China-EU ties: Harnessing complementarity for shared future

Editor's note: Song Xin, a special commentator on current affairs for CGTN, is the CEO of Sinnvoll Consulting and a former policy advisor at the European Parliament. The article reflects the author's opinions and not necessarily the views of CGTN.

In an era where geopolitical tensions often dominate headlines, the relationship between China and the EU serves as a testament to the benefits of economic interdependence and cooperation. As two of the world's most important economies, China and the EU have cultivated a relationship that significantly influences global trade and economic stability. This relationship is underpinned by a robust trade partnership, where both sides are major trading partners, mutually benefiting from the exchange of goods and services.

Despite global disruptions, China has remained the EU's largest trading partner, with trade volumes reaching over $783 billion in 2023. This represents an average of nearly $1.5 million trade exchanges per minute. China-EU economic interdependence serves as a clear indicator that the two sides have been, and could continue to achieve more through cooperation and healthy competition than through antagonistic and rivalrous confrontation.

The recent visits by the leaders of both sides, with Chinese President Xi Jinping scheduled to visit three European countries in early May, further demonstrate the cooperative aspect of the bilateral relationship: Complementarity is still the key.

Global supply chains not only highlight the complementary nature of the China-EU relationship but also underscore the strategic interdependence that supports global economic stability. China's role as a manufacturing powerhouse is well complemented by the EU's expertise in areas such as aerospace, industrial software, laser technology and semiconductors. This partnership facilitates a symbiotic relationship crucial for the seamless operation of global markets.

For example, China's significant production of rare earth elements is indispensable for the EU's manufacturing of high-tech products like smartphones, electric vehicles, and advanced computing systems. These materials are crucial for the functionality and efficiency of these products, reflecting China's integral role in the global tech supply chain.

Conversely, the EU contributes high-end technology and equipment that are pivotal for China's industrial modernization and infrastructure projects. This includes advanced machinery for manufacturing, renewable energy technologies, and high-speed rail components, which help propel China's sectors towards greater innovation and efficiency.

This interconnectedness not only boosts economic efficiency but also fosters a spirit of collaboration over competition. The exchange of high-value goods and technology promotes a balanced economic relationship, where both sides benefit from each other's strengths. This synergy is particularly vital in times of global economic uncertainty, where collaborative resilience can stabilize and strengthen supply networks.

Moreover, China and the EU have been engaging in joint ventures and partnerships that enhance such cooperation. These include projects in green energy sectors, digital infrastructure, and joint research and development initiatives that are setting new standards in technological advancement and sustainable practices. For instance, collaborative projects in the development of wind and solar energy technologies are helping to advance the global agenda on renewable energy and reduce carbon emissions.

This growing collaboration extends to areas such as artificial intelligence, quantum computing, and biotechnology, where both regions are keen to lead on the global stage. By sharing knowledge, resources, and best practices, China and the EU are not only addressing their own economic and technological needs but are also playing a pivotal role in shaping global technological trends and innovations.

In addition to economic considerations, both China and the EU face shared challenges that require joint efforts, such as climate change and public health. Both have demonstrated commitment to environmental sustainability, with collaborative projects in green technology and renewable energy. The explorations of Chinese and Norwegian companies in developing new technologies that would enable locations out at sea to host renewables is a prime example of how joint efforts can lead to substantial environmental benefits.

Similarly, the collaborative response to public health issues, highlighted during the COVID-19 pandemic, demonstrates the potential for joint action in tackling global crises that no single nation can manage alone. China and the EU worked together on various fronts, including the sharing of medical resources and research data, which was crucial in the fight against the pandemic.

Cultural and educational exchanges between the two also play a crucial role in deepening mutual understanding and reinforcing a complementary relationship. These exchanges, which encompass academic collaborations and cultural programs, enrich both societies and lay the foundation for trust and respect. For instance, the China-Europe International Business School in Pudong, Shanghai has become a hub for nurturing business leaders with a deep understanding of both Chinese and European markets. Furthermore, the EU-China High-Level People-to-People Dialogue has facilitated numerous partnerships in education, culture, youth, and women's affairs, that have fostered a deeper cultural connection and mutual appreciation.

Despite some pessimistic voices, the China-EU relationship is characterized more by complementarity than rivalry. Through strategic diplomatic engagements and collaborative initiatives across various sectors, both sides have demonstrated that their partnership is beneficial and crucial for global stability and prosperity.

As they continue to navigate the complexities of the 21st century, maintaining and enhancing this complementary relationship will be the key to achieving mutual benefits and addressing shared global challenges.

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