Diplomatic World - Magazine China

CHINA
INTERLINKING POLITICS, DIPLOMACY, BUSINESS & FINANCE
ECONOMIC DIPLOMACY, CULTURAL DIPLOMACY & HEALTH
SPECIAL EDITION ON THE 20TH ANNIVERSARY OF THE CHINA-EU
COMPREHENSIVE STRATEGIC PARTNERSHIP

Dear Excellencies,
Dear Partners,
Dear Readers,
INTERLINKING POLITICS, DIPLOMACY, BUSINESS & FINANCE
ECONOMIC DIPLOMACY, CULTURAL DIPLOMACY & HEALTH
DIPLOMATIC WORLD IS A QUARTERLY EDITION
OF PUNCH MEDIA GROUP
Beiaardlaan 25 I 1850 Grimbergen I Belgium
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PUBLISHER
Barbara Dietrich
barbara.dietrich@diplomatic-world.com
CEO AND PRESIDENT
Barbara Dietrich
ADVERTISING
redaction@diplomatic-world.com
This year we commemorate the 20th anniversary of the EU-China
Comprehensive Strategic Partnership. The relations between
China and the EU have gone through ups and downs but both
sides have achieved plenty of practical deliverables in fields as
diverse as economy, culture, science and climate. China and
the EU have largely benefited from each other’s development –
which is why calls from some voices in the EU to decouple from
China are a bad idea. Each side has become the second-largest
trading partner of the other, benefiting people on both sides and
contributing greatly to economic prosperity.
As in any mature relationship, there are some elements of
mistrust and diverging perceptions, which should not stand in the
way of effective bilateral dialogue. After three years of pandemicrelated
restrictions, it is great to see the resumption of high-level
visits and contacts, both ways. From the EU side, President of
the European Council Charles Michel, President of the European
Commission Ursula von der Leyen and HRVP Josep Borrell have
all visited Beijing in recent months.
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China-EU cooperation is essential to tackle today’s greatest
challenges, including the climate crisis; ensuring food security;
pursuing green and digital transitions and achieving the
Sustainable Development Goals (SDGs). Both sides have a
shared interest in the maintenance of international peace,
stability and security, especially in the geopolitically complex
times we live in. An unstable world, therefore, calls for stronger
China-EU cooperation.
This year also marks the 10th anniversary of the Belt and Road
Initiative (BRI), a new paradigm of international cooperation,
which has changed the landscape of infrastructure financing.
In this regard, China and the EU should intensify efforts to seek
greater synergies between the BRI and the EU’s Global Gateway.
In this Special Edition of Diplomatic World magazine, we compile
the views of leading voices from diplomacy, business, academia,
culture, tourism and other fields; highlighting success stories
and concrete deliverables of EU-China cooperation. One thing
is clear: a lot has been achieved; and looking into the future, if
pragmatic cooperation prevails, a lot is still to be achieved.
I wish you an inspiring reading,
Barbara Dietrich
CEO
Diplomatic World
3

6
10
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72
76
80
H.E. FU CONG, AMBASSADOR EXTRAORDINARY
AND PLENIPOTENTIARY AND HEAD OF
MISSION OF THE PEOPLE’S REPUBLIC OF CHINA
EXCERPTS OF PRESIDENT XI JINPING’S
REMARKS ON CHINA-EU RELATIONS
CHINA-EU TRADE AND ECONOMIC
RELATIONS IN NUMBERS
NIO – INTRODUCING A UNIQUE
APPROACH TO SUSTAINABLE
MOBILITY TO EUROPE
TESTIMONIAL 25 YEARS OF DOING BUSINESS
IN CHINA
UPHOLDING COMMON DEVELOPMENT TO
PROMOTE THE STEADY AND SUSTAINED
DEVELOPMENT OF CHINA-EUROPE RELATIONS
20
24
28
86
92
94
CLARE DALY
MEMBER OF THE EUROPEAN PARLIAMENT
PATRICK NIJS
HONORARY AMBASSADOR
HONG KONG
CHINA’S INTERNATIONAL CITY
AND EUROPE’S CONNECTOR TO ASIA
THREE IMPORTANT CHANNELS
TO STRENGTHEN THE AGRI-FOOD TRADE
BETWEEN CHINA AND THE EUROPEAN UNION
HOW HAS THE BELT AND ROAD
INITIATIVE CHANGED THE WORLD?
THE 10TH ANNIVERSARY
OF THE BELT AND ROAD INITIATIVE:
A EUROPEAN PERSPECTIVE
34
38
40
98
102
106
A G3 MECHANISM
FOR DIALOGUE AND COOPERATION
AMBASSADOR (RET.) PIET STEEL CHAIRMAN,
EUROPE – ASIA CENTER
GROUNDS FOR CONGENIALITY: RELATIONS
BETWEEN THE EU AND CHINA NEED NOT BE
CONFRONTATIONAL
CHINA RAILWAY EXPRESS (CRE)
THIRD-PARTY MARKET COOPERATION
BETWEEN CHINA AND EUROPEAN COUNTRIES
EMBRACING THE CHANGING FACE
OF CHINESE TOURISM IN EUROPE
44
48
52
110
114
118
CHINA-EU RELATIONS AT A CROSSROADS
CHEN WEIHUA, EU BUREAU CHIEF
CHINA DAILY
A BLUE PARTNERSHIP
BUILT ON TRUST AND MUTUAL LEARNING
CHINA’S
DEVELOPMENT VISIONS
REVIVAL OF TOURISM: BRIDGING CULTURES
AND EMBRACING SUSTAINABLE
COOPERATION
EXPLORING KASHGAR,
A JOURNEY THROUGH TIME AND TRADITION
STEPPING INTO JIAOHE RUINS,
A SILK ROAD TREASURE AND ONE
OF THE OLDEST EARTHEN CITIES
60
64
68
NAVIGATING THE EU BUSINESS LANDSCAPE
CCCEU’S STRATEGIC VISION
FOR CHINESE ENTERPRISES
BERNARD DEWIT
CHAIRMAN, BELGIAN-CHINESE
CHAMBER OF COMMERCE (BCECC)
POWERING A BRIGHTER FUTURE FOR EUROPE
LU YONG, PRESIDENT OF HUAWEI’S
EUROPEAN REGION
4 5

H.E. FU CONG
AMBASSADOR EXTRAORDINARY
AND PLENIPOTENTIARY
AND HEAD OF MISSION
OF THE PEOPLE’S REPUBLIC
OF CHINA TO THE EUROPEAN UNION
Working Together for a Bright Future of China-EU Relations
In Celebration of the 20th Anniversary
of the China-EU Comprehensive Strategic Partnership
In 2003, China and the EU established a comprehensive strategic
work supporting all-dimensional, multi-tiered, and wide-ranging
2022, Chinese investors have set up over 2,800 enterprises in the
up from about 3 million in 2003. More than 600 flights were
partnership, a milestone event that opened a new chapter in the
dialogues and cooperation has been put in place, consisting
EU member states, creating more than 270,000 jobs for the local
carried out every week. Over 180,000 Chinese students were
history of China-EU relations. The Mission of China to the EU and
of the China-EU Summit at the top level, and five high-level
population.
studying in the EU member states, while the number of Euro-
Diplomatic World are jointly publishing this special edition to take
dialogues as the pillars in the fields of strategy, economy and
pean students in China reached over 50,000. With the lifting of
stock of the 20-year journey and look for inspirations for the fu-
trade, people-to-people exchange, environment and climate, and
Connectivity has emerged as a new highlight in China-EU coop-
pandemic-related travel restrictions, people-to-people contacts
ture path of this important partnership. On behalf of the Mission
digital, based on more than 70 cooperation mechanisms. Fruitful
eration. The two sides have made efforts to seek greater synergy
are recovering rapidly. I believe it will return to and even exceed
of China to the EU, I wish to take this opportunity to express our
outcomes have been achieved through these dialogues. Collab-
between the Belt and Road Initiative and the initiatives of the EU.
the pre-pandemic level in a very short time.
sincere appreciation to people from all walks of life who have
oration in building a China-EU partnership for peace, growth,
We have established the EU-China Connectivity Platform and the
supported and promoted the development of China-EU ties in
reform and civilization has also further enhanced the global
China-EU Joint Investment Fund, contributing to effective tripar-
Over the two decades, China and the EU have risen up to global
the past two decades and to friends who have contributed to this
significance of our relations.
tite cooperation among enterprises of both sides. The China-
challenges side by side. We have maintained close communica-
special edition.
Europe Railway Express has gotten off the ground. Dubbed the
tion and collaboration on major regional and international issues,
Over the two decades, bilateral economic and trade ties have
“steel camel fleet” in Eurasia, it has completed over 78,000 trips
including the Iran nuclear deal, playing a positive role in maintain-
Over the two decades, thanks to our joint efforts, China-EU
grown much closer. Our bilateral trade volume has expanded
and accounted for 8 percent of all goods transported between
ing global peace and stability.
relations have grown extensively and profoundly into one of the
nine times from USD 86.8 billion in 2002 to USD 847.3 billion in
China and Europe in 2022.
most critical, constructive and influential partnerships, benefiting
2022.
We have made the colour of green as a defining feature of
not only our own development but also the peace, prosperity and
Over the two decades, people-to-people exchanges have pros-
China-EU relations. We have issued three joint statements on cli-
stability of Eurasia and even the world as a whole.
We have become each other’s second-largest trading partner,
pered. A number of high-level and large-scale cultural activities
mate change, established a partnership for climate change and a
with nearly USD 100 million of goods traded every hour. The
have been launched, including the Europalia China art festival,
green partnership, co-launched the Ministerial on Climate Action,
Over the two decades, bilateral exchanges and dialogues have
stock of two-way FDI has increased seven-fold from over USD
China-EU Year of Intercultural Dialogue, China-EU Tourism Year,
and played a crucial role in the conclusion of such historic agree-
flourished. Frequent high-level contacts between the two sides
33 billion to over USD 230 billion. In particular, China has seen a
and China-EU Youth Exchange Year. People made nearly 8
ments as the Paris Agreement and the Kunming-Montreal Global
have resulted in enhanced political and strategic trust. A frame-
rapid increase in investment flowing to the EU. As of the end of
million trips between China and the EU in pre-pandemic 2019,
Biodiversity Framework. Along with other parties concerned,
6 7

our mutual recognition as comprehensive strategic partners, and
not allow differences to define or dominate our relations.
We should enhance dialogues at all levels. Since the end of the
last year, China-EU interactions have made a full recovery with
promising momentum. President Xi Jinping has held meetings
with President Charles Michel of the European Council and
President Ursula von der Leyen of the European Commission,
as well as leaders from several European countries, including
Germany, France, Spain, Hungary, the Netherlands, Italy and
Greece. Seven EU Commissioners have visited China so far this
year. The upcoming China-EU Summit will provide strong political
guidance for the development of our relations. It is essential
to continue leveraging various communication mechanisms,
intensify dialogues, deepen mutual trust, and create a favourable
atmosphere for the development of China-EU relations.
We should uphold openness and inclusiveness to drive win-win
cooperation. China and the EU are steadfast supporters and
beneficiaries of economic globalization. We must not simply
equate mutual interdependence with insecurity, and we should
refrain from generalizing the concept of security or politicizing
China-EU economic cooperation. China’s development presents
opportunities, rather than risks, for Europe. Be it in the present
or the future, China remains and will remain a trustworthy friend
and partner for Europe. Together, we should nurture new growth
drivers in digital economy, green development and environment
protection, new energies, and artificial intelligence. We need to
make joint efforts to keep industrial and supply chains secure,
stable, and reliable. We hope that the EU side will adhere to the
principles of market economy and fair competition, and provide
a fair and non-discriminatory business environment for Chinese
investors.
We should embrace the vision of a global community of shared
future and tackle global challenges hand-in-hand. Currently,
the international situation is marked by a complex interplay of
factors, including, in particular, the Palestinian-Israeli conflict,
the Ukraine crisis, and the ensuing crises in refugees, energy
and food safety. We must practice multilateralism, strengthen
our coordination and cooperation, and jointly promote proper
resolutions to regional and international hotspot issues. We
should continue to take the leadership role in addressing global
challenges in terms of climate change and biodiversity. President
Xi Jinping has put forth the Global Security Initiative, the Global
Development Initiative and the Global Civilization Initiative. Those
initiatives are open to the world, and the support and participation
of the EU side will be most welcome.
Standing at a new starting point, we are optimistic about the
future of China-EU relations. I believe that as long as both sides
maintain a strategic and long-term perspective and follow the
basic principles underlying our relations, and as long as we continue
our efforts to enhance our dialogue and cooperation, while
managing our differences effectively and with mutual respect, we
will be able to usher in a very bright future for China-EU relations.
we have conducted joint counter-piracy exercises to effectively
deter piracy. We have also strengthened cooperation on the WTO
reform and worked together against protectionism.
Over the past 20 years, China and Europe have worked together
and stood by each other. In 2008, when a major earthquake
struck south-west China’s Sichuan Province, many European
countries rushed to provide emergency assistance. Countries
like Italy airlifted state-of-the-art mobile hospitals to the disaster-stricken
area. During the international financial crisis and the
European debt crisis, China expanded its investments in Europe,
which assisted relevant European countries in overcoming their
difficulties and supported European integration through concrete
actions.
long-term perspective and regarded the EU as a strategic force
and a diplomatic priority. We believe that China-EU relations hold
global strategic significance, and they are not targeted at any
third party, nor should they be dependent on or dictated by any
third party. Likewise, we also hope that the EU and European
countries take China more seriously and not develop relations
with other countries at the expense of China-EU relations or
China’s interests.
In this volatile and challenging world, the global significance of
China-EU relations is becoming more pronounced. We must
build upon the experiences of the past 20 years and work together
to upgrade our relations, so as to inject more stability and
positive energy into the world.
When China faced the outbreak of the COVID-19 epidemic, the
EU and its member states extended a helping hand and delivered
urgently needed medical supplies to China. As the pandemic
evolved into a global crisis, China reciprocated by providing a
large quantity of epidemic prevention materials to Europe.
Over the past 48 years since the establishment of bilateral diplomatic
relations, and especially over the last 20 years, China has
consistently approached China-EU relations from a strategic and
We should correctly understand and consolidate the partnership.
There are no geopolitical conflicts or fundamental conflicts of interest
between China and Europe. As a matter of fact, both sides
can benefit from each other’s development. We believe that cooperation
between the two sides far outweighs competition, and
that there are far more things that unite us than divide us. China
and Europe are, first and foremost, partners. While healthy competition
in the economic domain is natural, we are by no means
rivals, let alone systemic rivals. Therefore, we must not waver in
8 9

EXCERPTS OF PRESIDENT
XI JINPING’S
REMARKS ON CHINA-EU RELATIONS
“As the biggest developing country and the largest union of developed nations respectively, China and the
EU are “two major forces” for safeguarding global peace; as two major economies in the world, China and
the EU are “two major markets” for promoting common development; as important birthplaces of eastern
and western cultures, China and the EU are “two major civilizations” for pushing for progress of mankind.”
“The two sides should view China-EU relations from a strategic perspective, and combine the two powers,
two markets and two civilizations of China and the EU to jointly forge four major China-EU partnerships for
peace, growth, reform and civilization, so as to inject new impetus into China-EU cooperation and to make
a greater contribution to world development and prosperity.”
President Xi Jinping met with European Council President Herman Van Rompuy and European Commission President
José Manuel Barroso on 20 November 2013.
President Xi Jinping held talks with President Herman Van Rompuy of the European Council on 31 March 2014.
“In the era of economic globalization, China and the EU have become a community of common destiny
with their interests highly integrated. Win-win cooperation is the key to promoting the China-EU relations.
China and the EU should respect each other’s choice of development path and social system, strengthen
dialogues and exchanges on reform and other aspects, enhance mutual understanding and trust,
and always adhere to the principles of mutual respect, equality, seeking common ground while reserving
differences, and win-win cooperation in China-EU cooperation.”
“Both China and Europe are in a crucial stage of development and facing unprecedented
opportunities and challenges. As I just said, we hope to work with our European friends to
build a bridge of friendship and cooperation across the Eurasian continent.
For that, we need to build four bridges for peace, growth, reform and progress of
civilization, so that the China-EU comprehensive strategic partnership will take on
even greater global significance.”
President Xi Jinping met with President of the European Commission José Manuel Barroso on March 31, 2014.
President Xi Jinping delivered a speech at the College of Europe on 1 April 2014.
10 11

“To enhance China-EU strategic mutual trust with great wisdom, the fundamental key lies
in acknowledging the inevitable trend of world multi-polarization and economic globalization, realizing
the common appeals for peace and development of all peoples and adhering to the path of win-win
cooperation. China will not change its policy of support to the EU and the European integration and
is pleased to see prosperity and stability in both the EU and the UK.”
President Xi Jinping met with President Donald Tusk of the European Council and President Jean-Claude Juncker
of the European Commission on 12 July 2016.
“As two major forces, two big markets and two great civilizations,
China and Europe can make a difference for the world by demonstrating what they stand for,
what they oppose and what they can achieve in cooperation.”
President Xi Jinping met with President of the European Council Charles Michel and President of the European Commission
Ursula von der Leyen via video link on 22 June 2020.
“China and the EU are both builders of world peace, contributors to global development and defenders
of the international order. China stands ready to work with the EU on the basis of mutual respect, fairness,
justice and win-win cooperation, to make still further progress in the China-EU comprehensive strategic
partnership and promote bilateral economic and social development and people’s welfare.”
“China and the EU, as two major global forces, markets and civilizations,
should demonstrate a sense of responsibility and take active steps to contribute
to global peace and progress. The two sides need to enhance dialogue and mutual trust,
deepen cooperation, properly manage differences, and work together to nurture new
opportunities and open up new prospects.”
President Xi Jinping met with European Council President Donald Tusk and European Commission President
Jean-Claude Juncker on 16 July 2018.
President Xi Jinping held a meeting with German Chancellor Angela Merkel,
French President Emmanuel Macron, President of the European Council Charles Michel and
President of the European Commission Ursula von der Leyen via video conference on December 30, 2020.
12 13

“China and the EU should act as two major forces upholding world peace, and offset uncertainties in the
international landscape with the stability of China-EU relations. The two sides need to take the lead in defending
the international system with the UN at its core, the international order underpinned
by international law, and the basic norms governing international relations based on the purposes
and principles of the UN Charter, and jointly reject the resurrection of rival-bloc mentality and oppose
attempts at a new Cold War, with a view to maintaining world peace and stability.”
President Xi Jinping met via video link with President Charles Michel of the European Council and
President Ursula von der Leyen of the European Commission on 1 April 2022.
“China and the EU should focus on cooperation for mutual benefit,
support economic globalization and trade liberalization, engage in in-depth dialogue
and communication on issues in economic and trade cooperation, and reach mutually
acceptable arrangements through consultation. China is an important partner of the EU
in addressing energy, inflation and other challenges and in enhancing competitiveness,
and China welcomes the EU to continue to share China’s development dividends.”
President Xi Jinping met with President of the European Commission Ursula von der Leyen on 6 April 2023.
“It is important to strengthen coordination
and cooperation in international affairs.
China and the EU, both advocates of upholding
the international system with the United Nations at its core,
can work together to follow true multilateralism,
rise to challenges, and safeguard global peace
and development.”
President Xi Jinping held talks with President of the European Council Charles Michel On 1 December 2022.
14 15

Trade and economic relations are the foundation of the China-EU
comprehensive strategic partnership. The bilateral relations and
commercial cooperation ushered into a new era when China
and the European Community established diplomatic ties in
May 1975. Since then, especially since the establishment of
the China-EU comprehensive strategic partnership in 2003,
China-EU trade and economic ties have developed smoothly
and achieved fruitful results.
CHINA-EU TRADE AND ECONOMIC
RELATIONS IN NUMBERS
NO. 2 TRADING PARTNERS
The European Union had been China’s biggest trading partner
for 16 consecutive years until 2020 when it was overtaken by
ASEAN. China became the EU’s largest trading partner for the
first time in the year of 2020. In recent years, the trade value
between China and the EU Member States stood at over
USD 800 billion every year, with transactions per hour of
nearly USD 100 million.
A RECORD HIGH OF USD 847.3 BILLION
When China and the EU established the comprehensive strategic
partnership in 2003, their bilateral trade value was USD 125.22
billion. A decade later, it increased threefold to over USD 500
billion. According to China’s General Administration of Customs,
the bilateral trade value reached a historic high of USD 847.3 billion
in 2022, nearly seven times that of 2003. Among EU Member
States, the largest trading partners for China are Germany, the
Netherlands, France, and Italy, making up respectively 26.9,
15.4, 9.6, and 9.2 percent of the total bilateral trade value
between China and the EU.
THE EU INVESTS USD 123 BILLION IN CHINA
In the early days after the establishment of diplomatic ties
between China and the EU, two-way investment was nearly
non-existent. In the 1990s, a large number of European businesses
flocked to China, and the EU’s investment in China
started to grow exponentially.
According to the Statistical Bulletin of FDI in China 2023, realized
FDI from the EU to China was USD 10 billion in 2022, accounting
for 5.3 percent of the national total. In the same year, 1,376
new foreign-invested enterprises (FIEs) were established by the
EU investors, accounting for 3.6 percent of the national total.
According to a report from China’s Ministry of Commerce, by
the end of 2021, the EU’s actual cumulative investment in China
topped USD 123.36 billion.
In 2022, the top 5 sectors with the largest amount of EU FDI in
China were manufacturing; scientific research and technology
services; leasing and business services; wholesale and retailing;
information transmission, software, and information technology
services (accounting for 90 percent of the total number of newly
established FIEs, with realized FDI reaching 95.3 percent of the
total)
BASF’S EUR 10 BILLION INVESTMENT IN CHINA
Specific business cases offer us a unique perspective on the
EU’s investment in China. The German chemical producer BASF
commenced construction of its syngas plant at the Verbund site
in 2023 in Zhanjiang, China. The Zhanjiang Verbund site will be
BASF’s largest investment, with up to EUR 10 billion upon completion.
As China endeavors to build a high-level open economy
and rolls out a series of new opening-up measures, more and
more European businesses are capitalizing on the business
opportunities in China.
In November 2019, the Munich-based insurance company Allianz
received regulatory approval to commence the operation of
China’s first fully foreign-owned insurance holding company. In
April 2023, Airbus reached an agreement with Chinese partners
to expand the A320 Family’s final assembly capacity with a
second line at its Tianjin site. China is a major customer of Airbus
products, with Chinese deliveries representing nearly a quarter of
the company’s global commercial aircraft production.
16 17

CHINA INVESTS OVER USD 100 BILLION IN THE EU
Since 2008, China’s investment in the EU has maintained
relatively fast growth. According to the 2022 Statistical Bulletin
of China’s Outward Foreign Direct Investment, China’s outward
investment in the EU amounted to USD 6.9 billion in 2022, down
by 12.2 percent, accounting for 4.2 percent of China’s annual
outward FDI stock. In 2022, the sectors that received the largest
amount of Chinese FDI in the EU were manufacturing, finance,
wholesale and retailing, and scientific research and technological
services.
The Chinese-invested projects have produced positive results.
For example, Piraeus port in Greece has changed impressively
since the COSCO Shipping Corporation started to manage the
port’s container terminals in 2009. The terminal has been extended
and upgraded with new infrastructure projects. In 2021, Piraeus
Port handled 5.65 million containers annually, ranking first
in the Mediterranean and 25th in the world, up from 93rd at the
time of the M&A. In recent years, the Piraeus Port has become
one of the fastest-developing container ports in the world. The
Chinese investment has generated over 3,000 direct jobs and
thousands of indirect jobs for the Greek economy.
By the end of 2022, China’s outbound FDI stock in the EU
reached USD 101.2 billion, accounting for 3.7 percent of China’s
outward FDI stock. The countries with more than USD 10 billion
in stock were the Netherlands, Luxembourg, Sweden, and
Germany. Among them, the Netherlands topped the list, reaching
USD 28.3 billion, accounting for 28 percent of the outward FDI
stock in the EU, followed by Luxembourg, with USD 20.05 billion,
accounting for 20.3 percent. Sweden ranked third with
USD 18.67 billion. Chinese investors had set up more than
2,800 FDI enterprises in the EU, covering all 27 Member States
and employing nearly 270,000 local employees.
77,000 TRIPS MADE BY CHINA-EUROPE TRAINS
In March 2011, the first container train set off from China’s
Chongqing city to Germany. Since then, the number of trips by
China-Europe Railway Express has increased from 17 in 2011
to 16,000 in 2022. The China-Europe Railway Express has now
reached 217 cities in 25 European countries, comprising 86
routes passing through the main regions of the Eurasian hinterland
at a speed of 120 km per hour. Its logistics distribution
network covers the entire Eurasian continent.
GLOBAL RANKING OF PIRAEUS PORT RISES
TO 25TH
During the European debt crisis, Chinese investment continued
to inject impetus into the European economy.
By the end of September 2023, the cumulative volume of the
China-Europe Railway Express had exceeded 77,000 trips,
transporting more than 7.31 million TEUs and over 50,000 types
of goods in 53 categories such as automobiles, mechanical
equipment and electronic products, to a total value of more than
USD 340 billion.
Photo: Istock
18 19

