EU and China launch a consultation mechanism to tackle trade disputes and address the bloc's growing deficit with Beijing, reports Politico.
The European Union and China agreed to establish a high-level consultation mechanism to manage trade disputes and address the bloc's widening deficit with Beijing, reports Politico of Arlington, Virginia.
Trade Commissioner Maros Sefcovic met Commerce Minister Wang Wentao in Brussels to launch the Trade and Investment Consultation Mechanism. The platform will focus on four areas: trade and investment balancing, export controls, intellectual property rights, and World Trade Organization reform.
Mr. Sefcovic stated that a working group on trade balancing would begin immediately, setting up a joint monitoring system to share data and track flows. He noted that EU leaders had demanded 'expedient action' to address the deficit, which he described as unsustainable at about EUR 1 billion a day.
The commissioner added that he would travel to China in October to present 'first tangible results.' A roadmap with deliverables is expected in the coming days, with an initial assessment due in September.
Mr. Sefcovic also welcomed assurances from Mr. Wang that China's export controls on rare earths and permanent magnets would not disrupt EU supply chains. China, which dominates the global supply of rare earths, briefly restricted exports last autumn during a tariff dispute with the United States.
