China and the European Union held the 9th High-Level Economic and Trade Dialogue on July 19 to discuss topics such as the macro economy, industrial and supply chains, bilateral trade and investment, and financial cooperation. The dialogue was held by video link and co-chaired by Vice Premier Liu He and Valdis Dombrovskis, Executive Vice President of the European Commission. Chinese experts and analysts said it showed the two sides’ willingness to strengthen bilateral cooperation, the China Daily reports. The two agreed on joint efforts to promote practical cooperation in the field of the economy and trade, and to jointly cope with the challenges facing the global economy. Ye Yindan, a researcher with the Bank of China Research Institute, said the economies of China and the EU are highly complementary and the two sides enjoy ample space and huge potential for economic and trade cooperation. Ye added this is especially true in fields including energy security, green energy, the carbon market, green finance, climate change, trade of digital information and communication technology, trade in digital products and the digital service trade.
“Against the backdrop of soaring inflation and the increasing risk of economic recession around the globe, Europe needs to import Chinese goods to help ensure stability, and it also needs to strengthen trade and investment cooperation in fields such as industries and infrastructure to gather new growth momentum,” Ye said. “Meanwhile, Europe’s advanced technologies, talents and management experience will help China promote industrial upgrading and green transformation of the economy.” Citing risks faced by the EU from high inflation and economic recession, Ye said China-EU cooperation will boost European market confidence and improve market expectations for the future recovery in the region, which will help stabilize the economy and financial markets in Europe. It will also help China stabilize its external market and prevent a rapid decline in exports, thus helping support China’s economic recovery in the second half of the year.
According to Chinese Customs data, China-EU trade in the first half of the year reached USD420.6 billion, an increase of 8.4% year-on-year. The number of trips made by China-Europe freight trains rose to 7,514 in the first half of the year, carrying 724,000 standard containers. The cargo trains have become a “stabilizer” and “acceleration valve” for smooth China-Europe trade, Wang Wenbin, Spokesperson of the Ministry of Foreign Affairs, said. Wang added that from 2016 to 2021, the annual number of China-Europe freight trains increased from 1,702 to 15,183, with an average annual growth rate of 55%. The annual transport value increased from USD8 billion to USD74.9 billion, and the number of main products increased to more than 50,000 types today.
Chen Jia, Researcher at the International Monetary Institute of the Renmin University of China, said the growth in China-EU trade has laid a solid foundation for the two sides to further deepen bilateral cooperation. Citing China’s positive growth in the first half of 2022 despite pressures and challenges both at home and abroad, Chen said the nation’s economy enjoys strong resilience and vitality, serving as a stabilizer for both sides to deepen cooperation in trade and investment. Liang Haiming, Dean of the Hainan University Belt and Road Research Institute, said China and Europe should strengthen their cooperation in the financial sector, and it is advisable for the two sides to expand the scale of bilateral currency swaps and settlement, which will help prevent risks and boost bilateral trade.
Xiao Song, Executive Vice President of Germany’s Siemens Group and Chairman, President and CEO of Siemens China, said that despite the challenges posed by Covid-19, China is capable of maintaining high-quality growth, given its complete industrial chain, the China Daily reports.
But relations between China and the EU came under strain after a visit to Taiwan by Nicola Beer, one of the European Parliament's Vice Presidents. She told reporters upon arriving that “now is the moment to stand firm on the side of Taiwan”, calling Europe and the island part of a “family of democracies”.