CLARE DALY
MEMBER OF THE EUROPEAN PARLIAMENT
The relative interests of the PRC,
the United States, Europe and the rest
of the world are not zero sum.
The West does not have to compete with China
to guarantee its place in the world
For well over a decade, the United States has been gearing up
alogue has effectively come to a standstill, including on climate.
for a geopolitical confrontation with the People’s Republic of
As relations have deteriorated, there has also been a normalisa-
China. The beginnings of this process can be found in the
tion of the unthinkable: the US military and centres of strategic
Obama years, with that administration’s “Pivot to Asia” regional
planning have begun openly preparing for a potential military
strategy, which included: enhanced diplomacy with the ASEAN
confrontation with China, in particular with detailed war gaming
countries to orient them towards the United States; efforts to
exercises centering on possible hostilities in the Taiwan Strait.
form a Trans-Pacific Partnership of 12 Pacific Rim economies
excluding the PRC; the beginning of “freedom of navigation”
The conclusion cannot be denied: there exists a bipartisan
operations in the South China Sea; and the first attempts to set
consensus, across three successive US administrations and ex-
up the “Quad” - a NATO-like alliance in the Indo-Pacific – initially
tending out into the think tank and strategic advisory community
incorporating Australia, India, Japan and the United States, with
around Washington, that the United States must pursue a long
the PRC positioned as the primary antagonist.
term grand strategy of maintaining its “primacy,” by curtailing
the emergence of the PRC as a world power across multiple do-
These efforts on the part of a Democratic Party presidency
mains, by diplomatic, economic and if necessary, military means.
were largely eclipsed from memory by the burlesque foreign
There is, then, indisputably a New Cold War on China, and there
Russia’s invasion of Ukraine has driven away all talk of “strate-
attempting to find boilerplate that can square the circle of the
policy style of the Trump administration, which soon initiated a
also exists a real risk that it could heat up fast.
gic autonomy,” and re-established US military and economic
PRC being both a close and cooperative partner and a civiliza-
trade war with the PRC, levying WTO-defying unilateral tariffs
dominance in Europe. These are now being leveraged to wrestle
tional enemy. US pressure on firms and allies to “decouple” from
on billions of dollars of PRC goods, and presiding over a period
But this is an article about EU-China relations. Why spend so
Europe away from pursuing its own independent relationship with
the PRC - “friendshoring” supply chains away from the PRC
of dramatically worsening US-PRC relations, already described
much of it on an outline of US grand strategy against the PRC?
the PRC, in line with its own interests and needs, and towards
to perceived allies – has elicited the policy of “de-risking” from
by many during those years as an undeclared “New Cold War.”
Simply because recent EU policy on China makes no sense
splitting the world once more into armed camps, with Europe
Ursula von der Leyen – an apparent attempt to have it both ways.
Upon the election of Joe Biden, much commentary anticipated
whatsoever if it is not understood in this context.
subordinated to US interests.
that the Democrats would reverse Trump’s policies once in the
Her recent threat to impose tariffs on Chinese electrical vehicles
White House.
For decades EU-China relations have been driven by globalisa-
Many national capitals in Europe – closer to the realities of
– as part of a move towards joining a protectionist “Critical Raw
tion, and for decades governments and EU leaders perceived
actually running a society – discreetly continue to desire mutually
Materials Club” with the United States – have drawn the fire of
Those predictions have turned out to be mistaken. The Biden
that it was in the interests of mutual prosperity to develop strong
beneficial relations with the PRC. But the European Union – far
both the environmental movement – who see this undermining
administration has been, if anything, more hawkish than Trump
economic and diplomatic relations with the PRC. For an EU
from ringing in a new era of European independence – has largely
the European Green Deal – and European industrial interest rep-
in its dealings with the PRC. This was as good as announced
that traditionally avoided great power politics, China’s rise was
served to drag the 27 Member States, like it or not, into a junior
resentatives – who fear the consequences of Chinese retaliation.
during the frosty confrontation between Secretary of State
not treated as a threat but as an opportunity for positive sum
role in the United States’ “great power competition” with China.
Antony Blinken and Foreign Minister Wang Yi at Anchorage in
interactions. That conventional wisdom persisted long into the
A visceral anti-China politics has taken hold in institutions and
March 2021. It has continued through a battery of hostile trade
Trump years, when the erratic nature of the White House began
As a result, a country of 1.4 billion people that is in reality
the media in Brussels. There is a concerted effort – particularly
measures, sanctions and avoidable diplomatic spats, with only
to fray the transatlantic relationship. EU elites sought to sit out
Europe’s largest trading partner since 2020, is named in EU
within the European Parliament – to provoke diplomatic fallout
occasional attempts – such as last year’s Biden-Xi meeting in
the turbulence, while entertaining notions of a new “strategic
“strategy” documents – apparently produced in homage to the
by probing internal conflicts in China, whether over cross-Strait
Bali – to mend bridges.
autonomy” from Washington.
American equivalents – as our “strategic rival.” In the fatuous
relations, Tibet, Hong Kong or human rights concerns in Xinjiang.
mythology of the New Cold War, now bellowed in every European
Throughout all of this, the administration has insisted that
Since Biden took office however, the EU’s relations with the PRC
Parliament plenary in Strasbourg, all of the democracies are
The drive towards European militarisation, including the fortifi-
US-China cooperation on the climate crisis remains possible,
have been increasingly hijacked by the United States. Once it
arrayed valiantly against all of the authoritarian regimes, except
cation of EU security and defence missions in a belt of countries
even while engaging in economic warfare. But the reality is that
was clear this was no flash in the pan, no whim of an erratic
for the abundant exceptions in either bloc that shall not be
across trans-Saharan Africa, is constantly justified by the need
diplomatic relations have soured so considerably that bilateral di-
president, Europe’s leaders began to fall in line. Along with this,
mentioned. Spokespeople for the Commission are continually
to jostle with the PRC there. The myth of PRC “debt-trap
20 21

diplomacy” is repeatedly deployed to portray PRC overseas
investment as a diabolical Asian plot to steal strategic infrastructure.
EU investment in the majority world is now driven not by a
commitment to development but by the need to compete with
the Belt and Road Initiative, and deny ground to China.
for the ages. But how much more incomprehensible is it that EU
leadership is willing to sacrifice the EU’s own fundamental interests
and its relations with China, and to gamble with the future
of humanity, solely in the strategic interests of a foreign country
across the Atlantic Ocean?
At home, European officialdom has been gripped by
“whole-of-society” paranoia about the alleged threat of PRC
disinformation and interference, leading to a deeply unhealthy
political culture. Meanwhile, selective neurosis about European
dependence on Chinese – but not American – technology firms
has led to pressure to ban firms like Huawei, ZTE and ByteDance
from European markets.
All of this is doing profound and unnecessary harm to the
European Union’s standing in the world, as well as that of its
Member States and the interests of its citizens. Worse, it is
accelerating the division of the world’s countries into geopolitical
camps, and potentiating the outbreak of another world war, at
the precise time when peaceful relations and close international
cooperation are urgently necessary to bring world civilization
within planetary boundaries.
That US leadership is prioritising the maintenance of that country’s
primacy over the survival of humanity is surely a betrayal
The long-term stability and growth of China-EU relations depends
on the EU resolving these contradictions in itself. The
relative interests of the PRC, the United States, Europe and the
rest of the world are not zero sum. The West does not have to
compete with China to guarantee its place in the world. Europe
should abandon the folly of “great power competition,” and
clearly and firmly demonstrate that it will not subordinate its
interests to US grand strategy.
Human rights concerns can and should be addressed, but in
the course of regular and mutually respectful relations with the
PRC, and without turning a blind eye to the EU’s own appalling
human rights record. Europe should use its position to defuse
US-China tensions, and to encourage development towards a
more multi-polar and cooperative world, necessitated both by
the interconnected nature of the global economy and by the
need for global civilisation to move as one to tackle the causes
– and mitigate the effects – of climate change. That is the real
challenge facing our planet.
Photo: Shutterstock
Photo: Shutterstock
22 23

Diplomatic relations between the European Union and the
People’s Republic of China were first forged on May 6, 1975.
This marked the beginning of official diplomatic ties between
China and the EU’s predecessor, the European Communities.
Back then, the EC comprised of only nine member countries,
with its primary focus on steel, coal, and nuclear power. The
concept of integrating foreign and security policies had yet to
emerge. There was possibly just a solitary Chinese diplomat at
the Embassy in Brussels assigned to oversee and manage these
affairs.
It would take another 15 years, the advent of the Single Act,
two more enlargements – bringing the EC membership to 12
countries- and the evolution of China’s opening and modernisation
policy, before an EC representation was finally established
in Beijing in September 1988. The management of these affairs
remained within the confines of the Embassy of the People’s
Republic of China to the Kingdom of Belgium.
This was the case until 2005, when Ambassador Guan Chengyuan,
assigned to both the Kingdom of Belgium and the European
Commission, relinquished his bilateral role and was succeeded
by Zhang Qiyue, as Ambassador to Belgium. Ambassador Guan
served exclusively as the Ambassador to the EU until 2008. During
this period, the European Union had come into existence with
the Treaty of Maastricht in 1992, and its membership had grown
to 25 countries.
PATRICK NIJS
HONORARY AMBASSADOR
VISITING PROFESSOR
AT ZHEJIANG UNIVERSITY
OF TECHNOLOGY (ZJUT)
The time has come to return to the partnership model,
with a resolute focus on addressing critical ecological
challenges on a global scale
Until the early 2000s, China expressed limited interest in the
EU, concentrating its efforts on bilateral relations with individual
Member States to secure the resources necessary to fuel its
rapid economic growth. China’s entry into the WTO in 2001 is
likely to have catalysed a deeper interest in multilateral relations,
thereby making the EU a more relevant partner. The formation
of the China-EU Strategic Partnership in 2003 marked a significant
leap. This partnership has since undergone a fascinating
evolution over the past two decades, with its fair share of highs
and lows, reflecting the complex dynamics between two of the
world’s largest economic and political forces.
As we delve into the journey of China-EU relations from 2003 to
the present, it becomes evident that while elements of competition
have been inevitable, a steadfast commitment to cooperation
in addressing global challenges has remained paramount
from the beginning. The Comprehensive Strategic Partnership
allowed a platform for the resolution of disputes as they arose.
Disputes in trade and economic relations, including high-profile
cases concerning steel, solar panels, and technology transfers,
underscore the competitive facets of the relationship as both
sides sought to safeguard their interests.
The China-EU partnership has been characterized by high-level
dialogues, cooperation on various global and regional issues,
and deep economic ties. These dialogues have included topics
such as trade, investment, climate change, human rights, and
regional and international security. Economic cooperation has
been integral to this partnership, as China and the EU are major
trading partners, striving to promote trade, investment, and
economic collaboration while addressing issues such as market
access and intellectual property rights.
Climate change and sustainability have also been key areas of
cooperation, with both parties working together on issues related
to the Paris Agreement, renewable energy, and sustainable development.
The China-EU partnership had extended to collaboration
on global governance, including reforms of international
organizations, peacekeeping, and conflict resolution. Human
rights and the rule of law have been subjects of dialogue too,
with the EU frequently raising concerns about human rights in
China, emphasizing adherence to international norms, while the
Chinese side stood by its own perspective. Cultural and people-to-people
exchanges had been actively encouraged through
various programs and initiatives aiming to foster mutual understanding
and cultural cooperation.
This partnership thrived for a decade before encountering
significant challenges around 2013. It began to face hurdles
on commercial issues and increased competition in emerging
technologies. The story of Huawei in Europe serves as a telling
illustration of these disagreements. Between 2009 and 2019, the
Shenzhen-based company went from valued partner to black
sheep.
To understand this shift, we must consider the emergence of
a new generation of European leaders that gradually assumed
prominent roles within the intricate machinery of European politics.
These newcomers differed from their predecessors of the
late 1960s and 1970s. During that era, Europe had undergone
a period of profound self-reflection, searching for a renewed
identity while regarding China as an emerging force that could
potentially contribute to a more balanced global order.
The dominant white male figures of the time found themselves in
a state of disarray. Their offspring were immersing themselves in
Marxism and taking a stand against the Vietnam War. Figures like
De Gaulle were advocating for a stronger Europe that would fully
embrace its continental destiny. Henry Kissinger was reshaping
geopolitical thinking, recognising China as a potential partner in
the emerging global landscape.
The subsequent generation of leaders faced different circumstances.
Rising unemployment rates in Europe compelled them
to focus on accumulating academic credentials to succeed in
an increasingly competitive job market. This shift in priorities
resulted in a waning interest in China, as the US capitalist model
took centre stage in their minds. Many of the new leaders lacked
insight into the depths of Chinese civilization and the necessary
tools to engage with it effectively, with the aim of fostering a
more balanced multilateral world.
This transition led to the side-lining of the older generation, which
had welcomed China’s rise with open arms. This shift in leadership
ushered in a new discourse, one marked by competition
and antagonism. The focus gradually shifted towards NATO, a
partnership previously inconceivable to the prior generation.
Another significant factor to this shift in mentality was the rise of
the European Parliament. In the early phases of European Unification,
the Assembly, which later evolved into the EU Parliament,
wielded minimal influence. Its primary function was to offer advice
and expand the reach of the budding Commission (formerly
the High Authority) and the Council, which held the reins of
actual decision-making power. Over the course of the five
treaties that propelled the European Unification process, the
Parliament’s role steadily evolved. Thus evolution culminated in
the Treaty of Lisbon which entered into force in 2010. It elevated
the Parliament to a position of substantial authority within
the legislative process. It also gained significant control over
the operations of the Council and particularly the Commission.
Previously absent from shaping EU foreign policy, the Parliament
now wields considerable influence in this realm. Consequently,
the executive power, more attuned to realpolitik and the interests
of the EU and its Member States, has lost substantial ground.
The European Parliament has been subject to infiltration by
anti-Chinese lobbies for many years. This infiltration has given
rise to a situation where the EU’s policy towards China tends to
adopt an antagonistic tone, sometimes more so than the foreign
policies of individual Member States, which must balance their
economic interests with other considerations.
FROM PARTNER TO SYSTEMIC RIVAL
It appears that the European External Action Service (EEAS)
established by the Treaty of Lisbon has played a rather questionable
role in pushing the EU towards closer alignment with the
United States. In the past, policy papers on Common Foreign
Policy were crafted by the Political Committee, where heads of
political departments from Member States’ Foreign Ministries
convened under the rotating Presidency’s chairmanship.
These pivotal policy documents were subsequently validated
by the Council of Foreign Affairs and finalised by the European
Council. However, the composition of these texts has now become
the responsibility of the European External Action Service
(EEAS). It remains challenging to determine whether this shift is
a consequence of changing circumstances or the advent of the
EEAS, but one thing is clear: the tone in dealings with China has
markedly transformed. The concept of China as a “Systemic
Rival” emerged in the early 2010s and has since been recurrently
referenced in documents from both the EEAS and the Commission,
effectively branding China as such. We must contemplate
the ramifications of this semantic shift.
At a time when humanity confronts systemic global challenges
stemming from the potential self-inflicted extinction of our species,
how much sense does it make to keep replacing partnership
with rivalry? While partnership necessitates collaboration
on multiple fronts, differences and challenges should ideally be
addressed through an inclusive parallel process aimed at global
integration. This encompasses disagreements on matters such
as trade practices, human rights, governance, and regional
tensions.
24 25

In a partnership model, both sides engage in regular summits
Merely shifting from decoupling to de-risking is insufficient. In a
underpinned by a robust political dialogue framework to discuss
world where humanity’s survival is at stake, cooperation must
the status of the partnership and pivotal international and bi-
take precedence over rivalry to prevent our extinction. China has
lateral issues. These summits provide a platform for leaders to
been steering its economy towards sustainability since the 12th
engage in constructive dialogue.
Five-Year Plan for Economic and Social Development (2012-
2016).
We have been drifting away from this collaborative spirit. The
COVID-19 pandemic has played a regressive role by disrupting
Today, China’s commitment to developing an environmentally
communication channels and leading to a three-year period of
sustainable economy is substantial and unwavering. Regrettably,
withdrawal and isolation. The EU realised during this time its
these efforts have often gone unnoticed by the EU, particularly
deep dependency on China but regrettably responded with a
its public opinion, which is heavily manipulated by China scep-
narrative of decoupling, rather than seizing the opportunity to
tics. The time has come to return to the partnership model, with
devise new models of interdependence and integration. The
a resolute focus on addressing critical ecological challenges on a
responsibility for this decoupling trend lies on both sides.
global scale. We must intensify the dialogue, seek out and apply
solutions globally, multiply the platforms where politicians, ac-
Despite denials, the trend of practising so-called “wolf warrior
ademics, entrepreneurs, farmers and businesspeople can meet
diplomacy” has not been helpful. The European diplomatic
and cooperate.
corps in Beijing faced a challenging period during the COVID
pandemic, grappling with unflattering language from their
A global solution for all of us is inconceivable without China, and
Chinese counterparts and limited access to the Chinese admin-
it is urgent that we engage wholeheartedly with China, relinquish
istration. Thankfully, this trend appears to be receding, with a
antagonistic rhetoric, and shift the mode of our relationship back
renewed call for engagement from the Chinese side, which the
to cooperation. China has the power and the willingness to do
EU should, hopefully, respond to positively and actively.
so, and its pace is nothing short of swift.
Zhejiang university
Photo: Pixabay
High-view night view of Qianjiang New Town, Hangzhou, Zhejiang, China
Photo: Istock
26 27

HONG KONG
CHINA’S INTERNATIONAL CITY
AND EUROPE’S CONNECTOR TO ASIA
Hong Kong has come a long way from a small fishing village to
an entrepôt and to further establish itself as a global financial
centre and China’s international city. Today, Hong Kong is an
invaluable connector between East and West, Europe and Asia,
China and the world.
The city is also playing a key role in regional collaboration and
supporting national policies such as the development of the
Guangdong-Hong Kong-Macao Greater Bay Area (GBA).
The GBA, an emerging driving force for growth, comprises Hong
Kong, Macao and nine neighbouring cities in China’s Pearl River
Delta – a huge and growing consumer market with a population
of more than 86 million and an aggregate GDP of EUR 1.8 trillion.
“ONE COUNTRY, TWO SYSTEMS” HERE TO STAY
With its unique “one country, two systems” advantages, the
Hong Kong Special Administrative Region (SAR) enjoys the unwavering
support of its Central Government and unrivalled links
with Mainland China while retaining its own tried and trusted
systems.
Hong Kong, for example, maintains its own low and simple tax
system, with salaries tax capped at 15 percent and corporate tax
at 16.5 percent; a freely convertible currency; and separate customs
territory and a free port status. All this supports the city’s
business-friendly environment with free flow of capital, goods,
talents and information; robust intellectual property rights protection;
and English as an official language as well as Chinese.
Hong Kong’s Financial Secretary, Mr Paul Chan (right), with France’s Minister for Foreign Trade, Economic Attractiveness and French Nationals Abroad,
Mr Olivier Becht (left), at the Think Business Think Hong Kong business symposium in Paris on 19 September 2023. Mr Chan told participants that Hong Kong is back,
open, and re-connecting with a world of business.
Hong Kong has the financial resources, business networks and
expert professional services that can help European companies
seeking to tap the vast opportunities in the GBA and other parts
of China and the region, including ASEAN countries with which
Hong Kong has strong ties.
formula that gives Hong Kong its status is here to stay for the
long run. That reflects the importance of “one country, two systems”
advantages, not just to Hong Kong but also to the Country
as a whole, including China’s economic development strategies
such as the GBA.
Hong Kong’s Chief Executive, Mr John Lee, speaking at the Europe Day reception in Hong Kong on 9 May 2023, congratulated the European Union Office to Hong Kong and
Macao which is celebrating the 30th anniversary of its establishment.
Hong Kong’s strengths are underpinned by its common law
system, the rule of law and an independent judiciary. In its 2023
Rule of Law Index, the World Justice Project ranked Hong Kong
23rd out of 142 countries and jurisdictions, just behind France
and ahead of the United States.
The International Institute for Management Development,
recognised Hong Kong as one of the world’s most competitive
economies, ranking the city 7th out of 64 economies in its World
Competitive Yearbook 2023. After some challenging years – social
unrest in 2019 followed by the COVID pandemic – some media
reports questioned the future of “one country, two systems”.
Any doubts have since been dispelled by President Xi Jinping
and other high-ranking officials, who repeatedly affirm that the
Speaking at the Think Business Think Hong Kong symposium in
Paris on 19 September 2023, Hong Kong’s Financial Secretary,
Mr Paul Chan, noted that it is in China’s interest that Hong Kong
maintains not just its exemplary common law system, but also
continues to thrive as an international trade, shipping and financial
centre, an East-meets-West centre for international cultural
exchange and a critical gateway between Mainland China and
the rest of the world.
“That reality is underlined in the National 14th Five-Year Plan,
where Hong Kong has been designated as an international centre
for trade, shipping, finance, aviation and innovation and technology,
as well as regional hub for legal and dispute resolution
services and intellectual property trading,” Mr Chan said.
28 29

Deputy Financial Secretary, Mr Michael Wong (second right) and Vice Mayor of Shenzhen Municipal People’s Government, Mr Huang Min (first right) look at a
development plan for the Lok Ma Chau Loop, after leading the second meeting of the Task Force for Collaboration on the Northern Metropolis Development Strategy
on 11 July 2023. The future San Tin Technopole is an integral part of the Northern Metropolis while the Loop is home to the Hong Kong-Shenzhen Innovation and
Technology Park, a centrepiece of cross-boundary I&T collaboration.
The Hong Kong Palace Museum, opened in July 2022 in the West Kowloon Cultural District beside Victoria Harbour, displays exceptional works from Beijing’s Palace
Museum and beyond. It aspires to become a leading institution in the study and appreciation of Chinese art and culture while advancing dialogue among
world civilisations.
VAST OPPORTUNITIES
mercialisation of R&D outcomes of university research teams.
Hong Kong-Shenzhen Innovation and Technology Park recently
a government globally, deploying latest technology to promote
It is also combining its competitive advantages with those of the
set up in the area vividly showcase the Northern Metropolis as an
sustainable finance. In June 2023, an offering close to USD 6
Apart from Hong Kong’s traditional strengths such as trading,
GBA: excellent scientific research, trusted intellectual property
important platform for Hong Kong to synergise with the GBA.
billion worth of green bonds, denominated in US dollars, Euro
logistics, legal and financial services, new areas of development
rights protection, and sophisticated financial services in the case
and Renminbi, was made open to global investors to fund green
including innovation and technology, green finance, as well as
of Hong Kong; and strong technological innovation, commercial-
Cross-boundary collaboration is also a feature of the Hetao
projects.
cultural and creative industries, are frontiers where Europe excels
isation and advanced manufacturing capabilities in neighbouring
Shenzhen-Hong Kong Science and Technology Innovation
and Hong Kong is ready to work with its European partners.
Mainland cities.
Co-operation Zone, for which the Development Plan was promul-
Hong Kong is no less active in its pursuit of arts and cultural
gated in August 2023.
development, ranging from film and fashion to performing arts
In its bid to develop into an Asian hub for innovation and tech-
In fact, the Global Innovation Index has ranked Shenzhen,
and major events. The West Kowloon Cultural District (WKCD)
nology, Hong Kong is nurturing local talents, attracting non-local
Hong Kong and Guangzhou second globally, as a science and
Capitalising its competitiveness in both I&T and finance, Hong
is one of the world’s largest arts and cultural developments. The
professionals and building up its technology ecosystem among
technology cluster, for four consecutive years.
Kong leads Asia in green finance, issuing EUR 75 billion in green
M+ global museum of visual culture and the magnificent Hong
entrepreneurs, investors, businesses and research institutes.
debt in 2022, or more than one-third of the Asian bond market.
Kong Palace Museum are among the latest venues to open in the
The Northern Metropolis, a 300 square kilometres area bordering
Since 2018, tranches of green bonds were successfully issued
WKCD.
Hong Kong has five universities ranked among the world’s top
Shenzhen, is now being developed into an “International Inno-
under the Government Green Bond Programme, including the
100 and will be increasing support for more youngsters to study
vation and Technology New City”, to propel Hong Kong to new
offering of HK$ 800 million (EUR 97 million) of tokenized green
Hong Kong hosts major art fairs like Art Basel and many interna-
STEAM subjects, as well as increasing funding to promote com-
heights. The future San Tin Technopole and the
bond in February 2023, which was the first of its kind issued by
tional galleries, and is a leading auction market for art.
30 31

Hong Kong’s global art market share overtook London for the
first time in 2020 and reached 19.4 percent in 2021. As a crossroads
between East and West, Hong Kong is an international
centre for cultural exchange, a role that is set to develop further
in the years ahead in light of growing arts and creative industries
in Mainland China and Asia. The debut Hong Kong Performing
Arts Expo will be held in Hong Kong in October 2024 as a major
initiative to strengthen the city’s positioning as an East-meets-
West cultural centre.
a stone’s throw from the city centre), and a thriving arts and
cultural scene, which includes the French May Arts Festival, the
biggest festival of its kind in Asia. Also, there are over 50 international
schools that offer a variety of curricula to ensure easy
transition and high-quality education for expat children.
Hong Kong is an international city like no other. An important
two-way bridge connecting the Mainland of China and the world,
it is a safe, vibrant and reliable connector for European enterprises
considering venturing into Asia.
CONNECT ASIA FROM HONG KONG
Hong Kong treasures its long-standing and strong connections
with the European Union (EU). The EU has always been a very
important trading partner of Hong Kong. Taken as a bloc, the EU
is Hong Kong’s third-largest trading partner in merchandise trade
globally.
Hong Kong is also home to some 1,600 EU companies, forming
the largest non-Chinese business community in Hong Kong. A
Working Holiday Scheme is also established with Austria, France,
Germany, Hungary, Ireland, Italy, the Netherlands and Sweden
in the EU, providing a popular avenue for exchanges between
young people in Hong Kong and Europe.
There’s no better time than now to visit Hong Kong and explore
these opportunities for yourself.
The Hong Kong Economic and Trade Office in Brussels
(HKETO, Brussels) is the official representation of the
Hong Kong Special Administrative Region Government
to the EU and 15 countries in Europe. It is also the
“Head Office” of the Hong Kong Economic and Trade
Offices in Europe, supported by the Hong Kong
Economic and Trade Offices in London and Berlin.
Hong Kong Economic and Trade Office, Brussels
www.hongkong-eu.org
Hong Kong looks forward to closer relations with the EU and a
greater presence of European businesses and talents in Hong
Kong, to expand and grow together in the GBA, Mainland China
and beyond. Last year Hong Kong rolled out various talent attraction
schemes to make it easier for professionals from all over
the world to live and work in Hong Kong.
Enquiries: General@hongkong-eu.org
Dedicated Team for Attracting Businesses and Talents /
Investment Promotion Unit (Brussels):
biz_talents@hongkong-eu.org
A new “Office for Attracting Strategic Enterprises” was set up to
attract target companies in areas such as life and health science,
AI and big data analytics, fintech, advanced manufacturing, new
materials and new energy technology, by offering special facilitation
measures – covering land grant, financing and tax concessions.
Hong Kong also expanded the Talent List in May 2023 to
a wider range of talents in need, including those from creative
industries and performing arts.
A new “multi-entry visa” arrangement has also been launched to
facilitate cross-boundary travel to the Mainland for foreign workers
in companies registered in Hong Kong.
The immense opportunities brought by the emerging markets in
Mainland China and Asia are readily accessible in Hong Kong
for companies and talents from EU and other countries. Beyond
business, Hong Kong’s cosmopolitan lifestyle makes the expat
community feel right at home. It can enjoy the city’s 200-plus
Michelin-recommended restaurants, country parks that cover
about 40 percent of Hong Kong’s landmass (some located just
Hong Kong city night view. Awesome cityscape
Photo: Shutterstock
Traditional chinese sailboat in Victoria harbor. Hong Kong
Photo: Shutterstock
32 33

