A Closer Look At China-EU Relations Shows A Need for EU Unity

The yet-to-be resolved trade war between the United States and China has dominated the headlines and the financial markets’ consciousness relentlessly for the past year, making it easy to forget there is another large economy that also has ongoing issues with Beijing — the European Union (EU).

But while the Trump administration leveraged punitive import duties to force China to the negotiating table, the EU appears to be giving diplomacy a go in shaping the future relationship with its second largest trading partner.

Ahead of the April 4 EU-China summit, the European Commission published a paper staking out its position on how to reshape economic links between both sides. The paper will be presented to EU heads of state later this month, and includes actions the Commission wants EU leaders and the European Parliament to pursue in engaging with China.

This comes on the back of what has been a disjointed approach so far to Europe’s dealings with the world’s second largest economy. On the one hand you have regional powerhouse Germany who, like the U.S., is wary of Chinese acquisitions or investments in key sectors of its economy, and has been quick to veto deals it views as national security risks.