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Visitors watch a vehicle of Song PLUS by Chinese NEV manufacturer BYD during the 2024 Beijing International Automotive Exhibition in Beijing, capital of China, May 4, 2024. The exhibition closed on Saturday. Photo: Xinhua

China and Germany signed a memorandum of understanding (MOU) on enhancing cooperation on cross-border data transfer on Wednesday in Beijing. Chinese observers said the move reflects China's continuous opening-up to the EU despite the threat of tariffs on Chinese electric vehicles (EVs), and it will offer help in the electrification and intelligence of automobiles in Europe.

There is hope for closer China-EU economic and trade cooperation in the future despite a recent intensifying of trade conflicts, experts said. They added that there is a growing trend that China and the EU are both inclined to solve their problems through talks and out of considerations for mutual benefit.

Within the MOU framework, China and Germany will set up a dialogue mechanism to strengthen communications on cross-border data transfers and build a fair and non-discriminatory business environment for companies from the two countries, according to a press release published on the government agency's website.

China is willing to join hands with Germany to implement the consensus of the heads of state of the two countries and boost for more achievements in China-Germany cyberspace communications and cooperation, Zhuang Rongwen, director of the Cyberspace Administration of China, said when meeting German Minister for Digital and Transport Volker Wissing on Wednesday.

Wissing said that Germany attaches high importance to cross-border data flow, artificial intelligence and other fields, and will strengthen communications and cooperation with China to actively promote the implementation of the MOU.

"This represents a new move in China's opening-up. Maintaining reasonable and appropriate cross-border data flow under the prerequisite of is essential to deepen China-Germany and China-EU economic and trade cooperation," Cui Hongjian, a professor with the Academy of Regional and Global Governance with Beijing Foreign Studies University, told the Global Times on Thursday.

In order to drive development forward, Germany signed a declaration of intent with China in April 2024 on dialogue and cooperation in the field of automated and connected driving.

If implemented, it is expected to be the first between China and a European country in terms of smooth cross-border data flow, Cui Dongshu, secretary-general of the China Passenger Car Association, told the Global Times on Thursday.

"For example, German companies transferring their data back to Germany - after data demasking and other treatment - will help them better conduct data analysis and help their electrification and the overall development of EVs," Cui said.

While the EU's provisional tariffs on Chinese EV imports are poised to be introduced on July 4, Bloomberg reported on Wednesday that the EU has marginally revised its proposed tariffs on Chinese EVs after receiving more information from the affected companies.

According to the report, the provisional tariffs imposed on SAIC Motor set to be decreased from 38.1 percent to 37.6 percent, while that imposed on Geely Automobile Holdings will be revised to 19.1 percent from 20 percent. The tariffs imposed on BYD remains unchanged at 17.4 percent.

Cui Hongjian said this is an active response from the EU as the two sides have agreed to launch negotiations. "In addition, some EU member countries' strong opposition to the tariff decision by the European Commission (EC) on Chinese EVs as well as China's pledge to take 'necessary measures' to defend the legitimate rights and interests of Chinese companies prompted the EC to make response," he said.

Chinese Ministry of Commerce spokesperson He Yadong said on Thursday that China and the EU are maintaining close communications and actively advancing the consultation.

Given the complementary and win-win nature of China-EU cooperation, there is vast cooperation potential in the green fields, He said, calling for the EU to meet China halfway to boost positive progress of consultations and achieve a result acceptable to both sides in a bid to avoid escalation of trade frictions.

"There is a growing trend both China and the EU are inclined to solve their problems through talks and out of considerations of their mutual benefits. With such a good momentum, they are able to solve any problem through dialogue," Cui Hongjian said.