To commemorate the 50th anniversary of the establishment of diplomatic relations, the President of the European Union Chamber of Commerce in China takes you to explore opportunities for cooperation between China and Europe

On May 6th of this year, China and Europe celebrated the 50th anniversary of the establishment of diplomatic relations. Jens Esklund, President of the European Union Chamber of Commerce in China, wrote in China Daily on May 7th that China EU cooperation is in the interests of both sides and has great potential for the future.

China Europe cooperation is in line with the interests of both sides

The article points out that in 1975, China established diplomatic relations with the European Economic Community. At that time, China was highly self-sufficient and had limited trade with other countries. It cannot be seen from the situation at that time that China will soon embark on reform and opening up, embark on the path of prosperity, and become the largest country in goods trade. That year, the situation in Europe was also very different from now. It was another 18 years before the European Union was officially established and replaced the European Community. In fact, modern China Europe relations began with the cooperation between China and the European Community.

Subsequently, China gradually developed into a manufacturing powerhouse. In 2023, the global proportion of China's manufacturing added value will reach 30%, ranking first in the world for 14 consecutive years and becoming a key link in the global supply chain. In 2024, the total import and export volume of goods trade between China and the European Union was 78.58 billion US dollars, a year-on-year increase of 0.4%. Among them, China's exports to the European Union were 516.4 billion US dollars, a year-on-year increase of 3.0%.

Bilateral investment between China and Europe has also shown a steady growth trend. Many European companies have set up factories in China not only to serve China's vast consumer market, but also to leverage China's constantly upgrading industrial clusters for production and export to other parts of the world.

These developments undoubtedly create enormous value for both parties. For consumers, this means more choices and more favorable prices. For local and central governments, this means creating employment opportunities and increasing fiscal revenue.

To ensure that China and Europe continue to create maximum value for both sides in the next half century, now is an excellent time to reassess trade and investment relations and address major challenges that have emerged in recent years.

It is particularly noteworthy that the expected restructuring of the trade system may have a destructive impact on the EU single market due to the imposition of tariffs by the United States on Chinese products.

China Europe cooperation has great potential

The article further analyzes that addressing these challenges will help establish a more sustainable relationship between China and Europe. The EU is an important export market for China, and in the current context, it is increasingly important for China to continue entering this market. The EU has always been an important technological partner for China, and given the increasing restrictive measures taken by the United States, the importance of the EU may become even more prominent.

China has an unparalleled manufacturing cluster, a vibrant innovation ecosystem, and a vast consumer market. This means that if European companies want to maintain global competitiveness, they must occupy a place in the Chinese market.

Fortunately, there is still room for China and Europe to find solutions to challenges through negotiation and even further consolidate bilateral relations. Strengthening inter institutional dialogue is crucial for promoting this process.

The 50th anniversary of the establishment of diplomatic relations between China and Europe is a good opportunity for both sides to review the significant achievements they have made. China and Europe have enormous potential in enhancing the future value of bilateral relations.

(The original English text was published in the Zhixianghui column of China Daily)