European Commission Executive Vice-President, Valdis Dombrovskis, and Vice Premier of the State Council, He Lifeng, co-chaired today the 10th EU-China High-level Economic and Trade Dialogue (HED). The HED is the main platform for the EU and China to discuss economic and financial matters, as well as trade and investment cooperation.
Specifically, the two sides discussed the macro-economic situation in the EU, China and globally. Executive Vice-President Dombrovskis emphasised in particular the impact of Russia’s unprovoked attack on Ukraine on global economic growth prospects, as well as on food and energy security. The two sides discussed market access and supply chain issues, where Executive Vice-President Dombrovskis called for progress on EU concerns on access to the Chinese market, and for rebalancing the EU–China economic and trade relationship on the basis of transparency, predictability and reciprocity, as well as potential ways for enhancing multilateral cooperation.
Key topics
On trade and investment, the EU reiterated during the HED its concerns about the overall state of the business environment for EU exporters and investors in China. Executive Vice-President Dombrovskis notably raised the issue of access to the Chinese market for European businesses, notably in the areas of agrifood exports, medical devices, cosmetics, and infant formula. The EU and China also committed to restart discussions on alcoholic beverage exports. The two sides confirmed the agreement to exchange information on export controls at technical level, in order to provide a platform to clarify each other’s measures.
In particular, the EU welcomes the agreement reached between Commission Vice-President Věra Jourová and Vice-Premier of the State Council Zhang Guoqing on 18 September 2023 in Beijing, to ensure easier cross-border flows of non-personal data. In the field of Intellectual Property Rights, the good progress in the implementation of the Geographical Indications Agreement was seen as a positive step forward.
The importance of transparent and predictable supply chains was also discussed, in particular for critical raw materials. Both sides agreed to continue discussions on a possible EU-China transparency mechanism of supply chains for raw materials. More widely, the EU explained its de-risking strategy and underlined the importance of refraining from weaponising supply chains. The EU does not want to decouple from China. The EU defends open and fair trade, based on global trade rules, a level playing field and fair competion, and rejects protectionism.
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The two sides already addressed a number of specific sectoral issues, such as easing approvals for EU makers of cosmetics. EU cosmetic makers have faced increasingly cumbersome labelling and licencing agreements and the EU welcomes the establishment of a new working group to address these issues. The EU also hopes to pursue discussions on improving market access for European medical devices. Eliminating barriers is a matter of mutual benefit and would directly improve the welfare also of Chinese citizens, giving them access to the best healthcare technologies. The Chinese authorities commited to clearing the backlog of applications for licences of infant formula, which the EU welcomes.
During discussions on the global economic outlook and macroeconomic policies, the EU encouraged China to undertake market-driven structural reforms to rebalance its economy towards a more sustainable long term economic growth path. A rebalancing will not only benefit the Chinese economy by reducing its domestic imbalances and inequality, but would also be beneficial for the EU and the global economy as a whole, as it would contribute to more resilient, balanced and sustainable global growth. In this respect, the EU looks forward to the resumption of the Macroeconomic and Economic and Financial Dialogues in the coming months.
The two sides agreed to set up a new EU-China Working Group on Financial Regulation to work on key areas including mutually opening up investment opportunities in financial markets for financial institutions; ensuring continued cooperation in Sustainable Finance and Fintech; and improving rules on ICT infrastructure for the financial sector, which is vital for our operators to ensure compatibility. It will look at regulation for foreign financial institutions, including on the possibility to share financial data cross border.
The parties also discussed cooperation on common global challenges. Russia’s war of aggression against Ukraine has had a severe impact on the global economy, triggering a humanitarian crisis and aggravating food and energy security challenges. In this context, Executive Vice-President Dombrovskis called on China to play a constructive role in ensuring lasting peace and mitigating the economic consequences of the war. He thanked China for its work on nuclear non-proliferation.
Finally, the EU and China discussed possible ways of enhancing multilateral cooperation, including engagement on debt relief efforts in the G20 framework, and coordination in the World Trade Organization (WTO). They also exchanged views on the preparations and expectations for the 13th WTO Ministerial Conference in February 2024.
More information: European Commission
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