The European Union (EU) is urging China to improve market access for products from its 27 member states and address the annual $200 billion trade imbalance between the two parties. China exports over $450 billion worth of goods to the EU, while importing approximately $260 billion in goods from the EU. [1]
Trade disputes have become a significant issue in China-EU relations. These disputes are primarily linked to economic, trade, and political factors. From an economic perspective, the EU argues that Chinese companies, benefiting from state support, offer products at lower prices, negatively impacting the competitiveness of domestic EU firms. On the other hand, the EU has increased tariffs and customs duties on certain Chinese products, aiming to restrict the entry of Chinese-origin goods into the European market. Such trade barriers have led to growing tensions between China and the EU.
Moreover, concerns exist regarding China’s investments in strategic sectors within Europe. The EU claims that Chinese companies are investing in the technology and infrastructure sectors to gain control over critical assets in Europe. This raises national security concerns among EU countries. Additionally, China’s rapid advancements in artificial intelligence and the digital economy are other factors that worry the EU.
Over the past two years, Chinese and EU leaders have engaged in extensive discussions regarding trade disputes and the Russia-Ukraine War.[2] The EU launched an investigation into China’s subsidies for electric vehicles, aiming to determine whether these subsidies provide an unfair competitive advantage to Chinese manufacturers in European markets, which provoked a reaction from China. Regarding the issue, Chinese Foreign Ministry Spokesperson Wang Wenbin stated, “China has never deliberately pursued a trade surplus.” Wang also encouraged foreign companies to sell their products in China, a market of 1.4 billion people, and pointed to recent import and supply chain fairs as evidence of China’s openness.[3]
Wang warned that if the EU imposes strict restrictions on high-tech exports to China, trade relations could be disrupted. The EU, in turn, seeks better market access for various products, including cosmetics, wine, and other alcoholic beverages.[4]
China has maintained a neutral stance as most European countries have imposed sanctions on Russia. The EU is urging China to leverage its influence over Russia to help end the war in Ukraine.[5] The relationship between China and the EU is complex, encompassing economic, trade, political, and strategic interests. This relationship involves both economic benefits and political disputes.
The EU is striving to correct its trade imbalance with China. The annual trade deficit exceeding $200 billion has led the EU to push for increased exports to China and better market access. The investigation into China’s electric vehicle subsidies has further heightened tensions in trade relations. This situation highlights the need for both parties to reassess and improve their trade policies.
While China defends its trade surplus, the EU is working to gain greater competitive advantages in the Chinese market and ensure a fair trading environment. This entails a complex process that requires a general revision of tariffs, market access, and trade policies.
From a political perspective, disputes between China and the EU have become more pronounced, particularly in the context of the Russia-Ukraine War. The EU wants China to align with its stance on the war. This conflict serves as a limiting factor for political dialogue and cooperation between the two sides.
Potential restrictions on high-tech exports could also lead to political tensions. This could fuel disputes over technological dependence and security concerns. Developing a mutual understanding on technology and innovation is crucial for preventing future conflicts.
In conclusion, the complexity of China-EU relations underscores the need for greater efforts to establish a balanced trade and cooperation environment. Strengthening dialogue, cooperation, and mutual efforts is essential to creating a fair and sustainable relationship based on shared interests.
[1] “Divides over Trade and Ukraine are in Focus as EU and China’s Leaders Meet in Beijing”, Associated Press News, https://t.ly/pWbik, (Date Accession: 07.01.2025).
[2] “Divides over Trade and Ukraine are in Focus as EU and China’s Leaders Meet in Beijing”, Associated Press News, https://apnews.com/article/china-eu-trade-xi-europe-beijing-ukraine-8533724dcda6087280210c1a02d1b331, (Date Accession: 07.01.2025).
[3] Ibid.
[4] Ibid.
[5] Ibid.
