Deeper Sino-EU cooperation urged

Despite Brussels' persistent "de-risking" rhetoric, many EU companies across different sectors are choosing to deepen their presence in China, expanding their businesses, as shown by industry data.

A recent survey by the EU Chamber of Commerce in China showed that EU companies are doubling down on manufacturing in China, with 75 percent of respondents describing their China-based production as more efficient than operations elsewhere.

Meanwhile, China, according to the report, has a dynamic research and development ecosystem and is highly competitive, and 48 percent of respondents say Chinese firms in their industry are more innovative than their EU counterparts, compared with just 24 percent who favor EU firms.

"What is now shaping China's development is the shift toward new quality productive forces," said Raquel Ramirez Alexander, vice-president of the European Union Chamber of Commerce in China.

The transition, she said, marks a departure from growth driven primarily by scale and investment, and a move toward a model increasingly defined by technology, productivity, digitalization, sustainability and advanced manufacturing.

In response to the growing friction, Beijing and Brussels have taken steps to keep channels open. On June 9, Chinese Vice-Minister of Commerce Ling Ji met with Ditte Juul Jorgensen, director-general of the European Commission for trade and economic security, at the EU headquarters.

During the meeting in Brussels, the EU side stated that "a trade war is not the EU's policy objective toward China" and that it maintains a positive attitude toward constructive dialogue, commerce ministry spokesperson He Yadong told a regular press conference in mid-June.

The two sides held an "in-depth and comprehensive" discussion on preparations for the China-EU trade and investment consultation mechanism, laying the groundwork for upcoming ministerial-level consultations, He said.

China is willing to work with the EU to manage differences through dialogue and consultation, properly handle frictions, promote practical cooperation and advance the sound and steady development of bilateral economic and trade relations, He added.

Senior Chinese and EU officials are reportedly to hold the first meeting of the China-EU trade and investment consultation mechanism in Brussels later this month, a session that analysts say offers a critical opportunity to manage differences through dialogue and stabilize a bilateral economic relationship under mounting strain.