China says EU trade talks offer route to avoid escalating disputes

China’s commerce ministry said on October 10 that understandings reached with the EU could help prevent trade disputes from escalating. After talks in Beijing, the sides reported an understanding on hybrid vehicles and further work on rare earth supplies.

Chinese Commerce Minister Wang Wentao and EU trade commissioner Maros Sefcovic took part in the two-day consultations. Beijing called the talks successful and said both sides were willing to handle differences through dialogue. That is China’s assessment, rather than an announcement that all trade disputes have been resolved.

Sefcovic said on October 9 that China had agreed to moderate exports of hybrid vehicles to the EU. He said the understanding opened the prospect of reducing those shipments by more than half against projections over a four-year period. That describes a potential change in volumes rather than a reduction already achieved.

The October 9 joint statement described the understanding on hybrid trade as consistent with World Trade Organization rules. China’s ministry said discussions covered both electric and hybrid vehicles, as well as safeguarding Chinese companies’ practical export interests.

Vehicles remain among the most contentious areas of trade with the 27-country bloc. AFP puts China’s trade surplus with the EU at around €1 billion a day. European concerns include subsidies, price dumping and currency policy. Weak domestic demand in China is also encouraging manufacturers to seek buyers abroad.

The talks covered continued supplies to the EU of important materials, including rare earths. The issue has drawn particular attention since China introduced export licensing requirements in 2025.

The sides intend to keep working on significant economic and trade issues. They scheduled the next meeting for March 2027, according to the account published on the Chinese government’s website.