Economic relations between Europe and China – “de-risking” or renewed partnership?

Abstract Since establishing their Comprehensive Strategic Partnership in 2003, China and the EU have developed their relations in an incongruous manner. While trade and investment have flourished, political relations have recently deteriorated. Since at least 2023, European politicians have tried to "de-risk" from China. However, businesses have not followed this trend. This makes sense, as the sheer size of the Chinese economy makes finding another country or group of countries to compensate for such "de-risking" difficult. Many Europeans believe that China’s influence will continue to grow in the coming years and that it could surpass the U.S. within a decade. At the same time, however, China’s influence on international relations is often viewed negatively. After the April 2025 Trump tariff shock and the July 2025 EU-U.S. "agreement" on tariffs, it would be wise for Europe to improve relations with China. However, both parties would have to adapt some of their policies. The EU should move away from emulating the U.S.'s treatment of China as a secular rival. In turn, China should adhere to its long-standing foreign policy principles of not interfering in the internal affairs of other states and upholding the sovereignty and territorial integrity of all states, including with respect to Russia.