EU-China relations in 2024: Frankness and caution

When China and the European Union (EU) established the mechanism of political dialogue and consultation in 1994, a period of EU economic China optimism followed. China has made enormous strides to liberalise its trade regime and open its economy to the world over the last few years. Tariffs have come down, trading rights have been granted to firms on a wider basis, the dual exchange rate has been unified, foreign investment has been attracted on a large scale, and the basic framework for an effective judicial structure to handle property rights has been established. Thirty years later, the landscape of Sino-European dialogues is primarily an arena for hard conversations, not optimistic expectations. However, the European Parliament elections could mark a pivotal moment in the evolving dynamic between the two powers, as we witness continuing security challenges and a retreat from global neoliberal norms. The outcome of the US presidential election, albeit mitigated by the existing cross-party consensus on China, will impact the EU- China bilateral relationship.