Forging a path of stability and growth in China-EU relations

Chinese President Xi Jinping meets with President of the European Council Antonio Costa and President of the European Commission Ursula von der Leyen, who are in China for the 25th China-EU Summit, at the Great Hall of the People in Beijing, capital of China, July 24, 2025. [Photo/Xinhua]

By Yan Shaohua

Chinese President Xi Jinping's meeting with European Council President Antonio Costa and European Commission President Ursula von der Leyen in Beijing on Thursday marked a pivotal moment reflecting on half a century of diplomatic ties. While the journey, that began in 1975, has not been without its occasional tensions, focusing solely on points of friction would obscure the depth and resilience of this multifaceted partnership.

For decades, the China-EU relationship has experienced remarkable growth and deepening interdependence. To chart the course for the future, correct lessons must be drawn from the past.

The past 50 years offer a profound case study in managing a complex international relationship. What began as a tentative diplomatic overture during the Cold War has blossomed into one of the world's most consequential bilateral partnerships.

A key lesson from this evolution is the triumph of pragmatism over rigid ideology. The relationship has flourished most when both sides focus on concrete, shared interests, particularly after China's reform and opening up, which unleashed decades of explosive economic growth and created unprecedented opportunities for European industry. This pragmatic approach has led to the development of a dense network of ties, moving beyond a purely transactional trade relationship to encompass a comprehensive strategic partnership.

Von der Leyen's speech at the annual EU ambassadors conference in February sent positive signals about EU-China relations, when she said the European Commission's "first priority is to work on the many areas where our interests converge," including countries "that are not like-minded but do share some of our interests."

Despite divergences over human rights, market access and geopolitical issues, sustained engagement remains vital. The recent high-level dialogues across strategic, economic, green and digital fields reflect an institutional commitment to this principle. They affirm that only through consistent, multi-dimensional communication can mutual understanding be deepened and differences constructively addressed.

These platforms prevent misunderstandings from escalating into crises and ensure that even when there is discord in one area, cooperation can continue in others. This structured engagement has been vital in navigating a complex global landscape together and represents a mature understanding that partnership does not require perfect alignment on every issue and cooperation is possible even among competitors.

A container terminal at the Lianyungang Port in Jiangsu Province in east China. The port connects with Central Asia and Europe via rail-sea intermodal transport. December 10, 2024. [Photo/Xinhua]

The economic and trade relationship remains the bedrock of China-EU ties, and it is here that a third lesson is most apparent: Interdependence has been and will continue to be a powerful stabilizer.

The current state of China-EU trade is shaped by a combination of macroeconomic conditions, international trade dynamics and the industrial structures of both sides. Despite recent headwinds, the fundamental complementarity of their economies endures.

China is a critical market for European machinery, vehicles and luxury goods. Europe relies on China for a vast array of consumer products and, increasingly, for key components in its green transition, such as solar panels and batteries.

This deep-seated interdependence, while creating certain vulnerabilities, has also fostered remarkable resilience. As Xi remarked in the meeting on July 24, the bilateral economic and trade relationship, complementary and mutually beneficial, can achieve dynamic equilibrium through development. The sheer volume of trade and investment creates a powerful incentive for both sides to manage their differences pragmatically, providing a crucial anchor in turbulent times.

In today's world, marked by conflict, economic uncertainty and the existential threat of climate change, the imperative for cooperation has never been greater. For the EU, which is navigating a challenging path to economic recovery and striving to maintain its competitiveness, China's market is not an "option" but a "must," as Jens Eskelund, president of the European Union Chamber of Commerce in China, put it.

Engaging with China's dynamic economy can provide a significant boost to European growth, create jobs and accelerate the green and digital transitions central to Europe's future prosperity. A collaborative approach on global issues, from climate action to pandemic preparedness and financial stability, is indispensable. The lessons of the past – prioritizing pragmatism and dialogue – are directly applicable here, as these global challenges can be overcome only through collective action that transcends political differences.

Looking ahead, the path to a healthier and more stable China-EU relationship is clear. It requires a commitment from both sides to focus on shared interests while managing disagreements constructively. This demands a rejection of zero-sum thinking and a full embrace of the principle of mutual benefit. By doing so, Beijing and Brussels will not only serve the fundamental interests of their own citizens but also live up to the expectations of an international community that is looking to them for leadership.

With the meeting held at a critical time, the goal must be to reinforce the foundations of this crucial partnership, ensuring it remains a source of stability, prosperity and progress for the next 50 years and beyond.

Yan Shaohua, a special commentator on current affairs for CGTN, is deputy director at the Center for China-Europe Relations of Fudan University.