Chinese Vice Premier Liu He and Valdis Dombrovskis, Executive Vice President of the European Commission, jointly presided over the eighth China-EU High-Level Trade and Economic Dialogue (HED) via video link. Commissioner for Trade Phil Hogan also attended. The two sides have reached fruitful results and consensus in terms of cooperation in a range of areas, including the joint fight against Covid-19, global economic governance, industrial chain safety, a bilateral investment treaty (BIT), WTO reform, expanding market opening-up, digital economy, finance and taxes, the Global Times reports. The coronavirus is a common challenge for humanity. China and the EU as two major economies are pushing a global unified approach in the fight against Covid-19 and for an economic rebound, and are jointly safeguarding multilateralism and free trade, Vice Premier Liu said, according to Xinhua. The EU and China are important partners, and advancing bilateral relations serves the common interest of both sides, Dombrovskis stated.

Cui Hongjian, Director of the Department of European Studies at the China Institute of International Studies, said: “There are three high-level dialogues being held between the two sides every year concerning diplomatic, economic and cultural communication. We have so far seen the resumption of two dialogues.” In June, China and EU held the 10th round of their high-level strategic dialogue via video link, with both sides vowing to develop closer ties. Cui added that both sides have displayed calmness, with the EU side in particular not bowing to pressure from Washington and maintaining an independent economic development path from the U.S. China may open up more fast-track channels for the entry of personnel of foreign companies based on the principle of reciprocal treatment. Also, more positive signals on the progress on the BIT may be released after the meeting concludes, according to Cui.

China is on course to become the only major economy to post positive growth this year, according to the IMF’s latest global economic outlook projections. The Washington-based fund put China’s growth at 1% for 2020 and forecast it to rise to 8.2% in 2021. The economy of the euro area is estimated to contract 10.2% this year before rebounding to a negative 6% the next year. Bloomberg expects China’s economy to grow 2.5% this year. Oxford Economics also upgraded its full-year GDP forecast to 2.5% from 2% on a strong rebound in the second quarter.

According to a EU press release, Executive Vice President Dombrovskis said: “The current crisis gives us no other option but to work hand in hand with our global partners, including China. By pulling together we can recover more quickly economically, and make progress on areas of mutual interest such as trade and investment relations. However, we also need to address sticking points such as reciprocity in the way our companies are treated. We will need to make further progress on these and other issues ahead of the next leaders’ summit in the autumn.” Commissioner Hogan said: “EU-China bilateral and trade relations must be based on the key principles of reciprocity and a level-playing field based on clear and predictable rules. Today I have called upon China to engage in serious reform of the multilateral system and its rulebook and to remove the existing barriers impeding access to the Chinese market of EU exporters of goods and services as well as of European investors. Such an approach by China would show a level of responsibility which reflects its economic and trade importance.”

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 (NEVs). 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 authorize member states’ exports of agricultural products currently awaiting export authorization, as is the case in the beef and poultry sector. The EU also outlined its concerns about new restrictions 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. 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, according to the EU press release.

The EU Council also expressed “grave concerns” over Hong Kong’s national security law and approved restrictions on exports of equipment for end use in Hong Kong, eliciting a stern response from the Chinese Mission to the EU. “China is firmly against the EU’s wrong moves and has made serious representations with the EU side,” a spokesperson for the mission said.