By Ms. Yi Wang
In 2025, China and the European Union mark the 50th anniversary of the establishment of diplomatic relations. According to public information, the EU-China Summit is scheduled to take place in Beijing in late July. Whether the summit can yield substantive outcomes is a matter of great interest to the international community.
The relationship between the United States, the European Union, and China is one of the most important international relationships of the 21st century; any direct conflict among the three would severely disrupt global stability.
On June 6, 2024, former U.S. Ambassador to China R. Nicholas Burns stated clearly in a speech on “U.S.-China Relations” at the Asia Society that “the future of Europe is a core interest of the United States”. The security of Europe has always been closely linked to the dynamics of U.S.-China relations. On the issue of Ukraine, the U.S. government has consistently been dissatisfied with China’s stance, yet it still sees the need to strengthen dialogue and communication with China and adopt a flexible diplomatic approach. Last week, on the sidelines of the ASEAN Regional Forum in Kuala Lumpur, U.S. Secretary of State Marco Rubio, after meeting with the Chinese Foreign Minister, told the media: “weâre two big, powerful countries, and there are always going to be issues that we disagree on. I think thereâs some areas of potential cooperationâ.
On July 8, European Commission President Ursula von der Leyen delivered a speech at the European Parliament on the future of EU-China relations, stating that the EU is seeking a âmore balanced and a more stableâ relationship with China. The EU has long expressed strong concerns over issues such as Chinaâs industrial overcapacity, state subsidies to enterprises, bilateral trade frictions, and Chinaâs stance on the Russia-Ukraine conflict, concerns that have been repeatedly emphasized in various forums in recent years. In light of the war in Ukraine, addressing vulnerabilities in supply chains has become an urgent priority for EU member states. However, EU leaders reaffirmed that while they are discussing strategies related to âde-riskingâ, they have no intention of decoupling or isolating themselves.
The EU-China Summit comes at a time when the United States has set August 1 as the deadline for negotiations on “reciprocal tariffs”, prompting all parties to safeguard their respective interests. In key areas such as electric vehicles, rare earths, and medical equipment procurement, significant differences remain between China and the EU, with limited progress in negotiations. Consequently, tensions between Brussels and Beijing appear to be rising.
Do both China and the EU have the will to improve relations? The answer is undoubtedly yes.
There are differences between Europe and the United States in their strategies toward China, and the independence of European diplomacy has become increasingly evident. Since 2023, both the EU and the UK have stepped up engagement and mutual visits with China, clearly expressing the possibility of strengthening cooperation, trade, and investment partnerships, while seeking to strike a balance between national security and economic interests.
In response to the tariff war initiated by the Trump administration, the EU has sought to enhance mutual understanding through high-level policy dialogues with China. As early as April 8, during a phone call between President Ursula von der Leyen and Premier Li Qiang, von der Leyen emphasized that China plays a key role in addressing potential trade diversion caused by U.S. tariff increasesïŒespecially in industries already affected by global overcapacity. Premier Li called for the EU and China to “strengthen communication and coordination, expand mutual openness, jointly uphold free and open trade and investment, and maintain the stability and smooth functioning of global industrial and supply chains, injecting greater stability and certainty into both sides and the global economyâ. The two sides also discussed the establishment of a mechanism to monitor potential trade diversion and ensure that related issues are properly addressed.
In early May, Chinaâs Ministry of Foreign Affairs announced that, following mutual agreement, China and the European Parliament had decided to fully and simultaneously lift restrictions on mutual exchanges. The resumption of engagement between legislative bodies indicates that EU-China relations are moving toward a path of continued stability.
