Michael Schumann, chairman of the German Federal Association for Economic Development and Foreign Trade (BGA), wrote in China Daily on Oct. 20 that China and the EU need to deepen cooperation through dialogue. Despite recent progress in trade and investment consultations, both sides still need to implement commitments transparently, improve market access, encourage investment cooperation and strengthen their own competitiveness.
The article argues that the priority now is to build on the results achieved through dialogue, predictable rules and improved market access, rather than letting new restrictive measures become the default way of handling economic differences.
Businesses need predictability, and any talk of a possible trade war delays investment decisions and increases pressure on supply chains, he wrote.
The next stage of China-EU trade relations should focus on rebalancing rather than decoupling, which requires action on four fronts.
First, commitments already made must be implemented transparently and reliably. Trust is built through results, and companies need to see agreements translate into tangible improvements.
Second, both sides need better two-way market access. Medical equipment, pharmaceuticals, agricultural products, services and the digital economy offer significant potential, and concrete improvements in these areas would greatly benefit companies.
Third, both sides should encourage investment and joint value creation. Chinese companies investing and producing in Europe, and European companies continuing to invest in China, can create jobs, strengthen industrial capacity and bring new opportunities to both sides. New energy, green technology, mobility and artificial intelligence -- including cooperation in third markets -- also have broad prospects.
Such cooperation should not be seen as a concession but as an opportunity to combine complementary strengths, open new markets and create value that neither side could achieve efficiently alone.
Fourth, Europe must do its own homework. Europe's competitiveness will ultimately be decided by itself -- energy costs, infrastructure, the efficiency of approval processes, education systems and, most importantly, innovation capacity will shape its economic future.
Chinese competition should not be mistaken for hostility, Schumann wrote. Competition can be a powerful driver of innovation and reform, pushing Europe to respond by becoming more competitive rather than closing its markets. Specific market distortions should be addressed through dialogue on the basis of established rules, in a precise and proportionate manner.
China and Europe matter to each other and to the global economy, and their relationship should not be defined only by risks and disputes. Recent negotiations show that dialogue channels work; both sides should now use them to turn initial progress into a more stable, mutually beneficial economic relationship.
