The Chinese government announced on the 20th that trade officials from China and the European Union (EU) exchanged views on electric vehicle subsidies, rare earths, and export restrictions.

Commerce Minister Wang Wentao attends a meeting with foreign business leaders in Beijing. /Courtesy of Reuters

According to the Chinese Ministry of Commerce, Minister Wang Wentao held a video conference with Maroš Šefčovič, the EU Commissioner for Trade and Economic Security, the day before to negotiate economic and trade agendas, including anti-subsidy cases related to electric vehicles, export controls, and market entry.

The Ministry stated, "Both sides agreed that they should work together to promote the healthy, stable, and sustainable development of economic and trade relations."

China and the EU will hold a summit in Beijing from the 24th to the 25th of next month. The EU is expected to raise the issue of China using export controls on rare earths, key materials for advanced industries, as a weapon in the tariff war.

China has revealed plans to quickly approve exports of rare earths to EU corporations last month, but there are still concerns that approvals are not proceeding smoothly.

Additionally, both sides are reported to be unable to narrow differences over the high tariffs that the EU imposed on China last year, citing large subsidies that the Chinese government has provided to the electric vehicle industry.

Both sides are focusing on the U.S.-China tariff negotiations, which have a deadline of the 9th of next month.