Trade and investment relations between China and the European Union (EU) have a positive impact on the global economy. They provide opportunities for economic growth and cooperation for both sides. Challenges such as the trade deficit between China and Europe can be resolved and these relations are likely to lead to more balance and cooperation.
With this in mind, the Ankara Center for Crisis and Policy Studies (ANKASAM) presents the views of Dr. Csaba Moldicz, Head of the Mathias Corvinus Collegium Center for International Economics, to assess the economic and trade relations between China and Europe.
1-How do you assess the impact of China-European Union trade and investment relations on other global actors and economies?
Trade in itself is a balancing factor in international relations. It is common knowledge that China is the EU’s largest trading partner. It is important to recognize that these trade relations are not only important for global players, but also for China and the EU. The trade imbalance between the two economies is often seen as a problem by European partners, and the growing trade deficit is a headache for European policymakers. However, this has more to do with Europe’s weak competitiveness than with relations with China, even though it is often portrayed that way.
The United States, on the other hand, sees Europe’s strong relationship with China as a threat. Few European countries have real geopolitical interests in Asia or conflicts of interest with China in the region. France is an exception in this regard. This is because France is also uncomfortable with China’s growing presence in Africa.
2-How will trade and investment relations between the European Union and China develop in the future and what impact will this have on the global economy?
Most EU members have already aligned their trade and investment policies with U.S. geopolitical interests. Even the Central European countries, which were enthusiastic about the Belt and Road Initiative and the cooperation of Central and Eastern European countries with China when it was launched, have become hostile to China even though their economic interests require greater cooperation with China. The only exception seems to be Hungary, which continues its policy of opening up to the East and has so far benefited greatly from Chinese investment in 2022-2023. Europe’s skepticism about China-EU relations could provide African and Asian countries with new trade opportunities and more investment from China.
Dr. Csaba Moldicz
Dr. Csaba Moldicz is the Mathias Corvinus is Head of the Center for International Economics at the Collegium Foundation. His main area of research is Central and Eastern Europe. He also focuses on the economic integration process of the European Union and China. As a senior editor, he has published several books. For example, his monograph on technology competition between the United States and China in Europe 2020 was published by Routledge. He is an Associate Research Fellow at the Institute of Foreign Relations and Trade (Hungary) and the “China-CEE Institute”.
