By Hasan Muhammad

 

 

For decades, China and the European Union cultivated a partnership that many saw as a cornerstone of global stability. Their relationship was defined by complementary economic and trade ties, with China providing a manufacturing powerhouse to Europe's market-driven innovation. But the harmony of yesteryear is showing signs of strain. As China climbs the ladder of global supply chains, competing in advanced technologies and manufacturing, economic cooperation has turned to rivalry. 

 

In 2019, the EU explicitly labeled China a systemic rival, marking a shift in tone and strategy. Recent tensions - such as the EU's probe into Chinese electric vehicles - highlight how deeply rooted this competition has become. Despite these challenges, Beijing continues to emphasize its willingness to deepen its partnership with Brussels, calling for greater political trust and strategic dialogue to mend ties. 

 

Despite the growing undertones of competition, the relationship between Beijing and Brussels doesn’t have to spiral into a destructive rivalry. Amid the growing uncertainties of our time, there remains immense value in sustaining and expanding the mutually beneficial aspects of their partnership. For all the friction that has emerged over the years-whether in trade or industrial advancements-there’s still significant potential for collaboration. This potential was highlighted during phone conversation between Chinese President Xi Jinping and European Council President António Costa on December 14. Their exchange emphasized a reassuring message: both sides remain committed to upholding their partnership, even in the face of rising global challenges.

 

China has outpaced Europe in many critical areas: long-term strategy, efficient production models, robust supply chains, cutting-edge battery innovation, and an understanding that electric vehicles (EVs) belong to the tech realm, not merely the automotive sector. The affordability of Chinese EVs only underscores Europe’s precarious position. Yet, raising tariffs on Chinese EVs is no solution - it’s a defensive reflex that skirts the deeper crisis gripping the European car industry. 

 

The hard truth is that Europe’s future in the EV market depends on a recalibrated relationship with China. Cooperation, not confrontation, is the key. Chinese expertise and capital are indispensable; without them, Europe risks lagging further behind. This dynamic isn’t confined to EVs. Green technology-once Europe’s pride - now serves as a sobering example of China’s ascendancy. For Europe, the path forward is as much about humility as strategy. Learning from China’s successes in innovation and production could bolster not only the car industry but other pivotal sectors as well.

 

The idea of collaboration might unsettle Europe’s sense of independence, but in an interconnected world, leaning into China’s strengths could provide the competitive edge Europe so desperately needs. The question is whether Europe is willing to embrace this pragmatic shift. The recent dialogue between China and the EU offers a vital opportunity to recalibrate their relationship. Building on this momentum, both sides must prepare for a productive China-EU Summit. Strategic, economic, and trade mechanisms should be utilized to address pressing global issues, from climate change to the nuanced challenges of artificial intelligence. 

 

Such cooperation demands more than high-level agreements; fostering deeper people-to-people exchanges is essential to solidify mutual understanding. This is a moment for pragmatism, where aligning on shared interests could redefine the China-EU partnership as a model of interdependence.