A G3 MECHANISM
FOR DIALOGUE AND COOPERATION
CHINA, THE USA AND THE EU
WORKING TOWARDS THE RECOVERY
OF THE WORLD ECONOMY
AND THE GOVERNANCE
OF INTERNATIONAL AFFAIRS
Wang Huiyao,
Founder and President,
Center for China and Globalization
As the global landscape evolves from a bipolar to a multi-polar
own goals for carbon neutrality, the road to a net-zero society is
world, the international community is also undergoing a trans-
still long, particularly in the context of the Russia–Ukraine con-
formation. After over two decades of robust development, the
flict, which has led to soaring energy prices.
global economy is now facing a recession following a pandemic
lasting three years whose nature has not been seen in nearly a
Second, against a backdrop of both huge economic poten-
century. The pandemic has laid bare daunting issues: the gap
tial and security concerns, there is a growing consensus that
between advanced economies and developing countries, rising
countries should pursue digital sovereignty. The EU was the first
populism, the Russia–Ukraine conflict, the climate crisis along
economic entity to act in this area by launching the General Data
with the potential risks of emerging technologies like generative AI.
Protection Regulation (GDPR), which entered into force in 2016.
This was followed in the USA by the California Consumer Privacy
These global challenges make it imperative that China, the
Act (CCPA) in 2018 and China’s Personal Information Protection
United States and Europe, as the top three economies, form
Law (PIPL) in 2021. However, while these are steps in the right di-
a kind of ‘G3’ mechanism for regular high-level dialogue and
rection, the world also requires more normative agreements and
coordination to lead the recovery of the world economy and the
regulations to manage the thriving and dynamic digital economy.
governance of international affairs. These three major players
member countries, including European countries and the USA,
G3 mechanism – with China, the USA and the EU at the core –
possess the ability to put issues on the agenda and discuss
Third, instability in the international community is impeding the
meant that Russia was also essentially fighting the West. In con-
could focus on in terms of regular high-level dialogue.
solutions in areas of common concern and global challenges
effective regulation of global markets. The scarcity of interna-
trast, as a country not involved in the war, China has considera-
and to effect change.
This ‘triumvirate of powers’ will most likely be the decisive factor
tional public goods has to a certain extent led to a widening of
the gap between developing and developed countries. China,
the USA and the EU recognise this problem and have responded
ble room to mediate.
Recently, a Chinese special envoy visited five countries as well
PROMOTING REFORMS OF THE WTO
in how globalisation and new paradigms of global governance are
with their own programmes – the BRI, B3W and Global Gateway
as the EU’s headquarters, following which there was a big push
While bilateral or multilateral investment and trade agreements
developed and implemented. There are several issues the three
– in an attempt to resolve the global infrastructure deficit.
in favour of China playing a major role in mediating the conflict
are on the rise, the WTO will remain a central institution for
major players must work together on making joint decisions in
between Russia and Ukraine. Why not hold a Seven-Party Talks
promoting investment and trade facilitation, reducing tariff and
order for the world to progress in a peaceful and productive way.
Yet, the good being done through these programmes could also
summit? Such a summit could include the five permanent mem-
non-tariff barriers, and eliminating differential treatment in inter-
result in a squandering of resources in the absence of efficient
bers of the United Nations Security Council, plus the EU and
national trade. Today, it still plays an irreplaceable role in pro-
First, in terms of impact on the climate, China, the EU and the
coordination. Alongside these issues, the Russia– Ukraine con-
Ukraine, which could help to develop a peaceful solution to the
moting trade liberalisation, optimising global resource allocation,
USA account for around 40 percent of global greenhouse gas
flict has loomed large. The Chinese government states that China
Russia–Ukraine issue.
and expanding the production and flow of commodities. WTO
emissions and consume nearly half the world’s energy. Therefore,
plays a more active role in mediating between the two sides
reforms would boost the international community’s confidence in
they hold the lion’s share of the responsibility to lead the charge
because it is an independent and significant third party. Originally
Considering all the myriad issues involved, we at the Center for
the multilateral trading system and multilateralism itself.
in sustainable development and, although they have set their
a conflict between Russia and Ukraine, the involvement of NATO
China and Globalization believe there are seven areas in which a
34 35

In the future, we hope a G3 can take the initiative in WTO reforms
could drive a rebound in US–China relations and establish a new
The global demand for investment in infrastructure is clear, but
done to orient firms towards the environment, social responsibili-
to ensure that the WTO once again gives full play to its role in
channel for China and the USA to resolve trade disputes.
the lack of funding, along with the issue of matching supply
ty and corporate governance (ESG) by enhancing green innova-
maintaining and mediating international multilateral trade. First,
and demand, are structural issues that have existed for years in
tion and developing ESG-oriented financing and accountability
reforms of the WTO could begin with plurilateral agreements
Following the UK’s formal accession to the CPTPP, if the EU, as
international development financing. Since its launch in 2015,
mechanisms. Governments can also act to promote cross-border
in place of multilateral agreements to improve efficiency and
a unified market, were to join the current high-standard trade
the Asian Infrastructure Investment Bank (AIIB) has operated
economic cooperation to boost green trade and investment.
implementation. Second, a reformed WTO should fully consid-
agreement, the impact would be even greater. Moreover, a
according to the model and principles of multilateral develop-
er the demands and capabilities of developing countries, and
endeavour to find common interests among disagreeing parties,
which must also practise patience and maintain a win-win mind-
framework economic and trade agreement between China, the
EU and the USA within the CPTPP could also provide a template
for WTO reform.
ment banks, adhering to international, high normative standards,
and been recognised by multilateral organisations. In the
right conditions, it would be possible for the AIIB to cooperate
COOPERATION ON GLOBAL DATA SECURITY
set to avoid a zero-sum outcome. Finally, as we enter an era of
with development banks from the EU and the USA such as the
Finally, as the ‘petroleum’ of the 21st century, data is driving the
digital trade, the WTO should take advantage of the potential to
Lastly, given the booming digital economy in Asia Pacific coun-
European Bank for Reconstruction and Development and the
world economy, but it also brings many challenges. Cross-bor-
promote e-commerce negotiations, enhance digital transitions in
tries, China has also applied to join the Digital Economy Partner-
Inter-American Development Bank to focus more on expanding
der data flows are critical, yet complexities such as national
cross-border goods and services trade, narrow the digital gap,
ship Agreement (DEPA) initiated by New Zealand and Singapore.
the scope and regional distribution of infrastructure investment,
security, geo-politics, and privacy protection have kept countries
strengthen privacy protection and ensure fair competition.
It would be an added bonus if the USA were to join the pact to
thereby providing urgently needed funding for eligible infrastruc-
from agreeing on promoting free data flows and enhancing data
promote regional digital economy in conjunction with China.
ture investment projects around the world.
localisation.
RESURRECTING THE CHINA–EU INVESTMENT
AGREEMENT
COOPERATION WITH THE GLOBAL SOUTH
COOPERATION ON GREEN DEVELOPMENT
A G3 could take the lead to establish a D20 that provides countries
with a platform to reach a consensus on cross-border data
flows in countries with relatively advanced digital economies. In
Although China and the EU share extensive common interests
A G3 should also emphasise cooperation with global south
In somewhat more of a bright spot, green issues may offer
addition, establishing a ‘global data organisation’ would lead the
and already have a solid foundation for cooperation, over the
countries to balance the gap between developing and developed
a more promising field to forge consensus and meaningful
way in creating standards for global data security and data use
past 2 years China–EU relations have deteriorated rapidly and
countries. China, as a member of BRICS, has engaged heavily
reform. Specifically, China could work with the EU and the US
since the world has yet to reach a comprehensive multilateral
an impasse has been reached on the Comprehensive Agreement
with developing countries in commerce and trade. The BRICS
to promote the creation of a dedicated UN institution focused
solution to either issue.
on Investment (CAI), which had been hailed as the impetus for a
mechanism is an increasingly influential force in the global finan-
on climate change given that is a unique crisis that affects many
second wave of reform and opening up in China. The agreement
cial sector and political security. Sub-Saharan African countries
aspects of global cooperation. This would augment the UN,
It is our firm belief that economic cooperation will render military
contains many conditions and benefits not even previously en-
have long been economically low on global industrial chains,
which is already playing a leading role in addressing climate
coalitions obsolete. The creation of a trilateral exchange mecha-
joyed by the USA and establishes a more open and higher-level
supply chains and value chains, which means they have had less
change through the UN Environmental Programme (UNEP) and
nism between China, the USA and Europe, founded on econom-
standard for European companies.
of a voice in political matters. An established G3 could unleash
UN Framework Convention on Climate Change (UNFCCC).
ic, trade and financial development, would contribute greatly to
Sub-Saharan economic potential, including its rich natural and
normalising and institutionalising exchanges between the most
In an effort to overcome this impasse, China’s National People’s
human resources, to close the gaps in regional development.
Green development will also reshape the way we deal with prod-
powerful players in the world today, which would have a global
Congress ratified the International Labour Organisation’s 1930
Similarly, as they continue to modernise, Latin American coun-
ucts across their entire life cycle, from design and production
impact.
Forced Labour Convention and the 1957 Abolition of Forced
tries have created solid economic foundations and achieved
through to use and end-of-life disposal or recycling. Redesigning
Labour Convention, all with a view to revive the China–EU BIT.
a high degree of global integration. A G3 should assist Latin
this whole process calls for new business models and forms of
At present, even though dialogue between China and the USA is
The resumption of communication would promote negotiation
America in getting out of the middle-income trap, given the
collaboration across industries and regions.
strained, it remains very important. The creation of a G3 would
and the lifting of sanctions, allowing the CAI to go into effect
region’s waxing clout on global affairs, especially in the context
provide an alternative path for resolution when relations between
as soon as possible. This would be a boon to Chinese and
of the climate crisis.
Pressure to reduce carbon emissions and the environmental
the two countries encounter difficulties. While Europe’s values
European enterprises.
footprint of products will drive the ‘greening’ of supply chains
are more oriented to those of the USA, it must also consider
CHINA, THE EU AND THE USA JOINING THE
COMPREHENSIVE AND PROGRESSIVE
AGREEMENT FOR TRANS-PACIFIC PARTNERSHIP
(CPTPP)
COOPERATION ON INFRASTRUCTURE PROJECTS
At the right time, a G3 could also work to achieve some level
of coordination on global infrastructure development by coordinating
between the Belt and Road Initiative, the EU’s Global
Gateway, and the new Group of Seven Partnership on Global
and encourage multinational enterprises from China, the USA
and the EU to adopt green technologies and business models,
creating new prospects for cooperation. For example, the rapid
growth of the EV industry will generate increasing demand for
lithium-ion batteries. China’s Contemporary Amperex Technology
Co., Ltd. (CATL) is currently the world’s largest EV battery maker,
accounting for about 30 percent of the global market. CATL
China’s importance as an economic partner. China needs to take
advantage of Europe’s relatively neutral position on Sino–US
relations to play a more active role in coordinating the Russian
issue. It is within this global context that a trilateral platform
that leverages the strengths of both of the world’s existing and
emerging powers would bring the greatest benefit for the international
community as a whole and maximise the potential for
The intensified economic and technical competition between
Infrastructure and Investment. If investments under these initia-
cooperates closely with other MNCs such as America’s Tesla for
success in resolving a number of common issues that face the
China and the USA has led to a bigger push for the Biden
tives are uncoordinated and shaped by geopolitical competition,
new EV production, and German chemical company BASF for
world today.
Administration to rejoin the CPTPP, which may provide an
there is a danger they could lock countries into high-carbon
cathode active materials and battery recycling.
opportunity for both countries to come under the pact’s common
paths for decades to come. Since being launched in 2013, the
This article was originally published in the Bled Strategic Times
umbrella.
BRI has become a vector of globalisation, growth and investment
Industry will play a major role in achieving our environmental
and republished with the author’s kind permission.
in many regions, yet reshaping the BRI into a more multilateral
goals. Enterprises are responsible for a big share of carbon
China’s membership could help reduce friction by bringing the
endeavour in the promotion of global governance and develop-
emissions, but it is also their innovation and cooperation that
country closer to progressive global trade norms, while also add-
ment has also become a necessary step in the next phase of its
will help to develop the technologies that will make the green
ing a new platform for dialogue between China and the USA that
development.
transition possible. To fully exploit this potential, more can be
36 37

AMBASSADOR (RET.)
PIET STEEL
CHAIRMAN,
EUROPE – ASIA CENTER
In the 13th century, Marco Polo’s journey to present sacred oil
to Kublai Khan marked the beginning of a lasting connection between
Europe and China. Marco Polo’s travels brought elements
of Chinese culture and technology back to Europe, sparking
trade and cultural exchanges. Over the years, these two regions
have seen a mix of collaboration and conflicts.
Diplomatic relations between the European Economic Community
and China were formally established in May 1975. This year
also marks the 20th anniversary of the EU-China comprehensive
strategic partnership. Despite these positive aspects, serious geopolitical
tensions now cloud the EU-China relationship. Issues
such as the unprovoked Russian invasion of Ukraine, the recent
terrorist attacks in Israel, and real threats to energy security have
led to a paradigm shift in international relations. Europe seeks to
become more autonomous and less dependent on other countries,
while China’s growing confidence has made its relationship
with the EU more complicated.
Despite these challenges, the EU and China have made significant
achievements through high-level dialogues. These dialogues,
which were this year resumed, breathed new life into the
relationship, especially after the lifting of all COVID-19 restrictions
in China at the end of 2022. Economic ties between the two have
thrived, with China being a significant partner for the EU in both
imports and exports. To strengthen their economic potential, they
have discussed market access, supply chain issues, and global
challenges. People-to-people exchanges play a crucial role in
fostering mutual better understanding, with the EU and China
High Level People-to-People Dialogue promoting collaboration in
education, culture, sports, tourism, and others.
promote peaceful collaboration, transcending political barriers
and fostering lasting relationships.
The importance of these exchanges cannot be overstated, as
they serve as a powerful reminder to political leaders that the
true essence of international relations lies in strengthening the
bonds between people of these regions.
Piet Steel is a Belgian (Ret.) Ambassador, having held between
1975 and 1997 leading diplomatic assignments in Geneva, Hanoi
and Hong Kong. Mr Steel retired from the foreign service in
1997 and became Director Public Affairs of the Solvay Group
(Belgium), overseeing the chemical and pharmaceutical company’s
global government affairs activities.
In 2005 he has joint Toyota Motor Europe as Vice-President of
External Affairs, responsible for Government relations in Europe
and the EU. The Government of Japan appointed Mr Steel in
2010 Honorary Consul General for the Flanders region.
With his extensive international experience and networks in
Europe and Asia, Mr Steel remains to be a trusted advisor of
Belgian and international companies.
Piet Steel is personally engaged in various social and societal
organisations. He is Honorary Chairman of the Belgium Hong
Kong Society, Co-founder of the Belgium Vietnam Alliance,
President of the Board Special Olympics Belgium, President of
the Europe-Asia Center, Member of the Board of the International
Polar Foundation and Vice President of the Strategic Council of
the Belgian Polar Secretariat.
These exchanges are crucial in the current geopolitical context,
where cooperation is essential to address global challenges, especially
in areas like clean energy, climate change, and technology
such as new areas as digitalization and artificial intelligence.
The Europe-Asia Center, as an international non-profit organization,
plays a pivotal role in facilitating people-to-people exchanges
between Europe and Asia, reminding us the shared culture,
history and interests that unite the two regions beyond political
frictions. The Center’s mission is to strengthen these bonds and
He was appointed “Distinguished Visiting Fellow” of the European
Business School of Regent’s University in London, Honorary
Professor of Xi’an (China) University for International Studies,
Member of the International Advisory Council of the American
European Community Association and Advisor to the Brussels
Diplomatic Academy. Piet received the Melvin Jones Fellow
Award of the Lions International for dedicated humanitarian
services.
Photo: Istock
38 39

GROUNDS FOR CONGENIALITY:
RELATIONS BETWEEN THE EU AND CHINA
ARE COMPLEX AND COMPETITIVE BUT THEY
NEED NOT BE CONFRONTATIONAL
Feng Zhongping, Director,
Institute of European Studies (IES),
Chinese Academy of Social Sciences (CASS)
This year marks the 20th anniversary of the comprehensive
tercurrents, the world faces the risk of “regrouping” and “de-
strategic partnership between China and the EU.
coupling and chain breaking”. Both China and Europe oppose a
return to the Cold War era of bipolar confrontation and support a
Since China and the EU announced the establishment of a
multi-polar world.
comprehensive strategic partnership in 2003, the cooperation
between China and the EU and its Member States has entered
Second, the world is facing a serious governance deficit, and
a fast track of rapid development. China and the EU have
China-EU cooperation in addressing global challenges such as
established an annual leaders’ meeting mechanism, which has
climate crisis, nuclear proliferation and Artificial Intelligence (AI)
continued until now. For 15 years from 2004 to 2019, the EU has
will have a significant impact on global governance. Without
been China’s largest trading partner, while China is the second
Sino-European cooperation, global challenges cannot be effec-
largest trading partner of the EU. In 2003, the then President
tively addressed and resolved.
of the European Commission and former Italian Prime Minister
Romano Prodi commented on China European relations. He said
But the relationship now faces many challenges. The EU’s per-
that the establishment of a comprehensive strategic partnership
ception of China has changed, with more emphasis on ideologi-
between China and Europe was surely a formal engagement, if
cal factors and more emphasis on competition between the two
not a marriage.
sides. The COVID-19 pandemic has severely limited exchanges
during which period the diplomatic concepts and policies of the
Trade and Technology Council (TTC). These two mechanisms
and communication between China and European countries,
US and EU were very different. European countries began to re-
have made it easier for the EU and the US to coordinate their
Twenty years on, the world has changed a lot. China-EU relations
widening the trust deficit between the two sides. At present,
alize that they cannot completely rely on the US and need to take
China policies at the institutional level.
have entered a new era. The overall feature of this new period
although EU countries oppose economic decoupling from China,
their future into their own hands. Countries such as France have
is that China-EU relations are not only more important but also
some Member States have proposed to “de-risk”.
pushed for greater EU strategic autonomy. In this context, Euro-
After the outbreak of the Russia-Ukraine conflict, the EU has
more complex than ever. As the world’s two large economies,
pean countries have been reluctant to take sides between China
once again realized that NATO and the US are important to the
the importance of China-EU relations to China and the EU itself
Since President Joe Biden took office, the United States and
and the US. The EU does not want to side with the US despite
bloc in terms of security and defence. The international coop-
is self-evident. In 2022, China-EU trade in goods reached USD
Europe have increased coordination on China policy; The
the intensifying competition between Beijing and Washington.
eration between Brussels and Washington has been further
847.3 billion, making China and the EU each other’s second larg-
Russia-Ukraine conflict that erupted in 2022 drew Europe and
The US is a traditional military ally of Europe. China, as the
strengthened. Although the Russia-Ukraine conflict has en-
est trading partners. Germany is the largest economy in the EU
the United States closer, while driving China and Europe further
world’s second largest economy, is an important economic part-
ergized NATO to a certain extent, the interests of the EU and
and China’s most important trade and investment partner among
apart. The truth is, however, that the interests of the Europe-
ner and market for European countries. European countries find
the US are not totally the same. The EU should adhere to its
the 27 EU countries. Since 2016, China has surpassed the US to
an countries were not the same as those of the US. Following
it difficult to choose between China and the US.
independent policy toward China. Cooperation between the two
become Germany’s largest trade partner in goods.
the end of the Cold War, there was a gradual loosening of the
sides far outweighs competition and differences, be it post-pan-
alliance between European countries and the US. Former US
After Joe Biden became US President, the foreign policy of the
demic economic recovery, joint response to the climate crisis or
The importance of the relationship between China and Europe,
president Barack Obama proposed the US “Pivot to Asia” and
US has undergone major changes, and Washington has attached
green and digital transformation.
however, is not only reflected in the economy and trade, but also
launched a “Rebalancing to the Asia-Pacific”, which marked the
great importance to strengthening relations with its traditional
at the strategic level. First, China and Europe are decisive forces
beginning of a difference in the focus of the global strategies
European allies. But an important consideration of the Biden ad-
The EU, in its five-year-plan unveiled in 2020 (The von der Leyen
affecting the future world pattern and have a major impact on the
of the two sides of the Atlantic. The strategic focus of the US
ministration’s approach is to unite Europe to respond to China’s
Commission’s priorities for 2019-2024), has prioritized a green
future trend of the world system and the international pattern.
started to shift to the Asia-Pacific, while the strategic focus
growing influence. Since 2021, the EU and the US have used
and digital social and economic transition. The bloc has set up
The world is at a crossroads. As major powers’ strategic compe-
of European countries was still Europe. Former US president
two major mechanisms to strengthen policy coordination toward
a EUR 750 billion (USD 755 billion) recovery fund to promote the
tition intensifies and economic globalization encounters coun-
Donald Trump adopted an “America First” strategy for four years,
China, namely the high-level dialogue on China and the US-EU
green and digital transformation of the EU, aiming not only to
40 41

ing the EU out of economic recession, but, more importantly,
to enhance its international competitiveness. The green and digital
transformation of the EU and China’s vigorous efforts in the
construction of ecological civilization provide huge opportunities
for future bilateral cooperation. In September 2020, Chinese
President Xi Jinping pledged at the General Debate of the 75th
Session of the United Nations General Assembly that China
will strive to peak its carbon emissions by 2030 and attain
carbon neutrality by 2060. The targets have been included in
China’s 14th Five-Year Plan (2021-25). It is against this background
that the High-Level Environment and Climate Dialogue
between China and the EU and a bilateral High-Level Digital
Dialogue were established in September 2020 to build a green
and digital partnership.
We all agree the world has been undergoing dramatic changes.
China and Europe should do more and make more contributions
in promoting world peace and development. First, there is a need
for more dialogue, more face-to-face exchanges between China
and European countries to reduce misunderstandings through
exchanges. China has maintained a consistent policy stance
toward Europe, supporting Europe’s drive to pursue strategic
autonomy and play a larger role in the world.
China is not a security threat to Europe, and there is no geopolitical
confrontation between the two sides. The stable development
of China’s economy is conducive to global prosperity, and it is
an opportunity, not a threat, to European countries. Chinese and
European think tanks need to hold more seminars to expand
exchanges and actively contribute ideas to China European
cooperation.
Secondly, as China and Europe are each other’s most important
economic partners, and two of the three biggest economies in
the world, China and Europe have great economic needs for
each other. Going forward, we need to bear in mind our respective
long-term development and strengthen cooperation on green
transformation. Energy transformation is not only an inevitable
requirement for China’s high-quality economic development, but
also a priority for the development of EU countries, close cooperation
in this area is in the fundamental interests of both sides.
Thirdly, the Belt and Road Initiative (BRI) has been proposed by
China but it belongs to the world. The fundamental thinking of
the idea is to promote common development for all countries
which have been participating the project. China is willing to
cooperate with EU’s Global Gateway plan and make joint efforts
with the EU and its member states in promoting development in
Africa, Middle East and other regions.
To conclude, in the future, cooperation and competition will
be intertwined in China-EU relations, and the importance and
complexity of their relations will increase simultaneously. Despite
the challenges we are facing, Sino-European relations, especially
in the fields of economy and trade, have shown great resilience.
We need to have more talks and dialogues to enhance mutual
understanding.
The beautiful landscape of Guilin, China
Photo: Istock
42 43

