China-EU Economic, Trade Cooperation Brings Greater Stability To Global Economy

China-EU Economic, Trade Cooperation Brings Greater Stability To Global Economy

By Guo Ziyun, Yu Limin, Niu Ruifei,

This year 2025 marks the 50th anniversary of the establishment of diplomatic relations between China and the European Union (EU).

As  the world’s second and third largest economies, China and the EU collectively account for over one third of the global economy and more than a quarter of global trade.

Both sides are advocates of economic globalization and trade liberalization, and firm defenders and supporters of the World Trade Organization.

Over the past five decades,  the two sides have continued to  deepen  their  economic and trade cooperation, benefiting  the  two peoples and   the world at  large.

As the   global economy faces mounting instability and uncertainty, closer communication and cooperation between China and the EU can contribute to open and free trade and investment, ensure stable and unimpeded global industrial and supply chains, and inject greater stability and certainty into the world economy.

In the western Polish city of Slubice, the rhythmic hum of conveyor belts fills a warehouse run by MBB Logistics, where workers methodically sort and dispatch packages destined for consumers across Poland and Germany — usually within 24 hours.

This warehouse is part of a growing logistics footprint made possible by the China-Europe freight service.  Over the past several years, MBB Logistics has  expanded into eight warehouses in the region, covering 160,000 square meters and handling a wide range of goods including electronics, mechanical   parts,   household   supplies,   and   hardware.

 

Sourced   from   nearly   300   Chinese   e-commerce partners, these goods form a bridge between thousands of Chinese manufacturers and the vast European market.Julio Rios, a Spanish expert on China, observed that the China-Europe freight service addresses the needs of both China and Europe in a complementary and innovative way. He views the freight service as  a catalyst for unleashing the economic and trade cooperation potential of countries along the route.

 

As morning light pierced the mist and spread across the vast Hungarian plains, rows of sand martin nests dotted the rocky embankment near the  tracks of the  Budapest-Belgrade railway  — home to hundreds of the birds.

 

During the railway’s construction, Chinese builders went to great lengths   to   protect   the   birds’   habitat,  which  has  since   become   a   cherished  story  in  the  local community.

The Hungary-Serbia railway is a vivid example of China and the EU jointly building green Belt and Road.

In Greece, Chinese enterprises  are actively  promoting  green and  digital transformation  at the Piraeus port, striving to transform it into a sustainable, efficient, and intelligent port.

In Malta, the Delimara 3 power station, upgraded by a Chinese company, now emits significantly less pollution and carbon than EU environmental standards require, shifting from a heavy polluter to a model of green innovation. In Serbia,  the  Chinese-built  Kostolac Power  Plant  is   converting  ash   and slag  into   exportable concrete materials, reducing dust emissions while generating revenue.

These green projects and technologies are propelling Europe’s green transition and injecting new momentum into regional economic development. Fabian Zuleeg,  chief  economist at the European Policy Center,  sees vast  potential  in  China-EU trade and investment cooperation, especially in tackling climate change.

 

With shared goals and a growing   alignment   on   green   priorities,   he   noted,   both   sides  recognize  the   scale   of  business opportunities ahead. European   companies   express  growing  confidence   in   the   Chinese   market  through   tangible investments. France-based  cosmetic   giant  L’Oreal  has launched  two  new   investment   funds   in China.

 

German industrial giant Siemens opened its first industrial ecosystem hub in western China in Chengdu, Sichuan province. Danfoss, a global refrigeration industry giant  headquartered in Danmark,  inaugurated   its   first   carbon-neutral   factory   in   China,   located   in   Nanjing,   Jiangsu province.

 

According to China’s Ministry of Commerce, actual investment from  the  EU to China rose by 11.7 percent in the first quarter of this year.China-EU investment cooperation continues to expand, particularly in areas such as new energy, green technology, and smart manufacturing.

 

Greece’s  Piraeus   Port  Authority   S.A.,   operated  by a   Chinese  company,   posted  record-high revenues and profits in 2024. In the first quarter, Chinese electric vehicle battery giant CATL saw strong year-on-year growth in power battery sales in the European market,  with  its factory in Thuringia, Germany achieving  profitability.

 

Meanwhile,  Chinese automaker Chery Automobile and   Spain’s  Ebro-EV  Motors  signed   a   pact   to   develop   new  electric  vehicles  through a  joint venture, breathing new life into a cherished local brand.

 

Bernard Dewit, chairman of the Belgian-Chinese Chamber of Commerce, noted that Chinese and European   companies  continue   to  demonstrate   innovation   and   resilience.

 

In  an  increasingly complex international environment, he said, they are forging win-win partnerships and opening up broad development prospects.

 

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