China & EU: A Winning Partnership for Shared Prosperity

China and the EU Succeed Together with Pragmatic Collaboration

Practical partnership between China and the European Union has yielded shared accomplishments that serve the people of both regions. With a commitment to deeper top‑level dialogue, China prioritizes fulfilling its citizens’ growing desire for a better quality of life, writes Ambassador Cai Run in a Euronews exclusive.

Celebrating Five Decades of China‑EU Diplomatic Ties

Forty‑five years of partnership have led the United Nations to mark the 50th anniversary of formal diplomatic relations between China and the European Union. This milestone underscores a fragile yet resilient collaboration that has endured geopolitical shifts and fostered continuous advancement.

Historical Roots and Current Momentum

• Over half a century, the China‑EU relationship has maintained a steady growth trajectory, resisting global upheavals.
• The alliance has generated tangible progress for roughly two billion citizens across both regions.

Prospects for Practical Collaboration

The future of China–EU cooperation is promising, as China strides toward high‑quality growth and amplifies domestic demand, while European enterprises expand into a vast market. A growing number of EU firms have established a foothold in China, observing its transformative reforms and reaping considerable gains.

Manufacturing and Innovation in China

In the early 1980s, German automakers pioneered investment opportunities by setting up production facilities in China. Today, brands such as BMW, Mercedes‑Benz, and Volkswagen secure over 30% of their worldwide sales in China, with profits from the Chinese operations reaching up to thirty times that of their European markets.

Sectoral Impact

• European products dominate Chinese imports in chemicals, optics, aerospace, and aviation—accounting for more than 30% of total imports, and exceeding 50% in certain niches.
• Conversely, Chinese companies leverage EU infrastructure support and compliance with European standards to deliver projects such as the 2,440‑meter Pelješac Bridge in Croatia.

High‑Speed Rail Evolution

The Hungary‑Serbia Railway, inaugurated as China’s inaugural high‑speed rail project in Europe, elevated local train velocities from 50 km/h to 200 km/h. This upgrade has significantly enhanced the living conditions of communities along the route.

New stage for China’s investment in Europe

China–Europe Partnerships Reach New Milestones

The landscape of Chinese investment across Europe is evolving faster than ever, marking a pivotal phase in cross‑continental collaboration.

Financial Footprint

• Since the early 2000s—accelerating post‑2009—China’s cumulative outbound investment in Europe has surpassed $100 billion.
• Annual outflows now echo the volume of EU investment directed to China, underscoring a balanced exchange.

Enterprise Presence & Workforce Impact

• By the end of 2023, Chinese entities operated over 2,800 directly owned businesses across all 27 EU member states.
• These ventures now provide employment for more than 270,000 local workers.

Expansion into Central & Eastern Europe

Since the 2012 launch of the China‑CEEC cooperation mechanism, Chinese firms have hot‑wired investments across a spectrum of sectors in the region, totaling more than $24 billion.

• Volvo Acquisition: Chinese ownership revitalised the Swedish automaker, with global sales doubling from 374 000 units in 2010 to 763 400 in 2024.
• Piraeus Port, Greece: A revitalised port that now ranks fourth in Europe behind Rotterdam, Antwerp, and Hamburg.

This project brought 4,300 local jobs and generated €1.4 billion—about 1 % of Greece’s GDP—highlighting resilience and a model for the Belt and Road Initiative.

Green Synergy & Climate Momentum

Aligned with climate milestones, this year celebrates both the 10th anniversary of the Paris Agreement and the 20th of the China‑EU Climate Change Partnership.

• Significant collaboration has emerged in environmental stewardship, renewable energy, circular economy, and water resources.
• These joint initiatives accelerate low‑carbon progress for both partners and advance global sustainable development.

EV & Battery Industry Boom

Chinese electric‑vehicle and new‑energy battery players—CATL, Gotion High‑Tech, and others—have launched factories across Europe, bolstering local automakers and propelling collective green transitions.

Southern Europe & Portugal

• Joint ventures strengthen photovoltaic and lithium‑battery sectors, supporting Portugal’s target of 22 GW solar capacity by 2030.

