Talks urged to resolve China-EU trade issues

Expressing confidence in the scope of future trade and investment cooperation between China and the European Union, business executives from both sides voiced their earnest hope that the two sides will maintain communication to resolve existing trade disputes.

Their comments came as the 25th China-EU Summit was held in Beijing on Thursday, which coincided with the 50th anniversary of diplomatic relations between China and the EU.

Liao Lin, chairman of the Industrial and Commercial Bank of China, said that amid increasing challenges, Chinese companies investing and operating businesses in Europe look forward to a market-oriented and law-based business environment, and they hope the EU will provide greater stability and certainty for Chinese enterprises in Europe.

"We hope that both sides can engage in closer dialogue and communication and properly address frictions and differences, in order to foster markets featuring mutual benefit for industries and businesses and build a future-oriented partnership between China and the EU," Liao said at the China-EU Business Leaders Symposium, which was also held in Beijing on Thursday.

From just $2.4 billion in trade in 1975 to nearly $785 billion in 2024, China-EU economic relations have become one of the most vibrant engines of global growth. However, the ties have been disrupted by trade disputes. The issues of disagreement include tariffs on Chinese electric vehicles and China's export control on rare earth elements. 

As a positive outcome of the summit, which was co-chaired by Premier Li Qiang, President of the European Council Antonio Costa and President of the European Commission Ursula von der Leyen, both sides agreed to create an upgraded export supply mechanism to address the existing problems. They also committed to positively managing their differences to pave the way for a more equitable trade and investment relationship.

Jens Eskelund, president of the European Union Chamber of Commerce in China, said the ties between the EU and China over the past 50 years have created enormous value for both sides.

"European consumers have benefited from access to competitively priced high-quality products from China, and Chinese exports to Europe have created opportunities of development and prosperity for China," he said.

Noting that potential for further value creation remains, Eskelund said there are imbalances in the relationship that must be addressed now for that value to be realized.

"The 50th anniversary of the establishment of diplomatic ties between the EU and China presents the opportunity to not only acknowledge the many successes, but also give our relationship a service check," he said.

"It is positive that both sides are continuing to engage in frank discussions at the highest level, in order to arrive at a more viable model of engagement that can see us through the next 50 years and beyond," he added.

Ge Haijiao, chairman of Bank of China, said that China and Europe have a solid foundation for cooperation in the fields of new energy, high-end manufacturing and the digital economy.

"We look forward to policy support from the EU side for facilitating Chinese companies' access to relevant sectors, in order to drive industrial and supply chain cooperation between the two sides to a higher level," Ge said.

Wolfgang Niedermark, chair of the BusinessEurope's China Network, said the economic story shared by Europe and China has been nothing short of transformative.

"European investment, know-how and technology have supported the rapid growth of China's industrial and green technology sectors. At the same time, Europe has benefited heavily from China's manufacturing strength and expanding market," he said.

While talking about the challenges that European companies are facing in the Chinese market, Niedermark emphasized that European businesses do not seek to retreat from China.

"We value the fundamental dynamism and the potential of this market. Many of our members are firmly rooted here and remain committed to long-term cooperation. There's much we can and we should do together," he said.