China-EU dialogue is setting the stage for a new phase of stable and mutually beneficial economic cooperation if its outcomes are put into effect
In an international landscape defined by geopolitical uncertainty, trade tensions and the transformation of global supply chains, the relationship between China and the European Union has reached a decisive moment. Contrary to those who view escalating economic confrontation as inevitable, the high-level talks held in Beijing on Oct 8 and 9 offered a far more constructive perspective. They showed that dialogue, mutual respect and pragmatic cooperation remain the most effective tools for ensuring shared prosperity.
The second trade and investment consultation meeting concluded with a 16-point consensus covering key issues such as trade, investment, export controls, intellectual property and reform of the World Trade Organization. Both sides have reaffirmed their commitment to maintaining stable and balanced economic relations, and managing their differences through negotiation.
This outcome clearly warrants a positive assessment. While it does not mean that all disagreements have vanished, it demonstrates that Beijing and Brussels can find common ground even on particularly sensitive issues. Above all, it confirms that China remains committed to a robust economic relationship with the EU — one built on openness, predictability and mutual benefit.
One of the most significant developments in these discussions has been the willingness to explore tariff reductions on certain products, as well as to continue technical consultations regarding EU regulations on foreign subsidies. Progress was also made on trade issues concerning electric and hybrid vehicles.
These initiatives are of strategic importance. Regulatory uncertainty, trade restrictions and protectionist measures can increase business costs, harm consumers and weaken the competitiveness of both economies. Conversely, establishing transparent consultation mechanisms fosters long-term investment and provides greater certainty for businesses.
Data confirm the strength of this interdependence. According to the General Administration of Customs, during the first eight months of 2026, trade between China and the EU grew by 8.1 percent year-on-year, reaching 4.2 trillion yuan ($628.6 billion). This growth demonstrates that, despite political and commercial differences, there is a genuine demand for cooperation.
China brings to this relationship a massive market, a well-developed industrial infrastructure and a remarkable capacity for technological innovation. The EU, for its part, offers advanced expertise, competitive companies and a solid industrial track record. The complementarity between the two economies represents an advantage that would be counterproductive to squander.
The experience of EU companies such as Schneider Electric and Freudenberg — which continue to develop industrial and technological operations in China — illustrates that business collaboration can move forward even when institutional disagreements exist.
The European Council meeting held on Oct 15 and 16 in Brussels has once again placed economic competitiveness at the heart of the EU political debate. Against a backdrop of geopolitical uncertainty, high energy costs and profound industrial transformation, the challenges addressed by EU leaders highlight the need for an economic strategy that combines strategic autonomy, international openness and cooperation with key partners such as China. From this perspective, the meeting represents an opportunity to reflect on the role that China can play in strengthening the EU economy. The competitiveness of the EU should not be built upon economic isolation or a logic of commercial confrontation, but rather through an intelligent, balanced approach based on shared interests.
China should not be viewed solely as a competitor, but also as a strategic partner for addressing some of the EU's key economic challenges. Its capacity for innovation, industrial development and progress in sectors such as electric mobility, renewable energy, batteries and digitalization offer concrete opportunities to accelerate the modernization of the EU's productive capacity.
In this context, the recent high-level talks between China and the EU take on particular significance. The progress achieved demonstrates that, even when trade and regulatory differences persist, dialogue makes it possible to identify pragmatic solutions and establish more favorable conditions for businesses on both sides.
The EU can protect its competitiveness and strengthen its economic resilience; however, these objectives should not be conflated with an indiscriminate reduction of trade ties with China. Cooperation based on transparent rules, reciprocity and mutual respect can help diversify opportunities, attract investment and bolster EU supply chains.
The Brussels meeting should, therefore, serve as a starting point for fostering a more constructive economic relationship with China. True EU strategic autonomy lies in the capacity to choose one's partners and defend one's interests, without forfeiting the benefits of international cooperation. Within this balance, China can and should play a prominent role.
Spain is particularly well-positioned to play a more active role in bringing China and the EU closer together. Its industrial capacity, geographical location and international economic relations make it a significant partner for promoting joint projects.
A particularly notable example is the recent approval by Chinese regulators of Geely's acquisition of a stake in Ford Spain.
As reported by Reuters on Oct 12, the transaction received unconditional approval. The agreement, previously announced by both companies, includes the manufacturing of two electric SUVs from Geely at Ford's plant in Valencia, as well as the joint development of a vehicle. Ford will retain a 66 percent stake, while Geely will hold 34 percent.
This transaction represents much more than a mere corporate investment. This serves as an example of how collaboration involving capital, technology and industrial capabilities from different countries can help strengthen EU production.
For Spain, projects of this nature offer opportunities to attract investment, foster innovation and consolidate its position within the transformation of the automotive sector. Their potential benefits for employment and local suppliers will, naturally, depend on the execution of the agreement.
Cooperation with China could also extend to areas such as batteries, clean energy, logistics, applied research and the modernization of infrastructure.
Spain should pursue a more active economic diplomacy, promoting business meetings, facilitating joint research projects and advocating a pragmatic approach toward China within EU institutions.
Adopting this role does not require abandoning EU interests or ignoring concerns regarding competition, economic security or market access. On the contrary, Spain can help ensure that these issues are addressed through constructive negotiations, avoiding overly confrontational stances.
Relations between China and the EU are not without their challenges. Disagreements persist regarding market access and industrial policies. Yet, it is precisely for this reason that keeping the channels of communication open is essential.
The consensus reached in Beijing demonstrates that progress is possible when there is political will. The next task is to translate commitments into verifiable results, expand business opportunities and build a lasting climate of trust.
Brussels should acknowledge that China can play a positive role in the recovery of the EU's industrial competitiveness. Furthermore, Spain should leverage its potential to become a key driver of a more balanced, dynamic and forward-looking bilateral relationship.
In an increasingly fragmented world, opting for economic understanding is not a sign of weakness, but rather a demonstration of strategic vision. The future of the relationship between China and the EU should be built upon this conviction because cooperating is far more beneficial than allowing differences to define the relationship.
The author is an economist, an adviser at the Cátedra China Foundation, Spain, and the author of the book Why China Is Winning.
The author contributed this article to China Watch, a think tank powered by China Daily. The views do not necessarily reflect those of China Daily.
Contact the editor at editor@chinawatch.cn.