CHINA-EU RELATIONS AT A CROSSROADS
CHEN WEIHUA,
EU BUREAU CHIEF
CHINA DAILY
The emerging multipolar world today
will work better if China and the EU address
their differences through dialogue
China-EU relations are at a crossroads, and the path forward in
latest proof of its commitment to further reform and opening-up.
the years to come will matter not only to the two sides, but to
Trade and investment aside, people-to-people exchanges be-
global peace, stability and development for at least decades to
tween China and EU have also expanded dramatically, with more
come. The 20th anniversary of the establishment of the China-EU
Chinese tourists and students choosing EU as their destination.
Comprehensive Strategic Partnership this year is a time to seri-
There is no better way to improve the bilateral relationship than
ously reflect on the relationship.
people-to-people exchange, which contributes to mutual understanding.
Many of the problems existing between China and
Ever since China and the European Economic Community (EEC),
EU and indeed in the world are a result of lack of understanding
the predecessor of the EU, established diplomatic relations in
especially when misinformation spreads like wildfire in today’s
1975, bilateral relations have developed by leaps and bounds.
world.
China and EU became each other’s second largest trading
partners in 2022, with total volume hitting USD 847.3 billion, a
China has learned a lot from the EU over the decades in its
growth of 2.4 percent over 2021. Two-way cumulative foreign
modernization drive. The EU also played a pivotal role in helping
direct investment (FDI) had exceeded USD 270 billion, according
launch China’s Emission Trading System (ETS) in July 2021, the
to 2022 statistics.
world’s largest in terms of covered emissions, and it is an important
step to help cut carbon emissions.
But calling China a systemic rival is not only unnecessary but
The downturn of China-EU relations in the past few years has
The fact that the bilateral trade and investment relationship has
totally wrong. China has never exported or intended to export
indeed wasted many win-win opportunities that could benefit
continued to grow despite growing challenges shows the vitality
If the past decades tell us anything, it is that the China-EU rela-
revolution, ideology or political system. Its long-standing foreign
both sides and the world.
of the relationship. German companies such as BASF, Volkswagen
tions are mutually beneficial and the full potential is yet to
policy principles has been non-interference in other countries’
and Bosch have led to the way to continue their investment in
be tapped.
domestic affairs.
For example, China and the EU concluded the negotiations on
China despite fear-mongering by some politicians about China,
the China-EU Comprehensive Agreement on Investment (CAI) in
whose market size is now larger than the EU single market.
Unfortunately, the EU’s redefining in March 2019 of China as a
China has a good track record of maintaining peace and stability
December 2020, after seven years and 35 rounds of hard talks.
cooperation partner, economic competitor and systemic rival,
in the world and is the only major country that has not been
The CAI is expected to further open the Chinese market to
Trade and investment is a form of cooperation that is based on
which happened at a time of growing tensions between China
involved in any war for more than four decades. And it is the
European investors but unfortunately its ratification was stalled
sound business rationale rather than party politics. China-EU
and the United States, has poisoned the well.
largest troop contributor to UN peacekeeping missions and the
due to the tit-for-tat sanctions on other unrelated issues.
trade and investment ties are mutually beneficial and have
second largest budget contributor among the five permanent
helped improve the well-being of the peoples of both sides.
There is nothing wrong in calling China a cooperation partner
members of the UN Security Council.
The suspension has dealt a huge blow to the business communi-
and economic competitor. China and EU have so many bilateral
ties in both sides as the European Union Chamber of Commerce
The fact that China has become the world’s largest trading
and global issues to cooperate on. The fact that the EU regards
It is easy to forget that the huge progress of China-EU relation-
in China and the China Chamber of Commerce to the EU both
nation and the largest trading partner for more than 120 coun-
China as an economic competitor shows China has indeed
ship has been achieved in the past decades despite the differ-
urged for early ratification.
tries demonstrates China’s opening and its close ties with the
created an economic miracle in the past decades. Its GDP, which
ences in their political, cultural social systems and their different
rest of the world. China’s joining of the Regional Comprehensive
was smaller than that of Italy’s before the year 2000, has become
views on issues such as democracy and human rights. The fact
Meanwhile, Chinese businesses operating in EU and hoping to
Economic Partnership (RCEP), a free trade agreement among 15
larger than that of the EU and trails only the US. And it is totally
that China held human rights dialogues with the EU and its Mem-
invest in EU have been encountering mounting barriers and dis-
Asia-Pacific nations which took effect on January 1, 2022, and its
healthy that Chinese companies cooperate and compete with EU
ber States shows dialogue is the right way to address differences
criminations as reported by the China Chamber of Commerce to
application to the Comprehensive and Progressive Agreement for
companies in the marketplace.
and improve mutual understanding. There is no doubt that there
the EU, including the tightening of investment screening and the
Trans-Pacific Partnership (CPTPP) in September of 2021 are the
were more differences four decades ago.
abuse of national security as an excuse.
44 45

the EU more. China and EU are both supporters and beneficiaries
of the globalization.
United Nations Secretary General Antonio Guterres has long
warned against the bifurcation of the world in technology and
supply chains, something that will be a disaster for the whole
world and our future generations.
EU politicians are also wrong to portray its Global Gateway as an
initiative to counter China’s Belt and Road Initiative (BRI), which
is building connectivity to promote development since 2013.
China and EU should join hands in building infrastructure
especially in the developing world. And if EU believes it can
offer some best practices to China, Chinese companies will be
glad to learn. One thing is also clear: China’s achievement in
building infrastructure at home and abroad, from roads, bridges
and high-speed railways to subways, ports and airports, in the
past decades is nothing short of a miracle. And these valuable
experiences and capacity could help build connectivity around
the world.
China has long supported EU integration and called for EU to
pursue strategic autonomy instead of being misled or dictated by
the US given Washington’s outsized influence across Europe in
all domains, from military and culture, to education and the news
landscape.
The recent European Commission announcement concerning the
launch of an anti-subsidy investigation into Chinese electric vehicles
has shocked the Chinese business community and many
EV industry insiders. China’s lead in EV technology and batteries,
some actually in cooperation with European partners, should be
applauded as an achievement to combat climate change and
reach climate neutrality, an achievement that could benefit the
whole world, including the EU.
However, the EU’s pursuit of strategic autonomy, which was
advocated aggressively by French President Emmanuel Macron
and some others, is losing momentum as the Russia-Ukraine
conflict gives the US more leverage over the EU.
As the place which triggered the two previous World Wars and
one that suffered most from the last Cold War, Europeans should
do their utmost to prevent another world war – either hot or cold
– from happening. In fact, the EU has a key role to play to help
defuse the tension between China and the US.
The EU’s quasi-ban on Huawei 5G under US pressure is another
blow to the bilateral relations since Huawei 5G poses no more
threat than the 5G technologies developed by European companies
Ericsson and Nokia, according to many experts.
The EU’s so-called “de-risking” from China is deeply flawed because
the only way to de-risk from a trade partner is to increase
mutual trust and exchanges. As each other’s major trading
partners, China and the EU depend on each other thanks to their
deepened cooperation. And that is a good thing because a divided
world means that everyone will be worse off.
Also, it is a total fallacy to argue which depends on the other
more. While some say that the EU has a dependency issue with
China, many EU trade experts also say that China depends on
The urgent task for the EU should be to help end the Russia-
Ukraine conflict as soon as possible, through ceasefire, dialogue
and diplomacy because there will be no solution on the battlefield.
It should welcome China’s position paper on the peaceful
settlement of Ukraine crisis put forward in February and welcome
more countries to broker ceasefire and lasting peace.
There is no doubt that the emerging multipolar world today will
work better and world peace and prosperity will be guaranteed
if China and the EU, two major players in the global system,
expand their cooperation and partnership and address their
differences through dialogue.
The author is chief of the EU Bureau of China Daily, based in
Brussels. He can be reached at chenweihua@chinadaily.com.cn
46 47

A BLUE PARTNERSHIP
BUILT ON TRUST AND MUTUAL LEARNING
Yang Li, Executive Director
Institute for China-Europe Studies
Europe and China are located in opposite sides of the Eurasian
scope of this article, but a significant message could be tak-
continent, separated by mountains and rivers, but connected by
en that both the EU and China recognize that the ocean is “a
the ocean. Such connection is not only due to the fact that over
common good” and that ocean governance is a shared challenge
80 percent of international trade is seaborne, but also because,
calling for closer international cooperation. Therefore, ocean gov-
as recognized by international law, the problems of the ocean
ernance exactly falls into the category of common interest such
space are closely interrelated and need to be considered as a
as, and associated with, climate and biodiversity crises, in which
whole. The European Union (EU) and China, as two of the major
the EU and China shall cooperate.
actors in international maritime affairs, share common stakes in
global ocean governance.
Having said that, as the current status of global ocean governance
is “alarming”, the EU-China blue partnership is expected
The twenty years of the EU-China Comprehensive Strategic Part-
to go deeper and bring more tangible achievements. However,
nership witnessed the initiation, expansion and institutionalization
it seems that a reduced level of trust in the overall relationship
of the communication and cooperation between the two sides on
between the EU and China is obstructing the two sides from
ocean affairs at different levels. This development also coincided
deepening and expanding their maritime cooperation.
with the growth of new challenges toward ocean governance as
well as the evolution of relevant international rules.
Furthermore, ocean affairs seem to constitute part of the set of
problems that are eroding mutual trust. EU High Representative
In July 2018 the EU and China signed the Declaration on the
for Foreign Affairs and Security Policy Josep Borrell, comment-
establishment of a Blue Partnership for the Oceans (Blue Part-
ing on the EU-China relationship during his latest trip to China,
nership Declaration), as an important means to promote better
stressed that it is important to rebuild or restore trust gradually.
ocean governance and policy coordination. This partnership built
In my view, maritime issues are part of the areas where trust can
upon previous EU-China bilateral agreements and dialogues and
be rebuilt.
provided a more systematic framework for future joint endeavours.
Since then, EU-China dialogues on topics such as law of
For instance, the EU repeatedly expresses concerns about the
The EU does give its Indo-Pacific strategy a distinctive charac-
(EEZ), and continental shelves which are eligible to extend further
the sea and polar affairs, fisheries and maritime security were
situation in the East and South China Seas, opposing the use
ter by being less confrontational and more cooperative. In the
under specific circumstances. There are inevitably overlapping
either started or continued through official channels or Track II
of force or coercion, which is interpreted as referring to China
meantime, the disagreements with China are still there and have
claims between or among countries with adjacent or opposite
platforms.
without naming the country specifically. The cause for these con-
distinct sources. As far as the South and East China Seas are
coasts, creating disputes and frictions. If territorial disputes over
cerns, as stated by the EU, includes upholding international law
concerned, it is easier for the EU to view them more from a ge-
land features are involved, the problems could become more
The momentum to keep the process going is strong, despite
and keeping the important sea routes free and open. It is implied
opolitical lens, as the bloc sees the oceans among “the world’s
complex.
the impact of the Covid-19 pandemic in the last three years.
that China is one of the countries “seeking to re-define the core
foremost geopolitical arenas”, as stated in the EU’s Internation-
In September 2023, European Commissioner for Environment,
tenets of the rules-based multilateral order”, through acts con-
al Ocean Governance Agenda (2022). On the other hand, for
The EU is said to have the largest combined EEZ in the world
Oceans and Fisheries Virginijus Sinkevičius, among a number
stituting breaches of freedom of navigation and maritime claims
China, although there are certain geopolitical concerns, the core
and is less daunted by maritime boundary delimitation disputes
of trips made by senior EU officials, visited China and held with
that are contrary to international law. China has differing opinions
of the problems relating to these adjacent seas is the territorial
in its surrounding sea basins. China also has maritime claims to
his Chinese counterpart a high-level dialogue on ocean govern-
from the above positions.
and maritime disputes with its neighbouring countries, not quite
a large area, but about half of it is under dispute with all its neigh-
ance, the first in-person contact of this kind since the pandemic.
differently from ones in other parts of the world.
bors at sea. According to a 2020 study by Andreas Østhagen
During the visit, the second EU-China Blue Partnership Forum, a
Many observers in China take such differences to be sympto-
of Fridtjof Nansen Institute (Norway), Europe (including non-EU
mechanism set up by the Blue Partnership Declaration engaging
matic of the broader strategic rivalry between China and “the
The global oceans are divided into high seas and international
countries of Europe) has only 18 unsettled maritime boundary
government officials, think tanks and business sectors from both
collective West”, headed by the United States and joined by the
seabed areas, which lie beyond the boundaries of any one
disputes, with 80 percent already settled. Nonetheless, Asia has
sides, was also convened in Shenzhen.
EU. There are also views from European scholars arguing that the
country or defined as the common heritage of mankind; and
40 unsettled maritime boundary disputes, with only 61 percent
EU should define its interest in places such as South China Sea
areas under national jurisdiction, including 12 nautical miles
settled.
What has been achieved under the partnership is beyond the
more accurately, so as to dictate more balanced policies.
territorial seas, 200 nautical miles Exclusive Economic Zones
48 49

In addition, compared with European states, the level of integration
among Asian countries is less developed, and nationalism
there appears to be stronger. As a result, territorial disputes and
maritime boundary delimitation issues are more sensitive and are
usually harder to resolve.
coordinated approach toward ocean governance, as embodied
in its Integrated Maritime Policy, which could be more effective
in addressing overall challenges for the oceans like the negative
impact of climate change, marine pollution and the loss of marine
biodiversity.
In this sense, the most outstanding challenge China faces on
ocean affairs is how to manage these disputes and preserve its
positions before final settlements are reached. This challenge
is getting more complicated under a relatively unfavourable
environment in its neighbourhood. The EU has its own security
challenges at its doorstep as well, but as far as maritime security
is concerned, its focus is more on non-traditional threats such as
illegal migration, piracy and marine pollution.
With regard to global maritime affairs, although both of them
have a long tradition of ocean utilization, the EU is generally
more developed in modern ocean science and technology. It was
also the European nations who laid down the first set of modern
international rules governing oceans. In contrast, China is still an
emerging maritime power.
The above differences give rise to divergent approaches and
interpretations to international legal rules, particularly the 1982
United Nations Convention on the Law of the Sea (UNCLOS). For
an example, the EU claims that the 2016 South China Sea arbitral
award by an ad hoc tribunal established under the request of
the Philippines is legally binding, whereas China holds that the
whole arbitral proceeding, as well as its outcome, constitutes an
abuse of the provisions of the UNCLOS, under which any state
party – including China – has been granted the legitimate right,
by means of a prior declaration, not to accept any third party
compulsory procedure concerning sea boundary delimitation
disputes.
The EU is also implementing its sea basin strategies and has set
up, with its Member States and its non-EU neighbours, various
well-developed regimes for coastal states cooperation in different
sea basins.
These are good examples that China and its maritime neighbours
could learn from in managing the disputes among them and
adopting a more comprehensive approach to the governance
of their adjacent seas. At the same time, China also has some
stories to tell about its practice on addressing challenges both
on ocean governance and the maintenance of a stable regional
order.
In conclusion, by trying to restore trust and promote mutual
learning, the EU-China blue partnership will generate more benefits
for international ocean governance and make a greater contribution
to the EU-China comprehensive strategic partnership.
However, whatever differences they might have, the idea that
the EU and China hold opposing positions regarding the legal
principle of freedom of navigation must be a misconception. In
fact, as a latecomer of modern utilization of global oceans, it is
in China’s interest to be a proponent for a free and open international
maritime order.
Therefore, it is quite possible for the EU and China to narrow
their disagreements and enhance mutual trust through patient,
candid and in-depth dialogues.
On the other hand, the differences between the EU and China
on their sea-related situations and experiences can be taken
as complementary in their blue partnership and create greater
potential for the two sides to expand cooperation for the benefit
of global and regional ocean governance.
With its unique experience of integration, the EU adopts a more
Photo: Istock
Photo: Istock
50 51

CHINA’S
DEVELOPMENT VISIONS
1. CHINA’S OVERALL DEVELOPMENT OBJECTIVES
The Report to the 20th National Congress of the Communist
Party of China (CPC), presented by General Secretary Xi Jinping
on behalf of the 19th CPC Central Committee in October 2022,
lays out China’s overall development goals.
According to the Report, “the central task of the Communist
Party of China will be to lead the Chinese people of all ethnic
groups in a concerted effort to realize the Second Centenary
Goal of building China into a great modern socialist country in all
respects and to advance the rejuvenation of the Chinese nation
on all fronts through a Chinese path to modernization.”
To build China into a great modern socialist country in all
respects, China has adopted a two-step strategic plan:
• Basically realize socialist modernization from 2020 through
2035;
• Build China into a great modern socialist country that is prosperous,
strong, democratic, culturally advanced, harmonious,
and beautiful from 2035 through the middle of this century.
China’s overall development objectives for the year 2035:
• Significantly increase economic strength, scientific and
technological capabilities, and composite national strength;
substantially grow the per capita GDP to be on par with that of a
mid-level developed country;
• Join the ranks of the world’s most innovative countries, with
great self-reliance and strength in science and technology;
• Build a modernized economy; form a new pattern of development;
basically achieve new industrialization, informatization,
urbanization, and agricultural modernization;
• Basically modernize the system and capacity for governance;
improve the system for whole-process people’s democracy;
build a law-based country, government, and society;
• Become a leading country in education, science and technology,
talent, culture, sports, and health; significantly enhance
national soft power;
• Ensure that the people are leading better and happier lives;
bring per capita disposable income to new heights; substantially
grow the middle-income group as a share of the total population;
guarantee equitable access to basic public services; ensure
modern standards of living in rural areas; achieve long-term
social stability; make more notable and substantive
progress in promoting the people’s well-rounded development
and prosperity for all;
• Broadly establish eco-friendly ways of work and life; steadily
lower carbon emissions after reaching a peak; fundamentally
improve the environment; largely accomplish the goal of building
a Beautiful China;
• Comprehensively strengthen the national security system and
national security capabilities; achieve basic modernization of
national defence and the armed forces.
2. CHINESE PATH TO MODERNIZATION
Chinese modernization is socialist modernization pursued under
the leadership of the Communist Party of China. It contains
elements that are common to the modernization processes of all
countries, but it is more characterized by features that are unique
to the Chinese context.
It is the modernization of a huge population. China is working to
achieve modernization for more than 1.4 billion people, a number
larger than the combined population of all developed countries
in the world today. This is a task of unparalleled difficulty and
complexity; it inevitably means that its pathways of development
and methods of advancement will be unique.
China will, as always, bear its realities in mind as it addresses
issues, makes decisions, and takes action. China will stay patient
in advancing the course of history and take steady and incremental
steps to sustain progress.
It is the modernization of common prosperity for all. Achieving
common prosperity is a defining feature of socialism with
Chinese characteristics and involves a long historical process.
The immutable goal of China’s modernization drive is to meet
the people’s aspirations for a better life. China will endeavour to
maintain and promote social fairness and justice, bring prosperity
to all, and prevent polarization.
It is the modernization of material and cultural-ethical advancement.
Material abundance and cultural-ethical enrichment are
fundamental goals of socialist modernization. While continuing
to consolidate the material foundation for modernization and
improve the material conditions for people’s well-being, China
will strive to develop an advanced socialist culture, foster strong
ideals and convictions, and carry forward its cultural heritage.
It is the modernization of harmony between humanity and nature.
China is committed to sustainable development and to the
principles of prioritizing resource conservation and environmental
protection and letting nature restore itself. China will continue
to pursue a model of sound development featuring improved
production, higher living standards, and healthy ecosystems to
ensure the sustainable development of the country.
It is the modernization of peaceful development. In pursuing
modernization, China will not tread the old path of war, colonization,
and plunder taken by some countries. That brutal
and blood-stained path of enrichment at the expense of others
caused great suffering for the people of developing countries.
China will stand firmly on the right side of history and on the side
of human progress. Dedicated to peace, development, cooperation,
and mutual benefit, China will strive to safeguard world
peace and development as it pursues its own development, and
China will make greater contributions to world peace and development
through its own development.
3. CHINA’S MAJOR ACHIEVEMENTS OVER
THE PAST DECADE
Over the past ten years, China has secured historic achievements
and seen historic changes.
China eradicated absolute poverty once and for all. China has
won the largest battle against poverty in human history. A total
of 832 impoverished counties and close to 100 million poor rural
residents have been lifted out of poverty, and among them, more
than 9.6 million poverty-stricken people have been relocated
from inhospitable areas. China has, once and for all, resolved the
52 53

problem of absolute poverty, making significant contributions to
the cause of global poverty reduction.
has built the largest education, social security, and healthcare
systems in the world, bringing 1.04 billion people under the
4. CHINA’S GREEN DEVELOPMENT
Data from the NEA showed that China’s total installed capacity
of power generation reached 2.71 billion kilowatts at the end of
coverage of basic old-age insurance and ensuring basic medical
According to the Report on the Work of the Government this
June 2023, up 10.8 percent year-on-year. Of the total, the in-
China’s economy makes notable achievements. China’s GDP has
insurance for 95 percent of the population.
year, China has witnessed significant improvement in its eco-en-
stalled capacity of hydropower, wind power, photovoltaic power,
grown from 54 trillion yuan to 114 trillion yuan to account for 18.5
vironment in the past five years. The country’s energy consump-
and biomass power stood at 418 million kilowatts, 389 million
percent of the world economy, up 7.2 percentage points. China
China has pursued a more proactive strategy of opening up.
tion per unit of GDP dropped by 8.1 percent, and carbon dioxide
kilowatts, 470 million kilowatts and 43 million kilowatts, respec-
has remained the world’s second-largest economy, and its per
China has worked to build a globally oriented network of
emissions fell by 14.1 percent. In cities at and above the prefec-
tively.
capita GDP has risen from 39,800 yuan to 81,000 yuan. It ranks
high-standard free trade areas and accelerated the development
ture level, the average concentration of fine particulate matter
first in the world in terms of grain output, and it has ensured food
and energy security for its more than 1.4 billion people. The number
of permanent urban residents has grown by 11.6 percentage
of pilot free trade zones and the Hainan Free Trade Port. China
has become a major trading partner for more than 140 countries
and regions. It leads the world in total volume of trade in goods,
(PM 2.5) dropped by 27.5 percent, and the number of days with
heavy air pollution fell by over 50 percent. The proportion of
surface water bodies of good quality increased from 67.9 percent
REFORESTATION
points to account for 64.7 percent of the population. China’s
and it is a major destination for global investment and a leading
to 87.9 percent. China’s first five national parks were established,
China’s efforts on afforestation have seen remarkable progress,
manufacturing sector is the largest in the world, as are its foreign
country in outbound investment.
and over 9,000 nature reserves spanning all categories and levels
with the nation’s forest coverage rate more than doubling from
exchange reserves. China has built the world’s largest networks
were established.
12 percent in the early 1980s to 24.02 percent last year, the
of high-speed railways and expressways and made major
China has made historic, transformative, and comprehensive
fastest in the world. According to data released by NASA, about
achievements in building airports, ports, and water conservancy,
energy, information, and other infrastructure.
changes in ecological and environmental protection. China has
ensured stronger ecological conservation and environmental protection
across the board, in all regions, and at all times. China’s
RENEWABLE ENERGY
a quarter of the newly added green areas in the world from 2000
to 2017 came from China, and China’s contribution ranks first in
the world.
The well-being of Chinese people has been significantly im-
ecological conservation systems have been improved, the critical
China’s installed capacity of renewable energy hit 1.32 billion
proved. China’s life expectancy has reached 78.2 years, its per
battle against pollution has been advanced, and solid progress
kilowatts by the end of June 2023, exceeding the coal-fired
In the past decade, a total of 188,000 square kilometres of sand
capita disposable annual income has risen from 16,500 yuan
has been made in promoting green, circular, and low-carbon de-
power generating capacity, according to the National Energy
prevention and control tasks, along with 3,590 square kilometres
to 35,100 yuan, and more than 13 million urban jobs have been
velopment. Those efforts have brought about bluer skies, greener
Administration (NEA).
of rocky desertification control tasks have been completed. After
created each year on average over the past 10 years. China
mountains, and cleaner waters.
over 40 years of unremitting efforts, China has made remarkable
54 55

in China’s total energy consumption reached 17.5 percent, while
total installed capacity of renewable energy power generation
combined increased to 1.2 billion kilowatts. By July 30,2023, the
cumulative volume of carbon emission allowances (CEA) was
238 million tonnes, and the cumulative turnover CNY 10.9 billion.
Globally, the country has been deeply engaged in South-South
cooperation on climate change, and it has provided support
and assistance within its capacity to other developing countries.
As of September 2023, China has signed 48 memorandums of
understanding on climate change with dozens of developing
countries and helped train more than 2,300 officials and technicians
for over 120 developing countries.
6. CHINA-EU COOPERATION ON CLIMATE CHANGE
• In 2005, China and the EU issued the Joint Declaration on
Climate Change and established the bilateral Partnership on
Climate Change.
• In 2006, China and the EU launched a working group on
climate change and agreed on the China-EU Partnership on
Climate Change Rolling Work Plan.
• In 2010, China and the EU issued the Joint Statement on
Coordination and Cooperation on Climate Change and established
a ministerial-level dialogue mechanism on climate
change.
• In 2015, China and the EU issued a joint statement on climate
change, committing to significantly step up the EU-China Partnership
on Climate Change, building on a decade of successful
cooperation.
• In 2017, China, the EU, and Canada convened the first
Ministerial Meeting on Climate Action to advance discussions
on the full implementation of the Paris Agreement and to
demonstrate continued political commitment to global action.
• In 2018, China and the EU adopted the Leaders’ Statement on
Climate Change and Clean Energy, in which they confirmed
their commitments under the historic 2015 Paris Agreement
and promised to step up their cooperation to enhance its
implementation.
• In 2020, China and the EU agreed to set up a China-EU
High-level Environment and Climate Dialogue (HECD).
• In 2023, the fourth HECD was held in Beijing, where both
sides confirmed that green was the distinctive colour of
China-EU cooperation and agreed to expand their cooperation
in various fields.
achievements in preventing and controlling desertification and
realized a historic transformation from “sand forcing humans to
retreat” to “trees forcing sand to retreat” in key areas.
China’s “three-North” areas – the northwest, north and northeast
regions – are home to deserts, including the Gobi, and prone to
desertification. To tackle desertification problems like sandstorms
and soil erosion, China launched the “Three-North Shelterbelt
Forest Program” in 1978, which is also dubbed “China’s Green
Great Wall.” Over the past four decades, the program has
increased the forest area by 301,400 square kilometers, according
to 2018 data, and the total area of the project has reached
4.358 million square kilometers, accounting for 45 percent of the
country’s land area based on the data released by the National
Forestry and Grassland Administration of China.
NEW ENERGY VEHICLES
By the end of 2022, the number of China’s registered new energy
vehicles (NEVs) had reached 13.1 million, a year-on-year growth
of 67.13 percent, according to the Ministry of Public Security.
By July 3, 2023, China hit the production milestone of 20 million
NEVs.
In 2022, China sold some 6.89 million NEVs, up more than
93 percent year-on-year. In the same year, its NEV production
also soared nearly 97 percent to about 7.06 million units. China
has been ranking first in the world on the production and sales
volume of NEVs for eight consecutive years.
5. CHINA’S POLICIES AND ACTIONS FOR
ADDRESSING CLIMATE CHANGE
In 2020, China announced the goals of striving to carbon dioxide
peaking before 2030 and striving to achieve carbon neutrality before
2060. Since then, China has actively implemented the Paris
Agreement on climate change, updated its Nationally Determined
Contributions (NDCs) goals, and made significant progress in
meeting the targets of carbon dioxide peaking and carbon neutrality.
China has put in place a “1+N” policy framework for carbon
dioxide peaking and carbon neutrality, developed a mid-term
and long-term strategy for controlling greenhouse gas emissions,
accelerated the development of a national carbon market, and
formulated and implemented the National Strategy for Climate
Change Adaptation.
In 2022, China’s carbon emissions intensity decreased more than
51 percent from its 2005 level, and the share of non-fossil energy
56 57

