Flood Situation Grave & Complex - Outcomes of Wang's Visit to Nordic Countries - Zhong Sheng's Take on China-EU Trade & Investment Dialogue
Here are the key reports and articles from the People’s Daily’s edition on Wednesday, July 08, 2026.
Page 1: The lead report in the paper today is on Xi Jinping’s instructions with regard to flood relief work.
“Xi Jinping pointed out that in recent days, due to heavy rainfall and strong winds, regions including Guangxi, Hubei, and Gansu have suffered a succession of disasters such as reservoir dam breaches and landslides, causing major casualties and economic losses. Every effort must be made to organize emergency rescue operations, treatment of the injured, and resettlement of affected people, minimize casualties to the greatest extent possible, and guard against secondary disasters. Xi Jinping stressed that the current flood-control situation is grave and complex. All localities and relevant departments must ensure the implementation of established plans and measures, resolutely overcome complacency and wishful thinking, keep a tight grip on and firmly enforce disaster-prevention and relief responsibilities, and thoroughly carry out in-depth inspections and rectification of risks and hidden dangers involving rivers, lakes, reservoirs with safety hazards, and areas prone to geological disasters. They must strengthen monitoring, early warning, and emergency rescue preparedness, do solid work in all aspects of disaster prevention and relief, and ensure the safety of people’s lives and property.” 习近平指出，近日，广西、湖北、甘肃等地因降雨大风天气，接连发生水库溃坝、山体滑坡等灾情，造成重大人员伤亡和经济损失。要全力组织抢险救援、伤员救治、群众安置等工作，最大限度减少人员伤亡，防范次生灾害。习近平强调，当前防汛形势严峻复杂，各地各有关部门要抓好既定部署措施落实，坚决克服麻痹思想和侥幸心理，盯紧压实防灾救灾责任，深入开展江河湖泊、病险水库、地质灾害易发区等风险隐患排查整治，强化监测预警和应急救援准备，扎实做好防灾救灾各项工作，确保人民群众生命财产安全.
Not too long ago, the Politburo meeting had ended with a warning on “extreme weather” events. The visuals and reportage from China does bear this out. This BBC report talks about the impact of Typhoon Maysak in Guangxi; another massive storm Super Typhoon Bavi is expected to hit the eastern coast of China later this week. Then there’s this report of hundreds of sakes, some venomous, escaping a farm in a village in Hengzhou in Guangxi after it was damaged by flooding.
Next, there’s a report on Wang Huning’s remarks during a meeting of the Chairperson’s Council of the CPPCC National Committee.
“Wang Huning said it is necessary to thoroughly study and grasp the spirit of General Secretary Xi Jinping’s important speech at the gathering celebrating the 105th anniversary of the CPC’s founding. Drawing from the CPC’s unremitting struggle in leading and uniting the Chinese people, especially the historic achievements of the Party and the country in the new era, it is necessary to gain a profound understanding of the decisive significance of the Two Establishments and resolutely uphold the Two Safeguards. It is necessary to deeply recognize that upholding the united front is precious historical experience accumulated through the Party’s long struggle, and to deeply recognize the major achievements of the CPPCC’s cause and the cause of multi-party cooperation under the Party’s leadership; carry forward fine traditions, keep political responsibilities firmly in mind, and continuously deepen political, ideological, theoretical, and emotional identification with the leadership of the Communist Party of China and with socialism with Chinese characteristics, so as to pool the mighty strength for realizing the great rejuvenation of the Chinese nation.” 王沪宁表示，要深入学习领会习近平总书记在庆祝中国共产党成立105周年大会上的重要讲话精神，从中国共产党团结带领中国人民不懈奋斗特别是新时代党和国家事业的历史性成就中，深刻领悟“两个确立”的决定性意义、坚决做到“两个维护”。要深刻认识坚持统一战线是党长期奋斗积累的宝贵历史经验，深刻认识在党的领导下人民政协事业和多党合作事业取得的重大成就，发扬优良传统，牢记政治责任，不断增进对中国共产党领导和中国特色社会主义的政治认同、思想认同、理论认同、情感认同，汇聚起实现中华民族伟大复兴的磅礴伟力.
