China and EU Open New Dialogue Channel, Discuss Four Sensitive Issues

China and the European Union (EU) have officially established a trade and investment consultation mechanism as a new platform to manage bilateral economic relations, including easing ongoing trade frictions. The agreement was announced in a joint statement released on Tuesday (30/6) following the inaugural meeting of the mechanism in Brussels. Chinese Minister of Commerce Wang Wentao and EU Commissioner for Trade and Economic Security Maros Šefčovič led the meeting, where they discussed strategic trade and investment issues in a comprehensive, in-depth, and constructive manner. In the joint statement, China and the EU set four priority work areas for the new mechanism: trade and investment balancing, export controls, intellectual property rights protection, and World Trade Organization reform. Both sides also agreed to establish a joint monitoring mechanism to exchange trade data, monitor goods flows, and support technical discussions. This step aims to increase transparency, strengthen trust, and manage potential trade disputes. Furthermore, China and the EU assessed that improving market access could help create a more balanced trade relationship. During the meeting, both parties exchanged lists of market access barriers and discussed the possible implementation of various tariff and non-tariff measures to achieve trade equilibrium. They agreed to continue consultations within the framework of the new mechanism with the goal of making concrete progress on outstanding trade issues. In the export control sector, China and the EU noted positive results from dialogue on rare earths, critical minerals, and other essential raw materials. Both sides committed to strengthening communication in this area to maintain the stability of global supply and industrial chains. China and the EU also stressed the importance of closer cooperation within the WTO, agreeing to push for reforms to make the organisation more effective, authoritative, and capable of addressing evolving global trade challenges.