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![]() A drone photo taken on Aug 9, 2024 shows a China-Europe freight train departing from Tongjiang North Railway Station in Northeast China's Heilongjiang province. [Photo/Xinhua] Strengthening China-European Union economic cooperation has become crucial for worldwide economic growth, as the United States' tariff hikes against its key trading partners have cast a shadow over the global economy, said senior trade experts and EU business executives. They emphasized that amid growing global trade protectionism, the Chinese and EU economies' structural complementarity and the two sides' upholding of free trade provide a solid basis for deeper bilateral economic and trade collaboration. They also said the US tariff increases are likely to backfire. Zhang Yansheng, a researcher at the Chinese Academy of Macroeconomic Research, said the EU economy has advantages in high-end manufacturing, green technology and services trade, while China excels in digital infrastructure, smart manufacturing, application scenarios and a vast market. "China and the EU could consider establishing an industrial chain security dialogue mechanism to form a 'cooperation list' in key areas such as semiconductors and pharmaceuticals," Zhang said. By creating platforms like industrial cooperation parks and joint innovation funds, the two sides' strategic consensus can be transformed into concrete projects, in order to shape a practical and feasible road map for them to build a new, future-oriented type of economic and trade partnership, he said. "With the transformation and upgrading of China's manufacturing industry, the competition between China and the EU in economic and trade development has intensified a bit," Zhang said. "However, as they both face external challenges like rising protectionism and geopolitical uncertainties, the two economies are expected to forge closer economic ties based on complementary competition, thereby achieving a win-win situation," Zhang added. Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, said the potential for collaboration between China and the EU is enhanced by their market complementarity and need for resource optimization. He said he expects more cooperation mechanisms between the two sides to boost collaboration by enterprises, drive innovation and improve the allocation of market resources. "By doing such things, China and the EU could generate significant economic and social benefits, boost employment and enhance supply chain security for both," said Zhou, whose academy is affiliated with China's Ministry of Commerce. China remains the EU's largest import source and third-largest export destination, according to European statistics. Moreover, China's outbound direct investment inflows to the EU grew from 6.27 billion euros ($6.43 billion) in 2020 to 8.06 billion euros in 2023, with greenfield investment reaching 5.3 billion euros in 2023 — an increase of 48 percent compared with 2022. Zhang, from the Chinese Academy of Macroeconomic Research, said that cooperation potential between China and the EU spans three key areas: green transformation, digital cooperation and third-party market development. The two economies could build a joint carbon-neutral laboratory focusing on clean technology collaboration, recognize each other's cross-border e-commerce standards, and build dialogue mechanisms for cooperation in frontier areas like data flow and artificial intelligence ethics, he said. According to Zhou, from the Chinese Academy of International Trade and Economic Cooperation, China and the EU should focus in the short term on reviewing and strengthening existing supply chain cooperation, whether market-driven or government-promoted, by reducing trade barriers and increasing investment opportunities and the mobility of personnel. Long-term strategies should aim for more effective market integration through reduced tariffs, increased consultation mechanisms and enhanced collaboration on innovation, he added. Zhou also said that Sino-EU cooperation could extend beyond bilateral relations to include third-party market opportunities in Latin America, Africa and elsewhere. "This expanded cooperation could help address global challenges while strengthening both parties' economic independence and meeting consumer demand in emerging technological sectors," he added. Experts also said the US tariff hikes will not be good for anyone and will fail to achieve the so-called purpose of making America great again. Ju Jiandong, chair professor at Tsinghua University's PBC School of Finance, said that if the US truly wants to maximize its own interests, it should not damage ties with its manufacturing suppliers. "Don't go against the customers and don't go against the suppliers - these are the ABCs of economics," Ju said. Business leaders also said they have an optimistic outlook on China-EU economic and trade cooperation. Thomas Roemer, global head of the coatings and adhesives business entity of Covestro AG, a German polymer manufacturer, expressed strong support for fair, open and rule-based global trade. "We will continue to invest in China to provide our customers with innovative and sustainable solutions and products," Roemer said. Denis Depoux, global managing director at German management consultancy Roland Berger, said the interdependence between the Chinese and EU economies remains significant. | ||
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