China and the EU: Partners for mutual success

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

Over the past half-century, China-EU relations have withstood the tests of global changes and maintained a stable momentum of development.

This enduring partnership has strongly supported mutual progress and brought tangible benefits to nearly two billion people in China and Europe.

The prospects for pragmatic China-EU cooperation remain broad. As China advances toward high-quality development and actively boosts domestic demand, European businesses are finding ample space to expand in the Chinese market. 

A large number of EU companies have invested in China, witnessing the country’s reform and opening-up as well as the development of Chinese modernisation, while also reaping substantial returns.

In the early 1980s, German automobile manufacturers were among the first to seize market opportunities by investing and building factories in China. Today, brands such as BMW, Mercedes-Benz, and Volkswagen derive over 30% of their global sales from the Chinese market, with profits in China reaching up to 30 times those earned in their domestic markets. 

In sectors such as chemicals, optics, aerospace and aviation, European products account for more than 30% and in some cases over 50% of China’s total imports. In Europe, Chinese companies have leveraged their infrastructure strengths, utilising EU funds and complying with EU standards to deliver the 2,440-metre-long Pelješac Bridge in Croatia with high quality. 

The Hungary-Serbia Railway, China’s first high-speed rail project in Europe, increased the local train speed from 50 km/h to 200 km/h, creating a fast track for improving the quality of life for local communities.

New stage for China’s investment in Europe

China’s investment in Europe has entered a new stage. Since the early 2000s and accelerating after 2009, China’s cumulative investment in Europe has exceeded $100 billion, and annual investment flows are now roughly on par with EU investment in China. 

By the end of 2023, China had established over 2,800 directly invested businesses across all 27 EU member states, employing more than 270,000 local workers.

Since the establishment of the China-CEEC cooperation mechanism in 2012, Chinese enterprises have shown strong interest in investing in Central and Eastern European countries across a wide range of sectors.

According to incomplete statistics, total investment has exceeded $24 billion. For example, the acquisition of Volvo by a Chinese company revitalised the Swedish automaker and enabled its strong growth, with global sales rising from 374,000 units in 2010 to 763,400 in 2024.

Similarly, the Piraeus Port in Greece, revitalised through Chinese investment, has emerged from crisis and decline to regain vitality. It now ranks as the fourth-largest port in Europe following Rotterdam, Antwerp and Hamburg.

The project has created 4,300 direct local jobs and generated €1.4 billion in economic output, accounting for approximately 1% of Greece’s GDP. It stands as a vivid example of China-EU solidarity in times of difficulty and a model project under the Belt and Road Initiative.

China-EU green cooperation contributes to the economic transformation of both sides. This year marks the 10th anniversary of the Paris Agreement and the 20th anniversary of the China-EU Climate Change Partnership.

The two sides have achieved fruitful results in cooperation in areas such as environment, energy, circular economy, and water resources, effectively advancing respective green and low-carbon development while making positive contributions to global sustainable development.

In recent years, China’s electric vehicle and new energy battery industries have become key drivers of a new wave of investment in Europe, further strengthening the bonds of cooperation and injecting strong momentum into China-EU collaboration in the green and low-carbon sector.

Companies such as CATL and Gotion High-Tech have established factories in Europe, providing localised support to European automakers and promoting joint progress toward a green transition. In Southern Europe, China and Portugal have deepened cooperation in the photovoltaic and lithium battery sectors, supporting Portugal’s goal of achieving 22 GW of solar installed capacity by 2030.

In northern Europe, a China-Finland joint venture is set to launch Finland’s first lithium battery materials plant, expected to begin operations in 2027. China has built the world’s largest and most environmentally friendly car carrier, as well as the world’s first 7,500-cubic-meter liquid CO2transport ship for Norway.

Meanwhile, Sinopec Green Energy Geothermal Development, a China-Iceland joint venture, has developed multiple “smoke-free cities” in China through geothermal heating. In central and eastern Europe, multiple Chinese electric vehicle and power battery companies, both upstream and downstream, have established manufacturing facilities. 

A growing number of sustainable energy projects involving Chinese enterprises are increasingly delivering environmental benefits. Projects such as the Ivovik Wind Farm in Bosnia and Herzegovina, the Korl at Solar Park — Croatia’s largest photovoltaic power project — and a solar power station in southeastern Romania are all helping reshape local energy mixes. 

In China, Volkswagen Anhui has integrated the “zero-waste” concept across its entire production process, contributing to China’s pursuit of sustainable development and harmonious coexistence between humanity and nature.

Scientific and technological cooperation steadily advancing

China-EU scientific and technological cooperation is advancing steadily. The Chinese government remains committed to an open and innovation-driven policy, expanding international scientific and technological cooperation and prioritising the EU as a key partner. 

China–France nuclear cooperation began in 1982 and has made notable progress in fusion research in recent years. China–Italy collaboration on SME innovation, China–Germany cooperation in smart manufacturing and autonomous driving have all produced concrete results. 

The high-level dialogue established between China and the EU in the digital field aims to jointly promote digital transformation and economic growth. China is actively engaged in dialogue with the UK and France on artificial intelligence, working together to promote inclusive AI development for good and for all. 

China–EU cooperation in aerospace has also been fruitful. In 2024, the Chang’e-6 mission successfully landed on the Moon carrying the European Space Agency’s lunar surface negative ion analyser, France’s radon gas detector, and Italy’s laser retroreflector, marking the first discovery of negative ions on the Moon.

China has also approved requests from France and five other European countries to access lunar samples returned by Chinese lunar exploration missions for joint scientific research that benefits all humanity. 

Furthermore, China and multiple EU countries, through platforms such as intergovernmental science and technology cooperation committees, are jointly supporting flagship research projects in diverse fields, including agriculture, food and biotechnology, climate change, and biodiversity. These initiatives continue to deliver outcomes that help contribute to sustainable development.

Mutual success delivers benefits to people on both sides

China and the EU have achieved mutual success with practical cooperation, delivering benefits to people on both sides. With deeper high-level opening-up, China places greater emphasis on meeting the growing needs of its people for a better life.

European products such as dairy from Ireland and the Netherlands and olive oil from Spain have become part of the daily lives of Chinese consumers. 

The “From French farms to Chinese tables” initiative has become a signature of China-France cooperation, enriching Chinese palates while delivering tangible benefits to French farmers. 

The China-EU Geographical Indications (GI) Agreement is the first comprehensive and high-level bilateral agreement on GI protection that China has signed, marking a milestone in China-EU cooperation on intellectual property rights. 

Since its entry into force, premium products like Anji white tea, Jinhua ham, Zhouzhi kiwifruit, and French champagne have entered each other’s markets, helping preserve cultural and natural heritage and injecting new momentum into deeper China-EU collaboration.

As of June this year, the China-Europe Railway Express had operated over 110,000 trips, transporting goods worth more than $450 billion and connecting 229 cities across 26 European countries, significantly enhancing connectivity across the Eurasian continent.

His Excellency Ambassador Cai Run is Head of the Chinese Mission to the EU.