BEIJING – An understanding reached by China and the European Union on hybrid vehicles is reciprocal and mutually beneficial, China's Ministry of Commerce said on Friday, stressing that claims that EU pressure had yielded results are entirely unfounded.

The understanding, reached on the basis of three principles agreed upon by both sides – compliance with World Trade Organization (WTO) rules, respect for facts and non-discrimination – has effectively safeguarded the practical interests of Chinese enterprises, addressed the EU's concerns and prevented an escalation of China-EU trade frictions, a spokesperson for the ministry said in response to a question.

RELATED ARTICLES

• China, EU reach consensus on key trade issues
• Wang: China, EU can manage trade differences through dialogue
• EU gets rebuke for trade curb proposals
• Pricing deal to avoid hefty EU tariffs on Chinese EVs

The purpose of China-EU economic and trade consultations is to properly handle differences and address each other's concerns through dialogue and consultation, the spokesperson said, stressing that both sides should demonstrate sincerity in resolving problems.

The EU should not expect to gain benefits by exerting pressure, nor should it underestimate China's determination and ability to safeguard its own interests, the spokesperson said.

The spokesperson urged the EU to meet China halfway and promote the sound and steady development of China-EU economic and trade relations.