China is actively seeking closer economic relations with the European Union, driven by the need for new export markets as US relations sour. This pursuit is evident in statements by Chinese President Xi Jinping emphasizing shared international responsibilities and the need to resist unilateral intimidation.
The EU maintains a cautious stance, acknowledging the need to rebalance its trade relationship with China but demanding concrete actions, not just words. Concerns remain about China's overproduction capacity, market access barriers for European businesses, and the substantial trade imbalance.
The EU views China as a partner, economic competitor, and systemic rival, requiring a pragmatic approach based on principles of cooperation, competition, and confrontation as needed. Short-term concerns include preventing a surge of Asian products into Europe due to US tariffs on China, and long-term goals include addressing the significant trade imbalance.
A July summit, coinciding with 50 years of diplomatic relations, will be crucial. Resolution of trade disputes, such as the one involving electric vehicles and other imposed tariffs, will be pivotal. Other issues include imbalances in trade and technology transfer.
While some, like economist Jeffrey Sachs, advocate for a more independent EU approach to China, others prioritize human rights and security concerns. The EU's Eastern members, heavily reliant on the US for security, and ongoing tensions concerning the war in Ukraine are significant obstacles to closer ties. The article highlights diverse viewpoints within the EU, ranging from Spain's relatively closer relationship with China to Italy's decision to withdraw from the Belt and Road Initiative (although it has since shown interest in reviving some cooperation).