On October 8-9, Wang Wentao, Minister of Commerce of China, and Maroš Šefčovič, Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency, of the European Commission, co-chaired the second meeting of the China-EU Trade and Investment Consultations (hereinafter referred to as “TIC”) in Beijing. The two sides held reciprocal, professional and constructive talks on topics including trade and investment balancing, export controls, IPR and WTO reform. They comprehensively reviewed the consultations and progress made since the first meeting of TIC and reached deliverables and common understandings. The head of the Department of European Affairs of MOFCOM provided an interpretation of the relevant outcomes.

I. On China-EU Economic and Trade Relations 

First, the two sides reaffirmed their positioning as “stable and balanced key trading partners” and confirmed that they will, under the framework of WTO rules, handle economic and trade differences and each other’s concerns in a balanced manner, explore deeper mutually beneficial cooperation, and promote upward balancing and forward progress in China-EU trade.

Second, the two sides agreed that TIC operates smoothly and efficiently, and that the successful holding of the second meeting is a new starting point, not an end point. The deliverables and common understandings reached fully demonstrate that China and the EU have both the will and the wisdom to manage and properly handle differences through dialogue and consultation, thereby effectively avoiding escalation of frictions.

Third, the two sides agreed that a stable and sound China-EU economic and trade relationship not only benefits businesses and peoples of both sides and serves the common interests of both, but also injects certainty and momentum into global economic growth and the stability of industrial and supply chains.

II. On Trade and Investment Balancing 

Following the principles of mutual respect, equality and win-win outcomes, the two sides conducted intensive consultations on topics including medical devices, cosmetics, pharmaceuticals, inverters, and agri-food products, and held in-depth discussions on how to address each other’s concerns on a reciprocal basis, expand two-way market access, and promote dynamic balance in China-EU trade.

First, the two sides agreed to leverage the role of the trade monitoring mechanism, explore the possibility of tariff reductions for certain goods within the framework of WTO rules, and conduct a technical dialogue on the EU’s Foreign Subsidies Regulation (FSR), so as to foster a fair, transparent and predictable environment for China-EU trade and investment cooperation. Building on their sound cooperation thus far, the two sides stand ready to exchange views on market access issues in areas such as medical devices and agricultural products, and continue communication on issues including the EU guidance document on financing for inverter projects, and cosmetics and pharmaceutical regulation.

Second, guided by the basic principles of respecting facts, non-discrimination and compliance with WTO rules, the two sides held in-depth discussions on trade in battery electric vehicles (BEVs) and hybrid vehicles, preventing the situation from escalating and effectively safeguarding the real export interests of Chinese enterprises and the stable development of China-EU trade in hybrid vehicles.

At the same time, the two sides reviewed the previously agreed guidance document governing price undertakings in the BEV anti-subsidy case. The EU will actively advance the procedures related to enterprise price undertakings and reviews in the BEV case.

Third, the two sides took a positive outlook on future cooperation. They noted that China and the EU enjoy enormous potential for cooperation in areas such as new energy, artificial intelligence, trade in services, the digital economy, and green and low-carbon development, and that both sides can further tap into new opportunities and expand new space. The two sides agreed to explore two-way investment cooperation. China, as always, welcomes EU enterprises to invest and do business in China and will continue to improve the business environment. Meanwhile, China expects the EU to foster a fair, transparent and predictable business environment for Chinese enterprises, effectively safeguard their legitimate rights and interests, and boost their confidence and expectations for investment and operations in Europe.

III. On Export Controls 

Since the establishment of the China-EU Export Control Dialogue, the two sides have maintained close communication at various levels. They agreed to further leverage the role of the Export Control Dialogue, strengthen policy exchanges, and preserve the stability and smooth functioning of global industrial and supply chains. The two sides reaffirmed their commitment to addressing each other’s concerns in the field of export controls. The EU side will continue to advance progress in resolving specific priority licences to China among dual-use sectors. The two sides discussed the possibility of introducing mutual facilitation measures for compliant trade in dual-use items between China and the EU, and the EU side will consider possible facilitation measures for China. The two sides also agreed to strengthen communication on listing and delisting in the context of export control, and, within their respective legal frameworks, support and substantially initiate reciprocal delisting procedures.

IV. On IPR 

China and the EU have maintained long-standing, friendly and cooperative relations in intellectual property protection and made steady progress over time. The two sides stand ready to continue deepening exchanges and expanding cooperation. China hopes that the EU will attach importance to China’s concerns and actively push for their resolution. The two sides agreed on the need to set milestones and continue to give full play to the role of the China-EU Intellectual Property Working Group as the main channel, so as to deepen cooperation and monitor progress.

V. On WTO Reform

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

VI. On Follow-up Work Looking ahead to the next stage, the two sides will continue to step up work on important economic and trade issues of common concern and jointly promote the implementation of the deliverables and common understandings reached at the second meeting. The two sides also agreed to hold the third TIC ministerial meeting in March 2027. Prior to that, the two sides will maintain close communication at various levels, including holding a ministerial video conference in January. (Released on October 10)