Today, BusinessEurope has published a position paper to contribute to an informed and constructive debate on EU-China trade and economic relations. China’s state-driven, export-oriented economic model is becoming a source of systemic risks, dangerous dependencies and market distortions, impacting Europe’s industrial capacity and economic growth. According to the OECD, Chinese companies benefit from state support at levels four to eight times higher, on average, than those enjoyed by their counterparts in OECD countries.
BusinessEurope President Maciej Witucki commented that:
“As the world’s second-largest economy, China remains a key market for European businesses, just as the EU is an important market for Chinese companies. Yet this relationship is unbalanced. The EU needs a dual-track approach to China: firm where necessary – defending European companies against unfair competition and reducing risky dependencies – and open where possible – maintaining dialogue and cooperation where interests align.
The EU must distinguish genuine security risks from competitive challenges and use the appropriate instruments to address each. Existing tools should be deployed effectively, with measures remaining targeted, proportionate and WTO-compliant. The objective must be to de-risk, with realistic options for diversification, while keeping low-risk trade open.
Delivering on this agenda will require transparency about the economic costs and trade-offs involved, as well as strong solidarity and unity among EU Member States, so that the burden does not fall disproportionately on particular countries, sectors or companies. It also means strengthening Europe’s own competitiveness by closing the energy cost gap, completing the Single Market, reducing regulatory burdens and improving access to finance.
Structured dialogue with the European business will be essential to designing effective measures and building a more balanced, mutually beneficial relationship with China.”
To read the paper in full, along with a summary document, click here.