Photo: Istock
58 59

NAVIGATING THE EU BUSINESS LANDSCAPE
CCCEU’S STRATEGIC VISION
FOR CHINESE ENTERPRISES
Xu Chen,
Chairman of the China Chamber of Commerce
to the EU (CCCEU)
In commemorating the 20th anniversary of the China-EU
Comprehensive Strategic Partnership, I am honoured to contribute
to this edition of Diplomatic World. Economic ties have con-
CCCEU’S STRATEGIC INITIATIVES AND
EVOLUTION
sistently played a key role in international relations throughout
CCCEU orchestrates a multitude of networking events, business
diplomatic history, often evolving through business relationships.
forums, and trade missions, serving as catalysts for connections
between Chinese companies and their European counterparts.
CCCEU’S GENESIS
These endeavours facilitate the cultivation of relationships with
both Chinese and EU stakeholders. Furthermore, the chamber
conducts comprehensive research and analysis, equipping
Allow me to commence with a brief introduction of the CCCEU.
Chinese enterprises with crucial insights into the European mar-
In August 2018, three prominent Chinese corporations – Bank
ket. By sharing market trends and regulatory information, CCCEU
of China (Luxembourg), later rebranded as “Bank of China
empowers Chinese enterprises with the knowledge required to
(Europe),” China Three Gorges (Europe), and COSCO Shipping
make informed decisions when entering the EU market.
To date, the chamber has expressed the position of Chinese
communication, the CCCEU aids in building mutual trust and
(Europe) – came together to establish the entity we now recog-
companies in the EU on various issues, including the EU foreign
understanding between China and the EU.
nise as the chamber.
Beyond serving as a hub for Chinese companies in the EU,
subsidies regulations, the EU foreign investment screening
This initiative was conceived as a platform bridging China and
the EU, with a dedicated mission to advance the interests of
businesses investing in the EU. The chamber’s remit encom-
CCCEU represents a platform of opportunity for them. Currently,
CCCEU boasts nearly 90 members, collectively representing over
1,000 Chinese companies across the EU, spanning across all the
major EU member states.
mechanism, the 5G security toolbox, Carbon Border Adjustment
Mechanism (CBAM), supply chain due diligence, banking
regulations, and more. At the same time, in order to better serve
Chinese companies in the EU from different industries, the
CCCEU’S COMMITMENT TO FAIRNESS AND
COMPLIANCE
passes representing the perspectives, recommendations, and
CCCEU has established working groups on the digital economy,
CCCEU is unwavering in its commitment to ensuring fair
concerns of Chinese companies to European institutions and
Since its inception, CCCEU has consistently released annual
green economy, and finance, aiming to consolidate consensus
competition for Chinese companies in the European market.
Member States. All the while, it aspires to elevate the standing of
flagship reports detailing the development of Chinese companies
and generate collective efforts through policy research, strategic
This includes advocating for non-discriminatory policies and
Chinese enterprises within the diverse and multicultural Europe-
in the EU. These reports have attracted significant attention from
discussions, and forum exchanges.
challenging any instances of unfair trade practices. Additionally,
an landscape.
governments, enterprises, think tanks, and media outlets in both
the chamber encourages Chinese enterprises to adhere to EU
China and the EU. Notably, on January 27, 2023, Mr. Frédéric
The chamber actively collaborates with policymakers and regu-
regulations and standards, cultivating trust among European
On April 8, 2019, then Chinese Premier Li Keqiang inaugurated
Bernard, Head of Cabinet of President of the European Council
lators in China and the EU, aiming to promote policies favouring
consumers and regulators. This dedication to quality and compli-
the chamber, articulating a vision for the CCCEU to serve as
Charles Michel, expressed gratitude to the CCCEU for sending
the interests of Chinese businesses. This includes advocating for
ance enhances the reputation of Chinese products and services
a “golden name card” for Chinese enterprises in the EU. He
the flagship report for the year 2022 to President Michel. This
fair trade practices, the reduction of trade barriers, and the pro-
in the EU market.
envisioned it as a bridge of communication, lending an ear to the
recognition underscores the chamber’s contributions to the ad-
tection of intellectual property rights. With regard to investment
voices of both Chinese and European stakeholders and contributing
to the positive image of Chinese businesses.
In my role as the Chairman of the China Chamber of Commerce
to the EU, we take immense pride in being the singular pan-Euro-
vancement of Sino-European economic and trade relations.
CCCEU’S POLICY ENGAGEMENT
facilitation, the chamber provides support to Chinese enterprises
seeking investment opportunities in the EU. This includes training
or guidance through regulatory processes and invaluable assistance
in access to the EU markets, fostering deeper economic
cooperation between the two regions.
CCCEU’S ROLE IN SINO-EUROPEAN ECONOMIC
RELATIONS
In a time when Sino-European economic and trade relations
pean China chamber of commerce. Our unwavering commitment
The chamber actively engages in EU legislation, advocating for the
are at a critical juncture, the CCCEU actively promotes coopera-
revolves around advancing the interests of Chinese enterprises
protection of Chinese enterprises’ rights & interests, the optimi-
The chamber also engages in ongoing dialogues with both
tion and dialogue. For instance, since last year, the chamber
within the EU and nurturing robust Sino-EU investments,
sation of Sino-European government-enterprise communication
Chinese and European institutions and organisations to address
has organised approximately 30 events, including the first
business partnerships, and commercial relations.
channels, and the fulfilment of the needs of Chinese enterprises.
trade-related challenges and opportunities. By facilitating open
China-Europe Fintech Summit (December, 2022), the Seminar
60 61

“Navigating the New Era: The Evolving Landscape of China-EU
Economic and Trade Relations” (May, 2023), and the 2023 CC-
CEU Europe-China Business Summit (June, 2023), significantly
contributing to Sino-European economic and trade exchanges.
The chamber serves as a unifying force for Chinese and
European companies, fostering collaboration and partnership.
For instance, on January 13, 2023, CCCEU and its counterpart
in China, the EUCCC, jointly organised a high-level “China-
Europe Business Leaders Roundtable Dialogue” in Brussels,
Belgium. This marked the first such high-level event since the
establishment of both chambers, representing the strong desire
and aspiration of the Chinese and European business communities
to promote cooperation.
both the EU and China, offering substantial and yet untapped
opportunities for collaboration.
Chinese companies in the EU advocate for the EU to uphold
market rules and international economic and trade regulations.
They call for a reduction in unnecessary trade barriers, increased
transparency, and fairness in economic and trade policies.
Moreover, they recognise that the continuous enhancement of
the business environment will contribute to the development of
a more resilient and dynamic EU market. Consequently, they
emphasise the need to join forces to unlock the vast potential for
collaboration.
THE PATH AHEAD
CHINA’S EXPANDING EMBRACE OF EUROPE
The growth trajectory of CCCEU is intrinsically linked to the
deepening trade and business connections between China and
the EU. In recent years, the 27-member EU has increasingly
served as a pivotal market and investment destination for
Chinese enterprises.
Notably, last year, China and the EU emerged as each other’s
second-largest trading partners. This partnership showcased
remarkable achievements across sectors such as new energy,
automobiles, machinery, green finance, and more. Statistics
revealed that average trade between the two sides exceeded
USD 1.6 million per minute, with bilateral investment stock surpassing
USD 230 billion by year-end.
Bolstered by high-level summits, dialogues, and active communication,
China and the EU continue to reinforce the confidence
of bilateral enterprises, paving the way for further exploration of
each other’s markets.
CHARTING THE PATH FOR CHINESE COMPANIES
IN THE EU
Looking ahead, CCCEU is poised to enhance its internal and
external collaborations. Internally, the chamber aims to share
resources with Chinese chambers of commerce in the EU member
countries, creating a network of chamber resources that will
meet the needs of the expansion of Chinese companies in the
EU. Externally, CCCEU seeks to strengthen its cooperation with
third-country chambers of commerce in the EU. These efforts will
yield tangible results, particularly in monitoring EU policies, expressing
concerns and feedback, and fostering communication
within the same industry.
In closing, the CCCEU and Chinese companies operating within
the EU remain steadfast in their commitment to focusing on business
rather than allowing economic and trade matters to become
politicised, instrumentalized, or weaponized. Their unwavering
focus remains on fostering mutually beneficial commercial
relationships, promoting trade partnerships, and nurturing an
environment conducive to economic growth.
CCCEU stands as a critical facilitator in strengthening economic
and trade relations between China and the EU. Through its mission
and vision, CCCEU not only assists Chinese enterprises in
gaining a foothold in the European market but also contributes to
the dynamism of China-EU economic and trade relations.
However, recent years have also witnessed certain EU economic
and trade policies which pose challenges and, at times, barriers
for Chinese companies operating in the EU. CCCEU’s annual
flagship report (2022) revealed that the overall rating of Chinese
companies in the EU regarding the business environment of host
countries has declined for three consecutive years.
Furthermore, its advocacy work aims to ensure a level playing
field for Chinese businesses in Europe and promote fairness,
equity, and sustainability in the dynamic global trade landscape.
As China and the EU continue to deepen their economic ties, the
role of CCCEU remains pivotal in fostering mutual growth and
cooperation.
Despite these challenges, Chinese companies in the EU remain
resolute in their belief that the foundation for mutually beneficial
cooperation between both sides remains intact. They acknowledge
the continued significance of the EU market for China. The
shared goals of green and digital transformations are central to
The MAS in Antwerp, Belgium
Photo: Shutterstock
62 63

BERNARD DEWIT
CHAIRMAN, BELGIAN-CHINESE
CHAMBER OF COMMERCE (BCECC)
Despite (geo)political differing views,
European businesses remain committed to the size,
profitability and dynamism of the Chinese market
When discussing EU-China relations, press attention is usually
focused on reporting negative evolutions in our bilateral relations.
I would therefore like to start this article by observing that 2023
seems to have marked the start of a much-needed reconnection
between Europe and China, and re-engagement to expand business
relations between the two. Our organization, the Belgian-
Chinese Chamber of Commerce (BCECC) has seen many
Chinese business delegations eager to travel to the EU again
after the easing of China’s COVID-19 measures and the re-opening
of its borders. This is a significant and promising turning
point, and these people-to-people contacts are much-needed
to repair the gap in trust and communication after three years of
limited contacts. By no means does this imply that we can ignore
the challenges and obstacles still facing the world economy.
It would therefore be in the EU and China’s best interest to
further strengthen their cooperation to solve common challenges
such as world hunger and climate change. Even though the
EU considers China both a strategic rival and partner, it remains
committed to cooperating with China to ensure continued
progress in order to reach the Sustainable Development Goals
and the Paris Agreement targets. The EU and China both committed
to a comprehensive strategic partnership in the EU-China
2020 Strategic Agenda for Cooperation and the 2019 Joint
Communication “EU-China – A Strategic Outlook”.
In these frameworks, the EU supported low-carbon urban
developments in China, during which European cities such as
Amsterdam and Bologna provided technical advice to Chinese
cities amongst which Zhuhai and Guilin on developing resilient
cities, solid waste management and wastewater treatment.
Moreover, the EU cooperated with the Ministry of Housing and
Urban-Rural Development to set up new and comprehensive
green financing guidelines, and developed training courses in
10 pilot cities. EU projects also helped Chinese SMEs adopt
energy efficient solutions to reduce their environmental impact.
On the other hand, China has also taken active efforts to address
climate change by launching major efforts such as a national
strategy to increase the protection of wetlands and animal species,
and has committed to reach peak carbon dioxide emissions
by 2030 and achieving carbon neutrality by 2060.
Practically speaking, Chinese and European experts are already
cooperating on emission trading systems, long-term low emissions
development strategies, greenhouse gas emissions from
vehicles and agriculture, on climate-smart cities, on scientific and
technology development, etc.
However, experts still see many possibilities for cooperation on
climate issues, which should not be ignored and could be further
developed. I hereby think about creating a specific EU-China
64 65

prosperous, strong, democratic, culturally advanced, harmoni-
These differences in political and economic decision-making are
ous and beautiful. At this moment, the accomplishments of the
not only a reflection of each power’s leadership and culture, but
Chinese leadership have been remarkable.
are often a reflection of a completely different way of looking at
the world. Where Europe sees risks, China often sees opportuni-
The country lifted 700 million people from poverty, and the
ties.
growth of the Chinese economy into the world’s second largest
economy is a success story, although currently slowing down.
As Chairman of the Belgian-Chinese Chamber of Commerce
China’s huge population of 1.4 billion people has access to clean
(BCECC) for over 25 years, I have been lucky enough to witness
and safe drinking water, improved education, health facilities,
the changing relationship between the EU and China.
public transport and legal services.
Characterized by many ups and downs, the continuation of diplomatic
and economic relations and people-to-people contacts
Nonetheless, some domestic obstacles in China still stand in the
has nonetheless persisted.
way of their development: the growing population of 60+ people
crossing 400 million in 2035, and China’s property crisis to name
Especially in today’s world with global threats and challenges
but a few.
continuing to emerge, and dynamics of decoupling, protectionism
and unilateralism, we remain crucial mutual partners. At a
One of the areas in which China is aiming to grow its internation-
time when several countries speak about putting up new trade
al presence and influence, is the Belt and Road Initiative (BRI).
barriers, we should remember that protectionism has not been
Through the BRI, 149 countries signed Belt and Road cooper-
a solution for social progress and poverty alleviation, on the
ation documents with China as of July 2022, making it a great
contrary.
potential platform to promote multilateralism and policy, infrastructure,
trade, financial and people-to-people connectivity.
We need to collectively pursue international cooperation and
resolve any differences through consultation with multilateral
The EU is still an important investment destination for the BRI,
institutions. It is crucial to remove misconceptions undermining
resulting in a growth from EUR 1 billion Chinese foreign direct
the effectiveness of the bilateral dialogue, especially in these
investment in 2008 to EUR 35 billion in 2016.
challenging times.
The majority of Chinese investments are still going to Western-
Despite (geo)political differing views and lowered trust between
Europe, but more and more projects are being implemented in
the EU and China, European businesses remain committed to
Central-East- and South-Europe in recent years. Especially in
the size, profitability and dynamism of the Chinese market. Let us
European countries that were hit hard by the euro crisis, China
continue to focus on how we can strengthen our businesses here
stepped in by investing in regional logistics hubs, for example.
in doing just that.
green finance initiative, or a EU-China joint proposal to finance
have significantly negative implications for both and for the world
A great illustration of this is the Piraeus port in Greece, a regional
green projects that have trouble to find private capital.
at large.
logistics hub and key entry point into Europe of which Chinese
The Belgian-Chinese Chamber of Commerce is the largest
company Cosco Shipping Lines now has acquired a majority
bilateral chamber of commerce for companies engaged in
When it comes to eradicating hunger and poverty, EU-China
For the European market, it would lead to disruptions in our
stake.
business with or in China. It has been established in the
cooperation in research has been conducted since China’s open-
supply chains and negatively impact economic growth in sectors
1980s after China’s opening up, and is a non-profit organi-
door policy in the 1980s. In the 2010s, an EU-China Task Force
where China plays a crucial role, such as renewable energy and
The EU’s position on the BRI is largely positive, but it remains
zation consisting of more than 500 members.
on Food, Agriculture and Bio Technology was created, as well
electronics. China, on the other hand, would lose its access to
vigilant when it comes to China adhering to EU market rules and
as the Food, Agriculture and Bio-Technology Flagship Initiative
the high-end technologies on the European market, leading them
international standards and requirements, to ensure a level play-
The Chamber’s main goal is to advance the economic,
to increase joint studies on sustainable agriculture, food security
towards alternative sources of supplies and markets.
ing field. The BRI offers amazing opportunities in terms of trade
financial, cultural and academic cooperation between
and safety.
and economic growth, so we should be careful to only consider
Belgium and China. It aims to achieve this by organizing
Having looked at the current state of EU-China relations and the
the negative implications for Europe.
seminars and webinars on a broad range of topics, as well
EU-China collaboration in Food, Agriculture and Bio-technology
potential for stronger cooperation, it is equally important to keep
as networking events, company visits and lunches with
(FAB) research has been a win-win investment for both sides.
an eye on China’s strategic outlook on the future. China’s
The channels of communication between the European Union
high-level officials.
Opening the market and increasing the profits of European
Global China 2049 Initiative will mark the centenary of the found-
and China remain open, but are disrupted from time to time.
researchers selling their sustainable advanced technologies to
ing of the People’s Republic of China.
The announcement of the screening mechanism for FDI or the
www.bcecc.be
China, the efficiency and quality of Chinese agricultural policies
EU’s countermeasures against Chinese electric vehicles hereby
have improved because of this.
It provides great insight in China’s evolving geo-economic
immediately come to mind.
policies and vision for the future across different sectors, as
All photos: BCECC
After having zoomed in on areas of cooperation for the EU and
well as how China sees the world. By 2049, the Chinese govern-
China, it is clear to see that decoupling our economies would
ment aims to build a great, modern, socialist country that is
66 67

POWERING A BRIGHTER
FUTURE FOR EUROPE
LU YONG, PRESIDENT
OF HUAWEI’S EUROPEAN REGION
For more than 20 years, our European talents and teams
have been developing ‘Innovation Made in Europe’.
Advancing green technologies and fostering digital inclusion,
now we are working to ensure that no one is left behind
in the twin transition.
Digital InPulse supports French start-ups that provide innovative ICT solutions
Europe is changing. Long the inspiration for the world’s reformers
and innovators, it now seeks to carve a fresh path through precious natural treasures. To combat the devastating damage
Our dynamic vision for the future includes protection for Europe’s
the complex maze of global challenges and opportunities. It is a caused by forest fires across the continent, Huawei worked with
quest for greater resilience. But Europe does not stand alone.
Greek partners to pilot a cutting-edge early detection 5G solution
at Syngrou Forest.
For more than 20 years, Huawei has called Europe “home”. Our
European talents and teams have developed Innovation Made in It connects carbon dioxide and temperature sensors on the
Europe, helping to strengthen the competitiveness of European ground with drones hovering over the forest, and uses Artificial
industries and to support the EU’s goal of strategic autonomy. Intelligence (AI) to monitor images captured in real time to pinpoint
possible fires.
We’ve closely aligned with the European Commission’s digitization
ambitions, operating various research institutes across the
continent and employing thousands of European top minds in This allows local authorities to swiftly reduce the potential fire
R&D.
damage. A forthcoming upgrade will go beyond detection to intervention
by instructing drones to deploy fire extinguishing balls
We contribute around EUR 12.3 billion to the European economy
each year, and our investments currently support more than
and guide citizens to evacuate. Technology saves lives.
140,000 jobs. Europe’s social model is built on the belief that no And our technology protects the environment and livelihoods by
one should be left behind. We share that commitment wholeheartedly.
Our 2021 tax contribution in Europe (EUR 5.2 billion) Huawei 5G, drones from a local partner and sensors to monitor
supporting green agriculture too. In Austria, the integration of
was equivalent to the wages of 147,000 teachers – key pillars of real-time crop growth, has helped farms greatly reduce pesticide
an inclusive society.
use – a core goal of the Common Agricultural Policy (CAP). This
ELA: The European Leadership Academy equips women with the skills needed to shape the digital age
68 69

smart farming has also improved efficiency and promoted local
life – farmers to doctors, lawyers to astrobiologists. Many of our
recognized inside the EU, connectivity and digital infrastructure
network infrastructure construction, bridging the digital divide
alumnae are now leaders in technology, business or academia,
investments and its funding are key to Europe’s competitive-
between cities and rural areas – tackling another of the EU’s
while others are entrepreneurs bringing innovative solutions to
ness. Huawei is committed to continue driving competition and
on-going challenges.
life; for example, one is building Europe’s leading climate intelli-
innovation to ensure Europe’s digital infrastructure will remain
gence systems for the construction industry, to help it reduce its
world leading and could support Europe’s ambitions in a global
Sustainability also demands a commitment to energy conserva-
carbon emissions.
digital economy. Competition and innovation have in fact been a
tion and emissions reduction. Together with European carriers,
common factor for Europe and Huawei’s success.
we jointly implemented the Green Target Network program at
As a member of the United Nations Global Compact (UNGC)
more than 10,000 live network sites last year, saving 4.1 million
since 2004, Huawei believes connectivity is a basic right for
As an integral part of the European Innovation Ecosystem, we are
kWh of electricity. The program scooped the GTI ‘Innovative
every human being. Digital inclusion grants access to limitless
proud of what we have achieved together and our 30-year track
Breakthrough in Mobile Technology Award’ and ‘Outstanding
knowledge and opportunities – in short, to freedom. Quality inter-
record of safety and security, and of how we are contributing to
Detecting Early Signs of Forest Fires with Drone-Based solutions in Greece
Award’ at this year’s Mobile World Congress in Barcelona.
net connection creates jobs, promotes development, decreases
a more resilient Union – from providing top-level cybersecurity
poverty and prevents the depopulation of rural areas, which is
training to predicting extreme weather conditions.
By the end of 2022, our digital solutions had helped customers
among Europe’s top demographic challenges. We strive for an
with thousands of European companies, prove that prosperity is
generate 695.1 billion kWh of green power and save 19.5 billion
ever-stronger ethical use of technology, with diverse talents en-
Just last month, our Pangu-Weather Model, the first AI prediction
built on collaboration.
kWh of electricity – equivalent to avoiding 340 million tons of
compassing both top technical skills and a humanist perspective
model to demonstrate higher precision than traditional numerical
CO2 emissions. And Huawei walks the talk in our own opera-
at the forefront of its creation.
weather forecast methods, became available on the European
Innovation is a joint venture. Have all our European partners been
tions.
Weather Agency website. Cooperation is happening, and keeps
wrong to trust us all these years? Hasn’t Huawei’s contribution
Our ambition builds on 20 years as a major contributor to global
benefiting the European society at large.
helped the European economy grow, and remain competitive
Last year alone, we used 390 million kWh of electricity from
ICT standards, including those for cellular, Wi-Fi, and multimedia
worldwide? Haven’t our technologies served well millions of
renewable energy sources and about 1.8 billion kWh from clean
codecs. As a result, Huawei has one of the world’s largest patent
However, the path ahead will not be without challenges. Po-
citizens across all European countries, without a single security
energy sources, up 25 and 15 percent year-on-year, respectively.
portfolios, leading the way in Europe for the past four years as
litically-fuelled confrontation threatens everyone’s peace and
breach in all this time?
Our main campuses are now fully powered by clean energy.
the number 1 patent applicant. In 2022 alone, we filed 4,505
prosperity. In whose interest are those artificial divides and false
applications.
narratives being fuelled? Would Europe be better off if it was cut
I invite you, dear reader, to think critically about our shared
At the same time, our far-reaching commitment to digital inclu-
off from the rest of the world? Or would it instead be intellectually
history, and our immense joint future potential. To see through
sion and decisive support for a more competitive Europe has led
Maintaining unity of global standards is key for all innovators and
and economically poorer, denied so many of the resources and
the geopolitical mud-slinging. And to retain instead an open mind
us to help European SMEs and start-ups shine worldwide. With
businesses worldwide – regardless of their origin. That is why
capabilities required for it to grow and to safeguard the social
and willingness to calmly analyse the facts. They will reveal what
tracks in France, Spain or Ireland, our incubator scheme helps
Huawei and Sweden’s Ericsson recently signed a long-term glob-
benefits enjoyed by its citizens?
truly unites us.
small companies grow and scale their businesses globally.
al patent cross-licensing agreement that covers patents essential
to a wide range of standards for 3G, 4G, and 5G cellular technol-
We need to look afresh at the current state of affairs. Huawei did
Together for a stronger Europe: that is our pledge, and our teams
They can access funding and foreign markets, upgrading their
ogies. Sharing leading technological innovations is essential to
not arrive in Europe yesterday. Our hundreds of collaborations
on the ground will continue working towards this goal – no matter
operations and research with technical support from our top
driving healthy, sustainable industry development across Europe
with European universities and research institutions, as well as
what.
experts. Indeed, talent cultivation has been in Huawei’s DNA
and the world. Working together benefits us all.
since the company’s foundation. Through our training programs,
Europe’s top young minds reap the benefits of academic col-
In fact, our presence in Europe has provided both competition
laboration and knowledge-sharing across diverse cultures and
and innovation power, which has been critical for the EU to stay
innovation traditions.
competitive towards other larger and more centralized economies.
Despite Europe’s decentralized market structure, telecom
By the end of 2022, our Seeds for the Future 2.0 initiative had
operators have been able to offer lower prices while ensuring
reached more than 150 countries and benefited more than 2.43
significantly higher network quality compared to others with more
million people worldwide. We had established ICT Academies
restrictive market access policies. As increasingly discussed and
with more than 2,200 universities – many of them in Europe,
fulfilling the Union’s call to get the European workforce fit for the
digital era.
However, we are not blind to the need to encourage and provide
particular support for more female talent. The EU’s vision for
a gender-equal Europe by 2025 is unfortunately very far from
becoming reality. Huawei seeks to tackle that. Since we started
the European Leadership Academy in 2021, more than 9,000
talented European women from 34 countries have applied to
join our programs. With full scholarships provided, our programs
have already changed the lives of 100 women from all walks of
5G Smart Farming in Austria: Supporting Green and Efficient Agriculture
Photo: Istock
70 71

NIO – INTRODUCING A UNIQUE
APPROACH TO SUSTAINABLE
MOBILITY TO EUROPE
Hui Zhang, Vice President, NIO Europe
You drive your NIO electric vehicle to a NIO ‘Power Swap
Station’ (PSS), press one button and remove your hands from
electric mobility by providing them with the ability to charge their
EV in a fast and convenient manner.
the steering wheel. The vehicle parks autonomously in the PSS
and is smoothly elevated by a few centimetres. The spent EV
battery is removed, and a charged battery is fitted. Your NIO
is lowered to the ground, and you resume your trip. The entire
Our Power Swap Technology offers a faster and more environmentally
friendly alternative to traditional EV charging systems
and is a real comfort gain on long-distance journeys. Enabled by
process has taken less than five minutes. This is the battery
NIO Innovation Center Berlin
swapping technology that has been embraced across China
and which NIO is now bringing to Europe.
SUPPORTING THE EU GREEN DEAL
NIO was founded in 2014 by William Li who at the time expected
a child and reflected on his possible contribution to reducing
smog in his hometown. William founded NIO based on the vision
of a ‘blue sky’ for future generations. Today, ‘Blue Sky Coming’ is
NIO’s guiding philosophy and we are pioneering smart premium
electric vehicles and smart charging solutions.
The climate transition represents a formidable challenge for all
of us. The EU Green Deal sets ambitious targets for Europe to
become the first climate neutral continent by 2050. An essential
step towards net zero is the decarbonization of key sectors such
as mobility. Ahead of the phase-out of ICE vehicles by 2035, NIO
will support Europe’s transition towards clean and sustainable
mobility by responding to the growing demand for electric vehicles
and the necessary infrastructure.
With our innovative charging solutions, NIO will make an important
contribution to the deployment of the required infrastructure
across Europe. In doing so, we will help more drivers switch to
over 1,500 patented technologies, the fully automatic solution
swaps depleted batteries for charged ones without the user
needing to leave their car. Across China, over 1,900 PSS are
already available to our users. Combined with our Battery as a
Service (BaaS) concept, our charging approach provides maximum
flexibility. BaaS users can purchase a NIO EV without the
battery, subscribe to battery packs of various capacities (75 kWh,
100 kWh) according to their needs and pay monthly.
So far, thirty NIO Power Swap Stations, which are assembled
in Europe, have been deployed in our key European markets.
In September, I was joined by Simon Wright of The Economist
for NIO’s first ever ‘Power Drive’ in Europe. Driving 860 km from
Amsterdam to Munich – no charging, just four battery swaps – it
was an opportunity for Simon to witness first-hand NIO’s growing
European PSS network and experience the many benefits and
ultra-convenience of our unique battery swap technology.
DEVELOPING EUROPEAN PARTNERSHIPS
NIO has already established itself as the most competitive premium
brand in the smart electric vehicle market in China. Today
in Europe, a team of 1,250 ‘NIOers’ is working to bring NIO
vehicles, our Power Swap Stations and Battery as a Service to
European users. Following our market entry in 2021, NIO is now
present in five European markets: Norway, Denmark, Sweden,
The Netherlands, and Germany. Many other European countries
will follow in the coming year. By 2025, we plan to extend our
services to users in more than twenty-five countries worldwide.
In addition to those five sales markets, NIO is also present in
Hungary, which hosts our first PSS assembly factory outside of
China, and the United Kingdom with our Advanced Engineering
R&D Center.
As we expand into the European market, we are grateful for
the ongoing support of both national and local authorities in
addressing some of the challenges we face in deploying our
Power Swap Stations in Europe. We will continue to engage with
decision-makers on the importance of technology neutrality on
charging infrastructure and the need to remain open to alternative
solutions such as battery swapping stations in upcoming
Regulations.
NIO firmly believes that collective action fosters the best outcome,
and we are proud to have established partnerships with
Hui Zhang, Vice-President, NIO Europe
72 73

