
What happened?
EU-China relationship continues
Europe and China need an open debate about their future relationship, heard the audience at Friends of Europe’s Europe-China Forum, where experts also called for trade and business concerns to be placed high on the agenda of the upcoming EU-China summit on 7-8 December 2023.
“The EU and China are first and foremost partners,” stated Fu Cong, Ambassador and Head of the Mission of the People’s Republic of China to the European Union. “It’s only natural that we see things differently, but this does not make us rivals. We must not allow our differences to define our relationship.”
“The basic reality is we have different political and economic systems. We need to find a way to manage our differences and handle friction,” said Maria Martin-Prat, European Commission Deputy Director-General for Trade (DG TRADE). “At the [7-8 December] EU-China summit, we will highlight the need for concrete and tangible results.”
“We’re partners from different backgrounds,” explained Ma Keqing, Executive Vice Chair of the China National Committee for Pacific Economic Cooperation, speaking on a panel that considered what’s next after 20 years of the EU-China Comprehensive Strategic Partnership. In a healthy relationship, she added, there should be “no taboos. We have to be open about what matters to us.”
“This is a relationship that defined globalisation,” as event moderator Dharmendra Kanani, Chief Operating Officer and Chief Spokesperson of Friends of Europe, put it. “The issue now is: what have we learned from the relationship that is beneficial to both partners?”
Liu Ying, Director of Research and Cooperation at the Renmin University of China’s Institute for Financial Studies, said Chinese businesses today are unhappy with the EU’s de-risking policy. Some 72% said their business had already been negatively affected by it, while 60% were very concerned more generally by European foreign investment screening mechanisms.
Yao Ling, Professor and Director of the Institute of European Studies at the Chinese Academy of International Trade and Economic Cooperation (CAITEC), also said that the EU de-risking policy was not helpful to China because it suggests a rift in the “most important global relationship […] In reality, China is not so separate from Europe.”
“De-risking has never been just about China,” added Thomas Richter, Vice President and Head of Global Government & Public Affairs at Solvay SA. He asked for more consideration of the private sector perspective in EU-China talks, particularly in the context of de-risking but also to make it possible for businesses to meet goals outlined by politicians.
Tomáš Petříček, Senior Non-Residential Fellow at the Centre of Global Political Economy at the Institute of International Relations Prague (IIR) and 2020-2021 European Young Leader (EYL40), agreed that, on the EU side, there was a need for “a more honest conversation about our future with China. What do we want, to be mutually beneficial?”
As Dominic Porter, Head of Division for China, Hong Kong, Macao, Taiwan and Mongolia at the European External Action Service (EEAS), put it: “The EU is committed to managing our relationship with China responsibly and constructively by engagement, by cooperation, also by confronting and not avoiding concerns and differences, because that’s the way we think the relationship can last; the only way that we can work with the perspective of a viable and a productive future.”
“There is no fundamental conflict of interest between China and Europe,” added Gao Zhikai, Vice President of the Centre for China and Globalization (CCG). “Dialogue truly counts. In recent years Europe’s perception of China has unfortunately changed considerably. Fortunately, we already have 70 years of dialogue mechanisms” to develop.
This open dialogue between Europe and China must cover important issues such as climate change, said Lin Goethals, Director at the European Institute for Asian Studies (EIAS). “In the very near future, we should together make COP28 a big success.” Reflecting on the future of the EU-China partnership, she mentioned: “The honeymoon may be over, but the relationship is not.”
Ina Schmitt, Team Leader Industry and Trade Policy at Gesellschaft für Internationale Zusammenarbeit (GIZ) in East Asia, said that, by working together, Europe and China could use the digital transformation to “play a vital role in creating circular, sustainable supply chains.”
Linlin Liang, Director of Communication and Research of the China Chamber of Commerce to the EU (CCCEU), agreed on the need for both Europe and China together to tackle climate change, digitalisation and the circular economy.
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Schedule
2023 marks the 20th anniversary of the EU-China Comprehensive Strategic Partnership (CSP) and 20 years of complex relations between the two. Since the first establishment of formal diplomatic relations in 1975, the two blocs have over time moved both closer to and further away from each other, resulting in the current European institutions’ view on China as a partner, competitor and systemic rival. The EU and China now frequently find themselves embroiled in geopolitical competition, trade disputes and ideological discord. As a result, officials from Beijing to Brussels are often uncertain about what the next two decades of their relationship will hold.
The end of the pandemic has cleared the way for readjustments in the EU-China relationship. Recent visits from EU leaders to China have, in that light, demonstrated a mutual resolve to improve multilateral relations. These field trips have simultaneously illustrated stark disagreements between the European institutions and EU member states on what the depth and nature of their relationship with China will be.
In delineating this path, leaders of the EU and its member states will have to balance concerns over human rights, trade practices and geopolitical competition with pressing global needs. Despite apparent differences, it has been clear that cooperation between the EU and China is unavoidable in most—and even critical—areas such as the energy transition, AI governance and Russia’s war in Ukraine. With trade restrictions, sanctions and diplomatic disputes becoming the norm throughout relations between the EU and China over the past 20 years, it is unlikely that differences will be resolved anytime soon. Nevertheless, working with one another towards common goals whilst developing relations of mutual trust and sincerity will define the relationship’s ability to deliver for the people of the EU and China, as well as the rest of the world.
- How should the EU and China approach each other in the current geopolitical environment?
- How can European leaders remain committed to their Treaty ambitions of respect and promotion of human rights in defining their relationship with China?
- In which areas of global importance can the EU and China effectively cooperate with one another?
- How can the EU drive a united front on the continent regarding the future of relations with China?
Speakers
Gao Zhikai
Vice President of the Centre for China and Globalization (CCG)
Lin Goethals
Director at the European Institute for Asian Studies (EIAS)
Ma Keqing
Executive Vice Chair of the China National Committee for Pacific Economic Cooperation
Tomáš Petříček
Former Czech minister of Foreign Affairs and 2020-2021 European Young Leader (EYL40)
Dominic Porter
Head of Division for China, Hong Kong, Macao, Taiwan and Mongolia at the European External Action Service (EEAS)
The EU and Chinese economies have grown to be deeply intertwined, with high levels of trade, mutual investment and technological cooperation. However, due to disagreements on issues concerning global governance and human rights, the EU’s approach to China tends to move between promoting the importance of economic ties and raising concerns about the risks of overdependence to its strategic autonomy.
By announcing its ‘de-risking’ strategy, the EU states its aim to reduce its heavy dependence on China for critical materials and commodities, as well as diversify its suppliers. China currently provides 98% to 100% of the EU’s supply of heavy rare earth elements, which are essential for the green and digital transition, from the production of telephones, electric vehicles and semiconductors, to 5G base stations and solar panels.
The strategy might constrain important EU-China cooperation on climate change and vaccines, and consequently negatively impact Europe’s global risk preparedness, while the decreasing supply of Chinese critical materials complicates meeting energy demands and moving away from fossil fuels. To what extent does the ‘de-risking’ strategy reduce uncertainties, and to what extent are they at risk of simply being traded for others?
- China worries that de-risking might be de-coupling in disguise, despite the EU’s emphasis that the two fundamentally differ from each other. How can de-risking be more clearly defined in a way that safeguards the EU’s strategic autonomy but minimises damage to the EU-China partnership?
- To what extent can the EU ‘de-risk’ its economy from China and diversify its suppliers without jeopardising its efforts towards a green and digital transition? To what extent can the EU de-risk without constraining its ability to meet energy demands?
- What will be the impact of ‘de-risking’ to EU-China cooperation in other fields, such as vaccine cooperation and reaching carbon neutrality?
WITH
Liu Ying
Director of Research and Cooperation at the Renmin University of China's Institute for Financial Studies
Yao Ling
Professor and Director of the Institute of European Studies at the Chinese Academy of International Trade and Economic Cooperation (CAITEC)
Linlin Liang
Director of Communication and Research of the China Chamber of Commerce to the EU (CCCEU)
Thomas Richter
Vice President and Head of Global Government & Public Affairs at Solvay SA
Ina Schmitt
Team Leader Industry and Trade Policy at Gesellschaft für Internationale Zusammenarbeit (GIZ) in East Asia
Speakers

