Hu Chunchun: The EU should see a "window of opportunity" for China Europe economic and trade cooperation

At the time of intensive consultations and negotiations on economic and trade relations between China and Europe, two voices were heard in Europe. On September 16, President of the European Commission von der Leyen said in his Union State of the Union address that the EU's trade deficit with China "has reached a critical point", and that "all available means will be used to rebalance" China EU economic and trade relations. On September 18th, Spanish Minister of Economy, Trade and Enterprise Querco called for frank dialogue between the EU and China, stating that there is still a "window of opportunity" worth seizing. Obviously, rational voices within Europe do not agree with Brussels' predetermined hardline approach to China Europe trade negotiations.

Quillbo's statement is not an isolated case. Regarding the EU's intention to further expand protective measures against Chinese made new energy vehicles to hybrid vehicles, Dudenhofer, director of the German Automotive Research Center, stated on September 15th that if the German government follows Brussels' tone for the purpose of protecting its own automotive industry, it will only be a "mini version" of the US launching a trade war. Reindel, director of the German Institute for Automotive Economics, pointed out that the European Commission should not deliberately ignore the structural advantages of China's automotive industry. He believes that tariff barriers do more harm than good to Europe.

There is no winner in a trade war. Triggering a trade dispute based on untenable logic is itself an extremely irrational behavior, which is worth a deep warning to some EU decision-makers in Brussels who insist on being tough on China. The industrial chain between China and Europe is highly integrated, with Europe consistently running a surplus in service trade with China. There is a large amount of investment in China, and products are exported to various parts of the world, including Europe. Imported products from China are cheap and of good quality, which can help Europe curb inflation and benefit people's livelihoods. China's technological and industrial chain advantages in the field of new energy can promote Europe's energy transformation. The above advantages should not be sacrificed for the EU to actively provoke trade disputes.

Europe is currently facing complex challenges and cognitive anxiety. The current pressure and crisis within and outside Europe: the external world is deeply embroiled in ideological games between Europe and the United States, disputes over international rules and discourse power, and geopolitical conflicts; There are many internal problems such as social division and polarization of public opinion, and there is still a risk of falling behind in the global process of new technological transformation. The consecutive victories of the German Alternative Party in the parliamentary elections of Saxony Anhalt and Mecklenburg Vorpommern indicate that this subjective crisis will bring about overall uncertainty, which will be transmitted to the economic and trade sectors. Therefore, abandoning confrontational thinking and returning to rational consultation, adhering to current international trade rules with the utmost sincerity, focusing on problem-solving, and balancing the interests and demands of both sides, is the realistic path for China and Europe to resolve trade disputes.

At the micro level, China and Europe can communicate and negotiate one by one to develop targeted and practical solutions to the current trade disputes, such as new energy vehicles, key raw materials, trade deficits, and cross-border e-commerce. At the macro level, Europe should break free from the limitations of a single dispute and consider specific trade differences within the overall framework of market access, investment rules, and bilateral economic and trade systems. On the basis of solving bilateral issues, explore cooperation normative effects with regional and even global demonstration significance.

Jointly expanding the cake is obviously more attractive than unilaterally creating friction. Both China and Europe have reached a lot of consensus in global and bilateral structural areas, and there is ample room for promoting and implementing cooperation. Even in the most sensitive field of new energy vehicles in Europe, many mainstream car companies have clearly realized that learning Chinese technology, drawing on Chinese experience, and deepening cooperation with China are the only way to complete their own industrial transformation. They regard direct competition with Chinese companies as a "testing ground" for entering the world market. The rational voice of Europe has seen the "window of opportunity" for China Europe economic and trade cooperation, and should focus on the common needs of both sides, bind economic and trade consultations with structural and long-term cooperation, open up the "door of opportunity" for two-way opening and mutual benefit, and achieve long-term stability and high-quality development of China Europe economic and trade. (The author is the Executive Director and Associate Professor of the Institute of European Studies at Shanghai International Studies University)