China and the European Union have reaffirmed the importance of institutionalized dialogue in managing trade and economic relations, emphasizing that ongoing communication mechanisms are crucial for addressing differences and promoting cooperation. This was highlighted during recent high-level interactions including the 28th China-France Strategic Dialogue held on October 10 in Datong, Shanxi province, and the second meeting of the China-EU trade and investment consultation mechanism in Beijing on October 7-8.
China’s Foreign Minister Wang Yi, speaking with Emmanuel Bonne, diplomatic adviser to the French president, stressed that trust forms the foundation of China-EU relations. Economic and trade disputes, he noted, are temporary challenges that can be effectively managed through established channels of dialogue. Both sides voiced satisfaction with the progress made under the trade mechanism, jointly chaired by Chinese Commerce Minister Wang Wentao and European Commissioner for Trade Maros Sefcovic.
The consultation mechanism, designed to facilitate communication on trade issues, was praised for operating smoothly and markinga new phase in managing economic relations. Officials agreed that without such platforms, trade conflicts risk escalating through unilateral actions and retaliatory measures. The mechanism allows each party to express concerns, explore possible solutions, and monitor implementation, thus helping avoid confrontation.
During the forum in Datong, Wang reiterated China’s commitment to addressing trade differences with the EU via dialogue, underscoring the responsibility of both economies to handle disputes constructively. This statement gains particular significance given recent tensions, including proposals by France and Germany to reinforce the EU’s trade instruments and preparations for potential protective measures targeting Chinese exports and investments.
Emmanuel Bonne affirmed the EU’s position against engaging in a trade war with China or pursuing a decoupling of their economic ties. He acknowledged the mutual harm that confrontation would cause and welcomed the agreement to maintain ongoing procedures related to the EU’s “anti-subsidy” investigation of Chinese electric vehicle companies. This approach seeks to balance European regulatory concerns with the sustainability of Chinese exports.
In addition to addressing subsidy-related issues, the two sides agreed to explore tariff reductions within World Trade Organization guidelines and plan a technical dialogue on the EU’s Foreign Subsidies Regulation. The EU also committed to advancing resolutions on licensing cases involving China in the dual-use technology sector.
Looking ahead, China and the EU have scheduled the third meeting of the trade and investment consultation mechanism for March 2027, with an intermediate ministerial-level video conference planned for January. The recent discussions underscore that despite distinct economic systems and ongoing challenges, mutual accommodation through dialogue remains possible and beneficial.
Both parties recognize that strong economic ties between China and the EU not only serve their bilateral interests but also contribute positively to global economic stability and growth. They committed to continuing their efforts to expand cooperation and implement the agreements reached during the latest round of consultations.