Ambassador and Head of the Mission of the People’s Republic of China to the European Union
Throughout his diplomatic career, Fu Cong has occupied various roles, most notably as the deputy permanent representative and second secretary at the Permanent Mission of China to the United Nations Office in Geneva and Vienna, as well as the advisor to the director-general of the World Health Organization. While working at the Ministry of Foreign Affairs in China, Fu served as the director-general of the Department of Arms Control and deputy director of the Department of International Organizations and Conferences.

Vice President of the Centre for China and Globalization (CCG)
Gao Zhikai has extensive experience in government, diplomacy and securities regulation, most notably working as Deng Xiaoping’s English interpreter in the 1980s and serving as the China policy advisor at the Hong Kong Securities and Futures Commission. Gao’s prior investment banking and corporate management experience includes senior positions with Morgan Stanley Asia, the China International Capital Corporation (CICC) and Daiwa Securities, as well as the China National Offshore Oil Corporation (CNOOC).

Director at the European Institute for Asian Studies (EIAS)
Lin Goethals is Director at EIAS, a Brussels-based think tank and policy research centre focusing on EU-Asia relations. In this role, she follows the latest developments in EU-Asia affairs and EU-China relations, managing EIAS projects, publications, events and other activities. She has a keen interest in EU policies towards Asia, EU-Asia political and diplomatic relations, public diplomacy, people-to-people affairs and education. Goethals is also an Associated Researcher and Lecturer on EU-China political and economic relations at the ESSCA School of Management EU-Asia Institute in France. In addition, she sits on the Mercator Advisory Council of the Flemish Ministry of Mobility and Public Works, as well as the Advisory Board of the Student Think Tank for Europe-Asia Relations (STEAR). Previously based in Beijing, she conducted research on EU-China relations.

