In the uneasy trade triangle with the US, China and Europe can address security concerns and deepen their partnership

China’s growing importance to the EU has brought with it mounting worries about Beijing’s strategy but there are signs that the two sides can address this, through clear rules on investment for example

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Published: 9:00pm, 15 May 2019Updated: 9:15am, 16 May 2019

The European Union has been forced to rethink its position in a changing world order between the US and China. Despite lingering suspicion about Chinese goals for the continent, increasing antagonism on trade from the United States may move other economies closer together.

For example, the 21st EU-China Summit surprised many strategists with the two sides managing to reach joint agreement, signalling that Europe may not automatically follow the US lead in attempts to contain China’s rise. The joint statement does not reflect the view of China as a “systemic rival”, as suggested by a European Commission document published in March and instead signals that the two economies preserve a sense of partnership, committed to joint efforts to smoothing over differences and finding common ground.

The EU is China’s biggest trade partner, and China is the EU's second-biggest trading partner after the US. To sustain momentum, the EU-China relationship must be built on rules-based multilateralism, accompanied by articulation of specific goals and specific guidance for achieving progress.

The EU and China have experienced a honeymoon with a multidimensional relationship. They established formal diplomatic ties in 1975 and have committed to a comprehensive strategic partnership since 2003. Despite the 2010 dispute on solar panels, the 2013 EU-China summit still put forward the “EU-China 2020 Strategic Agenda for Cooperation”, which promised to strengthen bilateral cooperation through sectoral dialogue.

China accounts for about a fifth of EU goods imports and more than a tenth of its exports. About 8 million people travel between the two places, and the past four decades have witnessed a 250-fold increase in trade between the two. China and the EU also express strong commitment to multilateralism, the Paris Agreement on climate, and non-proliferation issues – even as the US turns its back to global governance.

However, Europe and China are in an uncomfortable love triangle. America may force the EU to choose between siding with China or the US, expecting the union to take a more hawkish attitude on designing its 5G networking platform to avoid Chinese firms.