Both the EU and China remain committed to safeguarding the multilateral trading system, which is in alignment with the bilateral and common interests of the world.
The global trade system faces high uncertainty due to escalating trade friction and geopolitical risks. This has led to unilateral tariffs severely disrupting the global market order. Against this backdrop, the 11th China and Globalization Forum, a two-day event featuring roundtables on multilateralism and global governance, was held by the think tank Center for China and Globalization (CCG) in Beijing from May 22 to 23. “Economic exchanges and strategic mutual trust” was one of the hotly debated topics among attendees from the EU & China Think-Tank Exchanges project, a dialogue mechanism between think tanks and research institutes across the EU and China. Discussions also included future trends of China-EU economic relations, as well as how to reshape a more stable, fair, and sustainable international order.
Jorge Toledo, the EU ambassador to China, shares his views at the roundtable of EU & China Think-Tank Exchanges during the 11th China and Globalization Forum on May 23, 2025.
At a “Crossroads”
The EU & China Think-Tank Exchanges project, initiated by the EU, aims to establish a long-term and effective mechanism to promote exchanges between EU and Chinese think tanks. Wang Huiyao, founder and president of the CCG and Chinese leader of the project, noted that Chinese President Xi Jinping and EU leaders have recently maintained close communication. Both sides agree on supporting the WTO-based multilateral trade system to address tariff challenges posed by the Trump trade policy 2.0.
Former Irish ambassador to China Declan Kelleher, current chair of the European Policy Centre’s (EPC) governing board, now leads the project on the EU contingent. He cited the re-elected President of the European Commission Ursula von der Leyen, saying that under unstable factors like tariff wars, the EU and China, as the world’s two largest markets, bear the responsibility to support reform of the multilateral trade system based on fair competition and multilateralism.
Kelleher emphasized that in the face of trade friction and tariff wars, the EU has adopted a more independent, proactive, and geopolitically oriented strategy. He stressed that all these measures are based on multilateralism principles, as outlined in the Treaty on European Union, and are fully in line with the UN Charter.
Kelleher highlighted the importance of promoting EU-China relations to achieve mutual benefits, international peace, and stability, which both sides aspire to. He noted that this year marks the 50th anniversary of the establishment of diplomatic relations between the EU and China, a milestone that underscores the significance of the bilateral relationship as a positive global force. He also expressed hope for further development of the relationship, saying, “The EU-China relationship is solid and multi-faceted. We can resolve differences on the basis of integration and consensus. We hope to move forward towards a new 50 years [partnership] side by side.”
Partners, Not Rivals
Jorge Toledo, the EU ambassador to China, called for stabilizing, adjusting, and improving EU-China relations to avoid further trade wars and geopolitical conflicts. He acknowledged the significant achievements in economic, trade, and cultural exchanges between the EU and China over the past 50 years. In particular, trade between the two sides has grown from approximately two billion euros at the time diplomatic relations were established in 1975, to over two billion euros daily today, marking a 365-fold increase. However, he also expressed concerns about the imbalances arising from such rapid growth and exchanges. In characterizing the EU-China relations, he said, “China is a partner, a competitor, and a systemic rival.”
Peng Gang, former minister in charge of trade and economic affairs at the Chinese Mission to the EU, gave a direct response to the ambassador’s remarks. He outlined the evolution of China-EU relations from diplomatic ties to a comprehensive partnership and then to a comprehensive strategic partnership. He highlighted the 24 leader meetings and over 70 consultation and dialogue mechanisms established in various fields, including strategy, economy and trade, digital technology, environment and climate, and culture.
Specifically, in the economic and trade sector, Peng pointed out that the annual trade volume between China and the EU has surged from US $2.4 billion at the onset of diplomatic relations to over US $780 billion last year, a 330-fold increase from that of 1975. The two sides have also achieved fruitful cooperation in finance, environmental protection, culture, education, tourism, customs, and other areas, with emerging fields like the digital economy, new energy, and artificial intelligence (AI). “We have become one of each other’s most important trade and investment partners,” Peng said.
Furthermore, both China and the EU advocate maintaining the international system and order centered on the United Nations and the multilateral trade system, underpinned by the WTO. Peng emphasized that with the significant scale and breadth of China-EU cooperation, differences and frictions are inevitable. To address these, the two sides should enhance communication and coordination, expand mutual openness, jointly safeguard free and open trade and investment, and maintain the stability and smooth operation of global industrial and supply chains. The two sides should also strengthen exchanges and cooperation on critical issues like climate change and AI.
Sun Yongfu, former director general of the European Affairs Department of China’s Ministry of Commerce, shared his 12-year experience as the head of the European department, saying that he never regarded the EU as a rival. He expressed hope that the EU would reciprocate by viewing China as a partner rather than a systemic rival. “If we think in this direction, the cooperation between China and the EU will soon get back on track,” Sun said.
“As Ambassador Jorge Toledo just mentioned, the times are changing, and so are the economic cooperation and trade structures. Initially, China received a great deal of investment and technology from the EU, and the EU, for its part, gained access to China’s vast market,” Sun said. He gave the example of the three big German automakers, who regard China as their largest market. And China is also a super-sized market for high-end luxury goods from countries like France, Italy, and Spain, as well as a major market for farm products of many European countries.