“Wang Huning said it is necessary to thoroughly study and implement General Secretary Xi Jinping’s important expositions on giving play to the role of the CPPCC as a specialized consultative body; perform duties with a focus on the central tasks of the Party and the state; integrate consultative democracy through the entire process of political consultation, democratic oversight, and participation in the deliberation and administration of state affairs; strengthen the building of functions such as institutionalization, standardization, and proceduralization; and broadly pool public support, consensus, wisdom, and strength for advancing Chinese-style modernization.” 王沪宁表示，要深入学习贯彻习近平总书记关于发挥人民政协专门协商机构作用的重要论述，聚焦党和国家中心任务履职尽责，把协商民主贯穿政治协商、民主监督、参政议政全过程，加强制度化规范化程序化等功能建设，为推进中国式现代化广泛凝聚人心、凝聚共识、凝聚智慧、凝聚力量.
“Wang Huning said that the functions and role of the specialized consultative institution must be effectively fulfilled and fully brought into play. It should leverage its role in offering policy advice and recommendations to provide high-quality consultative services in support of Chinese-style modernization; leverage its role in fostering unity and building consensus to draw the broadest possible concentric circle of support for building a strong country and achieving national rejuvenation; and leverage its role as a form of democracy to demonstrate the distinctive advantages of socialist consultative democracy.” 王沪宁表示，要切实把专门协商机构职能履行好、作用发挥好。发挥建言资政作用，以高质量协商议政服务和助力中国式现代化建设；发挥凝心聚力作用，画好强国建设、民族复兴的最大同心圆；发挥民主形式作用，彰显社会主义协商民主独特优势.
Also on the front page is a long feature article on how Xi has led China’s science and technology power development. This serves as a preview to the national science and technology award conference, the general assemblies of the members of the Chinese Academy of Sciences and the Chinese Academy of Engineering, and the 11th national congress of the China Association for Science and Technology, which is taking place in Beijing today. Xi has delivered a speech at this event. I’ll cover it once it’s available.
I am sharing below an important excerpt from the article, which highlights two claims of major breakthroughs.
“This May, at the International Symposium on Circuits and Systems, when Huawei board member and President of the Semiconductor Business Unit He Tingbo presented the ‘Tao Law’ technology roadmap for the next five years, applause resounded through the venue. The advent of Tao Law represents a departure from the conventional framework. Rather than relying solely on lithographic scaling, it uses latency as a key metric, opening up an entirely new path for industrialisation in the post-Moore era. Guided by this principle, Huawei has successfully designed and mass-produced 381 chip models over the past six years. Huawei’s Kirin smartphone chip, scheduled for release this autumn, will fully adopt logic folding technology, substantially improving performance. ‘Over the next five to ten years, we are confident of advancing steadily under the Tao Law,’ He Tingbo said.
Fundamental research breakthroughs are also urgently needed in the lithium battery industry to overcome key bottlenecks. How can lithium batteries double or even multiply their driving range without increasing their size or weight? For years, this question has constrained the industry’s development. Conventional lithium battery electrolytes rely on lithium-oxygen coordination chemistry. Lithium ions bind too tightly with oxygen atoms—like being wrapped in a heavy coat—limiting both ion mobility and the upper limit of energy storage. ‘Could fluorine atoms replace oxygen atoms to build an entirely new coordination system?’ A research team led by Academician Chen Jun of Nankai University, working with the Shanghai Institute of Space Power-Sources, boldly proposed this disruptive concept.
Following this new approach, the team regulated the number of fluorine atoms and their steric effects, ultimately designing and synthesizing a completely new fluorinated hydrocarbon solvent electrolyte system. They successfully developed a lithium battery with an energy density of 700 watt-hours per kilogram at room temperature, while still delivering stable discharge performance at temperatures as low as minus 50 degrees Celsius. ‘We broke away from the habitual mindset of merely improving the existing system. By reconstructing the electrolyte with an entirely new coordination logic, our goal is to use high-quality fundamental research to achieve “from 0 to 1” breakthroughs that precisely meet urgent industrial needs, allowing laboratory innovations to continuously drive industrial transformation from “1 to 100”,’ Chen Jun said.”
