EU trade chief hails ‘crucial first step’ as Beijing talks avoid trade war

EU and Chinese officials agreed a series of trade concessions covering electric cars, rare earths and tariffs that dragged them away from a damaging trade war on Friday (9 October), following two days of crisis talks. Following two days of talks in Beijing, EU trade commissioner Maroš Šefčovič said that he and China’s commerce secretary Wang Wentao had made a “crucial first step” towards rebalancing EU-China trade relations. Europe can point to progress on hybrid vehicles, stronger assurances over the supply of critical raw materials, and continued engagement on market access issues in China. Hours before Šefčovič arrived, Beijing rejected an EU demand for so-called “voluntary export restrictions” on its electric vehicles (EVs). However, in a joint statement on Friday, the two sides said that they had reached an “understanding on trade in hybrid vehicles in a WTO compliant manner”, but without providing further details. They added that further negotiations on reducing tariffs and minimum pricing deals would allow Chinese EVs to enter the EU at a lower duty rate. To read this story, log in or subscribeEnjoy access to all articles and 25 years of archives, comment and gift articles. Become a subscriber for as low as €1,75 per week.Read without limitsAlready a subscriber? Login