China says can avoid 'escalation' after EU trade talks

China and the European Union have successfully navigated contentious trade disputes, according to Beijing, as concerns of a damaging trade war persist. High-level talks between Chinese Commerce Minister Wang Wentao and EU counterpart Maros Sefcovic concluded positively, marking a fresh beginning, according to China's commerce ministry.

The outcomes clearly illustrate the mutual willingness and astuteness of both nations to address differences through dialogue and consultation, effectively preventing tensions from escalating.

Following the two-day deliberations, Sefcovic announced that China had agreed to ease exports of hybrid vehicles to the 27-member bloc, where domestic automakers face mounting pressure from Chinese competitors. This agreement, Sefcovic stated, could potentially reduce China's hybrid vehicle exports to the EU by over half over a four-year period. Vehicle shipments to the EU constitute a significant portion of China's burgeoning trade surplus with the bloc, which now exceeds a billion euros daily.

European critics allege China's unfair trade practices, including substantial subsidies, price dumping, and currency manipulation. The EU's economic slowdown further compounds the issue, driving manufacturers to explore overseas markets. A joint statement following the talks highlighted an understanding on hybrid vehicle trade in compliance with World Trade Organization regulations.

The talks extensively covered hybrid and electric vehicle trade, emphasizing the avoidance of situation escalation and the protection of Chinese enterprises' export interests. China also pledged to continue supplying essential items like rare earth minerals to the EU, a critical issue since Beijing introduced export license requirements last year. Both sides agreed to intensify cooperation on key economic and trade matters of shared concern, with the next meeting scheduled for March.