NURTURING EU-CHINA TRADE
The economies of the EU and China are deeply intertwined. Last
year alone, China accounted for 20 percent of the EU’s imports
and received 9 percent of the EU’s exports. We welcome the
recognition by EU leaders that ‘decoupling’ from China is neither
a realistic, nor a desirable proposition.
Indeed, many of those same EU leaders also acknowledge that
Europe’s net-zero transition will be impossible without China,
which is by far the largest global producer of solar panels, batteries,
and the necessary raw materials.
The full potential of EU-China trade must be nurtured. A stable
and predictable international trade environment will be of mutual
benefit to the EU and China. An EU-China summit is scheduled
to take place this year.
Our hope is that an enhanced dialogue, more frequent exchanges
at the institutional level will help stabilize relations and enable
both European and Chinese companies to capitalise on the immense
opportunities in areas of shared interest such as sustainable
development, clean mobility, and the digital economy. For our
part, we remain fully focused on enabling NIO users worldwide to
enjoy access to our products.
NIO Power Swap Station
a broad range of Europe’s leading industry suppliers, including
Bosch, ZF, Continental, Brembo and Webasto.
In July, we inaugurated our new Innovation Centre in Berlin,
which will focus on in-car AI and user-experience defined vehicles.
Our teams at the Innovation Centre will develop, test, and
validate a range of technologies that will be tailored to European
users. The Innovation Centre’s location was chosen specifically
to attract Europe’s leading software engineering, machine learning,
AI, and voice systems talent, ahead of greater expansion in
the region.
set decarbonisation targets and roadmaps which will meet SBTi
standards within two years. We were delighted to be recognised
in 2023 in the Corporate Knights Global 100 and to be ranked the
first among car brands on the World’s Most Sustainable Companies
list.
In Europe, our commitment to sustainability is visible through
our Clean Parks initiatives. Beginning in Denmark last year, NIO
announced a partnership with the Danish Society for Nature
Conservation and the Danish Nature Foundation to promote
sustainable development.
NIO’s Clean Parks project in Denmark will create improved local
CONTRIBUTING TO SUSTAINABILITY IN EUROPE habitats for animals and plants and promote opportunities for the
public to explore and experience nature sustainably. In carefully
NIO recognises that the smart EV industry must play a key part selected nature reserves, NIO will help create a clean energy
in the low carbon transformation of the economy and society. In infrastructure and improved facilities for park visitors.
2023, NIO became the first new energy vehicle company in China
to join the Science Based Targets initiative (SBTi) and we will
Power Drive
74 75

TESTIMONIAL
25 YEARS OF DOING BUSINESS
IN CHINA
Bart Horsten, Managing Director, Horsten International
Although my personal connection to China started in 1998, China
has been part of my life already since the early eighties, the
period during which my father (the late Joos Horsten) travelled
to China multiple times for the China project of Janssen Pharmaceutica.
In August 2023, I celebrated 25 years of doing business
in China and getting ready to leave on my 100th business trip to
China.
THE JANSSEN PIONEERING YEARS (1979 – 1998)
Travelling to China and doing business with China 40 years ago
was quite different from today. That’s what also made the pioneering
work of the Janssen China team, led by Joos Horsten, so
exceptional. Inspired by Dr. Paul Janssen and with the support
of the provinces of Shaanxi and Antwerp, the Xi’an Janssen
joint venture became a success story, a major reference in the
pharmaceutical industry in China and a prominent example of a
successful Sino-Belgian partnership.
Following the successful cooperation of Janssen with its Chinese
partners, Joos Horsten was also instrumental in the establishment
of the friendship agreement between the provinces of
Antwerp and Shaanxi. With the support from Joos and written
by Geerdt Magiels, a book was published in 2003, which tells
the intriguing story of how Dr. Paul Janssen established Janssen
Pharmaceutica in 1953, and how Janssen became a true pioneer
in the global pharmaceutical industry and in China.
from looking for investment opportunities for Western companies
in China to looking for distribution partners or Chinese suppliers
for my European customers.
THE GROWTH YEARS (1998 – 2019)
In 1998 I started working in my father’s company, Horsten International,
a consulting company engaged in providing services to
Belgian and European companies in doing business with China.
I consider myself a privileged witness of China’s impressive
growth in the past two decades.
Although difficult to imagine now, in the 1990s and the 2000s,
China was very much dependent on the products, technologies
and investments from European or American investors. China did
not have the equivalent research capacities or management skills
yet, not to mention the financial means or level of education.
Furthermore, the investment requirements, salaries and costs
were still extremely low, and China was called ‘the factory of the
world’.
During the 2010s, China continued its fast growth and increasingly
gained the power and resources to purchase whatever they
wanted or needed. The focus of my consulting business changed
THE COVID YEARS (2020 – TODAY)
During the past 3.5 years, many European companies have
re-evaluated their China strategy. Ongoing trade disagreements
and political tensions involving China on the international stage,
combined with the impact of the Covid-19 pandemic on the
global supply chain, have impacted the trading business with
China, both in terms of sourcing from China, as well as for
exports to China.
On the other hand, China remains an irreplaceable sourcing
hub and hugely important export destination for many Belgian
companies. Hence, China’s importance to Belgium cannot be
ignored.
China’s isolation during the three Covid years has created a form
of alienation between China and the West. The fact that many
foreigners have left the country has not helped either.
76 77

Especially in a country like China, where personal contact, trust
and interpersonal relationships are so extremely important in
doing business, staying away for three years is not conducive to
good relations between parties. It will take a long time to rebuild
that lost trust. The only way to resolve this is to restart the dialogue,
both at the corporate and European government levels.
LOOKING FORWARD
Doing business in China and being successful is becoming a
greater challenge than ever. It is clear that Chinese companies
are now in the driver’s seat when talking about doing business
between Western countries and China. However, we should not
necessarily see this as a threat. I am convinced that, if we keep
an open mind, there are still a lot of opportunities for Belgian
companies in China.
The only way forward is to keep looking for cooperation between
European and Chinese companies. We can no longer win the
economic and technological battle with China, but that does not
mean that there are no opportunities for European or Belgian
companies. On the contrary: it is up to European companies and
governments to find a way to cooperate with China and to enter
into intelligent partnerships with Chinese companies, not only for
the Chinese market, but also for the benefit of global expansion.
Because Chinese ambitions extend beyond China; it is now a
matter of Going Global.
78 79

UPHOLDING COMMON
DEVELOPMENT TO PROMOTE
THE STEADY AND SUSTAINED
DEVELOPMENT OF
CHINA-EUROPE RELATIONS
China Three Gorges Europe (CTGEU)
In March 2019, the European Commission published a document
titled EU-China: A strategic outlook, which conceives of China
as “a cooperation partner with whom the EU has closely aligned
objectives; a negotiating partner with whom the EU needs to find
a balance of interests; an economic competitor in the pursuit of
technological leadership and a systemic rival promoting alternative
models of governance.”
Since then, this line of thinking has always affected the EU’s
strategic perception of China. Europe’s perception of China is
inevitably changing, with the international geopolitical realities
of the present day. At present, China-Europe relations face more
challenges than before.
CTG-EDP Board Meetings
However, despite the test of reality, China and Europe share
many common interests, and there are still important opportunities
for cooperation between them. The frequent exchanges of
high-level visits between China and Europe this year also reflects
the strong willingness of both sides to engage.
As two major forces, two big markets and two great civilizations,
China and Europe should continue to pursue win-win cooperation
for it serves the common interests of China and Europe
as well as those of the international community. China–Europe
relations will continue to move forward against a backdrop of
enormous potential challenges.
CTGE Portugal Scholarship
PRACTICAL COOPERATION FOR WIN-WIN
RESULTS
There is no fundamental conflict of interest between China and
Europe; our cooperation far outweighs competition, and there
are far more areas of common understanding than disagreements.
Facing the same world, China and Europe share the same
or similar aspirations, namely the pursuit of world peace and
sustainable development and the maintenance of an international
order based on genuine multilateralism.
Both sides benefit from a stable and predictable world order and
have a responsibility to work together to respond to the call of
our times.
Europe has a strong energy sector. EU energy and specifically
the renewables sector has grown very quickly over the past 10
years. In the future, new energy will become an important area of
China-Europe cooperation. The two sides can gain more profits
and influence by strengthening cooperation in investment, trade,
research and development, and standards in the field of new
energy, while also contributing to the global energy transition
and environmental protection to jointly address the challenges of
environmental pollution and climate change.
CTGEU has always sought cooperation with utmost sincerity.
We also look forward to a fair and just business environment for
Chinese companies in Europe and hope that the European side
will adopt a positive attitude towards Chinese companies. In
the international markets we behave like any other international
investor: following the international rules of the game.
But at the same time, we are aware of who we are and of the
geopolitical situation. We only invest in those countries where we
are welcome. We actively engage in cooperation and exchanges
with governments of other countries, strengthen policy dialogue
and consultation, promote the sustainable economic and social
development of the countries where our projects are located, and
communicate and cooperate with excellent local companies and
industry groups to promote industry progress.
We are always committed to generating significant benefits for
countries, sectors, and consumers.
Both China and Europe are large and open economies that
have benefited a lot from globalization. Anti-globalization and
de-globalization serve neither side’s interests. We must expand
common interests and take a long-term view, which will be good
for both sides and deliver benefits to the world.
80 81

Universidad de Jaén Visited CTGE Manzanares Plant
corporate citizenship, and conveying the kindness and sincerity
of the Chinese people to the European people.
ABOUT CHINA THREE GORGES EUROPE (CTGEU)
China Three Gorges Europe is a clean energy generation com-
CGTN Shooting at CTGE Daylight PV Plant
Fulfilling CSR is the need for Chinese enterprises to participate
pany, belonging to China Three Gorges Corporation, the largest
in international economic cooperation. It is not only related to the
clean energy group in China and the largest hydropower compa-
CONNECTING CHINA AND EUROPE WHILE
FULFILLING CORPORATE SOCIAL RESPONSIBILI-
TY (CSR)
working environment for employees, so that Chinese and foreign
employees can grow together with the company.
We make a positive impact everywhere we go. CTGEU places
realization of the enterprise’s development strategies, but could
also play an effective role in promoting exchanges, dialogue,
and communication between the people of China and Europe,
solidifying public support for long-term steady progress in
China-Europe relations.
ny worldwide.
Since 2011, we have been contributing to Europe’s energy
transition and decarbonization goals by investing in a number of
leading clean energy generation platforms in various countries in
Enterprises are important carriers of economy, diplomacy and
sustainability, environmental awareness, and social responsibility
the region, including Spain, Portugal, Germany, Italy, Poland, the
culture of a country, and the overseas image of Chinese enter-
at the heart of its business operations.
As President Xi Jinping pointed out in his important speech at
UK and Greece.
prises is directly related to China’s national image. Building a
the High-level Dialogue on Global Development in 2022, this is
good image of Chinese enterprises plays an important role in
While continuously expanding international business, CTGEU
an age rife with challenges, but it is also an age full of hope. We
Currently, China Three Gorges Europe has over 75 employees,
presenting a true, multi-dimensional and panoramic view of
is committed to improving the educational environment in the
must get a good grasp of the overarching development trends in
distributed throughout the company’s various offices and centres
China to the world and connecting China with the world.
country where our projects are located, actively carrying out
the world, firm up confidence, and act in unison and with great
in Spain, Portugal, Germany, Greece and Luxembourg. The
donation activities, by setting up educational scholarships and
motivation to promote global development and foster a develop-
team is made up of a very diversified group of professionals,
CTGEU takes root in the countries where our projects are locat-
donating schools. CTGEU supports local development projects
ment paradigm featuring benefits for all, balance, coordination,
from many different countries, with complementary profiles and
ed, respects the laws and regulations, local culture and religious
and truly gives back to the community. In Germany, we sponsor
inclusiveness, win-win cooperation and common prosperity. We
extensive experience in the renewable energy sector, focused on
beliefs of the host country, actively absorbs local employees and
local universities to strengthen cultural exchanges. In Greece, we
will also firmly commit to the entrustment and make greater con-
cross-border acquisitions primarily in Europe.
promotes their diversity and builds a professional talent team
donate to nursing homes and village clinics, aiming to provide
tributions to promoting mutually beneficial cooperation between
with international vision. We attach great importance to cultural
better medical services and public welfare services for residents.
China and Europe.
In 2021, China Three Gorges Europe established its new head-
integration and cross-cultural management and are committed
We strive to interpret the concept of a community with a shared
quarters in Madrid, Spain.
to eliminating cultural barriers and creating an open and inclusive
future for mankind with actions, demonstrating responsible
82 83

One Belt One Road in CTG Greece
THE CTGEU STORY SO FAR
2011: China Three Gorges established its European subsidiary in
2011, when the company decided to acquire a 21 percent stake
in Energías de Portugal (EDP), becoming a key strategic shareholder
and partner of the Portuguese energy company.
2012: CTG Europe took an additional 49 percent stake in EDPR
(established in 2007 to hold and operate the growing renewable
energy assets of parent company Energias de Portugal (EDP)),
which controls an onshore wind portfolio with a capacity of
around 649.4 MW in the country.
2018: CTG Europe entered the UK energy market for the first
time through the acquisition of a 10 percent stake of the 950 MW
Moray East offshore wind farm off the coast of Scotland.
2020: CTG Europe took over a solar portfolio from Spanish
company X-Elio’s totalling 572 MW. This marked the company’s
entrance into Spain.
2021: China Three Gorges Europe acquired a 400 MW renewable
energy portfolio from Corporación Masaveu in northern Spain.
The predominantly wind energy portfolio includes a 4 MWp solar
installation in La Rioja.
In the same year, China Three Gorges Europe began construction
of a solar photovoltaic plant in Greece, with an 18 MWp (Megawatt
peak) capacity.
2016: China Three Gorges Europe acquired an 80 percent stake
in German renewable company WindMW, which owns a 288
MW offshore wind energy farm off the coast of Germany named
Meerwind.
In 2021, the company officially established its headquarters in
Madrid, Spain.
2022: CTG Europe took over an 181 MW onshore wind portfolio
from EDP in Spain.
The business added two additional portfolios in the country: the
104 MWp solar photovoltaic Belvis portfolio from Aldesa and the
619 MW solar PV Roadrunner portfolio from Nexwell.
Chinese Lantern Festival Celebration in CTGE
84 85

THREE IMPORTANT CHANNELS
TO STRENGTHEN THE AGRI-FOOD TRADE
BETWEEN CHINA AND THE EUROPEAN UNION
Marcel van der Vliet
President, European Liaison Committee for Agricultural
and Agri-Food Trade (CELCAA)
CELCAA is the European Liaison Committee for Agricultural and
Agri-Food Trade and, as such, represents at European level the
most essential food sectors such as meat and livestock, dairy,
cereals, grain, and oilseed trade, eggs, egg whites, and egg
yolks, wine and aromatized wine products, hops, tea, and herbal
infusions, tobacco, and the butch craft sector and their trade.
We represent, in total, more than 25,000 agri-food producers and
traders in Europe. Our vision is to create open, fair, and sustainable
agri-food trade by ensuring that agri-food trade is recognized
as an essential pillar of a sustainable and resilient EU and
international food and farming systems.
Global agri-food trade has always been an important cornerstone
to food and nutrition security as well as to enable economic
growth and outlet opportunities for farmers and their products
worldwide. As we head into a period of a changing agricultural
landscape with crop migration, growing water scarcity, and
increasingly extreme weather events impacting yields, agri-food
trade will become even more important as a mitigator of the
effects of climate change to ensure that agri-food resources are
well distributed between regions of excess supplies and those
of deficit supplies. While further thought must be given to the
continued transition towards enhanced sustainable agri-food
trade, one of the major and increasingly important prerequisites
of food security will be the possibility to access markets in the
most open and fair way possible.
China and the EU already look back on a successful and stable
market evolution, with China being the third largest agri-food
export destination for EU agri-food trade with a market value
of EUR 17.1 billion, currently dominated by meat, beverages,
and dairy exports. China accounts as the fifth biggest origin for
agri-food imports to the EU, with animal and vegetable fats, but
increasingly also vegetables and oilseeds amongst the top three
imports, with a total market value of EUR 6.1 billion. Therefore,
building mutual trust and understanding continues to be a priority
on both sides.
PUBLIC-PRIVATE DIALOGUE IS ESSENTIAL TO
HAVING A CONTINUOUS UNDERSTANDING OF
MUTUAL DEVELOPMENTS
With an ever-complex world and increasing regulatory challenges,
EU agri-food traders have understood that cooperation
and continued public-private dialogue are essential to having
86 87

a seamless and swift understanding of upcoming regulatory
challenges. Agri-food traders represent the part of the food
chain implementing at the operational level; therefore, engaged
dialogue through official channels and fora of DG Trade but also
continuous engagement with the Chinese Mission to the EU
ensure appropriate contingency planning, better understanding
of upcoming changes, and also allow building long-term
trustful relationships. As diverging standards are often a reason
for trade disruptions, channels such as the announcement of
the reopening of the working group on alcoholic beverages are
welcomed as important approaches to regulatory cooperation.
CELCAA understands itself as an organization that builds bridges
between policies and trading reality and therefore regularly holds
debriefings together with the Chinese Mission to the EU as
well as Commission officials on such important matters as the
newly implemented Decree 247 and Decree 248 by the General
Administration of Customs of the People’s Republic of China.
Such cooperation ensured that, despite logistics and sanitary
challenges, a steady supply of essential agri-food products could
be secured in both directions.
COOPERATION AT THE ASSOCIATION
LEVEL BUILDS NOT ONLY TRADE CHANNELS
BUT FRIENDSHIPS
CELCAA members such as the Comité Européen des Entreprises
Vins (CEEV), or the European Livestock and Meat Trades Union
(UECBV), have engaged in cooperation with sectoral organizations
in China with the ambition to facilitate technical assistance,
seminars, collective trainings, and study visits to facilitate
information exchanges. These relationships, often manifested by
Memoranda of Understanding, do not just help to build market
relations but often result in lasting friendships and intercultural
exchange.
One very good example is the EU-China Wine Cooperation
Project between the Comité Europeéen des Entreprises Vins and
China Alcoholic Drinks Association (CADA), which launched an
unprecedented comprehensive business-to-business cooperation
project through a series of short-term activities organized in
Europe or in China, laying the foundations for a trustful long-term
collaboration between both sectors.
And also, the Dutch Meat Association COV looks back at
long-standing relations with the China Entry-Exit Inspection and
Quarantine Association (CIQA) and the Chinese Meat Association,
CMA.
While COVID had led to a slowdown in personal visits, it is now
back in full swing, with the Netherlands just presently being the
Guest Country of Honour of the China International Meat Industry
Exhibition (CIMIE) in Chongqing, China, with many activities to
bring the Dutch and Chinese meat sectors closer to each other.
CELCAA will continue to support the deepening of such relations
as an essential tool to build not only business but real relationships.
FIELD VISITS CREATE TRUST IN MUTUAL
PRODUCTION METHODS AND QUALITY
Agri-food production is a haptic and sensory experience. Seeing,
smelling, and also understanding the individual challenges agrifood
producers face is essential not only to appreciate the final
product but also to build trust in the quality of the product and
production methods on the ground. Visits such as the field visit
just conducted together with the Chinese Mission to the EU this
July to the vineyard of a Belgian sparkling wine producer are
important to build further knowledge.
China is the 6th biggest export market in value for EU wines and
accounted for over EUR 800 million in 2022. These visits are
therefore fundamental to maintaining easy and fair access to the
Chinese market.
In a period where innovation is crucial to securing future production,
cooperation and visits to the ground will create the basis
for common growth and learning, a mission to which CELCAA is
dedicated.
88 89

90 91

The ten years of the Belt and Road Initiative has proven that the
rise of China has not brought colonialism, disaster, war, refugees,
and crises. Instead, it brought the world trade, commodities, tourists,
infrastructure, economic growth and civilisation. No matter
how Western politicians, media, and think tanks vilify the BRI, they
cannot cover up a basic fact – that is, when China is strong, it
does not take the old path of aggression and expansion we see in
the histories of Europe, the US, Japan, and others.
Time goes by so fast that the “Belt and Road Initiative” has already
seen ten years. In October 2023, China hosted the 3rd Belt and
Road Forum for International Cooperation (BRF). Journalists and
scholars from around the world have been digesting and reflecting
on ten years of BRI. There remain some Western narratives,
focusing on certain individual cases or judging from certain angles,
that still are not optimistic about the Initiative. In fact, Chinese
President Xi Jinping proposed the “Silk Road Economic Belt” and
the “21st Century Maritime Silk Road” initiatives (referred to as the
“Belt and Road”) in September and October 2013 in Kazakhstan
and Indonesia respectively. In the following ten years, we have
witnessed significant changes in the world.
From the perspective of foreign strategy, the BRI is the first
concept for global cooperation in the history of China’s 5000-yearold
civilisation that has both global strategic significance and a
clear path for implementation. From the perspective of economic
structure, the BRI has revamped China’s past international trade
structure which had been overly reliant on the West, and gradually
promoted the rebalancing of China’s economic focus. From a cultural
perspective, the BRI has completely reshaped the world view
of the Chinese in the new era and fostered a global perspective of
all-round openness.
HOW HAS THE BELT AND ROAD
INITIATIVE CHANGED THE WORLD?
Wang Wen, Executive Dean
Chongyang Institute for Financial Studies
But, for the international community, the changes BRI has brought
to the world is more valuable than the changes it has brought
China. In fact, while the “Belt and Road” promotes the rebalancing
of China’s economic and trade structure, it is also promoting
changes to the pattern of international relations and global perspectives.
These changes not only influence the actual development
and future paths of more and more countries at the level of
investment and infrastructure, but also promote the changes and
evolution of the international system at the institutional and conceptual
levels. From the perspective of real development, the “Belt
and Road Initiative” has significantly improved the well-being of
those in the non-Western world, while boosting their interconnectedness
with China. As of July 2023, a total of 152 countries have
signed BRI cooperation agreements with China. In Africa, China
has built more than 6,000 kilometres of railways, over 10,000
kilometres of highways, 20 plus ports, more than 80 major infrastructure
developments and 80 percent of telecommunications
facilities. In the past ten years, China has opened more than 1,300
new airline routes with BRI countries. More than 80 countries have
seen new bank branches opened or financial cooperation established.
China’s average annual outward foreign investment remains
at USD 150 billion, with more and more of China’s capital flowing
to BRI countries.
According to statistics, the “Belt and Road Initiative” adds 1.2-3.4
percent of the actual national total income of the countries along
the route. A large number of iconic BRI projects, such as the
Mombasa–Nairobi Standard Gauge Railway, the China-Laos
Railway, and the Jakarta-Bandung High-Speed Railway, are completed
and operational, to benefit the local communities. The BRI
also strengthened the mutual understanding between China and
the non-Western world. Each year, more than 400,000 students
from BRI countries study in China, while China has established
Confucius Institutes, Luban Workshops, and Cultural Centres in
more than 100 countries.
From the perspective of the future, ten years of BRI has prompted
developing countries to reconsider their choice of development
model. In the past, developing countries often regarded the
“Washington Consensus” as the only point of reference for their
development path. The achievements of ten years of BRI show
that the Chinese economic experience, which champions “infrastructure
first”, is more suitable to the up-and-coming countries.
More importantly, the high success rate of China’s infrastructure
production capacity and trade investment, accompanied by a set
of operation frameworks that ranges from planning to design, from
financing to construction, and from operation to breaking even,
has enabled developing countries that have been trapped by a
lack of technology and capital to catch up from behind and even
surge ahead.
Nowadays, more and more developing countries are contemplating
and reflecting in depth: Why has China—once among the
poorest of all countries—seen a complete transformation in the
past 40 years? Why not choose, learn from, reference, or even
comprehensively copy China’s economic growth experience
encapsulated in the saying “building the road is the first step to
become prosperous”? What is more encouraging is that in the
past five or six years, in the face of suppression by the US, China
has still maintained medium-to-high-speed growth. Technology
companies like Huawei have continued to launch new high-tech
products after strict and watertight sanctions. Ten years of BRI cooperation
is encouraging the will of the up-and-coming countries
to strive for a better future, and thereby improving the balance and
fairness of the international community in the fields of technology,
trade, and rules.
From the perspective of strategic response, ten years of BRI
have been forcing Western countries to reflect on and adjust their
foreign strategy. According to incomplete statistics, in the past ten
years, Western countries have compiled more than 3,000 various
reports on BRI. From the Trump administration’s repeated emphasis
on policies promoting infrastructure construction and the
development of manufacturing, to the Biden government’s leading
role in the launch of the “Build Back Better World” (B3W) at the G7
summit and the unveiling of “Partnership for Global Infrastructure
and Investment” (PGII), all of them are inspired by the BRI, and yet
has to compete with the BRI to maintain the so-called “leadership”
of the West.
In a Forbes article, it was said that while China issued loans and
provided infrastructure to countries lacking in funds around the
world, the United States plays the role of a miser. Objectively
speaking, global governance headed by the West has made
historical contributions, but it has to be said that, in the 70 years
following the end of WWII, and especially since the end of the Cold
War, the negative impact the West had on the world far outweighs
the positives. Nowadays, Western countries are reflecting on
themselves, increasing their efforts to cooperate, in an attempt to
compete with China. If it can actually help developing countries, it
must be said that it is also an unexpected surprise brought by the
ten years of BRI.
What is regrettable is that the West attempts to compete with the
BRI through strategic reflection, which is full of lies, slander and
speculation. A case in point is the talk of debt in Western media
and think tank circles.
In fact, China has promoted infrastructure construction through
foreign policy loans, reducing the cost of current economic
transactions with highways, railways, and ports to improve the
efficiency of economic activities, which then drive up the land and
real estate prices in the region. The local government can then
easily repay the various debts under sovereign guarantee. This
logic, which might be called “BRI Economics,” surpasses the theoretical
assumptions and rationale of Western economics, and also
reflects the powerlessness and absurdity of the Western attacks
on BRI debts.
However, criticism and besieging of the Belt and Road Initiative
has been popular in the West for ten years, and will remain popular.
This reflects the long-term international challenges facing BRI.
It hasn’t been long since the Chinese first made contact with the
world and participate in global governance. For thousands of
years, China was isolated and confined to the east of the Qinghai-Tibetan
Plateau and the western desert, and only maintained
contact with other countries through the land-based and maritime
Silk Road. At that time, whether it was the Han or Tang Dynasties,
or the Yuan, Ming, the Silk Road was busy exactly when countries
in the European hinterland were at the height of their civilisation
and economic prosperity. In 2013, when China ranked as the
world’s second largest economy, it launched the Belt and Road
Initiative in the name of the “Silk Road” to revive the historical
memory of the common prosperity of the ancient civilisations,
showing the aspiration of a rising global power to mutually beneficial,
peaceful and win-win cooperation, and, ultimately, to the joint
rejuvenation of the world.
No matter how Western politicians, media, and think tanks vilify
BRI, they cannot cover up a basic fact – that is, when China is
strong, it does not take the old path of aggression and expansion
we see in the histories of Europe, the US, Japan, and others.
The ten years of the Belt and Road Initiative has proven that the
rise of China has not brought colonialism, disaster, war, refugees,
and crises. Instead, it brought the world trade, commodities, tourists,
infrastructure, and economic growth and civilisation. This has
never been achieved by Western countries in the histories of their
rise to power. Of course, new things will inevitably be accompanied
by bewilderment. During the tenth year of Reform and Opening
up, even mainstream academics in China were arguing about
whether the “market” was socialist or capitalist in bewilderment;
now, after 45 years of Reform and Opening up, no one suspects its
great significance any longer.
The Belt and Road Initiative is only ten years old. For a grand
strategy like BRI, ten years is too short to fully assess its impact,
but it has already shown its extraordinary significance. The BRI
is willing to make time its friend. In 20, 30, or 40 years, or more,
maybe everyone will then come to admire the greatness of the Belt
and Road Initiative in the same way we have come to admire the
greatness of China’s Reform and Opening-up.
This article first appeared in the public policy journal “Pearls and
Irritations” and republished with the author’s kind permission.
92 93