Chief Operating Officer and Chief Spokesperson of Friends of Europe
Prior to joining Friends of Europe, Dharmendra Kanani was director of policy at the European Foundation Centre (EFC). He was the England director at the Big Lottery Fund, the largest independent funder in the UK and fourth largest in the world. Dharmendra has held senior positions in the public and voluntary sectors and advisor to numerous ministerial policy initiatives across the UK.

Executive Vice Chair of the China National Committee for Pacific Economic Cooperation
As a career diplomat with nearly 40 years of service in the Ministry of Foreign Affairs of the People’s Republic of China, Ma Keqing is the former Chinese ambassador to Finland, the Philippines and the Czech Republic. Prior to her current position, she served as a political counsellor of the Chinese Embassy in Finland, as well as the counsellor and deputy director of the then Department of Western European and as the deputy director of the Department of European Affairs of the Ministry of Foreign Affairs.

Director of Communication and Research of the China Chamber of Commerce to the EU (CCCEU)
In her current position, Liang Linlin is responsible for communication, media relations and research on China-EU trade and business relations at the CCCEU. She has also coordinated and worked as an editor for the chamber’s annual flagship reports. Prior to joining the CCCEU, Liang covered China’s foreign affairs in Beijing and EU business and trade in Brussels for the Xinhua News Agency. Previously, she also worked as an advisor, providing consultancy services to various organisations, including the international business association ChinaEU.

Professor and Director of the Institute of European Studies at the Chinese Academy of International Trade and Economic Cooperation (CAITEC)
As a Director and Senior Research Fellow at CAITEC, Yao Ling’s research concentrates on the economic and trade relationship between China and the European Union, including EU member states. Her recent work focuses on the digital and green economy, as well as China’s opening-up policy and reform.

Vice President of the China Public Diplomacy Association
As a career diplomat with nearly 40 years of experience serving the Ministry of Foreign Affairs of the People’s Republic of China, Luo Linquan has served as the Chinese ambassador to Greece and Ireland, as well as the Consul General (Ambassadorial Rank) in San Francisco. Prior to his current position, he was the director general of the Protocol Department at the Chinese Ministry of Foreign Affairs.

European Commission Deputy Director-General for Trade (DG TRADE)
In her current position at DG TRADE, Maria Martin-Prat is in charge of Asia, the Pacific, Africa and the Caribbean. She also oversees sustainable development and Green Deal trade related issues, services and digital trade, as well as investment and intellectual property. Before assuming this role, Martin-Prat served as a director at DG Trade and consecutively as the head of the unit responsible for free movement of services, freedom of establishment and copyright in the European Commission.

Vice President and Head of Global Government & Public Affairs at Solvay SA
Thomas Richter recently joined Solvay SA as its new Vice President and Head of Global Government & Public Affairs. In his role, he leads the company’s global engagement with governments, policymakers, regulatory authorities, NGOs as well as community stakeholders. Part of his role is to advise the executive leadership and business leadership team on geopolitical developments around the world and assess how they might impact Solvay’s business. Prior to joining Solvay, Richter worked at Lanxess AG as the head of EU Representation, leading the company’s government affairs work in Europe. Before that, he spent more than a decade working as a public affairs consultant advising multinational companies primarily on chemical, industrial and environmental policy in Europe.

Former Czech minister of Foreign Affairs and 2020-2021 European Young Leader (EYL40)
Tomáš Petříček is a Senior Non-Residential Fellow at the Centre of Global Political Economy at the IIR in Prague. He is also the Director of the Progressive Analytical Centre, a Prague-based think tank, and a Member of the Board of Trustees of the Boris Nemtsov Foundation for Freedom. He previously served as the Czech minister of foreign affairs. His research interests lie in the area of international political economy, new technologies and development, societal resilience, global environmental politics and climate diplomacy.

Head of Division for China, Hong Kong, Macao, Taiwan and Mongolia at the European External Action Service (EEAS)
Prior to taking up his current post, in which he is in charge of the EU’s relations with China, Hong Kong, Macao, Taiwan and Mongolia, Dominic Porter led the EEAS headquarters division covering economic and global issues, including climate, energy and international financial institutions. Before that, he was the deputy head of the EU Delegation to the United Nations and other international organisations in Geneva. He also worked with former Commissioner Chris Patten as an advisor on global issues and speechwriter, before moving in to head the human rights and social affairs section of the EU Delegation in New York.

Team Leader Industry and Trade Policy at Gesellschaft für Internationale Zusammenarbeit (GIZ) in East Asia
In her current role at GIZ in East Asia, Ina Schmitt supports the implementation of projects for international cooperation in China. The project portfolio spans product safety, digitalisation and the automotive industry. The projects she supports are commissioned by the German Federal Ministry for Economic Affairs and Climate Action, with the aim of reducing technical barriers and promoting internationally harmonised approaches to trade.

Director of Research and Cooperation at the Renmin University of China's Institute for Financial Studies
As Research Fellow, Liu Ying has expertise in the Belt and Road Initiative and industrial research. Before joining Renmin University, Ying was a researcher at Peking University, where she focused on finance, industry and macroeconomics.
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