China and the EU should be stable, balanced key trading partners

The second meeting of the China-EU trade and investment consultation mechanism was held in Beijing on Oct. 8 and 9.

Guided by their commitment to maintaining stable and balanced trade ties as key trading partners, the two sides reviewed progress in various areas since the mechanism's first meeting, engaged in pragmatic and productive discussions, and agreed on a list of outcomes. They also issued a joint statement.

At a time when the global economic recovery faces mounting pressure and anti-globalization sentiment is gaining ground, China and the EU have demonstrated how differences can be managed and cooperation advanced through equal, professional, and constructive dialogue within the framework of World Trade Organization (WTO) rules. Their efforts have provided a valuable source of stability for an uncertain world economy.

The list of outcomes outlines 16 specific points of consensus covering trade and investment balance, export controls, intellectual property rights, and World Trade Organization (WTO) reform. These outcomes address shared concerns among industries on both sides and lay the groundwork for further cooperation.

Delegates emphasized that the meeting marks a new beginning rather than a conclusion. This statement affirms that, despite their differences, China and the EU have the wisdom and capacity to find appropriate solutions, provided they uphold mutual respect, equality, and mutual benefit while acknowledging each other's legitimate concerns.

International observers have widely welcomed the proceedings as a functional test of the consultation mechanism. By clarifying regulatory expectations and reducing uncertainty, the dialogue has helped stabilize market sentiment, delivering tangible benefits for Chinese and European enterprises alike, as well as for global economic stability.

The essence of China-EU economic and trade relations lies in mutual benefit and win-win cooperation. The current structure of bilateral trade reflects the choices both sides have made based on their respective comparative advantages, and is a natural outcome of market forces.

In 2025, trade in goods between China and the EU reached $828.11 billion, up 5.4 percent year on year, while their stock of two-way investment exceeded $280 billion. The two sides remained each other's second-largest trading partners.

Despite rising protectionist headwinds, bilateral trade in goods grew 14.2 percent year on year to $447.88 billion in the first half of 2026.

From automobiles and new energy to biomedicine and machinery, industries on both sides are deeply interconnected through supply chains and complement each other's strengths. Their markets are highly interdependent, and their shared interests are firmly established.

Reaffirming their role as key trading partners, stabilizing bilateral economic and trade ties, and promoting more balanced trade are practical steps that reflect the depth of their economic integration, and demonstrate a shared sense of responsibility to provide greater certainty for the world.

Europe has a profound tradition of free trade and has long been an important builder of an open world economy. China has noted that, in recent years, the EU has introduced a series of trade remedy measures and industrial policies whose spillover effects have attracted international attention.

Politicizing economic and trade issues, expanding the concept of national security to cover an ever-wider range of issues, and erecting unreasonable barriers to trade and investment run counter to the WTO principle of fair competition. Such measures can also disrupt the stability of global industrial and supply chains and ultimately undermine the upgrading and transformation of European industries themselves.

An analysis by The Economist gets to the heart of the matter: if Europe wants a thriving industrial sector, its focus should not be on keeping competitors out, but on addressing its own internal problems. Similar views echo among European business leaders, who argue that enhancing competitiveness requires addressing internal structural bottlenecks instead of limiting foreign competition.

China maintains that it has consistently partnered with Europe to overcome development challenges, rather than creating them. The principal risk to bilateral economic relations today lies not in natural trade flows, but in using "de-risking" as a justification for strategic disengagement.

China has consistently maintained that interdependence is not a risk, interconnected interests are not a threat, and openness and cooperation are the right path to shared development. China's vast market, rapidly evolving innovative applications and complete industrial support system are indispensable to Europe's green transition and efforts to spur scientific and technological innovation.

According to the German Chamber of Commerce in China, decades of operational experience in the Chinese market have equipped German firms with competitive advantages that strengthen their global footprint.

As unilateralism and protectionist policies gain traction worldwide, the integrity of the international trading system faces mounting stress. Both China and the EU reaffirm their support for a rules-based multilateral order, endorse WTO modernization, and stress strict adherence to agreed disciplines. Aligning on these principles is vital not only for bilateral prosperity but for global economic governance at large.

Sustained dialogue and mutually beneficial cooperation remain the most effective tools for managing differences and expanding common ground.

Looking ahead, China stands prepared to work closely with the EU to address trade concerns through continuous consultation, grounded in WTO compliance and mutual respect for core interests. By deepening engagement, both sides can unlock new commercial opportunities, reinforce global supply chain resilience, and contribute to a more open, inclusive, and stable world economy.

(Zhong Sheng is a pen name often used by People's Daily to express its views on foreign policy and international affairs.)