China and EU Celebrate 50 Years of Strong Economic Partnership
As China and the European Union (EU) mark half a century of diplomatic relations, their robust economic partnership stands as a testament to mutual growth and cooperation. Over the past 50 years, what began as modest trade interactions have blossomed into one of the world’s most significant bilateral relationships, shaping global trade and innovation.
A Surge in Trade and Investment
Back in 1975, trade between China and the EU was valued at just $2.4 billion. Fast forward to 2024, and that figure has skyrocketed to an impressive $785.8 billion. Despite global uncertainties and trade tensions, this growth highlights the resilience and complementary strengths of both economies. China’s vast manufacturing capabilities and digital innovation align seamlessly with Europe’s technological expertise and high-value industries.
Today, the EU is China’s second-largest trading partner, while China is the EU’s top source of imports and third-largest export market. This mutually beneficial relationship extends beyond trade, with cumulative two-way investment reaching $260 billion by 2024, particularly in green and high-tech sectors.
Pioneering Green Technology and Innovation
European companies have been instrumental in supporting China’s green transition. Notably, German chemical giant BASF is investing $10 billion in a chemical complex in Guangdong Province, while Volkswagen has formed electric vehicle (EV) partnerships with Chinese automakers like XPeng.
On the other side, Chinese firms are playing a key role in Europe’s decarbonization efforts. Battery manufacturer CATL is building a 7.3 billion euro ($8.25 billion) plant in Hungary to supply European carmakers, and Zijin Mining supported the establishment of Serbia’s first EV factory in 2023. These collaborations underscore the strategic shift towards sustainable development and green technology.
“Strengthening open cooperation between China and the EU is an inevitable requirement of their interconnectedness and economic symbiotic relationship,” said Cai Tongjuan, a research fellow at the Chongyang Institute for Financial Studies, Renmin University of China.
Enhancing Connectivity with the China-Europe Railway Express
The China-Europe Railway Express has become a vital link, boosting trade efficiency and connectivity. Since its launch in 2011, the railway network has surpassed 100,000 cumulative trips. In 2024 alone, it made 17,000 journeys, an 11% increase from the previous year. Connecting 227 European cities in 25 countries with over 100 Asian hubs, the rail service reduces transportation times by 30% compared to sea routes and lowers carbon emissions.
This railway has transformed inland Chinese cities like Chongqing and Chengdu into global logistics hubs and stimulated economic activity in Eastern European nations such as Hungary and Poland. Carrying a diverse range of products, from high-tech electronics to luxury goods, it reflects the depth of the China-EU economic relationship.
Looking to the Future
The potential for deeper cooperation between China and the EU is immense. “Fifty years on, China and the EU jointly make up over one-third of the world economy, and the cooperation between the two has greater strategic value and global influence,” said Chinese Foreign Minister Wang Yi at a press conference in March.
A healthy and stable relationship between China and the EU not only benefits both sides but also contributes positively to the global community. As they continue to build on their strong foundation, the future looks bright for this influential partnership.