North‑European Innovations

• A China‑Finland partnership plans Finland’s first lithium‑battery materials plant, opening in 2027.
• China unveiled the world’s largest eco‑friendly car carrier and the first 7,500‑cubic‑meter liquid CO₂ transport ship, both destined for Norway.
• The Sinopec Green Energy Geothermal Development joint venture with Iceland has introduced “smoke‑free cities” in China using geothermal heating.

Central & Eastern Manufacturing Footprint

• Multiple Chinese EV and battery firms have set up upstream and downstream manufacturing hubs, reinforcing the region’s industrial playbook.

Sustainable Energy Projects Across Europe

From wind to solar, Chinese‑driven initiatives are reshaping local energy ecosystems:

• Ivovik Wind Farm (Bosnia & Herzegovina)
• Korl at Solar Park—Croatia’s largest photovoltaic power project
• Solar station in southeastern Romania

Volkswagen Anhui’s Zero‑Waste Commitment

Within China, Volkswagen Anhui has woven a “zero‑waste” philosophy into every phase of production, marking a bold stride towards sustainable manufacturing and a harmonious future for humanity and nature.

Looking Ahead

As Chinese investment deepens—both financially and environmentally—Europe stands to benefit from strengthened ties, shared technology, and reinforced green goals. These collaborative ventures signal a promising trajectory for the next decade of international progress.

Scientific and technological cooperation steadily advancing

China–EU Science & Technology Partnerships Gain Momentum

China’s government is steadfastly pursuing an open, innovation‑driven agenda, fostering global scientific collaboration and positioning the European Union as a pivotal ally.

Nuclear & Fusion Achievements

• China–France nuclear cooperation, initiated in 1982, has recently advanced fusion research significantly.
• China–Italy has forged a strong partnership in supporting small and medium enterprises (SMEs) to spur innovation.
• China–Germany collaboration has produced tangible results in smart manufacturing and autonomous vehicles.

Digital & AI Exchange

High‑level forums in digital technology between China and the EU aim to accelerate digital transformation and drive economic growth. Meanwhile, China is actively engaging with the UK and France to promote ethical, inclusive artificial intelligence that benefits all.

Space Exploration Highlights

In a milestone for space cooperation, the Chang’e‑6 lunar landing in 2024 carried:

• European Space Agency’s negative ion analyser – first detection of negative ions on the Moon.
• France’s radon‑gas detector.
• Italy’s laser retroreflector.

China has also granted access to lunar samples to France and five additional European countries, enabling joint research that serves humanity worldwide.

Flagship Research Projects

Through platforms such as intergovernmental science and technology cooperation committees, China and several EU members jointly fund flagship studies across:

• agriculture and food technology
• biotechnology
• climate change mitigation
• biodiversity conservation

These initiatives continue to deliver meaningful outcomes that advance sustainable development.

Mutual success delivers benefits to people on both sides

China and the EU Deepen Mutual Success Through Practical Cooperation

In recent years, the partnership between China and the European Union has yielded tangible benefits for citizens on both sides. By pursuing higher‑level opening up, China prioritizes meeting its people’s evolving aspirations for a quality life.

European Products Enrich Chinese Consumer Life

• Irish and Dutch dairy have become staples in Chinese households.
• Spanish olive oil is now a regular feature in Chinese kitchens.
• French dairy and wine—particularly French champagne—are celebrated through the “From French farms to Chinese tables” initiative, a hallmark of China‑France synergy that rewards local farmers while expanding culinary horizons.

Geographical Indications Agreement: A Milestone in IP Cooperation

The China‑EU Geographical Indications (GI) Agreement represents the first comprehensive, high‑level bilateral pact on GI protection. Its enactment opened doors for premium products such as China’s Anji white tea and Jinhua ham, as well as Europe’s Zhouzhi kiwifruit, to enter each other’s markets. This exchange preserves cultural and natural heritage and injects fresh momentum into deeper China‑EU collaboration.

Transportation Links Strengthen Eurasian Connectivity

By June, the China‑Europe Railway Express had completed over 110,000 runs, transporting goods valued at more than US$450 billion. The rail network now links 229 cities across 26 European nations, significantly improving trans‑continental trade flow.

Key Diplomatic Figures

His Excellency Ambassador Cai Run serves as the Head of the Chinese Mission to the EU, overseeing these evolving partnerships.