EU and China discuss trade, taxation and economic relations
The European Union and China held today (28 July) their 8th High-Level Trade and Economic Dialogue (HED).
Executive Vice-President Valdis Dombrovskis, accompanied by Commissioner for Trade Phil Hogan, held the meeting via videoconference with Chinese Vice-Premier Liu He accompanied by several Vice-Ministers.
The HED focused on the joint response to coronavirus and global economic governance issues, bilateral trade and investment concerns, and cooperation in the area of financial services and taxation, as a follow up to discussions in the EU-China Summit on 22 June.
The meeting allowed the two sides to exchange views on the ongoing negotiations on a Comprehensive Agreement on Investment following the last negotiating round which took place on 20-24 July.
The EU registered the significant progress made on level playing field related issues, while highlighting that equally significant work that still remains to be done on key issues such as market access and sustainable development.
On market access, the EU reiterated its request for improvements of China’s offer in the telecommunication and computer sectors, health, biotechnology and new energy vehicles. On sustainable development, the EU insisted upon the political importance of meaningful commitments in this area and the need for China to increase its ambition and engagement.
With regards to market access, the EU recalled its request to China to authorise Member States’ exports of agricultural products currently awaiting export authorisation, as it is the case in the beef and poultry sector.
The EU also outlined its concerns about new restrictions introduced on food exports, on the ground of controlling the coronavirus pandemic, leading to an increased number of unjustified inspections, controls and requests for certificates on EU exports of agricultural products.
Financial services sector
Both sides also discussed Market Access in the financial services sector, with the EU side encouraging China to continue opening China’s financial services market to foreign investment.
A range or regulatory issues in the financial services area were also discussed, including cooperation on green finance, equivalence assessments, and the international role of the Euro and of the RMB.
The two sides exchanged views on the current coronavirus pandemic and the need to work closely in the international arena to ensure a coordinated response to both the health and economic emergencies.
The EU and China agreed on the need to ensure the continued relevance of the World Trade Organization in addressing global trade challenges.
In line with the 2019 EU-China Summit Joint Statement, the EU reiterated the urgent need for China to engage in future negotiations on industrial subsidies.
The EU also called upon China to start exploratory talks for an agreement with the EU covering administrative cooperation to fight VAT fraud.