Sun pointed out that as the Chinese economy has developed and international competition has intensified, China now leads in international trade, but its goal is not to maintain a trade surplus with the EU. To this end, China has held the China International Import Expo (CIIE) annually in Shanghai to attract more European goods into the Chinese market, demonstrating its commitment to openness.
He further emphasized the need for fair competition, noting that both China and the EU believe the WTO is a crucial institution of multilateralism. The two sides have established a Vice-Ministerial WTO Reform Working Group to address new challenges, posed by AI for example. “However, trade negotiations should be advanced jointly, and both sides should move in the same direction to reach mutual understanding,” he said.
Taking green cooperation between China and the EU as an example, Sun highlighted that China contributes to 40 percent of the global new energy equipment production capacity, while Europe boasts the most mature carbon market and green financial system.
It was reported that on April 24, 2025, the two sides officially signed the Memorandum of Understanding on Green Technology Cooperation. Over the next three years, they will jointly invest 15 billion euros in six key areas, including hydrogen energy, energy storage, and carbon capture, to create the world’s largest cross-border green technology R&D alliance. This signifies an upgrade of China-EU green cooperation from “market complementarity” to “technological symbiosis.” Both sides are currently at a critical stage of green transition, and their green cooperation holds significant potential for further development.
Attendees take a group photo at the 11th China and Globalization Forum, a two-day event featuring roundtable discussions on multilateralism and global governance, held by the think-tank Center for China and Globalization (CCG) in Beijing from May 22 to 23.
Consensus amid Challenges
Daniela Schwarzer, former director and CEO of the German Council on Foreign Relations, responded positively to the perspective of the Chinese side. She noted that over the past 50 years, China has achieved remarkable economic development, enhanced its global influence, and established diverse cooperative relationships with countries worldwide. During the same period, Europe has also undergone significant changes, with crises prompting EU reforms. China has shown interest in the EU’s crisis management approaches, and in fact, the EU is reflecting on the new challenges posed by the international order. She sees it as a process of mutual learning.
Schwarzer emphasized that China and Europe share many common views on the world and have reached consensus on challenges, instabilities, and conflict risks. Both sides recognize the risks the U.S. poses to a multilateral world and the EU’s aspiration to establish a rules-based international order. In this regard, dialogue with China is crucial, and both sides should engage in open and candid discussions to define shared principles, she said. While differences and divergences exist, common interests prevail. “Mutual respect is the foundation of cooperation, and building trust is essential. We need open dialogue, and private conversations are equally important,” Schwarzer said.
She also highlighted that the international economic system is adapting to new challenges and a changing world, and security systems are readjusting as well. “The EU is a rules-based democratic community. Regardless of global changes, we will continue to promote the development of a rules-based international order,” Schwarzer said.
Meanwhile, Franco Bruni, director of the Institute for International Political Studies in Italy, believes that while bilateral relations between the EU and China are developing well, it is also important to advance multilateral relations. He emphasized that bilateral relations alone are insufficient and that multilateralism is crucial as it provides public goods. Successful multilateralism requires a long-term perspective to create public goods beneficial to all.
The past 50 years have shown a global consensus on the development trends of the economy and trade, according to Sun Yanhong, a senior researcher of the Institute of European Studies at the Chinese Academy of Social Sciences (CASS). Since China’s entry into the WTO in 2001 until the 2008 international financial crisis, the global economy experienced unprecedented rapid growth. However, following the 2008 crisis, international economy and trade entered an unstable period. Although international goods trade began to decline, international service trade grew, particularly the digital trade, said Sun.
“We are now in the digital economy era. China and the EU should cooperate to establish a new model to better promote cooperation and manage competition,” Sun said. She further pointed out that China and the EU should not only focus on bilateral relations but also consider how to take on more global responsibilities. First and foremost, it is essential to better define the WTO, as the system has demonstrated its resilience and should be reformed rather than abandoned.
Regarding trade imbalances, Sun emphasized that the EU has consistently maintained a surplus in service trade with China, although its scale may be smaller than China’s surplus in goods trade with the EU. Nevertheless, the EU now faces an opportunity as the Chinese government has announced plans to expand openness in service trade with the EU. “In sectors such as healthcare and elderly care, the EU has its unique advantages. It is now the time for EU companies to seize the opportunity and expand their presence in the Chinese market,” Sun said.
“China and the EU share common interests in many fields. We are willing to work together to address the complex, volatile, and uncertain situations,” said Fabian Zuleeg, CEO and chief economist of the European Policy Centre (EPC), a Belgian think-tank.
The general consensus among participants was that as the largest developing country and the biggest grouping of developed nations, China and the EU are the “two major forces” for maintaining world peace. As two significant global economies, they are also the “two major markets” for promoting common development. China-EU cooperation extends far beyond bilateral dimensions and holds global significance. In the current context, China and the EU should join hands to uphold free trade and multilateral cooperation rather than impose unilateral restrictions or exacerbate tensions. Together, they should adcovate a more equitable and orderly multipolar world and an inclusive and beneficial economic globalization, injecting more certainty and positive energy into the turbulent world by maintaining the stability of their relations.
In this light, Declan Kelleher looked forward to the EU-China Summit that will take place in July, calling it a significant opportunity to celebrate and reinvigorate EU-China relations, setting an example of mutually beneficial cooperation globally.
