EU Leader's Shift in Stance Towards China Signals New Era of Cooperation

Both Brussels and Beijing are anticipating new negotiations and agreements, driven in part by the common threat of US tariffs. European Parliament's International Trade Committee Chairman, Bernd Lange, highlighted the numerous shared interests between Europe and China, particularly in areas such as climate protection and international trade. Lange emphasized that Europe cannot afford to ignore the vast market of 1.4 billion people that China represents. The impending visit of the EU Trade Commissioner to Beijing serves as tangible evidence of this shift towards closer ties.

Despite past conflicts, largely fueled by pressure from the Biden administration over the last four years, the EU and China are now seeking to improve their relationship, especially in light of the US's inconsistent stance on the Russia-Ukraine conflict and its tariff threats against the EU. Lange's call for renewed dialogue with China underscores the recognition of shared interests and the potential for cooperation, particularly in addressing global challenges like climate change and fostering mutually beneficial trade and investment relationships.

While trade disputes, such as the recent tariffs imposed on Chinese electric vehicles by Europe, present challenges, they are not insurmountable barriers to agreement. The potential revisitation of the Comprehensive Agreement on Investment (CAI) between the EU and China, which was agreed upon in 2020, suggests a willingness on both sides to engage in constructive cooperation. Chinese automobile manufacturers' interest in producing in Europe, coupled with the EU industry's desire to establish joint ventures with Chinese competitors to gain technological benefits, further illustrates the potential for collaborative efforts.

As Lange noted, if such cooperation can ensure the creation of sufficient added value in Europe, it should be facilitated. This evolving stance towards China by the EU reflects a pragmatic response to global challenges and the recognition of the importance of the China-EU relationship in a rapidly changing geopolitical landscape. The relationship between the European Union and China has been strained in recent years, particularly in terms of trade and investment. However, the current situation has prompted the EU to recognize the importance of cooperation with China.

Bernd Lange noted that Europe and China have many shared interests, including climate protection and international trade. Despite existing differences between the EU and China, cooperation is not impossible. The EU's trade commissioner is planning to visit Beijing to discuss trade and investment issues, indicating a willingness to engage in dialogue. There are also opportunities for cooperation in areas such as electric vehicle production and technological collaboration.

The EU's industrial sector is keen to establish joint ventures with Chinese competitors to gain access to new technologies. According to Bernd Lange, the EU and China have "many common interests" that can be explored. Lange emphasized the importance of not ignoring the Chinese market, which has a population of 1.4 billion people. He also highlighted the potential for cooperation in areas such as climate protection and international trade.

While there are existing trade disputes between the EU and China, such as the EU's imposition of tariffs on Chinese electric vehicles, these differences are not insurmountable. The two sides can still work towards reaching a mutually beneficial agreement. Furthermore, the EU's industrial sector is eager to collaborate with Chinese companies, particularly in areas such as electric vehicle production, where Chinese manufacturers are planning to establish production facilities in Europe.

As the diplomatic landscape between the European Union (EU) and China continues to evolve, the Comprehensive Agreement on Investment (CAI) signed in 2020 may once again move to the forefront of the agenda. This agreement, should it be ratified and come into effect, is poised to play a pivotal role in fostering high-quality development in the economic and trade relationship between the two global powers. For this to happen, both the EU and China must work within a framework of "depoliticization" to rebuild trust and demonstrate flexibility, aiming for substantive breakthroughs.

The revival of the CAI is contingent upon the ability of both parties to establish a foundation of mutual trust, devoid of political interference, and for the EU to present a unified stance internally. The changing of the guard in EU institutions in 2025 could potentially bring new momentum to these efforts. However, achieving tangible progress will require both sides to show adaptability on their core demands. Given the broad spectrum of areas where cooperation is possible, the trajectory of this relationship will largely depend on the EU's strategic approach and willingness to either continue on the current path or explore alternatives beyond the existing framework.

The CAI, which was agreed upon in 2020, has been touted as a balanced, mutually beneficial, and high-level agreement. According to Commerce Ministry spokesperson Gao Feng, once the agreement takes effect, it will significantly contribute to the high-quality development of China-EU economic and trade relations. The pending ratification of the CAI serves as a critical test for both parties' commitment to enhancing their economic ties, with the international community watching closely for signs of cooperation or conflict between these two significant global actors. The path forward will be shaped by the political will and economic strategies of both the EU and China, with flexibility and a willingness to engage in meaningful dialogue being key to unlocking the full potential of their economic partnership.