China and EU open a new chapter: Can dialogue de-escalate trade relations? China Today

Amidst rising trade tensions, accusations of Chinese industrial overcapacity, and increasing protectionist measures from Brussels, China and the European Union have launched a new permanent dialogue mechanism for trade and investment.

This initiative comes at a critical juncture in Sino-EU economic relations. The new mechanism is designed to serve as a platform for ongoing discussions, with both sides agreeing to hold one or two ministerial-level meetings annually. China has also invited the European Commissioner for Trade and Economic Security, Maroš Šefčovič, to visit Beijing for the second meeting this autumn.

The establishment of this mechanism follows a period of heightened friction. The EU has repeatedly signaled a firmer stance towards Beijing, with debates intensifying over trade deficits, industrial competition, and what is being termed 'China Shock 2.0.' Consultations on trade and export controls have been ongoing.

The first meeting of the China-EU consultation mechanism on trade and investment took place in Brussels on June 29. The discussions concluded late that evening, with both parties releasing a joint statement. The article notes that these developments occurred shortly after the EU formally launched an investigation into Chinese subsidies for electric vehicles.