今年5月，在国际电路与系统研讨会上，当华为公司董事、半导体业务部总裁何庭波展示未来5年“韬定律”技术路线图时，掌声响彻会场。“韬定律”的问世，跳出了固有框架：不再单一依赖光刻几何缩微，转而以时延为重要标尺，在“后摩尔时代”开辟出一条全新的产业化路径。基于该定律，华为过去6年已成功设计并量产了381款芯片。计划于今年秋季面世的华为麒麟手机芯片，完整采用逻辑折叠技术，大幅提升相关性能。“未来5年到10年，我们有信心在‘韬定律’下稳步前进。”何庭波说。在锂电池领域，也亟须基础研究上的突破来助力解决产业面临的瓶颈。如何让锂电池在体积与重量不变的情况下，实现续航成倍增长？长久以来，这个问题一直阻碍产业发展。传统锂电池电解液采用锂氧配位电解思路，锂离子和氧原子结合过于紧密，像被厚重的外衣牢牢束缚，迁移速度、储能上限双双受限。“可不可以用氟原子替代氧原子构建全新配位体系？”南开大学陈军院士团队联合上海空间电源研究所大胆提出颠覆性创新构想。按照新思路，团队通过调控氟原子数目和空间位阻，最终实现全新氟代烃溶剂电解液体系的设计与合成，成功造出室温能量密度700瓦时/公斤的锂电池，即便零下50摄氏度极寒环境依旧稳定放电。“我们跳出修补现有体系的惯性思维，用全新配位逻辑重构电解液，就是要用‘从0到1’的基础研究高质量供给，精准对接产业刚需，努力让实验室的科技创新持续驱动‘从1到100’的产业变革。”陈军说。
Page 3: Wang Yi has been on a visit to Nordic countries, visiting Denmark, Sweden, Finland and Norway. Xinhua has a list of achievements from the visit. This is a useful report because it captures the key messages and takeaways from Beijing’s perspective. It says:
“The four countries were among the earliest European nations to recognize and establish diplomatic relations with the PRC, setting many ‘firsts’ in the history of the PRC’s foreign relations. We mutually agreed to stay true to our original aspirations, build on past achievements to open up the future, further implement the important consensus reached between President Xi Jinping and the leaders of the four countries, maintain close high-level exchanges, and strengthen strategic communication; further expand the new dimensions of the China-Denmark comprehensive strategic partnership; build a healthy, stable, and sustainable China-Sweden relationship; deepen the future-oriented new-type cooperative partnership between China and Finland; and explore advancing the positioning of the China-Norway partnership, so as to achieve steady progress in China’s overall partnership with the Nordic region.
We agreed to respect and accommodate each other’s core interests and major concerns, and to place differences in their proper position. We agreed to establish a China-Sweden vice-foreign-minister-level political consultation mechanism. The four countries reaffirmed their firm support for the one-China policy. The Chinese side stressed that China and Europe are partners, not rivals, and that cooperation is the fundamental character and keynote of the relationship. Both sides support strengthened all-round China-EU dialogue at all levels.” 4国都是最早承认并同新中国建交的欧洲国家，在新中国对外关系史上创下诸多“第一”。双方同意恪守初心，继往开来，进一步落实习近平主席同4国领导人达成的重要共识，密切高层交往，加强战略沟通，进一步拓展中丹全面战略伙伴关系新内涵，建设健康、稳定、可持续的中瑞关系，深化中芬面向未来的新型合作伙伴关系，探讨推动中挪伙伴关系定位，实现中国同北欧地区整体伙伴关系稳健前行。双方同意尊重和照顾彼此核心利益和重大关切，把分歧放在合适位置。同意建立中瑞副外长级政治磋商机制。4国重申坚定支持一个中国政策。中方强调中欧是伙伴不是对手，合作是基本面和主基调。双方都支持中欧加强各层级全方位对话.
“Economic and trade cooperation is the ballast of bilateral relations; deepening cooperation is not optional but essential. It should keep pace with the times, continuously upgrade in quality, and adhere to sharing opportunities through open development to achieve win-win results. Both sides firmly support free trade and economic globalization, and oppose unilateral actions and ‘decoupling and breaking supply chains.’ The Chinese side reaffirmed that the Chinese market is open at a high level to enterprises from all countries, including the four countries, and expressed the hope that the four countries will provide a fair, just, and non-discriminatory business environment for Chinese enterprises.
