Progress in China-EU trade talks hinges on implementing consensus

Editor's note: Zhang Jianping, a special commentator for CGTN, is the deputy director of the academic committee of the Chinese Academy of International Trade and Economic Cooperation of the Ministry of Commerce. Gao Yuan, a special commentator for CGTN, is a postdoctoral researcher of the academic committee of the Chinese Academy of International Trade and Economic Cooperation, Ministry of Commerce. The article reflects the author’s opinions and not necessarily the views of CGTN.

At the second regular meeting of the China-EU Trade and Investment Consultation Mechanism in Beijing, held on October 8-9, 2026, the two sides, building on their status as "stable and balanced key trade partners," held consultations in four areas – trade and investment balance, export controls, intellectual property rights, and reform of the World Trade Organization (WTO).

They also reached consensus on 16 outcomes, marking progress in consultations since the first meeting and providing new opportunities to resolve specific bilateral economic and trade issues.

Given China and the EU's close economic and trade ties, it is normal for the two sides to have some differences. The key lies in how to resolve these issues through dialogue and prevent trade frictions from escalating. The progress achieved at this regular meeting demonstrated that although they still hold differing views on certain issues, as long as communication is maintained, there is an opportunity to find solutions acceptable to both.

Automobile trade was a key topic at the consultations. Regarding trade in electric and hybrid vehicles, the consensus was to advance procedures related to corporate price undertakings and electric vehicle anti-subsidy case reviews, and to reach mutual understanding on hybrid vehicle trade in a manner consistent with WTO rules.

This demonstrated that in the face of differences arising from industrial competition, simply imposing tariffs or restricting trade does not resolve the issues; it may increase costs for enterprises and affect industrial cooperation. Seeking solutions through dialogue helps safeguard the interests of enterprises and facilitates continued cooperation between the Chinese and European automotive industries.

Issues such as export licenses for rare earths and permanent magnets, as well as export controls on dual-use items, also affect the normal operations of enterprises and the stability of industrial chains and supply chains. During the consultation, China expressed willingness to facilitate approval of export licenses for rare earths and permanent magnets to the EU through the "green channel" mechanism. The EU, on its part, will work with its member states to facilitate the resolution of key licensing cases involving dual-use items exported to China.

Both also support initiating transfer procedures within their respective legal frameworks. These consensus points provide the conditions for resolving specific issues, but the ultimate outcome will depend on implementation.

In addition to goods trade, regulatory policies and the investment environment are also key factors influencing China-EU economic and trade relations. During this round, both sides agreed to launch a technical dialogue on the EU's Foreign Subsidies Regulation, which would provide a channel for exchanging views on relevant policies and addressing business concerns. At the same time, both sides agreed to explore the possibility of reducing tariffs on certain goods within the framework of WTO rules.

This demonstrated that achieving a balanced China-EU trade relationship cannot rely solely on import restrictions or trade remedy measures; it also needs expanding market access and reducing trade costs. Of course, engaging in technical dialogue does not mean the two sides have resolved their differences, and tariffs remain under discussion. Moving forward, both sides need to continue communicating to drive tangible progress on these issues.

Whether it is procedures related to automobile trade, measures to facilitate export licensing, or technical dialogue on foreign subsidy regulations, both sides need to continue coordinating. At the same time, the China-EU trade imbalance is not caused by any single policy or trade in a specific category of goods, but is related to multiple factors such as industrial structure, market demand, corporate competitiveness, and market access. If the focus is solely on trade deficit figures and unilateral restrictive measures, it will be difficult to resolve the issue at its root. Both sides also need to continue their efforts in areas such as expanding openness, improving market access, and strengthening industrial cooperation.

According to the arrangements made, China and the EU will hold their third regular meeting in March 2027 and maintain close communication in the interim. In the next phase, both sides need to translate the consensus reached into concrete action and promptly resolve any issues encountered during implementation.

China should continue to safeguard the legitimate rights and interests of Chinese enterprises through dialogue, and promote the balanced and forward-looking development of China-EU trade. The EU needs to squarely address the issues in its own market access and industrial policies and handle bilateral economic and trade relations with a more open and pragmatic attitude.

China and the EU are important trading partners and maintaining stable economic and trade relations is in the interests of both. This regular meeting has provided a new opportunity to resolve economic and trade differences, but whether this mechanism can truly be effective depends on whether the consensuses can be implemented. Only equal dialogue, abiding by international rules, and advancing the various points of consensus can resolve the economic and trade issues between the two sides, promote the stable development of China-EU economic and trade relations, and bring more stability to global trade.

(If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com. Follow @thouse_opinions on X to discover the latest commentaries in the CGTN Opinion Section.)