Sino-EU cooperation benefits global economy amid headwinds


(Xinhua) 09:44, 01 April 2022

(Source: Xinhua)

BRUSSELS, April 1 (Xinhua) — Although the global economy faces increasing uncertainty and sluggish growth due to COVID-19, economic and trade cooperation between China and Europe, which maintains momentum based on complementarity and mutual benefit, can act as a counterbalance and help stabilize the world.

RESILIENCE, VIGOR

Economic and trade cooperation between the European Union (EU) and China has proven to be surprisingly resilient and vigorous despite the negative consequences of the pandemic. China has overtaken the United States to become the EU’s biggest trading partner in 2021, with bilateral trade volume reaching record highs. Last year, the EU also became China’s second-largest trading partner, and in the first two months of 2022 it overtook the Association of Southeast Asian Nations (ASEAN) at the top. rank.

In 2021, bilateral trade between China and the EU amounted to more than 800 billion US dollars, a new all-time high. Bilateral investments exceeded $270 billion. Bilateral trade has increased significantly in various sectors, such as aerospace, biology, photoelectricity, electronics and others. The two sides have improved and expanded their communication channels, including the EU-China High-Level Economic and Trade Dialogue (HED) as well as regular consultations between local governments and businesses.

Visitors visit Germany’s exhibition stand during the 2021 China International Trade in Services Fair (CIFTIS) in Beijing, capital of China, Sept. 5, 2021. (Xinhua/Wang Tiancong)

Juergen Friedrich, chief executive officer (CEO) of Germany Trade & Invest, the country’s foreign trade and investment agency, told Xinhua that China has been Germany’s most important trading partner for six years. consecutive years and that the overall volume of two-way trade had reached a new high in 2021. China is one of the most important growth markets in the world and is also an important partner for Germany in its efforts to meet global challenges , such as the pandemic and climate change.

Horst Loechel, a professor at the Frankfurt School of Finance and Management, called EU-China trade a win-win for both sides, saying he expected the growth trend to continue .

FREIGHT TRAINS

In March 2021, a landmark agreement between the EU and China to protect over 500 Chinese and European Geographical Indications (GIs) entered into force.

Among the first beneficiaries of the agreement were wines produced on the Greek island of Samos.

“China is an extremely important market or a potentially important market for Greek wines. I think as wine becomes more and more popular in China, in just a few years, Greek wines will conquer the market there,” said the first Greek Master of Wine Konstantinos. Lazarakis told Xinhua.

The past year has also seen an increasing number of freight trains, also known as “steel camel fleets”, transporting goods between China and Europe. In 2021, the number of round-trip freight train journeys reached 15,000, carrying 1.46 million twenty-foot equivalent units (TEUs), up 22% and 19%, respectively, year-on-year. ‘other.

A China-Europe freight train carrying medical supplies bound for Madrid in Spain leaves Yiwu City, east China’s Zhejiang Province, June 5, 2020. (Photo by Lyu Bin/Xinhua)

This rail link is also very popular with producers and importers in Spain. Gonzalo Jerez, director of Spanish logistics firm TransGlory, told Xinhua it played a key role as a sustainable and reliable mode of logistics during the worst of the pandemic.

In Serbia, the Belgrade-Novi Sad (Beno) section of the China-built Hungary-Serbia Railway opened in March. The ceremony took place in the presence of Serbian President Aleksandar Vucic, Prime Minister Ana Brnabic and Hungarian Prime Minister Viktor Orban in Novi Sad.

The flagship railway project has often been described as a symbol of cooperation between China and the Central and Eastern European region.

COMMON INTEREST

China and Europe are major markets with a shared strategic interest in promoting development through green and digital partnerships. Both parties are also in line with their ambitious commitments to green and digital transformation, lower carbon emissions and climate change mitigation.

China’s Shanghai Electric Power Company is putting its expertise in wind, solar and hydrogen power to good use on the Maltese island of Gozo, which it aims to turn into the EU’s first carbon-neutral island. The company is also involved in other green energy projects in Malta and Montenegro.

Loechel said it was vital for Europe and China to cooperate on green energy. The EU unveiled its European Green Deal in 2019 and the bloc aims to achieve carbon neutrality by 2050. Meanwhile, China has pledged to peak its carbon emissions before 2030 and become neutral in carbon by 2060. This “cooperative model” in green energy is very important for the whole world, Loechel said.

China and Europe have also made continuous efforts to strengthen their partnership in digital trade and finance. Bilateral e-commerce cooperation is booming, and the parties are jointly developing cross-border e-commerce industrial parks. Several Chinese companies, such as Huawei and ZTE, are actively involved in the expansion of the European 5G network. Bank of China and China Construction Bank are also set to launch their digital currency electronic payment systems and fintech labs.

Loechel also noted that both Europe and China are committed to addressing security issues around digitalization and have developed regulations and policies to protect their consumers’ private data.

(Web Editor: Xia Peiyao, Liang Jun)

Previous A research project aims to understand predatory lending in Salinas. | News
Next Energy crisis in the EU: Spain's economy minister hopes for a 'downtrend' in electricity prices soon