China EU Photo:VCG

Interactions between China and Europe continue to garner global attention as officials from both sides held talks on key trade issues, including Chinese electric vehicles (EVs) imports to the EU and China's anti-dumping investigation into brandy originating from the EU. 

The fact that China and the EU are engaging in frank and in-depth exchanges on key issues that have troubled bilateral economic and trade ties at this juncture itself represents a positive signal, said a Chinese expert. This is not only conducive to removing obstacles to bilateral economic and trade cooperation, but also paves the way for further high-level interactions. Moreover, strengthened cooperation and negotiations between China and the EU will help both sides weather the volatile trade environment amid current global turmoil, analysts said on Sunday. 

China's Ministry of Commerce (MOFCOM) said in a statement on Saturday that the electric vehicle (EV) price commitment negotiations between China and the EU have entered the final stage, though further efforts are still required from both parties.

The comments were made regarding Chinese Commerce Minister Wang Wentao's meeting with EU Commissioner for Trade and Economic Security Maros Sefcovic in France on June 3.

According to the statement, both sides held focused, candid, and in-depth discussions on urgent and important issues, including the EU's anti-subsidy probe into Chinese EVs, China's anti-dumping probe on EU brandy, and export controls. Both sides called on their working teams to intensify efforts in preparing for this year's major China-EU economic and trade agenda.

Wang clarified China's export control policies for the EU side, emphasizing that implementing export controls on rare earths and other items is a common international practice, according to the MOFCOM statement.

China attaches great importance to the concerns of the EU side, and is willing to establish a green channel for eligible applications and expedite the approval process, the ministry said. China has also instructed relevant work teams to maintain timely communication on this matter. 

Development between China and EU on trade talks has garnered wide attention from worldwide media.

Bloomberg on Saturday said that "China's commerce ministry said talks with the European Union on setting minimum prices for Chinese-made electric vehicles have 'entered final stages,' although more work is required to reach a deal."

Reuters also said in a Saturday report that the MOFCOM's comments "mark progress on matters that have vexed China's relationship with the EU over the past year."

Reuters has also focused on negotiations on rare earths exports, saying that "China says it may speed up rare earths application approvals from EU."

If the problem of the EU's anti-subsidy case involving Chinese EVs is resolved, one big obstacle affecting China-EU relations will be removed, Sun Keqin, a research fellow at the China Institutes of Contemporary International Relations, told the Global Times, noting that the fact the two sides are willing to sit down at this juncture and discuss key issues that have troubled bilateral ties for years can be seen as a good sign.

Sun noted that cooperation between China and the EU on rare earth export controls demonstrates the importance of China-EU relations. "China-EU relations have always been a key focus of foreign relations for both sides. The China-EU Summit, if it is successful, presents a favorable opportunity for both to promote rational and constructive cooperation. Moreover, against the backdrop of enhanced new competitiveness, Beijing and Brussels can explore ways to manage differences and facilitate development on the basis of common interests."

The US factor 

The New York Times also took note of trade talks between China and EU, saying that "China hints at rare earths progress with EU before talks with US."

A spokesperson from China's ministry of foreign affairs announced on Saturday that at the invitation of the UK government, Member of the Political Bureau of the Communist Party of China (CPC) Central Committee and Vice Premier of the State Council He Lifeng will visit the UK from June 8 to 13. While in the UK, he will hold the first meeting of the China-US economic and trade consultation mechanism with the US side.

Currently, with a threat of 50 percent US tariffs on all EU goods looming from July 9, Brussels is scrambling to make an offer that is amenable to the White House, according to Politico. 

Cui Hongjian, a professor at the Academy of Regional and Global Governance at Beijing Foreign Studies University, told the Global Times that the positive developments in trade talks between China and the EU come at a particular moment, as both parties prepare for a new round of negotiations with the US as enhanced collaboration between the two can buffer the pressure from Washington. Furthermore, these outcomes could enhance mutual trust between China and the EU, paving the way for higher-level exchanges between the two sides. 

Cui noted that the US factor is just a stimulating factor between China and EU's closer ties as the two sides have vast interests that can be converged and the potential for cooperation is huge. "It is important for Brussels to remain determined in enhancing cooperation with China. The bloc should not act only when pushed by external factors from the US, only to [later] regress or stagnate when such external impulses fade away," Cui said.