EU and China hold trade talks after delays, though few advances are made

After months of delays and with the global economy teetering, EU-China trade negotiations on Tuesday yielded few concrete results, save for the commitment to keep talking. The video conference between two of the world’s three largest economies – officially known as the High-Level Economic and Trade Dialogue – took place as they confront their own unique challenges. China’s economy – reeling from the impact of supply chain shutdowns stemming from strict zero-Covid policies – slowed to just 0.4 per cent growth in the second quarter from a year earlier. The European Union’s member nations face some of the continent’s highest inflation rates for decades, and the prospect of winter fuel shortages that are a consequence of Russia’s invasion of Ukraine. Unsurprisingly, these issues were high on the agenda, according to official accounts from both sides. A Chinese state media report described the discussions as “pragmatic, candid and efficient”, and said the pair had agreed on “a series of results”. The account cited progress made on macroeconomic policy coordination, unblocking supply chains and reforming the world trading system. It also said that both sides agreed to open their respective financial service sectors, but offered no details on what these results might look like. I emphasised that Russia’s war of aggression against Ukraine is creating considerable challenges for global security and economy. Valdis Dombrovskis, EU trade chief An official EU readout said that Brussels officials had asked China to “help address the challenges caused by Russia’s aggression against Ukraine”, and that Beijing had expressed willingness to work together to tackle global food security “including through the export of fertilisers”. EU officials also raised prickly issues like industrial subsidies and overcapacities and told their Chinese counterparts that “measures of economic coercion – including against Lithuania – are unacceptable”. They complained of “the growing politicisation of the business environment in China”, which they said was “leading EU companies to reconsider their existing operations and planned investments in the country”. The Chinese state media account made no mention of these topics. The talks were chaired by Vice-Premier Liu He, economic adviser to Chinese President Xi Jinping, and EU trade chief Valdis Dombrovskis, who was joined by the EU financial services commissioner Mairead McGuinness. Dombrovskis said that the pair were “key trading partners”, which meant they had “a responsibility to shape joint responses to global economic and trade challenges”. “I emphasised that Russia’s war of aggression against Ukraine is creating considerable challenges for global security and economy. I also underlined the need for continued engagement to build more balanced and reciprocal trade and investment relations between the EU and China,” Dombrovskis said. Xinhua’s account said that “the world political and economic situation is undergoing profound changes, and that healthy and stable China-EU economic and trade relations are conducive to the development and prosperity of the world”. The talks, usually held every two years, were months in the making. Initially agreeing during an EU-China summit on April 1 to talk in June, EU officials struggled for weeks to get Beijing to agree to a date. EU sources familiar with the planning said that Liu was unwilling to commit to a date until he had held talks with US Treasury Secretary Janet Yellen, which took place earlier this month. ‘Constructive’ US-China talks not expected to end long-standing rivalry The EU-China discussions occurred amid a broad deterioration in ties over human rights concerns, China’s tacit rhetorical backing for Russia’s claims in Ukraine and persistent economic issues. According to a senior diplomat familiar with the discussions, China appears keen to patch things up and will dispatch Foreign Minister Wang Yi to Europe in September to discuss potential visits by the leaders of France, Germany, Italy, and Spain to meet Xi in Beijing. Informal invitations are said to have been communicated, although the European leaders are deliberating how to deal with them. Should they happen, the visits would take place after China’s 20th Party Congress in November, when Xi is expected to be confirmed for a third term as president.

EU and China hold trade talks after delays, though few advances are made

Discussion comes amid China’s slowing growth, EU’s high inflation and Beijing’s tacit support of Moscow’s war on Ukraine Leaders of France, Germany, Italy and Spain are said to have been informally invited to meet Chinese President Xi Jinping in Beijing in the fall

Discussion comes amid China’s slowing growth, EU’s high inflation and Beijing’s tacit support of Moscow’s war on Ukraine

Leaders of France, Germany, Italy and Spain are said to have been informally invited to meet Chinese President Xi Jinping in Beijing in the fall