China-EU trade consultations take a more problem-oriented approach

Editor's note: He Yinghao is an assistant researcher at the Institute for National Strategy and Regional Development, Zhejiang University.

The article reflects the author's opinions and not necessarily the views of CGTN.

The second meeting of the China-EU trade and investment consultation mechanism, held in Beijing on October 8-9, concluded with a list of deliverables and understandings, covering automotive trade, market access, export controls and other issues.

At a time of growing trade tensions, the meeting was more than an opportunity for dialogue.

It suggested a shift toward a more problem-oriented approach to managing China-EU economic relations: Identifying specific disputes, working through possible solutions and setting out a framework for further negotiations.

This shift matters because competition has become an increasingly prominent feature of China-EU economic relations.

The EU has imposed additional countervailing duties on Chinese electric vehicles, stepped up scrutiny of foreign subsidies and placed critical raw materials and supply chain security at the center of its economic security agenda.

Against a backdrop of sluggish European growth and shifting US trade policies, concerns over trade imbalances and industrial competitiveness have gained greater prominence in the EU's approach toward China.

China, meanwhile, has raised concerns about the EU's trade restrictions and emphasized the need to protect its legitimate trade interests.

These differences are substantial, but they need not prevent progress on individual trade issues.

The meeting yielded progress on several specific trade issues, with automotive trade among the most significant.

China and the EU reached an understanding on trade in hybrid vehicles consistent with WTO rules and agreed to continue relevant procedures concerning companies' price undertakings and reviews in the EU's anti-subsidy case involving Chinese electric vehicles.

On October 12, China's Ministry of Commerce provided further details on the hybrid vehicle understanding.

Citing Eurostat figures, the ministry noted that EU imports of hybrid vehicles from China rose from 107,000 in 2024 to 302,000 units in 2025.