China and EU should work together to increase mutual gains of cooperation: China Daily editorial

Despite restrictive measures imposed by the European Union, Chinese automakers outsold their Japanese rivals in Europe for the first time over the three months to September.

The popularity of Chinese cars in Europe can be attributed to their high-tech, smart features offered at competitive prices. This is driven by China's strategic investments in technology and infrastructure, which have bolstered its manufacturing capabilities. Strong global demand for cost-effective and technologically advanced products has enabled Chinese companies to maintain their competitive edge.

As a spokesperson for the Chinese embassy in the United Kingdom said on Monday, China has pursued a path of independent innovation, transformation and upgrading, and open cooperation. 

Yet some media outlets are amplifying baseless claims that the rise of Chinese manufacturing challenges high-end industries in Western countries and constrains industrial development in Europe. Such unfounded assertions serve as a political narrative to justify protectionist measures and deflect from Europe's own structural problems. They overlook the fact that Europe's industrial challenges are rooted in its hollowing out of industry, insufficient R&D investment, and energy cost disadvantages, rather than Chinese competition. By framing China's industrial upgrading as a "threat", some in Europe aim to provide a political cover for the EU to implement "trade defense" instruments, quotas and tariffs that would otherwise be hard to justify under free-market principles.

The development of Chinese manufacturing has supported the industrial development of Western countries. As a vital link in the global manufacturing supply chain, China has long supplied Western countries with reliable and affordable manufactured goods, effectively lowering the cost of living and easing inflationary pressures in Europe. Moreover, the integration of Europe's high-end equipment with Chinese manufacturing has enabled the two sides to complement each other's strengths, share benefits and achieve mutual empowerment, as the embassy spokesperson said.

Yet the EU is drafting new policies that prioritize local automakers for subsidies and incentives, aiming to curb the advantage of imported Chinese new energy vehicles. European governments are considering implementing local content requirements, which would make it more difficult for buyers of Chinese EVs to access these incentives.

The EU will introduce a 2 euros ($2.23) handling fee per distinct product type on small parcels imported into the bloc from third countries. Effective Nov 1, this measure is reportedly aimed at curbing Chinese cross-border e-commerce platforms, marking a shift in the EU's regulatory approach toward cross-border e-commerce logistics. The move follows record inflows of 5.9 billion parcels in 2025, with more than 90 percent originating from China. Most of these items were previously duty-free.

Both Chinese automakers pursuing localized production in Europe and e-commerce companies seeking to keep expanding in the European market are facing increasingly high compliance hurdles and costs.

They should enhance localization efforts and leverage local operations to navigate trade barriers and align with local standards and regulations. According to a report by Rhodium Group and MERICS, the automotive sector attracted more Chinese foreign direct investment in 2025 than any other industry in Europe. Chinese FDI in the automotive sector in Europe totaled 7.6 billion euros, of which 93 percent was focused on the electric vehicle supply chain.

China upholds multilateral trade rules and advocates resolving economic and trade frictions through dialogue and consultation. But in the face of discriminatory measures, it reserves the right to take countermeasures to protect the legitimate rights and interests of its enterprises.

Economic "de-risking" contradicts the fundamental interests of both sides. China and the EU share a deep interdependence in sectors such as the green transition and high-end manufacturing, and unilateral protectionism and technology blockades run counter to the interests of both sides and the current global trends.

Since late October, leaders and senior officials from European countries, including Germany and Iceland, have visited China or are scheduled to do so. Beijing will continue to work with European governments to resolve differences through consultation and to strengthen cooperation through deeper industrial engagement, thereby advancing sustainable China-Europe economic and trade relations.