China-EU Trade Talks: Four Working Groups Established, Results to Be Submitted Before October

EU Trade Commissioner Sabanović met with China’s Minister of Commerce in Brussels. Sabanović stated that the goal is to achieve tangible outcomes before October, when he will travel to Beijing to assess progress.

On Monday, June 29, after talks with China’s Minister of Commerce, EU Trade Commissioner Sabanović told the media that the negotiations were "intense, focused, and constructive." The discussions continued into the evening of Monday.

Sabanović said both sides have clear mandates and an ambitious timeline, aiming to deliver concrete results before October. He will visit Beijing this autumn to evaluate the outcomes. Sabanović noted that the Chinese minister has invited him to visit Beijing in October.

"Maintaining the status quo is not an option"

Sabanović emphasized that China's exports to the EU continue to rise, while the EU's market share in China keeps shrinking. "This trend is unsustainable—maintaining the status quo is not an option."

He added that four working groups will be established: trade and investment balance, export controls, intellectual property, and WTO reform. Regarding the first group—trade and investment balance—both sides agreed to immediately set up a joint trade flow monitoring mechanism as a tool to help balance trade.

According to *Frankfurter Rundschau*, this is a "traffic light" system. The report noted that reaching agreement on shared statistical data as a common basis represents significant progress. Under this mechanism, if China's exports to the EU suddenly increase, the traffic light would turn yellow or red, triggering immediate political-level consultations between the two sides to address the issue.

Sabanović also told the media that regarding the second working group—export controls—China’s minister reaffirmed that existing export controls on rare earths and permanent magnets would not disrupt EU supply chains. Sabanović welcomed this statement but also put forward specific suggestions to streamline procedures for EU companies seeking permits.

A news release issued by China’s Ministry of Commerce on Tuesday stated that the Chinese minister also raised concerns about the EU’s ban on inverters financing, the draft revision of the Cybersecurity Law, and the Industrial Accelerator Act. He stressed that China is not the root cause of the problems faced by the EU.

*Frankfurter Rundschau* commented that Sabanović’s talks with the Chinese minister “exceeded expectations.”

Previously, EU member state leaders had urged the European Commission to engage in productive dialogue with China. Last year, the EU’s trade deficit with China reached €360 billion, a 15% increase from the previous year. In the first four months of this year, China’s trade surplus with the EU expanded by 10%.

Source: DW, Reuters

Original article: toutiao.com/article/1869485329648649/

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