China welcomes Norway serving as Guest Country of Honor at the 2026 China International Fair for Trade in Services, and welcomes Finland to serve as Guest Country of Honor at the 2026 China International Fair for Investment and Trade. The two sides positively assessed the latest developments, including the establishment of the China-EU Trade and Investment Consultation mechanism, and are supportive of China and the EU in continuing to move toward each other and seeking appropriate solutions to economic and trade differences. The Chinese side reaffirmed that China never deliberately pursues a trade surplus, and expressed the hope that the EU will remain open, avoid restrictive legislative measures, relax exports of high-value products to China, and promote an upward rebalancing of China-EU trade.”
经贸合作是双方关系的压舱石，深化合作不是可选项而是必选项，应当与时俱进，不断提质升级，坚持在开放发展中分享机遇，实现共赢。双方都坚定支持自由贸易和经济全球化，反对单边行径和“脱钩断链”。中方重申中国市场对包括4国在内的各国企业高水平开放，希望4国为中国企业提供公平、公正、非歧视的营商环境。中方欢迎挪威担任2026年中国国际服务贸易交易会主宾国，欢迎芬兰担任2026年中国国际贸易投资洽谈会主宾国。双方积极评价中欧成立贸易投资磋商机制等最新进展，支持中欧继续相向而行，寻找妥善解决经贸分歧的办法。中方重申从不刻意寻求顺差，希望欧盟保持开放，避免限制性立法措施，放宽对华高价值产品出口，推动中欧贸易向上平衡.
“China and the four countries are all leaders, advocates, and practitioners of the global green transition, with innovation capabilities ranking among the world’s foremost. They should let green development steer innovation and let innovation drive green development, complement each other’s strengths, enable each other’s success, and set an example for international cooperation. The two sides agreed to further deepen cooperation in low-carbon transition, circular economy, green shipping, biopharmaceuticals, and other fields. Both sides pay close attention to the development and governance of artificial intelligence, agreed to strengthen dialogue on global AI governance and explore common governance rules, and value the concepts advocated by China of putting people first, AI for good, inclusiveness and universal benefit, and collaborative governance.
The implementation of the Green Joint Work Programme between the Government of the People’s Republic of China and the Government of the Kingdom of Denmark (2023–2026) has produced fruitful results; the two sides agreed to explore negotiating a new or upgraded version, with emphasis on strengthening cooperation in scientific research and innovation, green shipping, and health and medical care.
The Joint Work Plan for Advancing the Future-Oriented New-Type Cooperative Partnership between China and Finland (2025–2029) has gotten off to a smooth start, and the two sides will advance its implementation across the board. Relying on mechanism platforms such as the China-Finland Joint Commission on Cooperation and the China-Finland Committee on Innovative Business Cooperation, the two sides will continue to deepen practical cooperation in low-carbon development, scientific and technological innovation, and other fields.
The implementation of the Joint Statement between the People’s Republic of China and the Kingdom of Norway on Establishing a Green Transition Dialogue is progressing well, with departments effectively aligned and the platform fully established; in the next phase, the two sides will strengthen the action orientation and produce practical results.
China and Sweden will conduct regular dialogue relying on bilateral institutional arrangements such as the China-Sweden Green Transition Investment Working Group, the Joint Commission on Science and Technology Cooperation, and the Science, Technology and Innovation Policy Dialogue, and actively advance green and innovation cooperation.”
中国和4国都是全球绿色转型的引领者、倡导者、践行者，创新能力位居世界前列，应以绿色牵引创新、以创新驱动绿色，优势互补、相互成就，为国际合作形成示范。双方同意进一步深化在低碳转型、循环经济、绿色航运、生物制药等领域合作。双方高度关注人工智能的发展和治理，同意加强人工智能全球治理对话，探讨共同治理规则，重视中国主张的以人为本、智能向善、普惠包容、协同共治理念。《中华人民共和国政府和丹麦王国政府绿色联合工作方案（2023－2026）》实施取得丰硕成果，双方同意探讨商谈新版或升级版方案，重点加强科研创新、绿色航运、卫生医疗等领域合作。《推进中芬面向未来的新型合作伙伴关系的联合工作计划（2025－2029）》开局顺利，双方将全面推进落实。双方将依托中芬合作联委会、中芬创新企业合作委员会等机制平台，持续深化低碳发展、科技创新等领域务实合作。《中华人民共和国和挪威王国关于建立绿色转型对话的联合声明》实施进展良好，部门有效对接，平台搭建完成，下阶段将强化行动导向，打造务实成果。中国和瑞典将依托中瑞绿色转型投资工作组、科技合作联委会、科技创新政策对话等双边机制性安排，开展定期对话，积极推进绿色和创新合作.
