EU-China trade talks grapple with tariffs, rare earths, and export controls

EU-China trade talks grapple with tariffs, rare earths, and export controls
Credit: Maros Sefcovic on X

EU and Chinese trade chiefs agreed to hold further talks on tariffs, export controls and market access after meeting in Beijing on 8 – 9 October 2026.

China’s Commerce Minister Wang Wentao met Maroš Šefčovič, the European Commission’s Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency, for the second meeting of the EU-China Trade and Investment Consultations, the European Commission announced on Friday.

Both sides reaffirmed they would handle differences within World Trade Organization rules and continue work intended to stabilise and make the bilateral relationship “more balanced”, according to a joint statement published by the Commission.

A third ministerial meeting was scheduled for March 2027, with a ministerial video conference planned for January before that.

Hybrid vehicles, rare earths and market access

The EU and China said they would explore the possibility of reducing or eliminating tariffs on certain goods within WTO rules, according to the statement.

The two sides stated they had reached an understanding on trade in hybrid vehicles “in a WTO compliant manner”, while also recalling a guidance document on “price undertakings” in the EU’s battery electric vehicles anti-subsidy case — a process in which companies can agree minimum prices to address subsidy concerns — and said they would continue related procedures.

They also agreed to continue dialogue on access to each other’s markets for medical devices, with the EU welcoming China’s stated effort to increase imports of EU medical devices, including through a matchmaking event during the 9th China International Import Expo.

China said it would accelerate recognition of the “regionalisation principle” for eligible EU member states — a risk-based approach that can limit trade restrictions to affected areas — and both sides agreed to exchange methods and technologies for disease control as they explore lifting restrictions on animal products affected by bluetongue disease.

On export controls, the EU and China said they would strengthen their export control dialogue and increase exchanges on their respective policies.

China said it was willing to continue facilitating export licences for rare earths and permanent magnets to the EU through a fast-track mechanism, while the EU said it would continue working with member state authorities to facilitate specific priority licences to China in “dual-use” sectors — goods that can have both civilian and military applications.

The two sides also said they had reached an understanding to provide advance warning and improve transparency around the listing and delisting of entities under export control procedures.

The statement added that the EU and China would continue work on intellectual property issues through an EU-China Intellectual Property Working Group and strengthen communication on WTO reform.


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