Beijing says China, EU can avert trade escalation after talks

Beijing has stated that China and the European Union can prevent "escalation" in various contentious disputes after recent talks, according to an online statement from the country's commerce ministry. The discussions between Chinese Commerce Minister Wang Wentao and EU counterpart Maros Sefcovic were deemed "successful" and marked a "new starting point" by the ministry.

The outcome of the talks, said the ministry, fully demonstrates the willingness and wisdom of both sides to manage differences through dialogue and consultation, and to avoid the escalation of frictions.

EU Trade Chief Sefcovic announced on Friday following the two-day talks that Beijing had agreed to "moderate" exports of hybrid vehicles to the 27-nation bloc. According to Sefcovic, the deal could "open the prospect of cutting China's export (of hybrids) by more than a half" over a four-year period. Shipments of vehicles to the EU are among the most controversial aspects of China's mounting trade surplus with the bloc, which now exceeds one billion euros daily.

Many in Europe have accused China of unfair trade practices, including providing subsidies to firms, engaging in price dumping, and manipulating currency. The situation is further complicated by a persisting demand slump in China's domestic economy, which is prompting manufacturers to seek alternative markets abroad.

According to a joint statement published on Friday, the two sides had "reached an understanding on trade in hybrid vehicles in a (World Trade Organization) compliant manner," describing the discussions as "intensive." The Chinese commerce ministry reported on Saturday that the talks included "in-depth discussions on trade in electric vehicles and hybrid vehicles, avoiding escalation of the situation and effectively safeguarding the practical export interests of Chinese enterprises."

The talks also saw China commit to continuing the supply of vital items, such as rare earth minerals, to the EU. This topic has been closely followed since Beijing introduced export license requirements last year. The ministry added that both sides will intensify their work on important economic and trade issues of common concern, with the next meeting scheduled for March.