The EU has requested that China begin “exploratory talks” to reach an agreement that would strengthen administrative cooperation to fight VAT fraud.
China and the European Commission engaged in their eighth annual high-level trade and economic dialogue July 28, with focus on bilateral trade and investment, cooperation in financial services and taxation, and the joint response to coronavirus and the global economy, according to a July 28 commission release.
Commission Executive Vice President Valdis Dombrovskis and EU Trade Commissioner Phil Hogan highlighted the importance of reciprocity in the treatment of companies, fairness, and a shared set of 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,” Hogan said in the release.
Dombrovskis said the EU hopes to make more progress on reciprocity with China at the next leaders’ summit this autumn.
The EU and China continued negotiations toward a Comprehensive Agreement on Investment, with the EU requesting improvements in market access to China’s telecommunications and computer sectors, health industry, biotechnology sector, and new energy vehicle sector. The EU also asked for China to make “meaningful commitments” to sustainable development.
The two sides also discussed regulatory issues in financial services, including cooperation on equivalence assessments, green finance, and the international roles of the euro and the renminbi. They also talked about coordinating a response to the COVID-19 health emergency and the economic repercussions.
China and the EU agree that the WTO needs to remain relevant in addressing global trade challenges, according to the release. The EU said China should engage in future negotiations on industrial subsidies, which is in line with its position in the 2019 EU-China summit joint statement.
Commission spokespeople did not respond to requests for comments on the VAT fraud cooperation talks and industrial subsidies by press time.
Source – Taxnotes