EU and China outline trade steps after Beijing talks

The European Commission and China said their second Trade and Investment Consultations in Beijing on 8-9 October 2026 produced a list of deliverables and understandings on trade, investment and export controls. For traders and newer investors watching regulation and market access, the immediate point is that both sides described the talks as productive and agreed to keep the channel open into next year.

According to the joint statement, the two sides said they would continue, within WTO rules, to explore tariff reductions or elimination for certain goods. They also said they would keep strengthening communication and cooperation under the trade monitoring mechanism, and continue dialogue on market access for medical devices, computer reservation systems, cosmetics and pharmaceuticals.

The statement said China will accelerate recognition of the regionalisation principle for eligible EU member states on the basis of risk assessment, and that the sides agreed to exchange views on disease-control methods and technologies with a view to exploring ways to lift restrictions on relevant animal products affected by bluetongue disease from relevant member states. They also agreed to engage on a technical dialogue on FSR, which in this text is not expanded.

On vehicles, the statement said the two sides reached an understanding on trade in hybrid vehicles in a WTO-compliant manner. In his remarks in Beijing, Commissioner Maroš Šefčovič said the talks reached a shared understanding to moderate China’s exports of hybrids and plug-in hybrids to the EU, adding that this opens the prospect of cutting China’s exports by more than half.

Šefčovič also said the talks produced a shared understanding to improve access to the Chinese market for a series of EU products through lower MFN, or most-favoured-nation, tariffs. He said those goods range from car parts to olive oil and footwear, with almost 4 billion euros in current export value and at least 225 million euros in duty savings.

The statement said the two sides would continue the procedures relating to corporate price undertakings and reviews in the EU’s battery electric vehicles anti-subsidy case, after recalling the guidance document on price undertakings. It also said China would continue to facilitate export licences for rare earths and permanent magnets to the EU through the fast-track mechanism, while the EU would work with member state authorities to facilitate specific priority licences to China among dual-use sectors.

The two sides also said they had reached an understanding in the Export Control Dialogue to provide advance warning and improve transparency of listing and delisting procedures, and supported steps to delist entities consistently with their applicable legislation. The joint statement said they would monitor progress on intellectual property through the EU-China Intellectual Property Working Group and continue work on WTO reform.

Šefčovič said he and Wang Wentao will reconvene at their level by January and organise the third Trade and Investment Consultations in March 2027. The joint statement likewise said the third ministerial meeting will take place in March 2027, and that the two sides will maintain close communication before then, including a ministerial video-conference in January.