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Lifting up both sides and making for a brighter world: Working hand in hand to build a better futurefor China-EU relations

Belgium is an important partner for China in Europe and has long served as a unique bridge in China-EU relations – writes Fei Shengchao, Ambassador of China to Belgium.

Earlier this month in Brussels, Member of the Political Bureau of the CPC Central Committee and Chinese Foreign Minister Wang Yi met with Belgian Prime Minister Bart De Wever and held talks with Belgian Deputy Prime Minister and Foreign Minister Maxime Prévot. This was the first high-level exchange between the two countries since the formation of the new Belgian federal government in February. The good exchanges have secured a good new beginning for China-Belgium relations and contributed to the sound and steady development of China-EU relations in a more complex and volatile regional and international context.

This year marks the 50th anniversary of China-EU diplomatic relations. During his visit, Foreign Minister Wang Yi also met with President of the European Council António Costa and President of the European Commission Ursula von der Leyen, and held the 13th round of China-EU High-level Strategic Dialogue with High Representative for Foreign Affairs and Security Policy and Vice-President of the European Commission Kaja Kallas. Wang Yi emphasized that China stands ready to work with the EU to see each other as partners, deepen economic and trade cooperation, open wider to each other, properly handle differences through consultation, and achieve win-win results. Tomorrow, a new round of China-EU Summit will be held in Beijing. The two sides will thoroughly review the experience of China-EU relations, jointly plan for the next 50 years of cooperation, and work hand in hand to build an even brighter future for the China-EU comprehensive strategic partnership.

Over the past 50 years, China-EU relations have grown from the establishment of diplomatic ties to a comprehensive partnership, and eventually to a comprehensive strategic partnership. Despite changes in the international landscape, the relationship has maintained steady development and yielded fruitful results in cooperation. In 2014, President Xi Jinping paid a historic visit to the EU headquarters and proposed to build the bridges for peace, growth, reform and civilization between the two sides. There have been 24 rounds of China-EU Summit to date, and the two sides have established high-level dialogues in key areas such as strategy, economy, environment and climate, digital affairs, and people-to-people and cultural exchanges, along with over 70 dialogue mechanisms. Both China and the EU are staunch supporters of multilateralism and free trade, maintaining close communication and coordination on international and regional hotspot issues as well as global challenges. Annual China-EU trade has surged from just USD 2.4 billion at the beginning of diplomatic ties to USD 785.8 billion in 2024. China-Belgium trade has grown nearly 2000-fold since the establishment of diplomatic ties, reaching USD 392 billion last year. China’s visa-free policy now covers Belgium and other 23 EU member states. The trend of “China Travel” has become more and more popular far and wide across Europe.

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Many of our Belgian and European friends are interested in the development of China-EU relations. Quite a few believe that over the past 50 years, China and Europe have lifted up each other for a brighter world. Most of the views and recommendations on China-EU relations are constructive. However, some voices reflect more of misunderstandings or misperceptions, suggesting that China has not contributed to mutual benefit, but rather placing Europe at a disadvantage. I would like to share my thoughts on four questions most frequently asked, hopefully it will help broaden the context and help readers arrive at their own answers.

Q1: Has China taken advantage of the EU?

Lately, there have been frequent accusations of China’s trade and economic policies, alleging that unfair industrial subsidies by the Chinese side have led to EU’s trade deficit with China. China and the EU enjoy close economic and trade ties. While competition and friction are inevitable, they do not change the nature of mutual benefit between the two sides. In fact, around 40% of exports by EU companies operating in China are re-exported back to Europe. In this sense, while the surplus appears on Chinese side, much of the profit ends up with the European side. The EU also maintains a long-standing surplus in services trade with China, reaching over USD 50 billion in 2024. China has also been actively expanding imports through initiatives such as the China International Import Expo. As a result, its trade surplus as a share of GDP has seen a significant decline. European brands such as Philips, Siemens and Airbus continue to hold strong market positions in China, and Belgian products like chocolate and beer also remain popular among Chinese consumers. On the issue of industrial subsidies, China’s relevant policies adhere to the principles of fairness, transparency, compliance and non-discrimination, which are in line with international practices. It is worth noting that the EU itself is also a major provider of subsidies. The presence of Chinese products in Europe is driven by comparative advantage, market demand and economic principles. The competitiveness of Chinese goods is built by the hard work of Chinese companies, not created by government subsidies. Last year, China produced 13 million new energy vehicles. If this were solely based on subsidies, even the Chinese government couldn’t afford it. Quality and affordable Chinese products have expanded choices for consumers in Belgium and across Europe, improving the quality of life for local communities. Trade benefits families, businesses and nations alike, which is a blessing, not a burden.

