China and the EU at 50: A resilient partnership for a changing world

by H.E. Fei Shengchao, Ambassador of the People's Republic of China to the Kingdom of Belgium

This year marks the 50th anniversary of diplomatic relations between China and the European Union. Over five decades, our ties have grown into one of the most significant bilateral partnerships globally anchored in dialogue, driven by mutual interests, and rooted in shared responsibilities for peace and development. 

As President Xi Jinping noted, China and the EU are comprehensive strategic partners, two major powers promoting a multipolar world, two engines of globalization, and two ancient civilizations celebrating diversity. If one were to capture our shared journey in a single line, it might well be as President Xi Jinping put it: "Lifting up both sides and making for a brighter world."

With over 70 dialogue mechanisms and regular summits at the highest level, our cooperation spans strategic, economic, environmental, digital and cultural fields. Despite differences, we have built mechanisms to manage complexity and deepen collaboration.

Belgium: A vital bridge in the China-EU relationship

As the host of EU institutions and a founding EU member, Belgium plays a unique bridging role in China-EU relations. 

During his visit to Brussels in 2014, President Xi Jinping proposed to build the partnerships for peace, growth, reform and civilization between China and Europe, elevating China-EU relations to a new level. In January 2024, then-Prime Minister Alexander De Croo visited China at the start of Belgium's EU Council presidency, signaling the importance of our growing ties.

Belgium was also among the first Western countries to invest in China during its early reform years. Companies like Janssen, Solvay, Bekaert and Barco have long engaged in the Chinese market. 

Meanwhile, Belgium's logistics infrastructure and central location have made it a key hub for China-EU economic activity. The Ghent Volvo plant, a Chinese-invested factory, has created thousands of jobs in Belgium, while the Port of Antwerp handles the majority of EVs imported from China.

Deepening economic and people-to-people connectivity 

China and the EU together account for over a third of global GDP and more than a quarter of world trade. Bilateral trade surged from just $2.4 billion in 1975 to nearly $786 billion in 2024. Mutual investment stands at $260 billion. German automakers now derive over 30 percent of global sales from China. Belgian and European companies have reaped tangible benefits from China's market expansion and modernization drive.

The Chinese civilization values "harmony without uniformity", while the European Union champions "unity in diversity". Though rooted in different cultures, both sides share similar aspirations and philosophies. 

People-to-people exchanges are equally dynamic. China is now steadily advancing the initiative to "increase the number of French students studying in China to over 10,000 and double the scale of European youth exchanges within the next three years" proposed by President Xi Jinping in 2024. 

China has granted visa-free entry to 32 European countries. Nearly 10 million two-way visits occurred last year, with almost 600 weekly flights.

Managing frictions: Toward a balanced and open economic future 

Competition and trade frictions are natural for two large economies with deep and frequent exchanges. What matters is how such issues are viewed and managed. 

We hope the EU will adopt a balanced and comprehensive perspective and avoid turning normal trade issues into matters of security. Constructive dialogue and consultation are essential tools to resolve differences and foster mutual understanding.

The trade imbalance between China and the EU should be seen in a historical and dynamic context. From 1976 to 1996, the EU ran a trade surplus with China. Since 1997, the balance has shifted, but China's surplus has shown an overall downward trend since 2022.

It is also important to note that traditional trade statistics do not fully reflect the value distribution across globally integrated supply chains. Around 40 percent of exports by EU companies operating in China are re-exported back to Europe – meaning while much of the trade surplus is registered on the Chinese side, much of the profit ultimately benefits European firms.

The EU also maintains a long-standing surplus in services trade with China, which reached $50.3 billion in 2024. China is willing to import more quality products from the EU that meet China's market demand. 

It is worth emphasizing that protectionist policies on the EU side are a significant factor contributing to trade imbalances. We hope the EU will lift its restrictions on high-tech exports to China and avoid artificially disrupting bilateral trade.

China remains committed to opening up. Tariffs are down to 7.3 percent, the negative list for foreign investment has shrunk dramatically, and the manufacturing sector is fully open. Belgium's Barco, present in China for 40 years, has seen rising global demand for its state-of-the-art projectors developed in China. In 2024, EU investment in China rose 11.7 percent. Most European firms favor cooperation over "de-risking." In contrast, the EU's increasing trade remedies against China risk undermining free trade.

It is a sovereign right and international responsibility for any country to impose necessary regulations on dual-use items—goods that can serve both civilian and military purposes. China's relevant measures are non-discriminatory, not targeted at any specific country, consistent with international norms, and conducive to safeguarding global peace and stability. Rare earth exports have never been and should never be an issue between China and the EU. As long as export control regulations are observed and necessary procedures are followed, the normal demands of European companies will be guaranteed. The relevant Chinese authorities have also established a "fast track" mechanism for European companies.

The so-called issue of "overcapacity" cannot be judged solely based on output, export volume or market share. European Airbus aircraft and French luxury goods occupy over 50 percent and 35 percent of the Chinese market respectively, and 80 percent of German automobiles are produced for export. By the same logic used by some in Europe, wouldn't these also be considered cases of overcapacity? What some perceive as excess is in fact competitive advantage shaped by innovation and demand. What is truly in excess is not capacity, but anxiety.

Countering unilateralism: Shared interests in a fragmented world 

Unilateralism and protectionism have significantly disrupted global trade and economic stability. Between 2018 and late 2024, China's export share to the United States fell by 4.6 percent, while its share to the EU rose by only 0.4 percent, indicating no substantial diversion of Chinese goods from the U.S. to Europe.

Meanwhile, according to the Bruegel Institute in Belgium, there is minimal overlap in EU-China exports. Of 94 product categories listed in the report, only 21 had an overlap rate above 10 percent, mostly involving relatively small trade volumes. This demonstrates that EU-China trade remains largely complementary rather than competitive.

Even if certain Chinese exports are unable to enter the U.S. market, China's vast domestic market will serve as the main channel for absorbing these goods.

It is the U.S. tariff policy that lies at the root of global trade distortions. Both China and the EU are victims of it. EU leaders have publicly noted that the U.S. accounts for only 13 percent of global trade, highlighting that business among other countries continues regardless of U.S. engagement. Many would agree. China's reform and opening-up are increasing imports of high-tech and high-valued goods and services such as healthcare, pharmaceuticals, semiconductors, culture and entertainment. European firms are well-positioned to meet this demand and reap the benefits.

Looking ahead: Charting the next 50 years together 

As President Xi Jinping has noted, China-EU relations have grown into one of the most consequential bilateral relationships globally, significantly enhancing people's well-being and promoting peace and development. To date, 24 China-EU summits have been held. The 2025 summit in Beijing, marking half a century of diplomatic ties, provides an opportunity to thoroughly review and reaffirm important inspirations drawn from history.

The China-EU relationship should be characterized as a partnership, with cooperation as the defining feature, independence as the key value, and win-win outcomes as the development prospect. We believe this year's high-level exchanges will build on predecessors' efforts, carry forward the spirit of cooperation, and open up the next 50 years of China-EU relations – making them more resilient, autonomous, mature, stable, and forward-looking.