The recent economic summit between China and the EU, held in Beijing, has revealed a critical juncture in their complex relationship, marked by strategic confusion and a growing drift toward isolation. While the summit was initially expected to mark a milestone in their 50-year diplomatic history, it instead served as a sobering reminder of the EU’s inability to foster a productive partnership with China despite their vast economic interdependence.
The summit took place at a pivotal moment in global geopolitics, where the once-beneficial partnership with Beijing has become entangled in a web of ideological divides, internal EU strife, and the lingering influence of Washington. The global upheavals from the pandemic to the war in Ukraine have not only strained relations but also reinforced the EU’s dependence on the United States. This dependence is evident in the EU’s recent decisions, which echo Washington’s containment strategy by prioritizing measures against Chinese economic influence through restricted investment, high tariffs on Chinese electric vehicles, and bans on Chinese firms from participating in public tenders. These actions, justified by the EU as ‘de-risking,’ signal a growing alliance with the United States in the face of China, despite European leaders’ insistence on maintaining autonomy.
China, on the other hand, has presented a clear strategy of complementarity, promoting free trade, and pursuing a win-win approach in key areas such as digital transformation, green development, and infrastructure connectivity. The Chinese government has consistently supported European integration and encouraged the EU to assume a more autonomous role in global affairs. However, the EU’s current approach, characterized by internal contradictions and a lack of consensus, has undermined its credibility and hindered the possibility of meaningful cooperation. The summit highlighted the EU’s struggle to navigate its aspirations for global leadership while remaining isolated due to its fixation on zero-sum geopolitics.
Despite these challenges, the economic relationship between China and the EU remains robust. The EU is China’s largest trading partner, and China ranks second for the EU, with both countries accounting for over one-third of the global GDP and nearly 30% of global trade in goods and services. Chinese investments in Europe have exceeded $100 billion, with annual flows largely balanced with EU investments in China. These numbers underscore the critical importance of a balanced and pragmatic relationship for both economies, as their cooperation or confrontation will significantly shape global stability for decades to come.