A recent trade agreement between China and the European Union offers a temporary reprieve, but deeper economic tensions and geopolitical mistrust continue to strain the relationship. Beijing must take European concerns more seriously, while Brussels should pursue a less confrontational approach. Moving beyond short-term concessions toward mutually beneficial partnerships will be essential to preserving market access, rebuilding trust, and establishing a more sustainable economic relationship.

The China-EU trade consensus has meaning beyond a list of commodities, tariffs and various restrictions. Two of the world’s largest trading powers have chosen to engage inside the rules instead of maneuvering outside them. It’s an example that quietly draws a bottom line for global trade.

The U.S.-led Pax Silica initiative seeks to reduce dependence on China across critical-mineral, semiconductor, and AI supply chains, but its success will depend on sustained commitment, concrete project delivery, and meaningful benefits for developing-country partners.

The choice facing the world is clear: Either allow the United States to continue its unilateral reshaping of global trade by coercion, or come together to defend the principles of non-discrimination, fairness and multilateralism that underpin shared global prosperity.

Chinese industry has been operating under distinctly unfavorable external conditions, with trade tensions, the pandemic, geopolitical conflicts, and the reconfiguration of global supply chains all exerting pressure on manufacturing. Yet China’s net goods exports have continued to grow and now exceed $1 trillion, with electric vehicles (EVs), batteries, and machinery expanding their global footprint. Why have external headwinds not weakened China’s manufacturing competitiveness?

The current USMCA review is expected to introduce new China-related restrictive provisions across four key areas: labor enforcement, rules of origin, economic security coordination and external tariff alignment. Taken together, these measures would substantially narrow market access for Chinese capital, goods and technology in North America.

China’s membership is not a threat. Rather, it is a sustainable framework for the United States to prosper. Both sides could well complement each other and grow together, benefiting our people and the world over.

A window of opportunity is open to prevent slipping into a pattern of entrenched strategic competition — which is why the question matters now. Relations between China and Europe are moving from an era of sectoral competition to an era in which competition embraces the entire economic ecosystem.

The European Union’s China policy is trapped in a glaring contradiction. Officially, Brussels frames China as a “partner, competitor and systemic rival.” In practice, however, the rivalry narrative has overridden all other dimensions and eroding the foundation of cooperation.

Trump’s tariffs failed to reshore manufacturing or reduce trade deficits, instead weakening U.S. alliances and strengthening China’s global position. They accelerated a shift in power toward control of supply chains and critical materials—an area where China holds a decisive advantage.