Mutual trust seen as key for development

China, EU must work together to bring stability, certainty to world, forum told

Senior diplomats and business leaders at a recent forum expressed concerns about the rising challenges in economic cooperation between China and the European Union, calling for mutual trust for sustained growth in bilateral trade.

The ninth Europe Forum 2023, which concluded on Thursday, came as this year marks the 20th anniversary of the establishment of the China-EU comprehensive strategic partnership.

Over the past two decades, China-EU economic and trade exchanges have been expanding in scale, with trade volume rising nearly ninefold. EU investment in China has almost tripled, while two-way investment stock now exceeds $230 billion, according to Wang Hong, president of the China Europe International Business School, or CEIBS — a business school jointly established by the Chinese government and the EU — the forum’s main organizer.

SDG 8: Decent Work and Economic Growth

• China and the EU have witnessed significant growth in their economic cooperation over the past 20 years.
• Trade volume has increased almost ninefold, and EU investment in China has almost tripled.
• This growth has contributed to SDG 8 by promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

“With a growth forecast of 5.4 percent for 2023, the Chinese economy is performing better than expected. China is still one of the fastest-growing economies in the world, and it is clear that the EU and China need each other more than ever, and our economies are strongly interdependent,” said Gwenn Sonck, executive director of the EU-China Business Association, co-organizer of the forum.

However, in spite of the consensus that China and the EU should seek closer economic ties, challenges are arising on both sides, top diplomats warned at the forum.

Fu Cong, head of the Chinese Mission to the EU, pointed out that the challenges started with a perception. “Misperception often leads to erosion of trust, sometimes friction or even confrontations. We have already seen a worrying trend of emphasizing by some groups on the rivalry part while downplaying the partner part,” he said in Brussels on Nov 14.

“In recent years, a world-leading Chinese tech company has been gradually driven out of the EU market under the pretext of national security, although not a single case has been found that indicates the product of the company compromises any country’s national security,” Fu said.

SDG 16: Peace, Justice and Strong Institutions

• Misperception and erosion of trust between China and the EU pose challenges to their economic cooperation.
• These challenges highlight the importance of SDG 16, which promotes peaceful and inclusive societies for sustainable development, provides access to justice for all, and builds effective, accountable, and inclusive institutions at all levels.

Concerns voiced

Fu also voiced his concerns about the EU’s anti-subsidy investigation of Chinese electric vehicles, as well as the possible anti-subsidy probes into Chinese wind turbines, photovoltaic components, and steel and aluminum products.

The European Commission formally launched an anti-subsidy investigation into the imports of battery electric vehicles from China on Oct 4, which China’s Ministry of Commerce expressed strong dissatisfaction, saying the move lacks sufficient evidence and is inconsistent with relevant World Trade Organization rules.

“We are deeply concerned about the EU’s growing assertiveness and the unilateral actions as they cause disruptions to our bilateral trade and investment,” said Fu, who gave his advice on lifting the China-EU relationship with three keywords — “communication, action and innovation”.

SDG 17: Partnerships for the Goals

• The concerns raised by Fu highlight the importance of SDG 17, which emphasizes the need for global partnerships to achieve sustainable development.
• China and the EU must enhance communication, take action, and foster innovation to overcome challenges and strengthen their economic relationship.

Fu pointed out that the world is entering a period of turbulence and transformation, and global economic recovery is weak. China and the EU must be prepared and work together to bring more stability and certainty to the world.

Further cooperation

China and the EU, as two major economies in the world, are expected to further enhance cooperation and contribute to the world’s stability and development, attendees agreed at the forum.

“The EU aspires to have a relationship of mutual trust with China, one which delivers benefits for both sides and can be as stable as to envision how economic cooperation will look like 20 years down the road,” said Jorge Toledo, ambassador of the EU to China.

China has also been making continuous efforts to facilitate trade and improve its business environment for foreign businesses. In August, the State Council rolled out 24 policy measures aimed at improving the utilization of foreign direct investment, extending national treatment to foreign-invested enterprises, and better protecting FDI from six different aspects.

“According to our latest survey of EU businesses in China, 60 percent of EU companies still find China an attractive market for investment. We welcome the recent 24 policies issued by the Chinese government to improve the business and investment environment for foreign enterprises in China, which will boost the confidence of foreign enterprises investing in China,” said Gwenn Sonck.

“China and the EU have much to offer in the next 20 years, especially in the areas of economy and social development, climate change, carbon reduction, and biodiversity, which require constant dialogue and interaction among high-level leaders,” said Pascal Lamy, former director-general of the WTO.

Sino-French relations were also put under the spotlight at the forum. In April, French President Emmanuel Macron paid a state visit to China, and Sino-French relations have been “reinvigorated and demonstrated positive momentum”, said French Ambassador to China Bertrand Lortholary on Thursday.

“During the past few months, we’ve seen an increase in high-level engagement between our two countries, demonstrating that both sides intend to build on our renewed relationship with a focus on creating a level playing field for enterprises, strengthening cooperation in the services industry, and facilitating economic and trade exchanges on the basis of mutual benefit,” said Soumia Malinbaum, vice-president of CCI Paris Ile-de-France, the forum’s co-organizer in Paris.

SDGs, Targets, and Indicators

1. SDG 8: Decent Work and Economic Growth

   • Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7 percent gross domestic product growth per annum in the least developed countries.
   • Indicator: The article mentions that the Chinese economy is performing better than expected with a growth forecast of 5.4 percent for 2023, indicating sustained economic growth.

2. SDG 17: Partnerships for the Goals

   • Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources.
   • Indicator: The article highlights the importance of China-EU cooperation and the need for mutual trust and economic ties between the two entities, indicating efforts towards enhancing global partnerships.

Table: SDGs, Targets, and Indicators

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Source: global.chinadaily.com.cn

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