China and the European Union have reached a consensus on key trade and investment issues, underscoring their willingness and ability to manage differences through dialogue and helping prevent trade frictions from escalating, the Ministry of Commerce said on Saturday.

The remarks followed the second meeting of the China-EU trade and investment consultation mechanism, co-chaired by Commerce Minister Wang Wentao and European Commissioner for Trade and Economic Security Maros Sefcovic in Beijing on Thursday and Friday.

The two sides reaffirmed their commitment to stable and more balanced economic and trade relations, pledging to address differences and each other's concerns under World Trade Organization rules, a ministry official said in a statement.

Discussions on electric and hybrid vehicle trade helped safeguard Chinese companies' export interests and maintain stable hybrid vehicle trade between the two sides, according to the official.

The EU will actively advance procedures for company-specific price undertakings and reviews in its electric vehicle anti-subsidy case, following an earlier agreement on guidance for price undertakings, the official added.

The consultations also focused on addressing each other's concerns on an equal footing and expanding two-way market access to promote more balanced bilateral trade, the official said.

Both sides agreed to explore the possibility of reducing tariffs on certain goods under WTO rules and hold technical discussions on the EU's Foreign Subsidies Regulation, the ministry said.

They will continue market access discussions involving medical devices and agricultural products, alongside exchanges on the regulation of cosmetics and pharmaceuticals.

On export controls, China and the EU agreed to strengthen policy communication and explore measures to facilitate compliant trade in dual-use items, helping maintain stable global industrial and supply chains, the ministry said.

The EU will continue working to resolve priority licensing cases for dual-use exports to China and consider possible trade facilitation measures, the official said. Both sides also agreed to begin reciprocal delisting procedures concerning export control sanctions lists under their respective legal frameworks.

Beyond addressing differences, both sides identified considerable potential for cooperation in new energy, artificial intelligence, services trade, and the digital economy, and agreed to explore two-way investment cooperation, the ministry said.

China welcomes EU companies to invest and operate in the country and expects the EU to provide a fair, transparent, and predictable business environment for Chinese companies.

The second meeting marked a new starting point, with both sides now tasked with working to implement the outcomes, the official said.

Additionally, the mechanism's third meeting is scheduled for March 2027. China and the EU will maintain close communication in the meantime, including a ministerial video meeting in January, the ministry added.