The understanding reached between China and the European Union on hybrid vehicle trade is reciprocal and mutually beneficial, showing that rules-based consultations can resolve trade differences, the Ministry of Commerce said on Thursday.

He Yadong, a spokesman for the ministry, said the understanding is based on three principles affirmed by both sides within the framework of World Trade Organization rules: compliance at every stage, respect for the facts, and nondiscrimination.

His remarks came after European Commissioner for Trade and Economic Security Maros Sefcovic said in Beijing last Friday that the European public and leaders expected swift action, adding that Chinese counterparts had "appreciated this very strong political argument".

A joint statement released by the ministry that day said the two sides had reached an understanding on hybrid vehicle trade in line with WTO rules, following their second trade and investment consultation meeting in Beijing.

"This consensus has effectively safeguarded the interests of Chinese companies and prevented bilateral trade frictions from escalating," the ministry spokesman said.

Beyond resolving trade differences, the consultations can also deepen mutually beneficial cooperation and help bilateral trade grow in a more balanced way, He added.

Source: China Daily