EU and China should champion stronger diplomatic and trade ties

As we will be commemorating the 50th anniversary of the establishment of diplomatic relations between the European Union and China, it is an opportune moment to reflect on the journey thus far and envision a future of even deeper and more robust trade relations. The friendship between the EU and China has been marked by significant milestones, and the potential for further collaboration is immense. Strengthening trade relations between these two economic powerhouses is not only beneficial but essential for fostering global economic stability and prosperity.

The diplomatic relationship between the EU and China, established in 1975, has evolved into a multifaceted partnership encompassing trade, investment, and cultural exchanges. Over the past five decades, both China and the EU have navigated various challenges and opportunities, forging a relationship built on mutual respect and shared interests. This golden jubilee is a testament to the resilience and adaptability of EU-China relations, highlighting the importance of continued engagement and cooperation.

The economic benefits of deepening trade relations between the EU and China are manifold. The EU is China's largest trading partner, while China is the EU's second-largest trading partner. This symbiotic relationship has facilitated significant economic growth and development on both sides. Enhanced trade relations can lead to increased market access, reduced trade barriers, and greater economic integration, benefiting businesses, consumers, and economies at large.

For the EU, improved trade relations with China can provide access to a vast and rapidly growing market. China's burgeoning middle class, with its increasing purchasing power, presents an opportunity for European businesses. Conversely, the European Single Market presents a lucrative opportunity for Chinese companies and investors. By fostering closer trade ties, both the EU and China can leverage their respective strengths to achieve mutual economic gains.

Beyond the economic benefits, strengthened EU-China trade relations can have a profound positive impact on society. Trade fosters innovation, drives competition, and promotes the exchange of cultures and innovative ideas. It leads to job creation, higher standards of living, and improved quality of life for citizens in both regions. Moreover, trade can serve as a catalyst for addressing global challenges such as climate change, public health, and sustainable development.

For instance, collaboration between the EU and China in green technologies and renewable energy can accelerate the transition to a low-carbon economy. Joint efforts in research and development can lead to breakthroughs in healthcare, digitalization, and other sectors. By working together, China and the European Union can set a global example of how trade can be a force for good, driving progress and improving lives.

The principle of mutually beneficial trade is at the heart of EU-China relations. Both regions stand to gain from a balanced and fair trading relationship that respects each other's economic interests and regulatory frameworks. Ensuring a level playing field, protecting intellectual property rights, and addressing trade imbalances are crucial for sustaining long-term cooperation.

The EU and China have already made significant strides in this direction through various agreements and dialogues. Moreover, both China and the EU are capable of moving forward to build even more comprehensive partnership ensuring stronger business environment, facilitating greater investment flows between the EU and China. Continued efforts to work on, implement and build upon such agreements will allow to unlock the full potential of China-EU trade relations.

Governmental officials, business executives, and investors play a pivotal role in shaping the future of EU-China trade relations. Policymakers should prioritize open and constructive dialogue, addressing any concerns and fostering an environment conducive to trade and investment. Business leaders should seek opportunities for collaboration, innovation, and market expansion, while investors should support ventures that bridge the EU and China.

Public-private partnerships, industry associations, and think tanks can also contribute to this endeavor by providing insights, facilitating exchanges, and advocating for policies that promote trade and investment. By working together, stakeholders can create a robust framework that supports sustainable and inclusive economic growth.

As we look to the future, it is clear that the stronger the relations, including trade relations, between China and the EU, the better it will be for both of them and the whole world. The 50th anniversary of diplomatic relations serves as a reminder of the progress made and the potential that lies ahead. By deepening trade ties, embracing mutual benefits, and addressing common challenges, the EU and China can pave the way for a prosperous and harmonious future.

Boosting EU-China trade relations is not just an economic imperative but a strategic necessity. It is an opportunity to build on a foundation of stronger friendship and cooperation, driving growth, innovation, and positive social impact. As this year marks the 50 years since the establishment of the diplomatic relations between China and the EU, we should seize this moment to champion stronger diplomatic and trade ties, ensuring a brighter and prosperous future for all.

Dawid Wiktor is the chief executive officer of Media Scope Group and president of the Estonian-Chinese Chamber of Commerce. The views don't necessarily reflect those of China Daily.

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