BEIJING, Oct. 10 (Xinhua) -- The second meeting of the China-EU trade and investment consultation mechanism has offered fresh momentum for stabilizing bilateral economic and trade ties, with both sides agreeing that it marks a new starting point for deepening China-EU cooperation.
By holding pragmatic and productive discussions and reaching a list of consensus outcomes, the two sides have demonstrated their willingness to deepen cooperation and work toward a stable and more balanced economic and trade relationship.
The outcome matters at a time when calls for protectionist measures are gaining ground in parts of Europe amid growing concerns over the EU's trade deficit in goods with China. Yet the way forward is not to erect more barriers, but to make better use of dialogue, expand mutually beneficial cooperation and properly address differences within the framework of WTO rules.
As the Chinese side has emphasized, China is not the source of the EU's problems, but a partner in solving them. The two sides should meet each other halfway and explore new opportunities for cooperation.
The EU's own trade figures show why the bilateral balance should not be viewed in isolation. According to EU official data, in the first quarter of 2026, the EU recorded a 12.7-billion-euro (or 14.58-billion-U.S. dollar) surplus in goods trade with non-EU countries. The trade deficit with China is only one part of Europe's broader global trade picture.
Meanwhile, China's services trade deficit with the EU reached 48.3 billion dollars in 2025, making the bloc China's largest source of such a deficit, according to China's official data.
These figures underscore a simple point: bilateral trade balances alone cannot fully reflect the breadth and mutual benefits of China-EU economic ties. Trade in goods is only one part of a broader relationship that also encompasses services, investment and deeply integrated supply chains.
As to the trade deficit in goods, the fact is that a considerable share of China-EU trade is generated by European companies operating in China. While products manufactured by these firms are recorded as Chinese exports, much of the profit, technology dividends and shareholder value ultimately accrues to European businesses. Restricting trade based on headline deficit figures risks overlooking these interdependencies and the benefits they bring.
Europe's competitiveness challenges extend well beyond trade with China. High energy costs, fragmented markets, regulatory burdens and gaps in innovation and investment have all weighed on the bloc's growth prospects.
More importantly, Europe's competitiveness challenge is also rooted primarily in the structural issues within the bloc. For example, the European Central Bank has estimated that internal EU barriers are equivalent to tariffs of around 44 percent on goods and 110 percent on services. These long-standing structural constraints cannot be resolved through tariffs or other restrictive measures targeting Chinese products.
Specific issues should be addressed through evidence-based consultations and established multilateral rules. Dialogue offers a way to clarify concerns, identify workable solutions and prevent individual disputes from spilling over into the broader economic relationship.
The latest Beijing meeting demonstrates the value of this approach. The significance of the meeting lies not in the assumption that all differences have been resolved, but in the willingness to address them through sustained engagement. The priority now is to implement the outcomes, maintain communication and translate areas of agreement into tangible benefits for businesses on both sides.
As two key trading partners, China and the EU have strong reasons to keep their economic ties stable and make them more balanced. Their cooperation matters not only to businesses and consumers on both sides, but also to global supply chains and the wider trading system at a time of heightened uncertainty.
Ultimately, a stable and more balanced China-EU economic relationship will be built not by narrowing the space for trade, but by expanding the opportunities it creates. Dialogue, openness and mutually beneficial cooperation offer a more sustainable path forward than protectionism. ■
