China Seeks Greater Cooperation with the EU Amid Trade Disputes

On Thursday, the Ministry of Commerce in China announced its readiness to cooperate with the European Union to enhance bilateral market accessibility, promote dialogue regarding government procurement and export controls, and foster deeper collaboration in industrial and supply chains. He Yongqian, a spokesperson for the ministry, emphasized the need for a rational approach from the European side towards the economic and trade relations between the two entities, urging an atmosphere free from emotions and biases.

He stressed the importance of reducing accusations while enhancing communication, advocating for a decrease in protectionism and an increase in openness. He also pointed out that it is vital to prioritize discussion and avoid labeling issues unfairly, suggesting that both parties focus on constructive consultation. China has shown a commitment to resolving trade tensions through dialogue, as evidenced by its recent ruling on an antidumping investigation concerning EU imported brandy.

Although China has decided to impose duties of up to 34.9% on EU brandy for five years starting July 5, it has also accepted the price undertakings put forth by relevant European industry associations. The ministry affirmed that no antidumping duties will be applied to imports that align with these price commitments, as 34 firms have already secured such agreements. Zhou Mi, a researcher at the Chinese Academy of International Trade and Economic Cooperation, commented that China does not wish for the brandy case to cause significant harm to European industries and aims to extend goodwill to Brussels in managing trade disputes.

Zhou noted that China considers the EU an essential economic partner, and the acceptance of price undertakings is a strategic decision to manage trade frictions without jeopardizing overall relations. Nonetheless, implementing these strategies presents challenges. The price undertaking is also relevant to the EU's anti-subsidy investigation into Chinese electric vehicles, and the Chinese industry has made several proposals to address this issue. However, prolonged negotiations have arisen due to Brussels exploiting various technicalities.

To further support cooperation, China has created a specialized green channel to facilitate rare earth exports to European firms. Despite these efforts, Brussels has not fully recognized China's initiatives and has instead made unfounded accusations. Furthermore, the EU's slow and complicated approval process for high-tech exports has significantly disrupted the stability of China-EU industrial and supply chains, as highlighted by spokesperson He.