China and EU Enhance Economic Cooperation Amid Global Trade Tensions
Chinese investment in the EU sees a significant rebound, signaling strengthened economic ties as tariff pressures from the U.S. increase.
China and the European Union are increasing their cooperation in response to rising tariff pressures from the United States and the growing fragmentation of global trade.
This collaboration reflects both parties' commitment to openness, stability, and mutual benefit in a challenging international landscape.
In 2024, Chinese investments in the European Union surged by 47% year-on-year, reaching 10 billion euros (approximately $11.4 billion), marking the first substantial rebound since 2016. This growth is attributed to an unprecedented spike in greenfield investments and a revival in mergers and acquisitions, as detailed in a joint report by the Rhodium Group and the Mercator Institute for China Studies.
Specifically, greenfield investments, which involve establishing new business operations from the ground up in a foreign country, reached an all-time high of 5.9 billion euros.
Additionally, investment through mergers and acquisitions more than doubled to 4.1 billion euros in 2024. The report identifies Contemporary Amperex Technology Company Limited (CATL), a leading Chinese battery manufacturer, as the foremost investor, contributing 16% of the total investment, largely due to its battery plant construction in Hungary.
Experts highlight that these investment trends underscore the strategic importance of China-EU relations, particularly in light of unilateral tariff increases by the U.S. They assert that strengthening cooperation in sectors such as green energy, digital infrastructure, and smart manufacturing can serve the developmental interests of both entities and help protect the multilateral trading system.
As of late 2024, investments from EU enterprises in China exceeded $150 billion, as recorded by the Chinese Ministry of Commerce.
Scholars advocate for collaborative efforts to maintain the stability of the multilateral trading framework and global industrial supply chains, cautioning against the escalation of trade disputes into larger geopolitical conflicts.
Recent discussions between China and the EU included exploring the potential for lifting tariffs on Chinese electric vehicles (EVs) through price commitments, aiming to facilitate trade in this emerging sector.
Expectations indicate a further increase in Chinese investment in Europe by 2025, coinciding with potential improvements in EU-China relations amidst evolving U.S. trade policies.
Industry representatives observe a growing awareness in Europe regarding the risks associated with dependency on the U.S. market, prompting a shift towards fostering an independent outlook.
This evolution may present new opportunities for enhanced China-EU cooperation as both regions navigate a complex geopolitical environment.
The collaborative engagement between China and the EU is significant, considering that jointly, their economic output represents over one-third of global GDP and their trade accounts for more than one-fourth of global trade volume.
Continued deepening of their cooperation within the framework of the global trading system is viewed as essential to counteracting the disruptive effects of unilateral tariff measures from Washington.
This collaboration reflects both parties' commitment to openness, stability, and mutual benefit in a challenging international landscape.
In 2024, Chinese investments in the European Union surged by 47% year-on-year, reaching 10 billion euros (approximately $11.4 billion), marking the first substantial rebound since 2016. This growth is attributed to an unprecedented spike in greenfield investments and a revival in mergers and acquisitions, as detailed in a joint report by the Rhodium Group and the Mercator Institute for China Studies.
Specifically, greenfield investments, which involve establishing new business operations from the ground up in a foreign country, reached an all-time high of 5.9 billion euros.
Additionally, investment through mergers and acquisitions more than doubled to 4.1 billion euros in 2024. The report identifies Contemporary Amperex Technology Company Limited (CATL), a leading Chinese battery manufacturer, as the foremost investor, contributing 16% of the total investment, largely due to its battery plant construction in Hungary.
Experts highlight that these investment trends underscore the strategic importance of China-EU relations, particularly in light of unilateral tariff increases by the U.S. They assert that strengthening cooperation in sectors such as green energy, digital infrastructure, and smart manufacturing can serve the developmental interests of both entities and help protect the multilateral trading system.
As of late 2024, investments from EU enterprises in China exceeded $150 billion, as recorded by the Chinese Ministry of Commerce.
Scholars advocate for collaborative efforts to maintain the stability of the multilateral trading framework and global industrial supply chains, cautioning against the escalation of trade disputes into larger geopolitical conflicts.
Recent discussions between China and the EU included exploring the potential for lifting tariffs on Chinese electric vehicles (EVs) through price commitments, aiming to facilitate trade in this emerging sector.
Expectations indicate a further increase in Chinese investment in Europe by 2025, coinciding with potential improvements in EU-China relations amidst evolving U.S. trade policies.
Industry representatives observe a growing awareness in Europe regarding the risks associated with dependency on the U.S. market, prompting a shift towards fostering an independent outlook.
This evolution may present new opportunities for enhanced China-EU cooperation as both regions navigate a complex geopolitical environment.
The collaborative engagement between China and the EU is significant, considering that jointly, their economic output represents over one-third of global GDP and their trade accounts for more than one-fourth of global trade volume.
Continued deepening of their cooperation within the framework of the global trading system is viewed as essential to counteracting the disruptive effects of unilateral tariff measures from Washington.
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