Cognitive Bias Behind the Differences
Europe’s greatest current dilemma is how to engage with China. On one hand, elections across European countries are reshaping political forces, leading to internal power struggles and diverging interests within the EU. Newly appointed policymakers in Germany, France, and other EU member states will need to clarify the ultimate goal of Europeâs China policy and the costs of adopting a tougher stance toward China. On the other hand, Europe has begun to recognize the complexity of Chinaâs domestic realities. However, its perspective has not kept pace with Chinaâs rapid development and transformation. Europe lacks sufficient expertise in understanding Chinaâs development goals, industrial policies, new investment trends, changes in local government roles, and its growing participation in global affairs. There is also a shortage of a new generation of professionals who genuinely understand China. This knowledge gap weakens the effectiveness of Europeâs China policy and hampers the development of innovative solutions to real-world challenges.
Against this backdrop, it is necessary for China to strengthen its “strategic thinking” and take a more proactive approach in proposing feasible solutions to the EU. A deep understanding of the broader changes taking place in Europe is essential, and when addressing EU-China differences, it is important to avoid narrowly focusing on individual issues in isolation. For the EU, the key lies in looking toward the future: in which areas can China and Europe expand cooperation, and through what models can bilateral relations be deepened? Only with clarity on these questions can the next steps in policy-making be effectively formulated.
Options in the Relations
Achieving broader “reciprocal market openness” is at the core of advancing EU-China relations. In areas such as green industries, climate change, technological innovation, digital transformation, and standard-setting, both sides have opportunities to identify new, mutually beneficial pathways. The following are several specific recommendations.
- China should focus on the core concerns of the EU and, aligned with its strategy of high-level opening-up, promote change across various sectors. By inviting European companies to invest in China, the Chinese side must clearly communicate its policies while also strengthening their implementation. Effective follow-through is essential to demonstrate that Chinaâs vast market can continue to drive global economic growth.
- The core issue in current EU-China trade tensions centers on the electric vehicle (EV) sector. There is still room for negotiation in this area. The key lies in managing the competitive dynamics between Chinese and non-Chinese companies. Under fair conditions, both EU and Chinese enterprises can enhance their capabilities. For example, Chinese automotive companies are actively aligning with the EUâs supply chain traceability standards. On the EU side, starting with new energy batteries, cooperation with China on carbon footprint calculations and alignment of battery passport data standards is already underway. Both sides have been attempting to address these issues, and greater encouragement should be given to joint China-EU efforts in research and development, investment, and the co-development of relevant standards and regulations.
- The global surge in electronic waste (e-waste) has become a major challenge, and most countries currently lack effective solutions, making it an area where China and the EU could strengthen technical cooperation and share experiences. Since the 1990s, the rise of the internet has driven the growth of the digital economy, leading to an exponential increase in electronic devices. Now, the emergence of artificial intelligence is further accelerating large-scale equipment upgrades. The market potential for efficient e-waste recycling remains largely untapped. By jointly leading technological innovation in this field, Chinese and European companies can grow together.
- As the United States becomes less proactive on climate issues, the European Union and China have an opportunity to take on greater leadership in driving global carbon emissions reductions. For example, in the area of the Carbon Border Adjustment Mechanism (CBAM), China and the EU can strengthen policy coordination. If the EU and China can reach a joint climate commitment ahead of the UN Climate Summit (COP30) in Belém, Brazil this November, it could inject a degree of optimism into an otherwise subdued global climate dialogue.
- In global trade and investment activities, cross-border data flows are crucial and present significant challenges to corporate management, especially in industries such as finance, insurance, pharmaceuticals, automotive, and information and communication technology (ICT). Chinese and EU institutions could collaborate to establish pilot zones for data cooperation, explore mechanisms for dialogue and collaboration on trusted data spaces, and jointly develop an EU-China mutual recognition framework for data compliance. Such efforts could contribute to overcoming trade barriers.
The advances and retreats in EU-China relations are not only a matter of balancing strength, but also of mastering strategic posture. As Aristotle noted in Nicomachean Ethics, âtemperance and courage, then, are destroyed by excess and defect, and preserved by the meanâ. The significance of the EU-China Summit may lie in finding the right way to engage with one another, as both sides seek to be better understood, respected, and trusted.
