European Commissioner for Trade

So in that, uh, statement, most notably, uh, understanding on hybrid vehicle trade, uh, within the WTO framework was reached.

Uh, EU Trade Commissioner, uh, V- Dombrovskis, uh, said this would, this could, uh, more than halve, uh, China's hybrid vehicle exports to the EU, uh, over a period of four years, uh, relativity to, relative to the scenario of no policy change.

Uh, Dombrovskis also s- reported understandings on lowering Chinese tariffs, uh, for selected EU, uh, goods and the relaxation of China's, uh, export restriction on rare earth minerals and, uh, as well as, uh, uh, permanent magnets.

So basically, we view the outcome as, as moderately positive.

Tell me what you think then about this deal between the EU and China, if, if there is a deal, 'cause it's not quite clear what exactly they have agreed.

But if you listen to the EU Trade Commissioner, he's saying that China's agreed to restrict, uh, exports of hybrid cars under what the two sides call an understanding, and it could cut, uh, China's exports in hybrid cars to the EU in half.

Um, and they're saying that in next year alone imports could be reduced by between 500,000 and 700,000 vehicles.

What do you make of that? Because it seems to me that if this is the case, um, the EU's got quite a good deal here.

[laughs]

Wow, okay.

Now, what do you make of the EU-China, uh, deal on exports of Chinese hybrid cars? If, uh, we understand correctly from what the EU trade commissioner is saying, is that, uh, China's effectively agreed to cut in half, uh, its exports of, uh, of hybrid cars.

Next year alone, uh, it's gonna reduce imports by between 500,000 and 700,000 vehicles going into, uh, the EU.

[on-hold music]

From 8th to 9th October, a delegation of European officials led by European Commissioner for Trade and Economic Security Valdis Dombrovskis traveled to Beijing for the second series of meetings held under the EU-China Trade and Investment Consultation, TIC, mechanism.

Commissioner Dombrovskis met with Chinese Minister of Commerce Wang Wentao and Vice Premier He Lifeng as part of the visit.

Prior to his official meetings, Commissioner Dombrovskis had met with members of the European Chambers Advisory Council.

That doctrine is the logic by which critical mineral processing control flows into manufacturing dominance, then into research funding, then into next-generation technology competitiveness, and it was now enshrined at the highest level of Chinese state authority.

That same day, EU Trade Commissioner Maros Sefcovic concluded Beijing negotiations with Commerce Minister Wang Wentao and announced a package of trade understandings that gave Europe access to the licensing system China controls rather than a path out of the dependency that system produces.

It sounds to me, from what we just read there, that the EU is gonna remain completely dependent on China, and that China will always have the ace up its sleeve in any negotiation, at least until rare earths are produced independently.

The headline figures from the talks were real.

It agreed only to continue processing the applications it already administers through a mechanism it operates at its own discretion.

Just as I was saying here, all China has done is said, "We will continue the status quo.

What will you give us in return?" EU Trade Commissioner Sefcovic called it a, quote, "crucial first step toward rebalancing the relationship." The EU trade deficit with China has widened to roughly one billion euros per day in twenty twenty-five.

Sefcovic described it as a, quote, "mountain of a challenge." And it goes into a little more detail here what the October guideline actually formalizes.

But, hey.

And lastly, on Friday, after two days of talks in Beijing, the EU Trade Commissioner announced a deal with China to moderate the exports of Chinese hybrid vehicles into the EU, which could cut them by more than half over the next four years.

Beijing also agreed to lower import duties on, on four billion of EU goods, including car parts, olive oil, footwear, and to simplify exporting licenses for rare earth minerals and permit m-- and permanent magnets.

Rad.

Good advice as always.

Jack, before I let you go, I want to talk about something slightly different, which is we've got the EU Trade Commissioner in Beijing this week.

Talk us through what the state of relations between the EU and China is at the moment.

Lots of friction over trade in particular, this China shock 2.0 hitting the European economies particularly hard, especially Germany.

And European policymakers have been dragging their feet on responding to that.

But I think now they might finally be starting to take it seriously.

The EU Trade Commissioner, who's in Beijing...

He's talked repeatedly about the need to achieve tangible results from this trip.

The French Prime Minister says his government wants to address the concerns of student protesters across the country.

In business, the EU Trade Commissioner is in China for talks.

In sports, China's Jiang Qingwen battles her way into the quarterfinals at the China Open.

In culture and entertainment, the recent holiday in China kept movie theaters busy across the country.

Shane Begum with

you on this Thursday.

Still to come in business, the EU Trade Commissioner is in China for talks.

In sports, China's Zheng Qianwen battles her way into the quarterfinals at the China Open.