Q2: Is China dumping on the European market?

COSCO’s Zeebrugge Terminal and the smart logistics hub of Cainiao Network in Liège stand as important symbols of win-win cooperation between China and Belgium, and play a crucial role as gateways for China-EU trade, logistics and business cooperation. Recently, there has been a growing narrative exaggerating China’s “overcapacity” and “trade diversion”. The issue of overcapacity cannot be judged solely based on output, export volume or market share. Otherwise, European Airbus aircraft, French luxury goods and German automobiles should all be considered cases of overcapacity. 90% of China’s new energy vehicles (NEVs) is sold domestically, with only 10% exported, and the market share of Chinese NEVs in Europe is only around 5%. How can this be called overcapacity? The popularity of Chinese products at home and abroad is a result of high-quality capacity, not excessive capacity. As for the issue of trade diversion, a report published by the Bruegel Institute in Belgium points out that concerns from the European side have been overstated. Even before the U.S. government announced additional tariffs on Chinese goods, many Chinese products had already been facing high tariffs, which reduced the share of China’s exports to the U.S. to just 13.5% (14.7% in the Chinese sources). Moreover, the additional tariffs imposed on China during the previous Trump administration did not lead to any significant diversion of Chinese exports to Europe. From 2018 to the first ten months of 2024, China’s exports to the U.S. as a share of total exports declined by 4.6%, while its share of exports to the EU increased by only 0.4% over the same period.

Q3: ls China going to choke off key supplies?

Belgium has an advanced high-tech industry, and many are closely following China’s export control measures on rare earths. As the world’s largest producer and exporter of rare earth elements, China supplies nearly all of the EU’s demand on rare earth, making a significant contribution to Europe’s digital and green transitions, industrial competitiveness and economic security. Rare earths are dual-use items that can serve both civilian and military purposes. It is a sovereign right and international responsibility for any country to impose necessary regulations on such items. China’s policies are consistent with international norms and conducive to safeguarding global peace and stability. Rare earth exports have never been and should never be an issue between China and the EU. As long as export control regulations are observed and necessary procedures are followed, the normal demands of European companies will be guaranteed. As a matter of fact, the relevant Chinese authorities have established a “fast track” for European companies, demonstrating China takes European concerns seriously.

Q4: Has China taken sides in the Ukraine crisis?

Allegations that China has “taken sides” in the Ukraine crisis have been circulating for some time, but always to the contrary of facts and truths. More recently, some have gone so far as claiming that China wants the crisis to “drag on”, which is all the more groundless and preposterous. China has always advocated for an early and peaceful resolution of the crisis and has always actively promoted peace talks in accordance with the four shoulds proposed by President Xi Jinping, namely, the sovereignty and territorial integrity of all countries should be respected; the purposes and principles of the UN Charter should be observed; the legitimate security concerns of all countries should be given due regard, and all efforts conducive to the peaceful settlement of the crisis should be supported. China has also issued a position paper outlining its stance, sent its special envoy to engage in shuttle diplomacy, and launched the Group of Friends for Peace at the United Nations with Brazil and many other global south countries. As for claims that China is supporting Russia, particularly by providing military assistance, the Chinese government has never supplied lethal weapons to any party involved in the conflict and strictly controls exports of dual-use items. According to available information, 70% to 80% of the key components found in captured weapons in Ukraine originate from Western countries, not from China. The Ukraine crisis is not and should not become a point of contention between China and the EU.

The upcoming China-EU Summit will inject new dimensions into and open up new prospects for the China-EU comprehensive strategic partnership. We are ready to work with all sectors of Belgian society to carry forward our friendship, strengthen mutual trust, expand cooperation, and bring our all-round partnership of friendship and cooperation to a new level. Together, we will contribute to the shared success of China and the EU for a brighter world in the next 50 years.

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