China and the European Union have agreed to resume discussions aimed at resolving their trade dispute over tariffs imposed on electric vehicles and brandy. The announcement came after European Trade Commissioner Maros Sefcovic's recent visit to Beijing, signaling a diplomatic push to defuse rising economic tensions between the two major trade powers.

Last year, the European Union implemented tariffs on electric vehicles imported from China, citing concerns about market distortions and unfair competition. In response, Beijing imposed its own tariffs on brandy exports from the EU, escalating a tit-for-tat trade conflict that has drawn concern from both sides of the continent-Asia trade corridor.

The Chinese Commerce Ministry confirmed on Thursday that both sides had agreed to restart negotiations and “resolve economic and trade differences through dialogue and consultation.” A spokesperson for the ministry added that talks would begin “as soon as possible” with the goal of establishing a positive environment for mutual investment and industrial collaboration.

“China and the EU remain important economic partners. Rebuilding trust and enhancing cooperation are in the interest of both sides,” the ministry statement said. The resumption of talks is expected to focus not only on reducing existing tariffs but also on long-term frameworks for cooperation in areas such as automotive technology, sustainability, and high-end consumer goods.

Observers see the renewed dialogue as a hopeful sign of de-escalation amid global economic uncertainty and increasing geopolitical fragmentation. Both Brussels and Beijing appear motivated to stabilize their economic ties and support the recovery of cross-border trade and investment flows, particularly in sectors affected by the mutual tariffs.

The outcome of these discussions could have wide-reaching implications for global trade dynamics, especially in sectors where Europe and China are both major players. More details about the negotiation timeline and scope are expected to be released in the coming weeks.