Editor's note: Azhar Azam, a special commentator on current affairs for CGTN, works in a private organization as a market and business analyst and writes about geopolitical issues and regional conflicts. The article reflects the author's opinions and not necessarily those of CGTN.

China and the European Union (EU) are set to hold a series of sectoral dialogues ahead of the all-important China-EU Summit by the end of the year. First of the events, the China-EU High-Level Economic and Trade Dialogue (HED) has been put on the agenda for September 25, which will be co-chaired by Chinese Vice Premier He Lifeng, the vice premier of China and Executive Vice President of the European Commission Valdis Dombrovskis. 

Dombrovskis expressed concerns about the bloc's "unbalanced economic relationship" but also emphasized Beijing and Brussels were "key trading partners" and pledged to reassure his Chinese counterparts Brussels doesn't want to "decouple" from Beijing.

In a recent meeting on the sidelines of the G20 Summit in India, the European Council President Charles Michel exchanged views with  Chinese Premier Li Qiang and reaffirmed interest in maintaining "stable and constructive relations" and continuing a plethora of dialogues including the HED, in particular political dialogue, to "foster mutual understanding" and address global challenges. The President of the European Commission Ursula von der Leyen admitted Beijing had a "key role" in countering global challenges such as development, climate change and the Ukraine crisis.

Last year's economic and trade dialogue focused on global economic challenges and reforming the World Trade Organization (WTO), ending in a consensus that a stable global economy was a "shared responsibility," and the EU's vehemence to step up cooperation with China in financial regulatory matters including green finance. Addressing challenges to bilateral relations and achieving some "specific deliverables" across the areas of financial services tops Brussels' agenda to reinforce ties with Beijing and make the ongoing summit a success.

Beijing has protested against the EU designation of China simultaneously as a partner, competitor and "systemic rival" and Brussels' "discriminatory" treatment of its companies. On August 9, the EU raised anti-dumping duties – which a European Parliament-commissioned study in 2020 warned had prompted "strong trade-dampening effects," on fiber cables from China to the maximum (from 39.4 percent to 88 percent). Brussels took similar measures on imports of tungsten carbide from China, renewing anti-dumping duties for another five years.

With a European Commission launching an investigation into the Chinese electric vehicles (EV) subsidies seen as a "naked protectionism" by China, such measures could provoke retaliation and undermine the EU's economic and trade interests. Since the probe is driven by fears of Chinese lead in producing cheap and more consumer-friendly EVs that Beijing has achieved by taking an initiative a generation earlier, the move questions the EU commitment to free trade and openness, shore up the relationship, jointly tackle climate change and tends to gain leverage in the HED and digital dialogue.

The European Commission argues the dumped and subsidized imports from China are the "greatest challenge" to its manufacturing industry even as by its own stats, the U.S. is the "most frequent user" of trade defense instruments against the EU exports, with 38 measures in force. This urges the EU to part ways with America's approach that its members have warned could upend the level-playing field, labeling it as "enormously protectionist." 

Since December 2001, when China joined the WTO, the EU economy, producers and consumers have greatly benefited from trade with China. Studies revealed China's rapid "climb up" the technology ladder had provided cheaper goods to European consumers with increased trade between the two "important trade and economic partners," allowing the European exporters to gain easier access to a large Chinese market. China is also the EU's largest source in terms of rare earths and other raw materials, which are critical for the bloc's green and digital transition. 

In a joint statement of the 20th China-EU Summit in 2018, leaders agreed the comprehensive strategic partnership had greatly boosted the bilateral relationship, bringing positive "outcomes" in politics, economy, trade, culture and people-to-people exchanges. They further vowed to strengthen the "global dimension" of their partnership to promote peace, security and sustainable development and held a shared view that dialogue and cooperation on foreign and security policy was an "important pillar." 

As the two important global players commemorate the 20th anniversary of their Comprehensive Strategic Partnership, this consensus document – which emphasized improving "trade and investment liberalization and facilitation" and firmly supported a "transparent, non-discriminatory, open and inclusive multilateral trading system" – remains the guiding principle to overcome differences and bolster the relationship between the world's largest developing and emerging country and biggest trading bloc.

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