China and the European Union have the potential to deepen economic and trade cooperation by addressing their differences through negotiations and providing businesses with a more stable and predictable environment, a Chinese trade expert told CGTN on Saturday, following the two sides' latest trade talks in Beijing.

The remarks followed the second meeting of the China-EU trade and investment consultation mechanism, co-chaired by Chinese Minister of Commerce Wang Wentao and European Commissioner for Trade and Economic Security Maros Sefcovic in Beijing from Thursday to Friday. A joint statement released on Friday said the two sides had agreed to maintain stable bilateral economic and trade ties and make them more balanced.

"The statement has made it very clear that both sides agree that we are going to negotiate in a better way," said Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation.

China and the EU have complementary advantages in markets, innovation and businesses, Zhou said, adding that the two sides could better address uncertainties and restrictions through dialogue.

He said policy stability and predictability were crucial to encouraging businesses to invest and expand cooperation. "When enterprises are going to make investments, they have to understand that the situation will be stable."

Supply chains and industrial chains are built on collaboration and trust, Zhou said, adding that businesses would be more willing to strengthen ties if they believed cooperation would bring them further opportunities.

The joint statement outlined 16 areas of consensus, covering trade and investment balance, export controls, intellectual property rights and World Trade Organization (WTO) reform. The two sides also agreed to continue exploring the possibility of reducing tariffs on certain goods within the framework of WTO rules and reached an understanding on trade in hybrid vehicles.

Zhou said China and the EU could help restore confidence in global trade governance amid growing uncertainty and protectionism.

China and the EU are firm supporters of globalization, he said, calling for stronger support for the multilateral trading system, including through improvements to dispute settlement and efforts to address emerging issues such as e-commerce.

The two sides also identified potential cooperation in artificial intelligence, the digital economy and new energy. Zhou said turning that potential into concrete business and investment opportunities would depend partly on whether companies had confidence in policy stability and the prospects for cooperation.

China and the EU agreed to hold their next meeting under the trade and investment consultation mechanism in March 2027, with a ministerial video conference scheduled for January. Both sides also agreed to maintain close communication and promote the early implementation of the agreed outcomes.