“The two sides exchanged views in depth on the current international situation and multilateral affairs including the UN, and agreed to strengthen dialogue on reforming and improving global governance, cooperate closely within multilateral frameworks such as the UN, the WTO, and the G20, practice multilateralism and free trade, uphold the spirit of the UN Charter, and defend the multilateral trading system with the WTO at its core. The two sides fully exchanged views on international and regional hotspot issues such as the Ukraine crisis and the situation in the Middle East, holding that all wars and conflicts should be resolved politically through dialogue and negotiation, and that all parties should play a constructive role to this end.
This year marks the beginning of a new decade under the Paris Agreement. Both sides attach great importance to global climate governance, reaffirmed the consensus on accelerating implementation of the Paris Agreement, look forward to COP31 of the United Nations Framework Convention on Climate Change sending a positive signal of upholding multilateralism and accelerating climate action, and will actively carry out international cooperation on ecological protection and biodiversity.”
双方就当前国际形势和联合国等多边事务深入交换意见，同意就改革完善全球治理加强对话，在联合国、世界贸易组织、二十国集团等多边机制框架下密切协作，践行多边主义和自由贸易，维护联合国宪章精神，捍卫以世贸组织为核心的多边贸易体制。双方就乌克兰危机、中东局势等国际和地区热点问题充分交换看法，认为所有战事冲突都应通过对话谈判政治解决，各方应为此发挥建设性作用。今年是《巴黎协定》新一个十年的开端。双方均高度重视全球气候治理，重申加速落实《巴黎协定》共识，期待《联合国气候变化框架公约》第三十一次缔约方大会发出维护多边主义、加速气候行动的积极信号，积极开展生态保护和生物多样性国际合作.
“The four countries appreciate China’s unilateral visa-free policy for their citizens traveling to China. China welcomes more people from the Nordic countries to visit China, and also hopes the Nordic countries will provide greater convenience for Chinese citizens’ visits. China has direct flight routes with all four countries. Last year, direct flights between China and Norway resumed, and recently the Stockholm–Shanghai route was restored. The two sides welcome the opening of more direct flights on this basis, continuously expanding and facilitating personnel exchanges. The two sides are willing to encourage and expand friendly exchanges at all levels and in all fields, such as education, culture, tourism, language, scientific research, think tanks, youth, and sub-national, providing lasting and solid public support for the development of bilateral relations.”
4国赞赏中方对其公民赴华实施单方面免签政策。中方欢迎更多北欧民众来华参观访问，也希望北欧国家为中国民众往访提供更多便利。中国同4国都已开通直航航线。去年中挪恢复直航，近期斯德哥尔摩至上海航线复航。双方欢迎在此基础上开通更多直航航班，持续扩大和便利人员往来。双方愿鼓励和拓展教育、文化、旅游、语言、科研、智库、青年、地方等各领域各层级友好交流，为双方关系发展提供持久坚实的民意支撑.
Also on the page is a Zhong Sheng commentary, talking about the establishment of the new EU-China Trade and Investment Consultation mechanism. I think the tone and tenor of this piece is noteworthy. One should compare it to the language that emerged from Beijing after the Trump-Xi Jinping summit. That meeting also led to the establishment of mechanisms to discuss trade and investment-related issues. The tone from Beijing following that visit was a sense of cautious triumph mixed with claims of being a peer to the US. In this case, while the new TIC is being hailed as a positive development, the tone is far more acerbic. The article contends that it is European “cognitive bias” with regard to China and its “own structural contradictions” that are to blame for trade friction with China. There’s also an implicit threat when it comes to Europe’s services trade surplus with China. That said, there is reporting that indicates that Beijing seems to be softening in its approach in practice.
