Complementarity and Rivalry in EU-China Economic Relations in the 21st Century
Economic dynamism in the People’s Republic of China over the past two decades, in contrast with sluggish growth in an enlarged European Union, makes the examination of contemporary and future EU–China economic relations all the more relevant. This examination is done by highlighting complementary and opposing forces between the two regions. It underlines the asymmetry in the trade relationship – with a growing EU trade deficit – and a declining share of EU foreign direct investment since the peak years in the late 1990s.
In terms of trade patterns, a certain degree of complementarity still exists between the two regions, with China relatively engaged in low-knowledge-intensive industries (such as office machinery and computers), although the move up the value chain is rapid. This still leaves scope for a manufacturing–services complementarity. Areas of possible rivalry include the perception, by the EU, of an ‘unfair’ Chinese competition, the opacity of the Chinese market, and allegations of dumping by Chinese firms, an issue related to its non-market economy status.
In the future, the fifth enlargement may lessen the complementarity (and therefore increase the level of competition), thus generating another challenge. Faced with these numerous challenges, a number of solutions are proffered, among which are multilateralism and cooperation on energy
Available in:
Regions and themes
Share
Download the full analysis
This page contains only a summary of our work. If you would like to have access to all the information from our research on the subject, you can download the full version in PDF format.
Complementarity and Rivalry in EU-China Economic Relations in the 21st Century
Related centers and programs
Discover our other research centers and programs
Center for Asian Studies
Asia is a nerve center for multiple global economic, political and security challenges. The Center for Asian Studies provides documented expertise and a platform for discussion on Asian issues to accompany decision makers and explain and contextualize developments in the region for the sake of a larger public dialogue.
The Center's research is organized along two major axes: relations between Asia's major powers and the rest of the world; and internal economic and social dynamics of Asian countries. The Center's research focuses primarily on China, Japan, India, Taiwan and the Indo-Pacific, but also covers Southeast Asia, the Korean peninsula and the Pacific Islands.
The Centre for Asian Studies maintains close institutional links with counterpart research institutes in Europe and Asia, and its researchers regularly carry out fieldwork in the region.
The Center organizes closed-door roundtables, expert-level seminars and a number of public events, including an Annual Conference, that welcome experts from Asia, Europe and the United States. The work of Center’s researchers, as well as that of their partners, is regularly published in the Center’s electronic journal Asie.Visions.
Find out more
Discover all our analyses
Taiwan’s Rising Space Program: Building Up Industry, Supporting National Security
Taiwan, known for its leadership in semiconductors and information and communications technology (ICT), is now making significant strides in the space industry. While historically modest, Taiwan’s space program has seen a transformation since 2020, driven by President Tsai Ing-wen’s commitment to expanding the country’s space capabilities. Key milestones include the passage of the Space Development Act and the creation of the Taiwan Space Agency (TASA), which has bolstered the resources and visibility of Taiwan’s space ambitions.
AI and Technical Standardization in China and the EU: Diverging priorities and the need for common ground
Given the highly disruptive potential of AI, global cooperation on AI safety and governance is imperative, and yet the deeply transformational potential of AI also ensures that a high level of competition and systemic rivalry is likely unavoidable. How can the EU best manage its complex relationship with China in the field of AI so as to ensure a necessary level of cooperation in spite of competition and rivalry?
China’s Quest for a Quantum Leap
The global race to harness quantum science is intensifying. Recognizing the strategic potential of quantum technology for economic, military, and scientific advancement, China is focusing on quantum breakthroughs as a way to shift the balance of power, especially in its competition with the United States. President Xi Jinping has emphasized the importance of scientific innovation, particularly in quantum fields, to fuel national development and ensure security.
Taiwan's Energy Supply: The Achilles Heel of National Security
Making Taiwan a “dead island” through “a blockade” and “disruption of energy supplies” leading to an “economic collapse.” This is how Colonel Zhang Chi of the People’s Liberation Army and professor at the National Defense University in Beijing described the objective of the Chinese military exercises in May 2024, following the inauguration of Taiwan’s new president, Lai Ching-te. Similar to the exercises that took place after Nancy Pelosi’s visit to Taipei in August 2022, China designated exercise zones facing Taiwan’s main ports, effectively simulating a military embargo on Taiwan. These maneuvers illustrate Beijing’s growing pressure on the island, which it aims to conquer, and push Taiwan to question its resilience capacity.