.