For instance, last week Finbarr Bermingham reported for SCMP that:
“China told the European Union that it is open to exploring ways to cut its massive trade surplus with the bloc during talks in Brussels on Monday, according to multiple people briefed on the discussion. Chinese Commerce Minister Wang Wentao signalled to EU trade chief Maros Sefcovic that China was willing to consider purchase agreements covering European goods. The discussions touched on lowering tariffs on EU-made goods, in a rare sign that China recognises that its billion-euro a day trade surplus has become a political problem. Related to that, Beijing is also, and perhaps surprisingly, open to slowing its massive surge in exports to the 27-member union, which has led to fears of European manufacturers being wiped out by cut-price and increasingly high-quality Chinese goods. But Wang expressed more enthusiasm for increasing imports from Europe, some of the people said. Publicly, Beijing has played down the significance of the trade gap, insisting it is simply the result of market demand in Europe for Chinese goods. In previous meetings, Chinese officials have said Dutch export controls on expensive semiconductor-making machines prevent it from rebalancing trade. The apparent shift on Monday could be due to an emerging EU appetite to gird its China policy with new weapons following a debate on the topic between the member states last month.”
The proof of the pudding shall be evident by October, which is now the deadline for “tangible results” to be achieved in this process.
Here’s the Zhong Sheng article:
Recently, the first meeting of the China-EU Trade and Investment Consultation mechanism was held in Brussels. The two sides issued a joint statement, reaching consensus on a new positioning for their economic and trade relationship, namely, stable and balanced key trade partners. Against the backdrop of surging countercurrents of protectionism and profound adjustments in the global economic and trade landscape, China and the EU are using institutionalized consultation to advance the resolution of each other’s economic and trade concerns, proving once again that deepening cooperation and consultation on an equal footing are the core paths to resolving differences and maintaining stable bilateral trade relations. 近日，中欧贸易投资磋商机制首次会议在布鲁塞尔举行，双方发表联合声明，就经贸关系的新定位——即稳定、平衡的中欧关键贸易伙伴——达成共识。在保护主义逆流涌动、全球经贸格局深度调整的背景下，中欧以制度化磋商推动解决彼此经贸关切，再次证明，深化合作、平等协商，才是化解分歧、稳定双边贸易格局的核心路径.
The newly established China-EU Trade and Investment Consultation mechanism comprises four working modules, trade and investment rebalancing, export controls, intellectual property, and WTO reform, covering the core concerns of both sides. The two sides also agreed to establish a joint monitoring mechanism to exchange trade data, monitor trade flows, and carry out related technical work. These constructive measures, which directly address differences and manage disputes, mark the formal transition of China-EU trade dispute management onto an institutionalized and regularized footing. As Germany’s Handelsblatt observed, the mechanism provides a stable and practical pathway for both sides to resolve differences through negotiation and prevent the continued escalation of protectionist measures. 新成立的中欧贸易投资磋商机制，下设贸易和投资平衡、出口管制、知识产权、世贸组织改革四个工作板块，覆盖双方核心关切。双方还同意建立联合监测机制，交换贸易数据、监测贸易流向并开展相关技术工作。这一系列直面分歧、管控矛盾的建设性举措，标志着中欧贸易分歧处理正式进入制度化、常态化轨道。正如德国《商报》所评价的，该机制为双方通过谈判化解分歧、避免保护主义措施持续升级，提供了稳定而可行的路径.
For some time now, protectionist currents have been rising within the EU. Certain politicians have persistently hyped false narratives such as ‘China-EU trade imbalance’, ‘overcapacity’, and ‘unfair competition’, concocted erroneous narratives like ‘China Shock 2.0’, and rolled out one restrictive trade measure after another, erecting obstacles to normal China-EU economic and trade cooperation. At root, the European side suffers both from cognitive bias regarding the China-EU economic relationship and from an exposed sense of helplessness about its own structural contradictions. 一段时间以来，欧盟内部保护主义思潮抬头，部分政客不断炒作所谓“中欧经贸失衡”“产能过剩”“不公平竞争”等不实论调，炮制“中国冲击2.0”等错误叙事，接连推出限制性经贸举措，为中欧正常经贸合作设置障碍。究其根本，欧方既存在对中欧经贸关系的认知偏差，也暴露出对自身结构性矛盾的无力感.
