China-EU economic ties not zero-sum game: China Daily editorial

In a major move underscoring the importance of dialogue over confrontation, Minister of Commerce Wang Wentao and European Commissioner for Trade and Economic Security Maros Sefcovic co-chaired the inaugural meeting of the China-EU trade and investment consultation mechanism in Brussels on Monday.

The "intensive, focused and constructive" talks surrounding key economic and trade issues sent a clear signal that China and the EU remain committed to addressing economic and trade differences through dialogue.

To prevent disputes from escalating into a trade war, the two sides agreed to set up four initial work streams under the mechanism to further discuss the trade and investment balance, export controls, intellectual property and World Trade Organization reform, along with the establishment of a joint monitoring mechanism to exchange relevant data, monitor trade flows and support technical work with a view to improving transparency, enhancing mutual trust and managing trade frictions.

This is an institutionalized approach to the management of their differences. While differences are inevitable, having an efficient dialogue platform and a framework of rules provides a formal consultation process for resolving frictions.

Progress has been made on specific issues, with both parties acknowledging the positive results of the dialogue on export controls on rare earth elements and other critical minerals, and expressing their intention to strengthen dialogue in this field.

They agreed that increased market access measures and initiatives can contribute to the healthy development of the trade relationship. They also agreed on the need to take further facilitation measures to maintain the stability of global industry and supply chains. The exchange of market access lists and the agreement to gradually address each other's concerns are concrete actions in that direction.

From Europe's perspective, the "trade imbalance" is the top concern. Yet a fact that the EU is reluctant to face is that the increasing trade gap is not the result of China's policy direction, but rather a natural outcome based on comparative advantage and market competition. The root cause lies in the EU's mounting restrictions on exports of high-tech products to China.

The European Commission's decision to restrict EU funding, including through the European Investment Bank and European Investment Fund, for solar, wind, and energy storage projects using inverters from so-called "high-risk countries", including China, along with the draft revisions of the bloc's Cybersecurity Act and the Industrial Accelerator Act, has severely impacted normal bilateral cooperation and the stability of global industry and supply chains.

To prevent trade frictions from escalating, the EU must keep the broader picture of China-EU economic ties in mind and address China's concerns with sincerity. It must stop implementing new restrictions targeting Chinese companies and products, as cooperation cannot coexist with the building of barriers.

It is crucial for the EU to recognize that China is not the source of the bloc's problems, but rather a partner in resolving them.

As the EU's major trading partner for goods, China is prepared to enhance dialogue and consultation with the EU through all available channels, including the newly established trade and investment consultation mechanism. By properly managing differences and frictions, China aims to promote practical cooperation and work toward balanced growth in China-EU trade.

The scale of China-EU trade — at 5.93 trillion yuan ($873.16 billion) last year, an increase of 6 percent year-on-year — indicates that neither side can afford to disengage from the other. Escalating economic and trade frictions would harm the shared interests of both sides.

It is encouraging that Sefcovic stated that the EU does not intend to escalate trade frictions and is willing to strengthen dialogue and consultation with China to manage differences. Both sides have reportedly tasked their teams with intensifying efforts and agreed to hold another ministerial meeting in autumn. China-EU economic ties are not a zero-sum game. Both sides should take this meeting as a starting point, move forward together and ensure that China-EU economic relations remain stable and enduring amid challenges.