This year marks a significant milestone in the history of international relations, commemorating the 50th anniversary of diplomatic ties between China and the European Union. Over the past five decades, the journey of economic and trade cooperation between China and the EU has been nothing short of remarkable. This synergy between two of the world's largest economies has acted as both a 'ballast' and a ‘propellant’ in strengthening their bilateral relations, setting a precedent for cooperation amidst global economic shifts.

Bilateral trade between China and the EU has seen extraordinary growth, soaring 326 times from a modest $2.4 billion at the inception of their diplomatic relationship to an impressive $785.8 billion projected for 2024. This trade dynamic positions China as the EU's largest source of imports and third-largest export market, while the EU holds the status of being China's second-largest source of imports and third-largest export market. Furthermore, foreign direct investment (FDI) from the EU to China has risen dramatically, growing from approximately $140 million in the early years to over $7.6 billion in recent times. This influx of European investments not only drives the development of both regions but also plays a pivotal role in China's ongoing reforms and its opening-up strategy.

Conversely, Chinese investments in Europe have accelerated since the early 2000s, particularly gathering momentum post-2009. Today, the investment stock from Chinese enterprises in the EU exceeds $100 billion, with investment levels now closely mirroring EU investments in China. Notably, sectors such as electric vehicles and new energy batteries are experiencing significant Chinese investment in the EU, further solidifying the cooperative framework between the two markets.

China's commitment to high-standard economic opening has created ample opportunities for global partners, including the EU, fostering deeper integration and collaboration. Recent events, such as the 4th China-Central and Eastern European Countries (CEEC) Expo, highlight the vibrant economic interactions, showcasing participation from all 14 CEEC states and generating impressive import purchase intentions of 10.98 billion yuan, reflecting the ongoing deepening of China-EU ties amidst intricate global economic realities.

The impact of China-EU economic cooperation extends beyond bilateral relations, significantly influencing global economic stability. Together, the economic outputs of China and the EU represent over one-third of the world's economic activity, contributing around 33 percent to global growth and accounting for nearly 30 percent of total merchandise trade. Their collaborative efforts not only stimulate domestic economic growth within their respective regions but also bolster international trade dynamics.

In stark contrast, the unilateral trade measures imposed by the United States have posed significant disruptions to the established international trading system, further complicating global trade and adversely affecting economic conditions worldwide. The ramifications of such tariffs underline the importance of multilateral trading practices, which, according to the World Trade Organization, still dominate a considerable share of global trade outside U.S. influence and regional trade agreements. Both China and the EU are steadfast proponents of free trade, sharing a common responsibility to uphold multilateral trade systems and navigate away from protectionist stances.

Amid these developments, China and the EU have actively coordinated their economic and trade policies in 2024. Key dialogues were held between Wang Wentao, the Chinese Minister of Commerce, and Maros Sefcovic, the European Commissioner for Trade and Economic Security, signifying a commitment to maintain open channels of communication. Their upcoming meeting during the World Trade Organization's ministerial meeting in Paris further demonstrates a collaborative spirit intended to address existing differences and enhance mutual cooperation.

As both parties celebrate 50 years of diplomatic relations, the need for continued dialogue has never been more crucial. The present geopolitical landscape underscores the importance of collaboration over unilateral actions. By fostering an environment of mutual understanding and cooperation, China and the EU can provide stability and predictability, which are essential not just for their bilateral relations but also for the broader global economic environment.