Cognitive bias must be corrected with facts, while structural contradictions should be confronted at their roots. Take the so-called ‘overcapacity’ claim, the European side’s accusations rest mostly on the single indicator of the goods trade deficit, while deliberately evading the fact of its services trade surplus. According to Chinese statistics, the EU’s services trade surplus with China stood at US$48.3 billion in 2025. If services trade and goods trade are assessed together, the overall degree of trade imbalance between the two sides narrows significantly. The development pressures facing some European industries are rooted in Europe’s own structural contradictions. High energy costs, vacillating industrial policy, and insufficient innovation momentum, these are the core factors constraining its competitiveness. Using protectionist barriers to avoid competition is like drinking poison to quench thirst; it will only allow structural problems to fester beyond remedy, ultimately harming the welfare of European consumers and Europe’s long-term development potential. 认知偏差需以事实纠偏，结构性矛盾更需直面根源。以所谓“产能过剩”为例，欧方指控大多建立在货物贸易逆差这一单一指标之上，却刻意回避服务贸易顺差的事实。据中方统计，2025年欧盟对华服务贸易顺差为483亿美元。若将服务贸易与货物贸易纳入综合评估，双方总体贸易失衡程度显著收窄。欧洲部分产业面临的发展压力，根源在于自身结构性矛盾。能源成本高企、产业政策摇摆、创新动能不足等问题，才是制约其竞争力提升的核心因素。以保护主义壁垒回避竞争，无异于饮鸩止渴，只会让结构性问题积重难返，最终损害欧洲消费者福祉和长远发展潜力.
The market does not lie. The current structure of China-EU trade is, to a great extent, the independent choice of enterprises based on cost, efficiency, markets, and supply-chain security. According to the European Automobile Manufacturers’ Association, Chinese-brand vehicle sales in Europe reached 138,400 units in May this year, up 65% year-on-year. This outcome is in essence the product of market choice and a reflection of the steady rise in China’s industrial competitiveness; it has nothing whatsoever to do with so-called ‘unfair competition’. People of insight in Europe have long pointed out that protective measures such as tariffs will not make Europe stronger; they will only delay the development and transformation of local enterprises. 市场不会撒谎。当前的中欧贸易结构，在很大程度上是企业基于成本、效率、市场和供应链安全作出的自主选择。据欧洲汽车制造商协会统计，今年5月，中国品牌汽车在欧销量达13.84万辆，同比增长65%。这一结果本质上是市场选择的产物，是中国产业竞争力稳步提升的体现，与所谓“不公平竞争”毫无关联。欧洲有识之士早已指出，关税等保护性举措不会让欧洲变得更强大，只会拖延本土企业发展转型.
China is not the source of the problems the EU faces, but a partner in solving them. All along, China has been willing to resolve differences through dialogue with the utmost sincerity, while also resolutely defending its own legitimate industrial and trade rights and interests. China has repeatedly reaffirmed that the essence of the China-EU economic relationship is complementarity of strengths and mutual benefit, and that a dynamic balance can and should be achieved through development. China and the EU are each other’s second-largest trading partners. Bilateral goods trade reached US$828.1 billion in 2025, and two-way investment stock exceeds US$280 billion. From automobiles and new energy to biopharmaceuticals and machinery, the two sides’ industrial and supply chains are deeply interwoven and complementary, their supply and demand markets interdependent; they have long since formed a community of interests that prospers together and suffers together. Jens Eskelund, president of the European Union Chamber of Commerce in China, has said that China has long been not merely a profitable market for European companies, but an indispensable link in global supply chains. For European enterprises, the key to maintaining competitiveness is precisely integration into the global division of labor and cooperation, not the artificial severing of industrial and supply chains. 中国不是欧盟面临问题的根源，而是解决问题的伙伴。一直以来，中方始终愿以最大诚意通过对话化解分歧，但也坚决捍卫自身正当的产业与贸易权益。中方多次重申，中欧经贸关系的本质是优势互补、互利共赢，应该也完全能够在发展中实现动态平衡。中欧互为第二大贸易伙伴，2025年双边货物贸易额达8281亿美元，双向投资存量超2800亿美元。从汽车、新能源到生物医药、机械设备，双方产业链供应链深度互嵌、优势互补，供需市场相互依存，早已形成一荣俱荣、一损俱损的利益格局。中国欧盟商会主席彦辞表示，中国早已不仅是欧洲企业的盈利市场，更是全球供应链不可或缺的一环。对欧洲企业而言，保持竞争力的关键，恰恰是融入全球分工与合作，而非人为割裂产业链供应链.
