EU, China launch trade talks to ease tensions

The EU and China have agreed Monday to launch a new high-level dialogue aimed at stabilizing and rebalancing their trade and investment relationship, following the first meeting of the EU-China Trade and Investment Consultations (TIC) in Brussels.

EU Trade Commissioner Maros Sefcovic and China’s Commerce Minister Wang Wentao met and agreed that the main objective of the new mechanism is to strengthen ministerial-level dialogue on trade and investment policies, with a focus on creating a more stable and balanced economic relationship.

Both sides acknowledged challenges in the trade relationship and are committed to seeking practical solutions, according to a joint statement.

They identified four initial workstreams under the consultations: trade and investment balancing, export controls, intellectual property rights, and World Trade Organization (WTO) reform.

Officials have been mandated to advance work in those areas, with ministers expected to meet in the fall.

The two sides also agreed to establish a joint monitoring mechanism to exchange data, track trade flows and support technical work intended to improve transparency, build trust and manage trade frictions.

Discussions included possible tariff and non-tariff measures aimed at improving market access, with both sides exchanging lists of concerns and agreeing to continue talks under the trade balancing workstream.

On export controls, the EU and China noted positive progress in dialogue on rare earth elements and other critical materials.

They agreed to strengthen exchanges on regulatory frameworks and licensing policies, and to further cooperation aimed at supporting the stability of global supply chains.

Both sides also underlined the importance of cooperation within the WTO and expressed support for advancing WTO reform and strengthening its effectiveness.

In addition, they recognized technical discussions on intellectual property rights, agreeing to address systemic issues and improve fairness, efficiency and transparency of IP protection and enforcement.