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EU and China seek to head off trade war with new dialogue
politico.eu • • world
Key Points:
- The European Union and China have agreed to establish a new high-level Trade and Investment Consultation Mechanism aimed at managing commercial tensions and addressing the EU's growing trade deficit with China.
- The mechanism will focus on four key areas: trade and investment balancing, export controls, intellectual property rights, and World Trade Organization reform.
- A working group will be immediately launched to monitor trade flows and share agreed-upon data to prevent destabilizing import spikes, enabling political-level discussions if needed.
- EU Trade Commissioner Maroš Šefčovič plans to visit China in October to present initial results, with a roadmap and progress assessment expected by September.
- China assured that its current export controls on rare earths and permanent magnets will not disrupt EU supply chains, addressing concerns following previous export restrictions.
