BEIJING, June 20 (Xinhua) -- As the European Union moves to erect trade barriers against China over fears of a mounting deficit, an important reality should not be overlooked: Trade imbalances alone neither capture the full complexity of this critical economic relationship nor offer a solution toward restoring Europe's competitiveness.
Focusing on the deficit alone risks overlooking the broader realities of China-EU economic ties. Trade statistics capture the movement of goods but do not fully reflect the distribution of value and benefits across global supply chains. 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.
Nor should it be forgotten that Chinese products play an important role in supporting European consumers and industries. Affordable and high-quality goods from China have helped ease inflationary pressures and provided businesses with reliable supplies during periods of economic uncertainty. Moreover, nearly half of China's exports to Europe consist of intermediate goods used in manufacturing. These inputs help European companies lower production costs, improve efficiency and maintain competitiveness in global markets.
Still, China has taken concrete steps to address European concerns. Strong efforts were made to expand imports from the EU, broaden market access for European agricultural products, and strengthen export regulation and oversight, including control on dual-use items.
China has consistently advocated dialogue as the most effective way to manage differences. Achieving a more balanced China-EU economic relationship should be pursued through deeper cooperation and the expansion of mutual interests, rather than through restrictions and confrontation.
More importantly, trade imbalances cannot be sustainably addressed through defensive trade measures alone. Long-term economic strength depends on productivity, innovation, and competitiveness. Restricting access to competitive products may reduce imports on paper, but it can also increase costs for manufacturers, weaken industrial efficiency, and ultimately impose additional burdens on consumers. Furthermore, it does little to bolster the continent's manufacturing prowess.
For Europe, the more fundamental question is how to strengthen its own capacity for innovation and growth in an increasingly competitive global economy. Framing trade issues as a matter of economic security may offer short-term political appeal, but it does little to solve the structural challenges confronting European economies.
China and the EU remain major economic partners characterized by complementarity and mutual benefit. At a time when the global economy faces mounting uncertainty, expanding cooperation should always be chosen over erecting new barriers.
The choice facing Europe is not between dependence and economic security, but between openness and self-imposed constraints. History has repeatedly shown that competitiveness is strengthened through engagement, innovation, and cooperation, not through economic insulation. ■
