China-EU Relations: Crisis and Opportunity

In the 15 years since China’s accession to the WTO the flows of commerce between the EU and China have expanded substantially. Populists have used the EU’s rising trade deficit with China to accuse Beijing of mercantilism and unfair trade tactics, and call for a “fortress Europe.” To bolster their arguments they intentionally exclude reference to the EU’s record exports to China, which have created millions of jobs and promoted European welfare. They have also declined to acknowledge China’s support for the EU during the eurozone crisis, which took the form of direct investments and portfolio investments in sovereign bonds of EU states under economic distress, as well as high-level statements by former Premier Wen Jiabao and current Premier Li Keqiang.