Partnership over protectionism urged in EU-China trade relations

The European Union's recent approach to addressing trade imbalances by accusing China of "unfair trade practices" and threatening to use various instruments will exacerbate the problem rather than solve it, diplomatic and business leaders in Europe have said.

Minister Counsellor Bi Haibo of China's embassy in London said at a news briefing on Wednesday that "trade relations between the two sides cannot be recklessly described as a deficit or over-supply."

He added that trade is more than just numbers, and that this view does not reflect the full picture of what trade is, as "the stability of trade and business cooperation between the two sides is in the interest of both peoples".

Bi cited the ongoing high demand for air conditioners made by China's Midea brand, which are providing relief to European countries like France and Germany as they experience record-breaking heatwaves, as a trade no one cares about over-supply or not.

He added that China provides Europe with daily necessities and ordinary manufactured goods, while Europe sells high-value-added high-tech products such as Airbus aircraft, which are equivalent to tens of millions of T-shirts, meaning supply volumes does not show earnings behind.

Chinese Embassy in the UK Spokesperson, Minister Counsellor Bi Haibo hosts a press briefing for Chinese and foreign media on Wednesday

Last week, European Commission President Ursula von der Leyen said that if China does not make "tangible" changes to its current trade practices by October, "we have all the instruments on the table, and we are thinking about other possibilities if necessary".

According to Bi, the EU's approach to resolving potential disputes is like using Western medicine for an "instant" cure, ignoring that effective treatment takes time.

"I think China's solution, like Chinese medicine, seeks to address the root cause. We are trying to solve these problems by restructuring and readjusting our policies," he said, emphasizing that China's strong governance and long-term methodology can help find the right path to resolutions.

Sebastian Wood, chair of the China-Britain Business Council, also advocates for addressing the trade issue positively rather than negatively.

"The bad way to solve it would be to put up barriers and try and keep Chinese imports out, because if you do that, you simply make goods for your own consumers more expensive, you raise costs for companies," he said, noting that such actions would make the European economy less competitive. The better approach, he told China Daily, is "to welcome investment from China and boost our own exports to China."

"Protectionism is not the answer."

John McLean, chairman of the China-UK Business Development Center, suggested investigating less-explored areas for cooperation, such as providing services to Chinese companies investing in the United Kingdom and Europe, which would boost the local economy and create jobs.

"If you really want to have maturity and longevity and profitability and sustainability, you've got to be able to use other people and find a basis of trust," he told China Daily. "That's where partnerships, joint ventures, and alliances work."

Chinese Commerce Minister Wang Wentao recently visited several European countries, meeting with his counterparts of Germany, the EU, and the UK, inviting European companies to tap into China's enormous market opportunities and establishing mechanisms to monitor and control trade disputes.

"I think these moves have sent a clear message that China and the EU are partners, not competitors," said Bi.

"We face some negative stances or even opposition from certain European parties. But at the same time, we still hope that China and the EU will maintain stable trade relations."

The Chinese Embassy in the United Kingdom hosts a press briefing for Chinese and foreign media on Wednesday to introduce China's newly released white paper on global governance.