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EU trade chief hails ‘crucial first step’ as Beijing talks avoid trade war

9 October 2026 at 15:51

EU and Chinese officials agreed a series of trade concessions covering electric cars, rare earths and tariffs that dragged them away from a damaging trade war on Friday (9 October), following two days of crisis talks.

Following two days of talks in Beijing, EU trade commissioner Maroš Šefčovič said that he and China’s commerce secretary Wang Wentao had made a “crucial first step” towards rebalancing EU-China trade relations.

Europe can point to progress on hybrid vehicles, stronger assurances over the supply of critical raw materials, and continued engagement on market access issues in China.

Hours before Šefčovič arrived, Beijing rejected an EU demand for so-called “voluntary export restrictions” on its electric vehicles (EVs). However, in a joint statement on Friday, the two sides said that they had reached an “understanding on trade in hybrid vehicles in a WTO compliant manner”, but without providing further details.

They added that further negotiations on reducing tariffs and minimum pricing deals would allow Chinese EVs to enter the EU at a lower duty rate.

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EU tech chief expects countries leading AI race to come around on safety

9 October 2026 at 13:47

The European Union’s technology chief expects countries that oppose stricter artificial intelligence rules to change course, as AI systems are becoming more capable and harder to evaluate.

“I’m sure that all those countries who are not willing to regulate the use of AI, they will come back to that quite soon,” European Commission Executive Vice-President Henna Virkkunen told the European Newsroom (enr) on Friday. She warned of a “risk of very serious incidents” in the absence of any guardrails and called for the establishment of safeguards at an international level.

Concerns about the risks of AI have been at the centre of public attention for weeks, sparked mainly by hacking attacks carried out by AI software that acted autonomously during test runs. Some industry insiders have sounded the alarm, warning that artificial intelligence could potentially cause large numbers of deaths if the technology were to spiral out of control.

Virkkunen warned that fierce global competition is creating a risk that “companies are coming to the markets with products that they haven’t been testing enough.” She pointed to incidents in which AI agents had escaped from test “sandboxes” and service providers or developers had been unable to control their own systems.

At the same time, she said, some AI models “have become so capable that it’s more and more difficult also to evaluate them.” Adequate testing required highly qualified experts, sufficient expertise and enough time, she added.

The EU began enforcing its AI Act, the world’s first comprehensive legal framework to regulate AI based on the level of risk it poses, in August. Virkkunen said that the Commission had already sent a Request for Information (RFI) to two major US-based AI companies – OpenAI, known for ChatGPT, and Anthropic, known for Claude – as well as to some Chinese companies not further specified.

An RFI is a formal investigative tool used by the Commission to gather facts, data, and internal documentation from businesses, governments, or member states.

Global AI race

China and the United States have emerged as frontrunners in the development of AI systems, showing no signs of hitting the breaks. Governments in both countries have rejected calls to slow down its development, arguing it would create a competitive, strategic and economic disadvantage.

“Currently the risks are mainly focused and related to cyber security,” Virkkunen said, but she warned of more serious risks in future, including the possibility that highly capable models could be used in connection with biological weapons or fall into the hands of terrorists.

The Finnish politician called for the establishment of international rules to mitigate the risks of AI. She said the security of AI models had already been discussed within the Group of Seven (G7) this year as well as among G20 countries, and that the discussions would continue.

Talking about the EU’s role in AI development, Virkkunen said the Union should avoid dependence on a single company or third country for critical technologies and develop AI systems based on European values, languages and culture.

EU weighs safeguard tariffs as China refuses hybrid car limits

9 October 2026 at 03:36

Beijing has rebuffed a European Union request to voluntarily cap hybrid car exports to the bloc, raising the prospect of new, steep EU tariffs on Chinese hybrids, which have so far escaped the duties on pure electric vehicles. China has refused to set quotas on its exports of hybrid electric vehicles (HEVs) and plug-in hybrid […]

The post EU weighs safeguard tariffs as China refuses hybrid car limits appeared first on Asia Times.

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