Navigating Sino–European trade headwinds
Services exports to China a less explored area to unleash strength
Navigating a partnership
For China, getting the engine of the service economy up to speed will take time.
"It has something to do with the maturity of the economy and the market, and as I said, where you put your emphasis on," said Otero-Iglesias.
Zhou from China Macro Group returned to his earlier point: the need for greater "awareness" of the importance of services.
"If buyers do not value services highly enough, professional expertise cannot command the price it should. That, in turn, constrains supply, because providers may struggle to invest in developing and retaining highly skilled professionals. That is why mindset matters," Zhou said.
"Local governments also need the right policy incentives. Both services and consumption require metrics that properly capture how they are developing. Only then can the sector grow in scale and capability," he added.
Under pressure China-EU trade relations may last for a while. Luckily, a trade and investment consultation mechanism has been established to seek a cool-down.
At the mechanism's inaugural meeting in June, both sides agreed on the new positioning of a stable and balanced key trading partnership. The second meeting is expected this fall.
For Europe, China will remain complex to navigate. Otero Iglesias said the issue is less whether Europe approves of the changes China is driving than whether it can adapt.
"There is a lot of fear about China in Europe. My argument has always been: You cannot stop a storm. You will need to weather it. A storm creates big waves, and their force can be challenging. But those waves also create opportunities for you to ride them," he said.
