EU-China Relations at 50: Time to Rebuild Strategic Trust

by Ryan Maxwell
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On 6 May 1975, China and the European Economic Community (EEC) officially began diplomatic relations. This milestone came after all EEC member states recognized the People’s Republic of China as the sole legal government. The goal was to develop cooperation in trade and other areas, even while maintaining different political views. Now, 50 years later, relations between the EU and China face new challenges in a shifting global landscape.

The original trade agreement was finalized in 1978, after internal changes in China. Deng Xiaoping’s reforms opened the door to economic growth, which led to stronger ties with Europe. In 1985, both sides signed the Agreement on Trade and Economic Cooperation. This deal still serves as the legal foundation for their relationship.

Over the decades, cooperation grew in areas like trade, environment, and global development. Despite political differences on issues such as Tibet, Taiwan, and Hong Kong, both sides made efforts to keep dialogue open. The EU saw China as a long-term partner, not a threat.

Symbolic moments strengthened ties. The first EU-China summit took place in London in 1997, just after Hong Kong returned to Chinese control. A second summit happened in Beijing in 1999, after the Macau handover. In 2003, both the EU and China released key policy documents outlining their shared goals, marking what many saw as a “honeymoon period” in relations.

Disagreements still surfaced, like in 2005 during the “bra wars,” when Chinese textiles were blocked at EU ports. This reflected the tensions of globalization. Europe excelled in high-end products, while China focused on mass manufacturing. These trade imbalances highlighted both success and strain in the partnership.

Under President Xi Jinping, China showed renewed interest in working with the EU. His 2014 visit to Brussels was the first by a Chinese president and reaffirmed support for the partnership. Meanwhile, China launched major initiatives like the Belt and Road and 16+1 cooperation with Eastern European countries. Some EU members viewed these moves with suspicion, fearing political influence.

In 2019, the EU shifted its China policy. The new approach described China as a partner, competitor, and systemic rival. This change came amid concerns over Chinese investments in strategic sectors and the fallout from the COVID-19 pandemic. The virus exposed Europe’s dependence on Chinese supply chains, while China’s ties with Russia during the Ukraine war added to tensions.

The United States’ increasing influence, especially under Biden’s Indo-Pacific strategy, has also affected EU-China dynamics. Some EU states have aligned more closely with US foreign policy, raising concerns in Beijing. Many analysts believe this trend does not serve Europe’s long-term interests in Asia.

Today, there are signs of a possible thaw. European Parliament President Roberta Metsola is reportedly in talks with China about lifting sanctions. If successful, it could pave the way for ratifying the Comprehensive Agreement on Investment, a deal that has been stalled for years.

Looking ahead, the EU and China have reasons to work together again. They can help fight climate change, support the global trade system, and promote peace and development. As Harish Kapur once wrote, China and Europe are “distant neighbours.” But in a world full of crises, their cooperation may be more important than ever.

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