As two major global forces and two major markets, the stability of China-EU economic and trade relations carries global significance. China and the EU together account for more than one-third of global economic output and nearly one-quarter of global trade, playing an important role in driving world economic growth. The China-Europe Railway Express has cumulatively surpassed 130,000 train journeys, carrying goods worth over US$520 billion, serving as a logistics artery spanning Eurasia and an important pillar for safeguarding the stability of global industrial and supply chains and benefiting livelihoods along its routes. At present, unilateralism and protectionism continue to batter the international economic and trade order, and WTO reform is at a critical juncture. In areas concerning humanity’s common welfare, such as climate governance, digital trade, global development. China and the EU share broad common interests and enormous space for cooperation. 作为全球的两大力量、两大市场，中欧经贸关系的稳定具有全球意义。中欧经济总量占全球1/3以上，双边贸易额占全球近1/4，对于推动世界经济增长发挥着重要作用。中欧班列累计开行突破13万列，货值超5200亿美元，既是横贯亚欧的物流大动脉，也是维护全球产业链供应链稳定、惠及沿线民生的重要支撑。当前，单边主义、保护主义持续冲击国际经贸秩序，世贸组织改革处于关键节点。在气候治理、数字贸易、全球发展等关乎人类共同福祉的领域，中欧有着广泛共同利益和巨大合作空间.
The consultation mechanism is now in place; the real test is whether the two sides can move toward each other. As comprehensive strategic partners, China and the EU should uphold the principles of mutual respect, equality, and mutual benefit, and promote the steady, long-term development of bilateral economic and trade relations. This will not only benefit the enterprises and peoples of both sides, but also contribute to defending international fairness and justice, safeguarding the global economic and trade order, and jointly promoting world peace, stability, and prosperity. 磋商机制已经落地，真正的考验在于双方能否相向而行。中欧作为全面战略伙伴，应秉持相互尊重、平等互利的原则，推动双边经贸关系行稳致远。这不仅惠及双方企业和民众福祉，更将为捍卫国际公平正义、维护全球经贸秩序、共促世界和平稳定繁荣贡献力量。
While we are on the subject, do also read this article by two scholars from Guangdong University of Foreign Studies. Their core argument is that Europe is unlikely to gain much by leveraging its market to coerce China. I think it is interesting that they contend that Europe’s aim is to coerce China. While arguing this, the authors don’t seem to explain the goals that Brussels wants to achieve by coercing China. What’s the end in their perception? In contrast, European governments seem to view their measures as protecting their industrial base and therefore strategic autonomy.
Anyway, the piece argues that:
“Three conditions determine whether economic leverage is likely to succeed: dependence must be asymmetric, substitution must be costly and the assets being restricted must be genuinely irreplaceable. Across much of the EU-China economic relationship, these conditions are either absent or weaker than many policymakers assume.”
On the first, the piece says that Europe accounts for 14.4 percent of China’s exports and is “no longer China’s indispensable market”.
On substitution, the authors argue that “China remains by far the EU’s largest source of imports and, importantly, Europe’s dependence is concentrated precisely in sectors that underpin its industrial competitiveness.” So, here they contend that Europe has a weak hand.
On irreplaceability, they argue that Europe has some strengths, such as the semiconductor value chain. But, China also controls several key products and materials that Europe needs.
They conclude with this:
“Market size generates centripetal impact because it attracts investment, talent and innovation, shaping commercial incentives and encouraging integration. Strategic leverage, by contrast, derives from control over indispensable assets, critical technologies and irreplaceable capabilities. Conflating these two forms of power risks encouraging policies that overestimate Europe’s ability to coerce while underestimating its vulnerabilities. In conclusion, the EU’s market remains a source of considerable economic influence, but its coercive leverage should not be overstated. As China diversifies its markets, advances its technological capabilities and deepens economic ties with the Global South, Europe’s leverage inevitably declines.”