China's Ministry of Commerce has responded to reports that the EU is considering extending a trade understanding the two sides reached on hybrid vehicles to chemicals and other sectors.

At a regular press briefing on Thursday, the ministry said any artificial restrictions on normal trade could violate WTO rules, raise costs for downstream industries and threaten the stability of global industrial and supply chains.

It said recent China-EU trade and investment talks had made positive progress, showing both sides have the will and ability to resolve differences through dialogue.