中文
By Shao Xia
The European Union has long championed multilateralism and free trade. Yet in its dealings with China, Brussels seems to be wavering on the very principles it claims to uphold.
It is understandable that pressure from the U.S. creates a dilemma for the EU in advancing its relations with China. Yet as a major global power, the EU has to straighten out what is best for itself. The answer to that is straightforward: To steady its course forward, the EU must dispel the three prevailing myths about China and undertake a mental "re-balancing."
The myth of "trade diversion"
The EU fears that U.S. tariffs will divert Chinese goods into Europe and overwhelm local industries. This concern is overstated. China-EU trade is highly complementary, with little overlap in export profiles. Take electrical machinery as an example. Europe's anxiety centers on motors and electrical equipment, while China's main exports in the category are the likes of smartphones and lithium-ion batteries. Treating Chinese cellphones as a "shock" to European producers stretches the facts.
Meanwhile, China's expanding consumer market offers new opportunities for European businesses, as illustrated by the inaugural Slovak national pavilion and the debut of a long-established French pharmaceutical company at this year's China International Consumer Products Expo. Rather than focusing on trade restrictions, the EU should look to deliver its top-quality products to Chinese consumers.
It must also be remembered that the current trade turbulence originated in Washington, and that China and Europe are victims. Closer China-EU cooperation can make both more resilient.
The myth of "trade imbalance"
Another oft-cited issue is the so-called trade imbalance. The fact is that China's surplus with the EU has been narrowing since 2022, and in some cases has flipped to a deficit – most notably with Switzerland and Ireland.
What's often overlooked is European firms' outstanding performance in China. And nearly 40 percent of what they produce in China is shipped back home, meaning that while this may be registered as China's trade surplus, the profits are largely flowing back to Europe. Besides, the EU has long maintained a surplus with China in the services trade, with over $50 billion in 2024.
European brands remain highly competitive in the Chinese market: Philips and Siemens have dominated China's high-end medical equipment market for decades; the share of Norwegian salmon in the Chinese market reached a high point of 67 percent; and Spanish ham and Italian pasta have become regular items on Chinese dinner tables.
The real problem is not that China refuses to buy European goods, but that Europe restricts China's access to certain products. A single lithography machine costs as much as hundreds of thousands of bottles of fine Bordeaux; yet export controls are imposed. Technology protectionism is the real source of the "imbalance." Keep doing that, and Europe risks costing itself not only substantial orders but also a foothold in what is set to become the world's largest high-tech market.
A container of China Railway Express is seen at the Csepel Freeport Logistics Park in Budapest, Hungary, April 12, 2022. [Photo/Xinhua]
The myth of "overcapacity"
Allegations of "overcapacity" are a common EU narrative about China. But by that logic – measuring solely by output, exports, or market share – shouldn't German cars, 80 percent of which are sold abroad, also qualify as overcapacity? And shouldn't Airbus, occupying over half of China's commercial aircraft market, be accused of dumping?
The truth is that global demand for clean energy is booming, and China is simply helping meet that demand with its competitive products. By 2030, the world is expected to need 45 million new energy vehicles. China produced 13 million last year – 90 percent sold domestically. Its share in the European market accounts for just 5 percent. That cannot be "overcapacity." If Europe is serious about its green transition, Chinese new energy products are not a threat; they're a solution.
When Chinese EVs and solar panels enter the EU market, there is no need for alarm. Europe's strength has never been in protectionist barriers but in innovation – a quality that China seeks to partner with, not replace.
In 2012, the EU imposed anti-dumping duties on Chinese solar panels to shield domestic producers. The result: higher installation costs, a delayed green transition, hundreds of thousands of lost jobs and tens of billions of euros in losses. By 2018, the measures were scrapped. The lessons are worth remembering.
The path forward
A few years ago, an EU policy paper labeled China as a partner, a competitor and a systemic rival, all at the same time. It is just like a car arriving at an intersection to see red, amber and green lights all lit at once. Should it proceed or not?
This ambivalence stems from Europe's anxiety over its own development. Thus, when Piraeus Port in Greece found new life and when the Hungary-Serbia Railway emerges as a high-efficiency artery, some see not opportunities but a "China Shock 2.0." Such a mindset reveals an emotional resistance to China's rise, straying from the original spirit of globalization.
Yet Europe has never lacked farsightedness. In the early 1980s, when many Western companies were still hesitant, Volkswagen boldly entered China through a "technology-for-market" model and went on to forge one of the most successful joint ventures in the automotive history.
Today, the story is entering a new chapter: Volkswagen plans to massively expand battery production in China, with a view to bringing China's cutting-edge battery technology, manufacturing capacity and expertise to Europe. The automaker's decades of success and its current strategic shift offer clear evidence: Lowering barriers and embracing open cooperation is the surest path to long-term growth.
Geography speaks for itself: China sits at the Eurasian continent's eastern edge and Europe at the other. Together, their economies account for more than a third of global GDP. Linking their strategies – and connecting the railways, pipelines and digital networks that span the continent – could create the largest development zone on Earth.
Today, China-EU relations stand at a pivotal crossroads. The choice they make will shape the future. After 50 years of partnership, China and Europe have the wisdom and strength to choose the right path – toward a future that is open, prosperous and shared by all.
Shao Xia is a Beijing-based international affairs commentator.