Between 2013 and the start of 2020, China’s policy of communication
and image projection was generally considered a success.
The country of all possibilities fascinated the West and the world
in all its dimensions: culture, economy, education, language,
research…
Seductive soft power, from Pandas to Tai Chi, and dynamic
language learning were the visible, mainstream markers of the
country’s openness to the world. Introduced in 2013, BRI immediately
added to these elements. In 2023, the tenth anniversary
provides an opportunity to take stock, as infrastructure projects
are now considered, in China as elsewhere, to be also elements
of a country’s soft power, or more broadly, influence.
Developing effective soft power requires staying true to a
well-defined line, resources, and values. In this respect, China
is firmly committed to the long-term, a concept central to its
civilization. And its political, cultural, and social model, as a pragmatic
and effective alternative to that of the West, is the clear
line promoted by the country. To underpin and reinforce this, the
government and the Chinese Communist Party have developed
the concept of the Chinese dream, or the Great rejuvenation of
the nation.
Given the global dimensions of the BRI, this reflection, in line
with the theme of this issue, is limited to examining the subject in
relation to the European Union and not in other regions. According
to the official version, the BRI is about connecting countries
and their economies for balanced, inclusive growth 1 . The project
is also part of China’s globalization strategy.
A concept hammered home by Chinese diplomacy, the BRI has
entered the political and media discourse. In this context, the
government’s arguments focus on a model of non-interference,
in which all players must benefit from economic development,
including the most modest or poorest countries. Legitimised by
the discourse of Chinese players, the BRI is taken up by many
media outlets in the EU 2 .
THE 10TH ANNIVERSARY
OF THE BELT AND ROAD INITIATIVE:
A EUROPEAN PERSPECTIVE
Olivier Arifon
Université Catholique de Lille
However, with the onset of war in Ukraine in 2022, the BRI faces
physical constraints of flow and security in addition to the analyses
developed by different agencies 3 .
Over the years, researchers and media have compiled a list of
risks – real or perceived – of the BRI: so-called “Debt trap”, lack
of transparency, low benefit to local economy, lack of legal protection,
technology transfer, leveraging of partnership between
corporations, funding of higher education programs and media
partnerships. To illustrate the reality of the BRI membership in the
EU sphere, the Italian case is interesting.
ITALY: MEMBER OF THE EU AND BRI
To attempt, briefly, to assess the effect or impact of an EU
Member State’s participation in the BRI, Italy as a case study is
interesting: “What all chapters showed is that narrative and action
are often out of synch. While the narrative of both opportunity
and risk was hyped when Italy decided to sign the MoU, the
reality was reasonable, manageable and not exceptional in the
European landscape. Even now that tensions between Europe
and China are running much higher than just three years ago,
collaborations between European and Chinese actors continue.
Such collaborations may carry risks, but there is little benefit in
labelling everything as a risk without proper data-based assessment.
Some collaborations may very well even be mutually
beneficial 4 .”
As a result, most of the risks discussed are irrelevant in the case
of Italy, one of the few Member States to have signed an MoU on
the BRI at the time of writing. This case provides a concrete illustration
of how a country positions itself in relation to China and
the BRI, vacillating between economic and trade interests and
the political logic of association. Ultimately, it reveals the tensions
and discussions between the EU and its Member States. For its
part, the EU is pushing against China’s BRI.
THE EU, FROM CHALLENGING THE BRI TO
MANAGING RELATIONS WITH CHINA
In 2022, the EU launched the Global Gateway concept, à la BRI,
but with its own economic, financial, and ecological rules. Its lack
of precision and dedicated structures and financial commitments
makes it uncertain. At the same time, the EU has developed regulatory
instruments to increase the capacities of its institutions
and Member States vis-à-vis third parties, including China. The
list is as follows:
• International Procurement Instrument
• Anti-foreign Subsidy legislation
• Foreign Direct Investment Screening
• Anti-coercion Instrument (pending approval)
• Anti-forced Labour Instrument (under negotiation)
• Chips Act (pending approval)
• Critical Raw Materials Act (under negotiation)
• Economic Security Strategy 5
It is beyond the scope of this short article to comment on the
list above. It shows that EU-China relations are more than trade,
less than competition. The following map illustrates the global
framework. The two axes reveal how the EU considers the
relations with China: “high or low political relevance and focus on
deepening ties versus focus on de-risking economic ties”.
The EU is placed more vis-à-vis China than the BRI project with
its (vague) concept of de-risking. The opposition BRI versus
Global Gateway is no longer really the issue.
As the EU institutions can only act with support of Member
States, initiatives launched by Brussels often set the tone and
pace for actions taken in European capitals. “De-risking is the
new go to mantra when direction is needed for the development
of the relationship with China.
Despite the progress made in finding an appropriate and updated
response to the challenges and, sometimes, opportunities present
in the bilateral relationship, the EU continues to struggle with
developing a clear and strongly coordinated approach. Differences
exist on three main axes: the traditional division between
Brussels and member states, the difference between member
states and finally, the differences between institutional preferences
within Brussels’s institutions 6 .”
As we celebrate the 10th anniversary of the BRI in relation to the
European Union, several points emerge. The case of Italy proves
that each state acts as it sees fit, balancing trade, economic
interests and political logic.
Beyond Italy, in many countries including Germany and Belgium,
Chinese and European companies are developing areas of
cooperation and trade. This is the counterpart to a geopolitical
discourse that is often too global, and sometimes too vague.
Faced with the BRI, beyond the concept of Global Gateway
initiative, the EU still needs to develop a consistent message and
94 95

should demonstrate why its vision of the international system is
also beneficial. Moreover, “there comes the question of engagement
with developing economies. The Global Gateway initiative
branded as the key EU’s engagement tool for boosting relations
with partners from developing countries requires more robust
implementation and clearer strategic messaging 7 .”
On the one hand, the BRI became one more element in the game
of EU-China relations, as the EU tries to counterbalance the
initiative with the Global gateway program and other commitments.
On the other, China develops such institutions to play
where it has the hand, proposing a new development philosophy
to enhance EU-China cooperation.
1
Official website: https://eng.yidaiyilu.gov.cn/
2
To know how 4 newspapers in Europe reflects the Chinese’s discourses and
the content about the BRI, see Arifon, Olivier, 2021. Le récit politique chinois:
soft power, communication, influence. Paris: L’Harmattan.
3
Tracker of the Council on Foreign Relations, database of the International
Institute for Strategic Studies (IISS), the mapping of the Mercator Institute for
China Studies (MERICS), the databases of the Green BRI Center, or the China
Global Investment Tracker of the American Enterprise Institute.
4
Galleli, B., Ghiretti, F., The Belt and Road Initiative in Italy, five case studies,
Peter Lang, Bern, 2023, p. 12.
5
Idem, p . 12.
6
Source: ETNC report, p. 20.
7
Source: ETNC report, p. 25
Belt and Road Initiative: Chinese Xiaomo Highway bridge under construction in the green jungle between Lao border town Boten
and Mengla, Yunnan, China
Photo: Shutterstock
Photo: Istock
96 97

CHINA RAILWAY EXPRESS (CRE)
HAS SHIFTED FROM AN ERA
OF FAST INCREASING QUANTITY TO
A NEW PHASE OF CONTINUOUS
OPTIMIZATION AND QUALITY UPGRADE
The year 2023 marks the 10th anniversary of the Belt and Road
over 98 percent, and the loaded container rate of westbound
Initiative (BRI). Over the past decade, the joint construction of
journey has reached 100 percent. Since the first CRE eastbound
the BRI has injected new momentum into promoting common
train was organized in 2014, the CRE eastbound trains have
global development. Policy communication among countries has
grown significantly, and the east/westbound ratio has reached
become more extensive and in-depth, facility connectivity has
over 85 percent. Round-trip transportation has gradually become
become more accessible and smoother, trade has become more
more balanced. In 2022, safety issues have been effectively con-
mutually beneficial, financial integration intensity has contin-
trolled, and train transportation has remained safe and stable.
ued to grow, and people-to-people bonds have also achieved
remarkable results.
Thirdly, the supply categories have become more diversified.
There are many highlights in terms of achievements and cooper-
The categories of goods shipped from China to Europe have ex-
ation in new fields. China Railway Express (CRE), known as the
panded from the initially IT products such as mobile phones and
iconic brand and flagship project of the Belt and Road Initiative,
computers to more than 50,000 kinds of goods in 53 categories
after over ten years of development, has shifted from an era of
including complete automobiles, machinery and equipment, fur-
fast increasing quantity to a new phase of continuous optimi-
niture and building materials, clothing, shoes and hats, electronic
zation, quality upgrade, with the circle of friends and influence
products and epidemic prevention materials.
constantly expanding.
The types of goods shipped from Europe to China have gradually
As a wholly-owned subsidiary of China Railway Container Trans-
expanded from formerly wood, automobiles, and spare parts to
port Co., Ltd. (CRCT), the secretariat unit of the China Railway
mechanical and electrical products, food, medical equipment,
Express Transport Coordination Committee, CRCT Europe Logis-
machinery and equipment, alcohol, etc. The annual cargo value
tics GmbH was established in Duisburg, Germany in 2019. CRCT
transported through CRE has increased from USD 4.8 billion in
Europe, on behalf of China Railway, is responsible for the coordi-
2014 to USD 67.4 billion in 2022.
CRE freight trains designated by China Railway, CRCT has suc-
full-timetable CRE freight trains from Xi’an to Duisburg, two-way
nation, construction, operation and services of CRE in Europe.
cessfully created a variety of “CRE Plus” products such as “rail-
full-timetable freight trains from Duisburg to Xi’an and Chengdu
Fourthly, low-carbon and green development of transportation
sea combined transport” and “multimodal express” that echo
to Lodz were launched, making the CRE more efficient in sched-
THE ACHIEVEMENTS OF CRE HAVE ATTRACTED
WORLDWIDE ATTENTION:
Firstly, the number of trains continues to grow. From 2014 to
2022, a total of 65,000 CRE trains have been operated, with an
boast obvious advantages. Compared with air transport and sea
transport, the carbon dioxide emissions of railway transport can
be reduced by about 95 and 50 percent, respectively.
Based on the cumulative number of CRE running 75,000 freight
trains and transporting 7.15 million TEUs, CRE has replaced the
with CRE freight trains, further strengthening the operation and
service capacities in European standard-gauge and broad-gauge
countries, Central Asia, and Southeast Asia, has further expanded
the scope of the CRE organization to Japan, South Korea and
other countries.
ule, time efficiency with more stable and efficient services.
ENLIGHTENMENTS FROM THE DEVELOPMENT OF
CRE FREIGHT TRAINS:
average annual growth rate of 65 percent. From January to July
transportation volume of more than 700 post-Panamax container
Sixthly, CRE border channels and transportation efficiency are
Firstly, smooth passages are the fundamental guarantee for the
2023, CRE trains numbered 10,176, transporting 1.104 million
ships (a class of vessels that exceed the maximum size param-
smoother and more stable. With five freight train operating
stable operation of CRE trains. Better serving international trade
TEUs, a year-on-year increase of 13 and 27 percent respectively.
eters set by the Panama Canal’s original locks, making them too
border ports in Manzhouli, Erenhot, Alashankou, Horgos and
and benefiting both the market and the participating countries
At present, CRE trains are still operating at a high number, with
large to transit through the canal) and reduced the corresponding
Suifenhe as basis, 86 scheduled operation routes of CRE have
and enterprises are the fundamental direction for the develop-
more than a thousand trains per month becoming the norm.
carbon emissions.
been set up with three major transport corridors in the east,
ment of CRE. Realistic conditions such as wide distribution, long
central and west, and timely adjustments will be made to ensure
mileage, and various levels of railway in Eurasia provide many
Secondly, the operation quality has been steadily improved. The
Fifthly, CRE freight train products and services are more mature
that operating routes and capabilities better meet market needs.
options for CRE operation. The transportation capacity, transpor-
comprehensive loaded container rate of CRE trains has reached
and reliable. As the unified operation and service platform for
On the basis of the successful organization and launch of
tation cost, border transshipment, customs clearance conditions,
98 99

positions, gradually forming a win-win cooperation ecosystem,
and has played a positive role in promoting economic and social
development.
CRCT Europe Logistics GmbH is currently focusing on the development
of block train transportation projects for bulk items such
as new energy vehicles and general chemicals, as well as special
containers such as refrigerated containers and tank containers.
As the number of CRE trains continues to expand, the market
has higher requirements for operation and service quality.
In addition, the far-reaching impacts of international situations
have brought certain challenges to the development of CRE.
CRCT Europe will focus on new areas of development, creating
new integration points, solving problems pragmatically and
effectively, and cooperating with complementary advantages. We
hope that in the future, there will be more CRE products with the
smoother corridors, bettered technology, more premium services,
and more harmonious ecosystem.
the entire route transport time efficiency and other comprehensive
factors will all contribute to the comparison and selection and have achieved gratifying development results in corridor
pated, increased investment, jointly consulted and constructed,
of each route. CRCT is committed to expanding domestic and construction, cargo source organization, quality and efficiency
overseas rail-sea combined transport and road-rail combined
improvement, etc., which has also contributed positively to the
transport corridors and has gradually formed a spatial layout of economic and trade exchange among the countries along the
“multi-directional extension, sea and land interconnection”. CRE route.
trains have reached more than 200 cities in 25 European countries,
with 86 operating routes.
Thirdly, win-win cooperation is the value foundation of CRE
ecosystem construction. As an old Chinese saying, no matter
Secondly, joint consultation and construction are an effective
how far away, with support to each other, we still feel like neighbours
even though thousands of miles apart.
way to achieve sustainable development. As a public international
transportation product, CRE are inseparable from the joint
efforts of all parties involved.
CRE relies on the huge Chinese market to offer broad business
opportunities for European goods, providing strong transport
In the course of more than ten years of development, CRCT,
support for the economic and trade development of countries
focusing on strengthening exchanges and cooperation with
along the “Belt and Road” route countries, promoting policy
domestic and foreign ports, logistics and freight forwarding
communication, facility connectivity, smooth trade flow, financial
companies, international institutions, has actively discussed and integration, and people-to-people connections among countries
solved the problems such as information exchange, transportation
orchestration, and safety guarantee of CRE with railway has brought together tens of thousands of upstream and down-
along the route. Based on the value of win-win cooperation, CRE
departments and agency companies in countries along the route. stream enterprises in the fields of road/rail/water transportation,
The railway authorities, customs, logistics enterprises and organizations
of the countries along the route have actively partici-
and education, infrastructure, etc., creating plentiful new job
logistics, warehousing, commerce, finance, equipment, science
Photo: Istock
100 101

THIRD-PARTY MARKET
COOPERATION
BETWEEN CHINA AND EUROPEAN COUNTRIES
WHAT IS THIRD-PARTY MARKET COOPERATION
employment. In addition, emphasis was placed on local people’s
well-being in implementation of the project. The connecting road
Third-party market cooperation refers to economic cooperation
in the north passes through poverty-stricken urban areas where
among Chinese businesses (including those in the financial sec-
residents have been troubled by water and electricity shortage
tor) and businesses of relevant countries in third-party markets.
and poor sanitation conditions for a long time. Together with the
It is an open and inclusive approach to international cooperation
project owner, CRBC focused on building high-quality communi-
that can help China’s business community and its international
ties by providing water and electricity access for local residents,
counterparts to draw upon each other’s strengths and work
centralizing the disposal of domestic garbage, and building hos-
together for better industrial development, infrastructure im-
pitals, schools, football fields and other public facilities. All these
provement and higher living standards in third countries, achiev-
efforts are spoken of highly by local people.
ing the effect of 1+1+1 > 3.
Inspired by the Belt and Road Initiative (BRI), Chinese businesses
have deepened their involvement in international production
capacity cooperation and actively engaged in third-party market
cooperation with businesses of relevant countries in recent years,
COOPERATION BETWEEN POWERCHINA AND
GRUPO PUENTES (SPAIN) ON A HOSPITAL
PROJECT IN ECUADOR
based on complementary strengths of participants.
In recent years, the Ecuadorian government has paid close
attention to the construction of domestic housing, schools and
COOPERATION BETWEEN CCCC AND GAUFF
(GERMANY) ON THE MAPUTO-KATEMBE BRIDGE
AND LINKROADS PROJECT IN MOZAMBIQUE
hospitals, and introduced the Home Ownership Plan and the
Millennium School Plan, with a view to improving people’s living
standard through a series of projects. In an effort to improve local
healthcare serices, the Ecuadorian government launched a hospital
project in Guayaquil. Sinohydro Corporation Limited, a sub-
Los Ceibos Hospital, with 160 specialized clinics and pathology
and anatomy laboratories, can provide diagnosis, pharmacy,
hospitalization, surgery, imaging, telemedicine, medical teaching
undertaken by Dongfang Electric Corporation (DEC) of China
and Salini-Impregilo of ltaly. DEC was responsible for the supply of
power generation units and related services, specifically including
Located in the Mozambican capital of Maputo, the Maputo-
sidiary of Power Construction Corporation of China (PowerChina)
and other services. After the hospital was put into operation, the
the design, manufacturing, transportation, installation and com-
Katembe Bridge and Linkroads Project involves 187 km trunk
and Spain’s Grupo Puentes Group formed a consortium to build
number of hospital beds per 1,000 people in Guayaquil increased
missioning of 10 Francis turbine units and all auxiliary equipment
roads extending to South Africa border crossings. Construc-
the project and completed it in 14 months. The construction area
to 1.9, effectively alleviating shortage of local medical resources.
as well as all metal structure equipment. Salini-Impregilo was
tion started in June 2014, and the main body of the project
of the project is 79,000 m², including six connected buildings,
responsible for the civil engineering work of the project.
was completed in June 2018. The bridge started operation in
November 2018. As a suspension bridge with the largest main
span in Africa, it was built as an EPC project by China Road and
Bridge Corporation (CRBC), a subsidiary of China Communications
Construction Company Limited (CCCC). GUAFF, a German
engineering company, was contracted to provide such services
550 beds and corresponding medical facilities.
COOPERATION BETWEEN DONGFANG ELECTRIC
CORPORATION (DEC) AND SALINI-IMPREGILO
(ITALY) ON THE GILGEL GIBE Ⅲ HYDROPOWER
PROJECT IN ETHIOPIA
In October 2015, the first unit of the Gilgel Gibe Ⅲ hydropower
station was officially connected to the grid for power generation,
and the last unit was put into operation at the end of August
2016. The project has doubled the installed capacity of power
generation in Ethiopia to 4.245 GW, of which 44 percent is con-
as design consulting, construction supervision, and quality and
With the economic and social development of Ethiopia and rising
tributed by the Gilgel Gibe Ⅲ hydropower station. By the end of
safety control.
demand for power grid construction and upgrading, Ethiopian
2018, Gilgel Gibe Ⅲ had generated about 15 billion kWh of elec-
Electric Power Corporation plans to further develop renewable
tricity cumulatively. It has effectively alleviated power shortage in
As an important route to the South Africa border in Maputo
energy. The Gilgel Gibe Ⅲ project is located on the Omo River
local areas, helped to boost local economy and improved peo-
and areas to its south, the completion of the project reduced
in southern Ethiopia. As the third stage of cascade power plants
ple’s living standard, and provided Ethiopia with a large amount
the sea crossing time of 2-3 hours to about 10 minutes, signif-
developed on the Omo River, the Gilgel Gibe Ⅲ hydropower
of electricity available for export, resulting in considerable foreign
icantly increasing the level of road networking in Mozambique,
station has a total installed capacity of 1.87 GW, including 10
exchange earnings. During the construction of the project, DEC
and promoting the development of local freight transportation,
Francis turbine generating units, each with a capacity of 187 MW,
conducted on-the-spot training for a large number of engineers,
eco-tourism and other industries. The project has created more
making it the largest hydropower plant in operation in Africa.
making important contributions to the training of talents for local
than 2,500 jobs for Mozambique, effectively improving local
Gilgel Gibe Ⅲ is a third-party market cooperation project jointly
electric power industry.
102 103

COOPERATION BETWEEN SINOSURE AND
ENEL (ITALY) IN DEVELOPING LATIN AMERICAN
MARKETS
In January 2016, China Export & Credit Insurance Corporation
(Sinosure), Bank of China and Italy’s ENEL signed a tripartite
framework agreement. According to the agreement, Sinosure
and Bank of China would jointly provide up to USD 1 billion
financing insurance quota to ENEL to support its purchase of
Chinese equipment or cooperation with Chinese contractors or
investors in renewable energy projects worldwide. By the end
of 2018, Sinosure has supported Bank of China and Spain’s
Santander Bank to provide financing up to USD 330 million for
ENEL’s renewable energy projects in Brazil. Some projects are
already in operation and providing sustainable clean energy for
local residents.
combines the strong production capacity of Chinese enterprises
with rich experiences of Italian enterprises in local markets,
combines the strengths of Chinese and European financial
institutions, and offers Brazil cost-effective win-win solutions
for renewable energy development.
These third-party market cooperation cases are taken from the
Third-Party Market Cooperation Guidelines and Cases compiled
by the National Development and Reform Commission, P.R.
China, in 2019.
Through the integration of resources, Sinosure and ENEL embedded
“financing+manufacturing” in third-party market projects,
and set up a cooperation model featuring “joint development,
shared benefits and balanced risks”. This cooperation model
Photo: Istock
104 105

