BusinessEurope has released a new paper detailing its priorities for EU-China relations in the upcoming EU cycle. Markus J. Beyrer, Director General of BusinessEurope, emphasized the importance of maintaining a beneficial relationship with China, noting its status as the world's second-largest economy and a key trading partner for the EU.
Beyrer stated, "As the world's second-largest economy and the second-largest EU trading partner in goods, China is and will remain a crucial market for European companies. Fostering a mutually beneficial relationship should remain a core objective for both the EU and China." He acknowledged the challenges of doing business with China due to geopolitical tensions, market imbalances, and lack of reciprocity.
The paper suggests that the EU's "de-risking" strategy should aim at building resilience through market diversification and managing risks in strategic sectors like critical raw materials. It also calls for utilizing an enhanced trade policy toolbox to counter market distortions while maintaining an open trade agenda.
Improving competitiveness within the EU is highlighted as essential for economic resilience. The document notes that China's competition with Euro area exporters has increased significantly since 2002. According to Beyrer, “prosperity and competitiveness” must be prioritized as outlined in reports by Draghi and Letta.
A unified approach among EU Member States is deemed crucial when engaging with China. Beyrer concluded that only a united Europe can effectively compete with China on economic and political fronts: "The EU’s approach should be strategic and long-term, moving beyond reactive, short-term responses."