China, EU agree on dialogue, cars and rare earths after trade talks
<p>Beijing: China and the European Union reached an "understanding" on hybrid vehicles on Friday, as their commerce chiefs concluded talks with an agreement to strengthen dialogue, dispelling fears of a full-blown trade war.</p> <p>The EU's Maros Sefcovic and China's Wang Wentao agreed both sides would adhere to "procedures concerning company price undertakings" of hybrid cars, Beijing's commerce…
Beijing, EU officials have agreed to maintain dialogue and a continued trade relationship after high-level talks. The European Union's trade chief Maros Sefcovic and China's Wang Wentao signed an "understanding" on hybrid vehicles and agreed to strengthen oversight of company price commitments for these cars, according to a joint statement. This follows months of escalating tensions between the two sides, which threatened a full-scale trade war.
The EU sees China as a major threat to its automotive industry as cheaper Chinese products have strained European manufacturers. In response, Beijing committed to continue supplying vital rare earth minerals to the EU, a move that provides relief for Brussels. While acknowledging differences, both sides are committed to maintaining trade and hold a meeting in March.
The talks come after Brussels highlighted its unsustainable trade deficit with China, which runs around one billion euros ($1.1 billion) daily. European companies with local operations in China expressed support for addressing the trade imbalance but want it done proportionately and in a negotiated manner. Beijing's pledge to continue supplying rare earths will bring predictability and comfort for European firms dealing with new access restrictions.
Written by urgent.news from The Peninsula Qatar Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
