EU-China Economic Relations in the Early 21st Century

Abstract

The European Union (EU) and China are two of the most influential and complex economies globally. The current state of their relationship is marked by a growing trade deficit for the EU with China, along with increasing Chinese investments in Europe's energy, technology, and infrastructure sectors. The EU has expressed dissatisfaction with China's treatment of foreign investors, limited market access for European companies, and government subsidization of domestic companies. Additionally, the EU has raised concerns about China's human rights record and its policies in Hong Kong, Taiwan, and mainland China. The partnership is expected to remain a key focus for the EU's economic outlook as both sides balance economic potential with geopolitical and security considerations. This report aims to identify and explain the primary issues, key areas for improvement, and mutual interests between the EU and China, while also proposing potential solutions to enhance their economic and trade relations. Informative articles, relevant papers, textbooks, and other sources support the discussion. Although the analysis is subjective, a quantitative methodology is also employed. The discussion presents a common interface and provides recommendations for enhancing financial relations, increasing exchange, financial and security relations, participating in and benefiting from two-way engagement, and enhancing EU-China relations.