EU should move beyond rhetoric of 'systemic rival'

In 30 years of firsthand experience, including living and working in Shenzhen, Guangdong province, where you can experience the future today, I have witnessed the remarkable scale and speed of China's transformation.

Living in China opens your eyes to how disconnected the European Union's rhetoric has become and why it is time for Europe to adapt. As the world confronts the storms of protectionism and unilateralism, the EU should step up its approach toward China and work more closely with dynamic Asian economies to promote multilateralism, global stability and shared prosperity.

The EU's 2019 outlook on China introduced the formula "China as partner, competitor and systemic rival". While this language was intended to capture the complexity of the relationship, it reflected Europe's unease. Its continued use is a diplomatic obstacle, out of step with today's global realities and a constant source of unnecessary tension in EU-China dialogues.

I saw this awkward dynamic play out recently at the annual meeting of the China Chamber of Commerce to the EU, an active bilateral bridge-builder. When a speaker representing the EU repeated "systemic rival", the reaction among Europeans and Chinese alike was palpable. It was a clumsy, awkward moment that highlights how out of touch the wording is. Chinese officials and trade experts reject this negative characterization, emphasizing the positive elements of partnership and cooperation. The phrase is seen in Beijing as politicized and unnecessarily confrontational, undermining trust and making pragmatic engagement more difficult.

During my years of living in Shenzhen, I witnessed the energy of hardworking people determined to succeed. It was a culture shock to revisit Europe after pandemic-enforced absence to discover just how slow and unproductive we have become in Europe compared to Asia.

In less than five years, Shenzhen opened five new metro lines, laid thousands of kilometers of high-speed rail track, opened dozens of new public parks and highways, extended its airport and pioneered smart digital automated zero-carbon port terminals to handle the goods we purchase. I used driverless taxis and saw infrastructure projects growing on a heroic scale. In Belgium, I have rarely seen a worker moving on the dozens of unfinished public works suffocating Brussels' EU quarter.

The phrase "systemic rival "emerged in March 2019, when the European Commission published its strategic outlook on China. It was badly received by many Europeans then, being awkward and undiplomatic, and a sharp departure from the previous decades of engagement and blossoming interdependence, during which the EU and China focused on trade, investment and cooperation on global issues. The new formula was driven by a mix of European anxieties: a weakening European economic outlook, China's growth, and concerns over market access and reciprocity for European companies in the Chinese market.

European Parliament members at the time, many of whom lacked deep knowledge of China, promoted the "systemic rival" label to signal concern about China's political and economic model. Yet, in practice, this label revealed more about Europe's own insecurities and failure to keep up rather than a shrewd observation of China's actual role in the world. The concept was predictably awkward as it was meant to encompass the diverse views of 27 member states.

Partnership takes priority

There are three compelling reasons to drop "systemic rival". The label is outdated and counterproductive. It was created at a time of European uncertainty, by policymakers who have mostly moved on. The world has changed, but the language perpetuates suspicion and division rather than pragmatic forward-looking engagement.

Global challenges require partnership, not rivalry. The EU and China together account for a huge share of the world's economic output. Cooperation is essential for managing climate change, multilateralism, inequality, the United States' trade wars, joint innovation and global responses to crises. Framing China as a rival undermines the trust needed for collaboration.

Strategic foresight is crucial in a volatile world. With protectionism and isolationism growing, the EU cannot afford to be antagonistic toward China. Only by engaging as partners can Europe help shape a stable, rules-based order and promote its own interests. The alternative is weakness in a world shaped by bullying and coercion from the US and faster, better innovations from China.

As global trade and geopolitics shift, the EU should embrace a forward-looking partnership with Asia, and China in particular. Mutual respect, pragmatic cooperation and a shared commitment to multilateralism are essential to peace, stability and prosperity.

The caustic "systemic rival" label is a relic of a different era; one that has never served Europe's interests and is a useless obstacle to mature discussion. Having witnessed China's transformation firsthand, I am convinced it is time for Europe to adapt its approach, face up to today's tough realities, make wiser strategic moves, or risk failing all us Europeans who want to live in a stable, rules-based global trading system that delivers peace and shared prosperity, not conflict, inequality and wasted opportunities.

The author is chairman of Gerrha Global, a consultancy focusing on EU-China collaboration on the digital green transformation, former Senior VP at Huawei's headquarters in Shenzhen, and former Global Head of Trade, the Netherlands.