EMBRACING THE CHANGING FACE
OF CHINESE TOURISM IN EUROPE
Eduardo Santander
Executive Director, European Travel Commission (ETC)
After three years of unprecedented barriers to global mobility
China’s rise as a key market for the European travel sector was
caused by the Covid-19 pandemic, Chinese tourists are once
cast into stone when 2018 was named EU-China Tourism Year.
again excited to discover the culture, history, nature and gastron-
During this period, ETC embarked on an ambitious 16-month
omy that makes Europe so unique. With China being such a key
programme, alongside the European Commission and Chinese
source market for European tourism before the pandemic, the
Ministry of Culture and Tourism, to showcase the best desti-
return of Chinese tourists has immense potential to contribute to
nations and experiences that Europe has to offer for Chinese
the full recovery of our industry. Now that tourism flows are be-
tourists.
ginning to return, we have a brilliant opportunity to reconnect ties
between Europe and China and harness new trends in Chinese
Not only that, but ETC worked as a Strategic Partner with the
tourism to give our visitors the deep, authentic experiences that
European Union to facilitate visas and ensure sufficient air
they are looking for as they travel.
connectivity. In short, ETC sought not only to promote Europe to
would-be travellers but worked to improve access for Chinese
EUROPEAN TRAVEL COMMISSION IN CHINA
travellers embarking on a journey to Europe.
During the last decade, China has become an incredibly important
source market for the European tourism industry, growing to
IMPACT OF THE COVID PANDEMIC
become the second-largest long-haul market by 2019. Chinese
And then came Covid-19, and with it the lockdowns, quarantine
travellers also had comparatively high average spending habits
measures and travel restrictions that put a sharp halt to tourism
while travelling, meaning that they contributed significantly to
flows in Europe. The pandemic obstructed global systems of
Europe are still well below 2019 levels, ETC research from May
Europe and East Asia have significantly increased, leading to
the health and prosperity of our industry. The European Travel
mobility and connectivity in ways that we had never had to deal
2023 showed that 73 percent of Chinese respondents wanted to
inflated prices for consumers. Re-establishing air connectivity
Commission (ETC) has enjoyed a strong presence in China since
with before and presented unprecedented challenges to the
visit Europe this summer. As a key source market for long-haul
is vital in meeting the high demand for travel from Chinese
2011 when ETC founded its China Chapter.
tourism industry. Many European countries closed their borders,
travel, Chinese tourism has great potential to aid in the recovery
consumers and facilitating the recovery of European tourism.
dramatically disrupting long-haul travel to the continent for many
of European tourism. We are seeing strong interest from Chinese
This branch of our organisation comprises all European national
tourism organisations which have offices in China, and serves as
ETC’s eyes and ears in the marketplace. Over the last decade,
months.
ETC remained active in China even during the pandemic, pre-
tourists in Europe’s culture, history and gastronomy, the full
exploration of which has the power to support small businesses
and attractions to enliven local communities.
THE NEW CHINESE TRAVELLER
we have fostered close working relationships with various part-
paring for a time when we could welcome Chinese tourists back
It has been 12 years since we established our China Chapter,
ners in the Chinese tourism sector, based on a common vision to
to our shores. During Covid, we organised and took part in a
Even so, the pandemic left its mark on the global tourism indus-
and a lot has changed in the Chinese outbound travel market
build a European tourism industry that is engaging and accessi-
number of online and offline events, such as ITB China meet-ups,
try. Despite a strong desire from Chinese tourists to travel
since then. We are currently seeing the emergence of a new
ble to Chinese tourists.
the New Horizons Virtual Travel Trade Show and the ETC China
once again, some bureaucratic backlogs had first to be cleared,
generation of Chinese tourists, who are young, intrepid and
Chapter Autumn Reception. Even though travel was temporarily
both in Europe and in China. Many European countries had
climate-conscious. This emerging cohort is increasingly interest-
Throughout our time operating in China, we have always sought
suspended, we continued to showcase the uniqueness of Europe
suspended normal visa operations during the pandemic, so
ed in self-drive and self-guided tours, seeking out lesser-known
to appreciate the uniqueness of the market and the importance
to would-be travellers.
extra-European travellers faced delays in obtaining the necessary
destinations and engaging more authentically with local cultures.
of specialising our approach to the needs and interests of
paperwork to travel. Reduced air connectivity between China
It is not just the youth who are interested in smaller groups and
Chinese travellers. Since launching our China Chapter, we have
Chinese tourism began to slowly return early this year as pan-
and Europe also posed a significant barrier for aspirant travellers.
more customised experiences.
regularly participated in events and exhibitions to connect with
demic-prevention measures became less of a barrier to mobility
consumers directly, as well as build business partnerships with
and outbound travel products back on the market. After three
OAG data shows that China’s international airline capacity for
Chinese travel agents report that the most popular travel
local enterprises. We have also worked with Chinese influences
years of the pandemic, Chinese tourists are hungry to explore,
August 2023 was still at only 50 percent of August 2019 levels.
products sold now are smaller group tours with less than
to help us connect with potential travellers in a more personal
with European destinations at the top of the list for a large
Furthermore, since Russian airspace was closed to European
10 participants and that there is growing interest in experiencing
setting.
proportion of would-be travellers. Though Chinese arrivals to
carriers at the start of the war in Ukraine, flight times between
Europe in a more flexible, personalised way. Sustainability is
106 107

gaining prominence in China, and tourists of all backgrounds are
increasingly looking for sustainable options at each stage of their
travel journey.
excellent opportunities for networking and facilitating direct contact
between suppliers in Europe and partners and consumers in
China.
This new Chinese traveller offers a perfect opportunity to promote
a more sustainable model of Chinese tourism in Europe,
one that encourages slower travel and deeper engagement with
local communities. This will give rise to a healthy symbiosis between
travellers and their hosts whereby visitors experience the
local customs and traditions that make their destination unique,
all the while supporting small businesses and preserving cultural
heritage.
ETC’S ROLE IN BUILDING SUSTAINABLE TOURISM
FUTURE COLLABORATION IN CHINA
We are working to strengthen our existing relationships and create
new partnerships in China so as to continue to capture this
momentum. We are especially grateful for the warm reception
that we have received from our Chinese partners, who have been
very open to further collaboration and exchanges post-Covid.
We cooperate closely with the World Tourism Alliance (WTA), with
whom we signed a Memorandum of Understanding in 2019, and
the Global Tourism Economy Forum.
ETC is glad to see travellers from China fully embracing the cultural
and geographic diversity which makes Europe so special.
To engage with this interest, we at ETC are pivoting our marketing
strategy to one that puts individuals’ interests above purely
volume-driven promotion. We want visitors to Europe to find the
experiences that inspired them to travel in the first place, as so
now promote thematic travel, connecting European destinations
by themes such as culture, history or nature, rather than subdividing
them purely by country or region.
A key part of fostering sustainable tourism is encouraging travellers
to explore lesser-known destinations. Over-tourism has
become a major issue in some European cities, where immense
appeal to travellers has come at the expense of local customs,
living costs, natural resources and biodiversity. It is brilliant to see
that Chinese travellers are becoming more and more interested in
seeing beyond the tourist hotspots and exploring off-the-beatentrack.
ETC is working with our partners in China and Europe to harness
this budding interest and introduce would-be tourists to some
lesser-known destinations in emerging tourist markets around
Europe. This year, three of the eighteen organisations that ETC
co-exhibited with at ITB China hailed from Montenegro, one of
the only destinations that has recorded more arrivals from China
this year than it did in 2019. Data on arrivals this year show that
Serbia is emerging as a new favourite among Chinese travellers,
partially due to the country’s relaxed visa requirements for travellers
from China.
I am proud to represent both of these organisations as a Vice
President. This November ETC will co-organise with WTA an
EU-China Tourism Dialogue, which will take place in parallel with
the “WTA Xianghu Dialogue”. We anticipate that this will be an
excellent forum for ETC members to network and collaborate
with their counterparts in China.
It is clear that the Chinese market is changing as tourists increasingly
look for opportunities to travel more sustainably and
flexibly. It is up to us as an industry to provide ways for travellers
to make smart choices at every step of their journey, enriching
local communities and supporting the future of European tourism
as they explore our amazing continent.
At ETC, we believe that the best way to harness that change is to
collaborate with our partners in Europe and in China, forging new
connections and facilitating exchanges between our members
and their Chinese counterparts. It is only when we work together
that we can take hold of the future of Europe-Chinese tourism.
There is also a lot that we can do in Europe to prepare small
businesses for the return and regeneration of Chinese tourism.
ETC has worked in numerous ways over the last ten years to
support European stakeholders and their cooperation with
Chinese partners. Just as before the pandemic, we committed
to holding and participating in B2B events such as matchmaking
campaigns, trade fairs, and FAM (familiarization) trips, providing
Photo: Istock
Photo: Istock
108 109

REVIVAL OF TOURISM
BRIDGING CULTURES
AND EMBRACING SUSTAINABLE
COOPERATION
Eric Dresin, Secretary General,
The European Travel Agents’ and tour Operators’
Associations (ECTAA)
The global tourism industry has undergone significant transfor-
portion of the international tourism market and their return can
mations in recent years, and the COVID-19 pandemic has tested
significantly boost the European economy.
its resilience like never before. In this new environment, the
European tourism market is experiencing a renaissance, with
Beside these economic and financial dimension, sustainability
an emphasis on sustainability and an eye on welcoming both
is another important parameter that will define the way travel
European and Chinese travellers. Indeed as we emerge from this
will develop. The importance of sustainable travel and tourism
crisis, one of the keys to revitalizing the European tourism sector
cannot be overstated in our era of environmental consciousness.
lies in the hands of Chinese tourists. The importance of this
Sustainability is thus a growing concern in the global tourism
demographic cannot be overstated, as they have the potential
industry, and both Europe and China are committed to promoting
to strengthen cultural ties, drive economic growth, and promote
eco-friendly and responsible travel.
sustainable travel between Europe and China.
This presents an opportunity for sustainable tourism coopera-
Europe has long been a favourite destination for travellers world-
tion between the two markets. Europe has been making strides
wide, renowned for its rich history, diverse cultures, and stunning
in promoting sustainable travel options, such as eco-friendly
From the awe-inspiring Great Wall to the picturesque countryside
times, expanding visa-free travel agreements, and enhancing the
landscapes. The latest figures of the European tourism market
accommodations, electric transportation, and green initiatives
of Yangshuo, China has something to offer every type of traveller.
ease of obtaining visas.
show that travellers are eager to once again explore iconic
in popular tourist areas. Chinese tourists can contribute to this
European tourists have the opportunity to explore a world of
cities like Paris, Rome, and Barcelona, soak in the beauty of the
movement by embracing eco-friendly practices during their
culinary delights, ancient traditions, and modern innovation with-
Secondly, improving air travel connections between China and
Mediterranean, and embark on adventures in the Alps. The return
travels.
in a single country.
Europe is essential. This involves increasing the number of direct
of Chinese travellers to Europe signifies a return to normalcy,
flights, opening new routes, and promoting competitive pricing to
instilling confidence in the safety and attractiveness of European
Collaborating with Chinese tour operators to educate travel-
The potential for long-term growth in travel between Europe
make air travel more accessible. However, unexpected develop-
destinations.
lers about these options can contribute to responsible tourism.
and China is immense. The enduring appeal of historic cities,
ment is the war in Ukraine altered the existing routes making the
Encouraging cultural exchanges and promoting a better under-
cultural treasures, and breathtaking landscapes is a magnet for
flight of European air carriers longer and more expensive. Let’s
Chinese tourists have been increasingly drawn to European
standing of sustainability practices in both regions can lead to
tourists seeking enriching experiences in both regions. As the
hope that when a quick resolution of this conflict.
destinations in recent years. This trend is expected to continue
mutually beneficial partnerships. Joint conservation efforts for
Chinese middle class continues to grow, so does the potential for
and even accelerate in the post-pandemic era. Europe’s deep
natural sites, wildlife protection, and reducing the environmental
increased tourism between Europe and China. Simultaneously,
Thirdly, developing and maintaining tourism infrastructure,
history, diverse cultures, and world-famous landmarks hold
impact of tourism can be a focus of cooperation.
Europe can learn from China’s innovative approaches to tourism
such as transportation networks, accommodations, and tourist
immense appeal for Chinese tourists seeking a rich cultural
and enhance its own offerings.
attractions, to accommodate a growing number of tourists and
experience. Similarly breathtaking natural beauty or high-end
Both European and Chinese governments, along with tourism
providing them with a positive experience is essential. As already
shopping districts cater to the nature and luxury-loving Chinese
stakeholders, can collaborate on educational campaigns to raise
Increasing the flow of tourists between China and Europe is a
explaining however, this has to integrate new sustainable tourism
tourists. Finally, Europe boasts a treasure trove of historical sites
awareness about responsible tourism practices.
goal that can benefit both regions economically and culturally.
practices. Implementing eco-friendly initiatives might prove to
and world-class art museums, making it a dream destination for
However, several bottlenecks need to be addressed to facilitate
more complex than expected.
history buffs and art lovers.
China is not just a source of outbound tourists but also an ex-
this growth.
traordinary tourism destination in its own right. With its ancient
Finally, providing convenient and secure payment options, such
While Europe seeks to attract Chinese tourists, it is also impor-
history, vibrant cities, and stunning natural landscapes, China
Firstly, simplifying and streamlining the visa application process
as digital payment platforms that Chinese tourists are familiar
tant not to forget the significance of welcoming European trav-
offers a diverse range of experiences for European travelers.
for Chinese tourists can significantly is essential. the European
with, can enhance the ease of transactions during their travels.
ellers back to the continent. Europeans constitute a substantial
China’s tourism offerings are as diverse as its vast landscape.
tourism sector is calls for a long time for reducing processing
Addressing these bottlenecks will require collaboration and
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coordination between governments, tourism boards, airlines,
tour operators, hospitality providers, and various stakeholders in
both China and Europe. By working together to overcome these
challenges, both regions can tap into the immense potential of
increased tourism and foster stronger cultural and economic ties.
In conclusion, travel has long been a powerful tool for connecting
people from different backgrounds and cultures. It fosters mutual
understanding, breaks down stereotypes, and creates lasting
bonds between nations. Chinese tourists, who have shown a
growing interest in exploring Europe’s rich tapestry of cultures,
play a vital role in promoting this global harmony.
Chinese tourists hold the key to revitalizing the European tourism
industry and forging stronger cultural connections between East
and West. As the world recovers from the COVID-19 pandemic,
it is crucial to seize the opportunity to rebuild the tourism sector
with sustainability in mind. By welcoming Chinese travellers with
open arms and promoting responsible tourism practices, Europe
can look forward to a prosperous future of cultural exchange,
economic growth, and a deeper understanding between nations.
Together, Europe and China can lead the way in reshaping the
global travel landscape for the better.
Photo: Istock
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Photo: Istock

EXPLORING KASHGAR,
A JOURNEY THROUGH TIME AND TRADITION
Nestled at the crossroads of history, culture and trade, the city
of Kashgar, also known as Kashi, in China’s Xinjiang Uyghur
Autonomous Region, has been a jewel on the Silk Road for
over two millennia. Fortunate enough to have roamed its storied
streets, I can testify how the past and present coalesce in a
harmonious tapestry in this bustling oasis.
Kashgar finds its place in the westernmost reaches of the Tarim
Basin. It is, in fact, the most western major city in China. Bordere
by Krygyzstan, Tajikistan, Afghanistan and Pakistan, and nourished
by three rivers – Kashgar, Gezdarya and Hantereksu – the
city is enveloped by the Tien Shan Mountains to the north, the
Kun-Lun Mountains to the south and the Pamir Mountains to the
west, while to the east lies the Taklamakan Desert.
While the climate is relatively arid, the loess and alluvial soils give
Kashgar some of the most fertile lands in all of Xinjiang, yielding
a diverse range of crops such as wheat, maize, barley and rice.
Additionally, the oasis is renowned for its orchards, bearing fruits
like melons, grapes, peaches, apricots and pomegranate.
OF TRADE AND CULTURE
Positioned at the crossroads of the northern and southern
branches of the Silk Road, merchants and travelers from Asia
and Europe converged in Kashgar 2,100 years ago. Whether they
crossed the Pamirs from the west or traversed the Taklamakan
Desert to the east, Kashgar was their ideal rest stop and trade
hub. This melding of influences is evident in the city’s architecture,
a mesmerizing blend of Central Asian charm and traces
of ancient Roman aesthetics.
This enduring legacy has earned Kashgar the title of a millennium-old
city, embodying the essence of Uyghur folk customs,
culture, art, architecture and traditional economy.
THE NEW OLD CITY
Margarida Almeida
Travel Tomorrow
recent years. Large-scale reconstruction started in 2009, aiming
to modernize the area for tourism, improving the living conditions
of locals and addressing safety concerns in the event of an
earthquake. After the Wenchuan Earthquake on May 12, 2008,
the Autonomous Region put the transformation of the old town
at the top of the agenda. The project involved the renovation of
nearly 50,000 households with a total investment of more than
7 billion yuan (about EUR 900 million).
A visit to the Kashi Old City Comprehensive Protection and
Management Memorial Hall was a great way to get an insight of
what the city looked like before the renovation, why the necessity
for such a deep transformation arose, as well as how the project
was implemented.
The ambitious project has yielded a “new” Old City, a fusion of
old-world charm and contemporary convenience. A labyrinth of
winding streets gave place to a blend of mid-rise apartments,
spacious plazas, larger avenues, in a style that recreates the
ancient Islamic architecture. Even so, a lot of small lanes still
criss-cross the Old City and the charm behind getting lost while
exploring all the small alleys filled with mud-thatched buildings
still lies there. Vibrant walls, graceful round arches, exquisitely
crafted doors and ornate windows provide an enchanting backdrop
for photography endeavours.
With the rise of tourism to the city it is uncertain to determine
how many people live here. A lot of the homeowners live outside
of the city, using their homes for tourism purposes and businesses,
like traditional local houses open for visitors to step in
and enjoy tea, singing and dancing, and store fronts, which they
operate.
Beyond its architectural allure, the Old City boasts a variety of
distinctive shops lining its streets, each offering a unique theme.
The bazaar culture in Kashgar is impressive and after being
remodelled, the Old City is a vast example of it, serving as a
testament to the vibrant folk crafts and art of the Uyghur, at,
among others, the Cantuman Bazaar (Blacksmith Street), Dopa
Bazaar (Flower & Hat Street), Flowerpot Bazaar, Gourmet Bazaar,
Handcraft Bazaar and Pottery Bazaar.
Furthermore, vendors peddling delectable local snacks, such
as succulent grapes, Nang (Uyghur bread, more widely known
as naan bread) and tantalizing goat milk ice cream, provide a
delightful culinary experience amid shopping adventures. One
cannot visit Kashgar without sampling the local delicacies and,
in particular, the beloved pomegranate.
The Uyghur people have an innate talent for music and dance,
which is showcased in the city’s traditional musical instrument
shops.
Strolling through the Old City streets, you will witness elderly
individuals basking in the sun while children frolic about. It might
be a rebuilt city, but the enduring authenticity of its people, cuisine,
clothing and language is a testament to their commitment
to preserving their rich history and they make Kashgar Old City
an embodiment of tradition and heritage.
ID KAH MOSQUE
One of Kashgar’s main tourist attractions is the Id Kah Mosque,
an architectural marvel that holds the distinction of being the
largest mosque in all of China. It was built in 1442 by order of
the then-Governor of the city, Shakessimirdzhi, and its name in
Persian means “festive”.
With an area of 16,800 square meters and an impressive capacity
for up to 20,000 worshippers, the mosque’s intricate design,
yellow-glazed tiles and graceful minarets reflect its Central Asian
influence.
The Old City in Kashgar spans approximately 2 kilometres in
both length and width and has undergone significant changes in
During holidays, the Id Kah Mosque transforms into a pilgrimage
site, drawing in an astounding 100,000 devoted believers.
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The mosque’s aesthetic charm extends to its three minarets; two
grace the corners of the entrance arch, while the third stands tall
above the central dome. Within the mosque’s interior, an elegant
simplicity prevails. A central wall, serving as a metaphorical
“throne”, provides a focal point for the Imam to lead the congregation
in prayer.
Given its status as an active place of worship, our tour, such as
others, was conducted during inter-prayer intervals. We were
lucky enough to be guided through by Mamat Juma, the Iman of
the mosque himself.
Kashgar, with its rich tapestry of history and culture, invites
visitors to step into a living time machine. It is a city where the
echoes of the Silk Road still reverberate, where the past and
present coexist in harmony and where the enduring spirit of
heritage continues to captivate the hearts of those who journey
to this timeless corner of Xinjiang.
Photos: Margarita Almeida (except otherwise indicated)
Kashgar, China Famous Hundred Year Old Tea House with Uyghur People Playing Guitar at the Terrace on a Sunny Blue Sky Day
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Photo: Shutterstock

STEPPING INTO JIAOHE RUINS,
A SILK ROAD TREASURE AND ONE
OF THE OLDEST EARTHEN CITIES
Margarida Almeida
Travel Tomorrow
9:37 am: the high-speed train departs from Ürümqi station,
heading 167 km southeast of the capital of the Xinjiang Uyghur
Autonomous Region. We arrived in Turpan approximately one
hour later, hopping on the bus to the ancient city of Jiaohe (Yar
City), in the Yarnaz Valley, 10 km west of Turpan.
Nestled within the rugged landscape of Xinjiang, lies an archaeological
gem that transports visitors through the annals of history.
The Jiaohe Ruins, perched atop a plateau overlooking the Turpan
Basin, whisper tales of a civilization that thrived against the
harshest of natural elements. At 154 meters below sea level, this
is the lowest elevated city in China and the second-lowest place
on Earth after the Dead Sea.
I was eager to start the journey uphill into the ruins. Stepping
into the largest, one of the oldest and best-preserved earth
building city in the world, one can’t help but be captivated by the
city’s history and its enduring importance, that stretches back
thousands of years. On June 22, 2014, Yar City was added to the
UNESCO World Heritage List, during the 38th UNESCO World
Heritage Committee gathering held in Doha, Qatar.
While the ancient city of Jiaohe boasted several entry and exit
points in the past, today, the sole entrance lies in the southwest
corner of the plateau, accessible via a ramp leading up into the
city. And thus, from there we started hillwalking.
The city is situated within the Yamariz River Oasis, to the north
of the Turpan Basin, and at the southern foothills of the eastern
Tian-shan Mountains. Bordered by the Yemushitage (Yanshan)
Mountain to the south, it occupies an elevated terrace, 30 meters
above the riverbed, encircled by the natural defences of two
river branches. The swiftly flowing waters carved out steep cliffs
creating an impenetrable city wall that encases the ruins. The
distinctive terrace, resembling the shape of a willow leaf, extends
from the northwest to the southeast, measuring 1,750 meters
in length and 300 meters at its widest point, encompassing an
expansive area of 37.6 hectares.
Having arrived in China in mid-September, the temperature
soared with the midday sun blazing us at 34°C and the parched
earth beneath my feet radiated heat through my thick rubber sole
boots. I quickly learned that Turpan is one of the hottest places in
China, where it goes by the nickname “Huo Zhou”, which means
“a place as hot as fire”.
With summer temperatures often exceeding 40°C, the average
yearly temperature is actually 14°C, which shows that this
incredibly dry area has a large daily, as well as annual, temperature
difference. Shade is a precious commodity while touring
the ruins, so our guides made sure water bottles were constant
companions.
CONSTRUCTION AND LAYOUT
At a first glance from a distance, the ruins of Jiaohe seem to
resemble natural geological formations rather than the work of
human hands. Yet, upon approaching them, it becomes clear
that these structures were once inhabited by a thriving community
– specifically, Buddhist residents, as the presence of Buddhist
temples is unmistakable.
Photo: Margarida Almeida
Turpan, Xinjiang, China- Mar 13: Jiaohe Ancient City on Mar 13 2023 in Turpan, Xinjiang, China. It is the largest, oldest, and
most well preserved raw earth architectural city in the world.
Over the course of time, the city of Jiaohe experienced both a
decline in power and an erosion of its once-magnificent beauty.
However, in the middle of the 9th century, a renaissance of sorts
occurred when the Uyghur people rebuilt and reoccupied the
city. Buddhism, the predominant religion among the Uyghur until
the eventual ascent of Islam in the following centuries, played a
central role in the life of Jiaohe. This enduring influence is palpable
through the remnants of monasteries and the serene stupa
grove that still grace the landscape today.
The city was meticulously designed around a north-south
avenue, where various functional districts were laid out in a
well-organized manner on either side. The community that lived
in Jiaohe was diverse, including merchants, craftsmen and religious
leaders. The long central street bisected the city, effectively
dividing it into two distinct sections. The western portion was
designated for the common people, while the eastern part was
reserved for the residencies of the ruling elite.
The city encompassed the Residential District, Warehouse District,
Administrative District, Temple District, Tomb District, and
the expansive Large Courtyard District. Beyond the city limits,
sprawling cemeteries, which date back to the Jushi Kingdom and
the Jin and Tang dynasties (from the 1st century BC to the 10th
century AD), can be found flanking the northern and western
edges of the elevated terrace, spanning over 2 square kilometres.
Among these ancient dwellings, many featured a unique architectural
design with two stories, one rising above the ground and
the other concealed beneath it, allowing for exploration into the
subterranean basements of certain structures. Locals excavated
the terrain to create enduring structures and subterranean
chambers, while the excavated soil was used to construct rooms
above ground.
The subterranean chambers offered a refuge from the relentless
desert sun in summer and the biting winds of winter. The
above-ground rooms served as living quarters and kitchens. The
residences were built using a variety of materials, including mud
bricks and wood. The walls were up to 10 meters high and 12
meters thick and were built using a technique called “rammed
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earth”.
Photo: Shutterstock

The relentless desert sun casts intriguing shadows upon the
intricately carved structures, creating an ever-shifting tapestry of
light and shade. The subterranean chambers offer a refreshing
respite from the scorching heat, a glimpse into the architectural
ingenuity of the past, and a chance to appreciate the cool serenity
that must have once enveloped these spaces.
The city’s urban planning echoes Central China’s administrative
districts and the arrangement of dwellings along roads and
side streets. Simultaneously, its alignment of the main temple
entrance, central avenue and south city gate along the city axis,
as well as the construction of the Northeast Buddhist Temple and
the secondary road along the city’s other axis, mirrors the layout
of Central Asian cities.
A STANDING SYMBOL OF CULTURAL EXCHANGE
Yar City provides an invaluable window into the evolution and exchange
of urban cultures, construction techniques, the diffusion
of Buddhism, and the rich tapestry of multi-ethnic cultures that
thrived along this ancient trade route.
The city’s layout and its diverse ruins constructed with varying
techniques bear witness to the extensive cultural exchange that
occurred between Central China, the Western Region and Middle
Asia. Icons like the central Buddhist Pagoda, the Grand Buddhist
Temple and the Forest of Stupas illuminate the transmission and
flourishing of Buddhism within the Turpan Basin.
The use of rammed earth as a traditional building technique,
recessing structures into the ground akin to cave dwellings in
Shaanxi and Gansu, and the “stacked mud” method prevalent
during the Qocho Uyghur period and still employed in Xinjiang
today, all converge within the Jiaohe ruins.
Continuing to build on the Silk Road’s legacy of bridging cultures,
10 years ago, China launched the Silk Road Economic Belt
Initiative, now called the Belt and Road Initiative. To celebrate the
achievements of the past decade and chart the way forward, a
third Belt and Road Forum for International Cooperation is being
held in Beijing today and tomorrow.
Jiaohe Ancient City is the largest, oldest, and most well preserved raw earth architectural city in the world, as well as the most
complete urban relic preserved for over 2000 years in China.
Photo: Shutterstock
Ruins of ancient Jiaohe city, Turpan, China. Dating more than 2000 years, Gaochang and Jiaohe are the oldest and largest ruins in Xinjiang.
Photo: Shutterstock
BATTLING THE SANDS OF TIME AND NATURE’S
FORCE
As a visitor walking through the ancient ruins, you are transported
to an era when bustling streets, ornate temples, and residential
quarters thrived within the protective embrace of this desert
fortress.
With each step along the well-preserved paths, you can imagine
the daily life of the city’s inhabitants — families residing in
multi-story houses, traders haggling in marketplaces and monks
tending to their spiritual pursuits in serene temples. The ancient
city layout, marked by meticulous urban planning, beckons you
to explore its residential, administrative, and religious districts.
Yet, as you tread carefully on the designated pathways, you’ll
also witness the ongoing battle between time and preservation.
Since its decline, the remnants of the city have gradually
succumbed to decay. Today, the site faces formidable natural
challenges: relentless gusts of wind carrying dust and sand
that scour the walls and flood the streets and courtyards.
The erosion of the cliffs by floodwaters, posing an imminent
risk of collapse, stands as the most pressing and severe threat to
these historic ruins.
The need to safeguard these ancient treasures has led to the
establishment of paved routes and watchful eyes of surveillance
cameras, ensuring that the city’s history endures for generations
to come.
As I gazed upon the ancient ruins, I found myself entranced
by the enchanting scene before me. The azure sky framed the
distant mountains, adding an aura of mystique to the ancient
remnants that stood resilient under the scorching sun.
And thinking of the powerful creativity and resourcefulness of
ancient people, embracing the weather conditions and strategically
building this giant ancient sculpture on these grounds,
I couldn’t help but admire how Jiaohe is an exceptional illustration
of human resilience and of humanity’s symbiotic relationship
with nature.
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Photo: Istock