1 hr ago
China and EU Intensify Trade Talks, Beijing Pledges Rare Earth Supplies
China and the European Union have been having disagreements about trade.
On Friday, they agreed to keep talking and try to ease tensions.
Their discussions covered trade in hybrid vehicles and how companies may make price commitments.
China also said it would keep helping rare earth materials and magnets reach the EU.
These materials are important to European businesses.
The EU says it buys much more from China than it sells there, creating a large trade deficit.
European businesses agree the imbalance should be addressed, but want changes to be negotiated and predictable.
The talks are intended to help manage the relationship and avoid a wider trade conflict.
China and the European Union agreed Friday to intensify trade dialogue after discussions between their commerce chiefs.
The sides reached an understanding on hybrid-vehicle trade and agreed to follow procedures on company price undertakings.
Beijing said it would continue facilitating EU-bound exports of rare earths and permanent magnets.
EU Trade Commissioner Maros Sefcovic called the bloc’s roughly one-billion-euro-a-day trade deficit with China unsustainable.
European businesses support addressing the imbalance but want proportionate, specific and negotiated steps that make trade more predictable.
- Who
- Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maros Sefcovic
- What
- Agreed to intensify trade dialogue, discuss hybrid-vehicle trade and price undertakings, and continue facilitating rare earth and permanent-magnet supplies to the EU.
- Where
- The discussions took place in Beijing.
- When
- The agreement was announced Friday, after the ministers' discussions.
- Why
- The sides are seeking to ease months of rising trade tensions and address the EU's large trade deficit with China.
EU trade concerns
Business calls for caution
Addressing the trade imbalance
EU trade concerns
EU officials say the roughly one-billion-euro daily deficit with China is unsustainable, and have accused Beijing of unfair practices including subsidies and price dumping.
Business calls for caution
European businesses support addressing the imbalance but want the response to be proportionate, specific and negotiated so the broader relationship can be managed.
Managing trade relations
EU trade concerns
The EU is under pressure to address the imbalance and seek tangible outcomes from talks.
Business calls for caution
Businesses are nervous about the discussions and seek greater transparency and predictability, particularly around access to rare earths and permanent magnets.
Key facts
- EU-China trade deficit
- Around one billion euros ($1.1 billion) a day, according to Sefcovic.
- Trade topics
- Hybrid vehicles and procedures concerning company price undertakings.
- Critical materials
- China pledged to continue facilitating EU-bound rare earth and permanent-magnet export approvals.
- EU membership
- The European Union has 27 member states.
- Business concern
- European companies called for proportionate, specific and negotiated action, with greater predictability around rare earth access.
- Trade tensions
- The discussions followed months of escalating tensions and concerns about a broader confrontation.
Quotes
Adam Dunnett
Secretary general of the European Union Chamber of Commerce in China
“They fully support that that needs to be addressed, but they want it to be done in a proportionate, specific and negotiated way so that we can manage the overall relationship.”
firstpost.com
Sources
Related news
European Industry Groups Urge EU to Counter Unfair Chinese Trade
China urges Germany to prevent Europe trade war through dialogue
US Prioritizes Rare-Earth Licences, Bilateral Trade Board Ahead of Summit
Rare Earths Give China Leverage at Trump-Xi Summit
India and China Seek Progress on Trade and Economic Concerns
India and China Begin Talks on Trade Imbalance
Xi-Modi Meeting Falls Short of China-India Economic Reset
