EU-China Relations after the 2024 Elections
As the European Parliament elections in 2024 bring notable shifts in EU-China relations, businesses across the Benelux region must consider a rapidly evolving global landscape. The rise of far-right political forces and the EU's growing focus on strategic autonomy are reshaping how Europe engages with China, introducing both challenges and opportunities for our members coming from Belgium, the Netherlands, and Luxembourg. As China Briefing published the “EU-China Relations After the 2024 European Elections: A Timeline” article, the Benelux Chamber would like to present a summary of past EU-China events, as well as its opinion.
Historically, the EU has viewed China through the lens of "partnership, competition, and systemic rivalry," a multifaceted approach which now faces more assertive policies, particularly in areas like trade, technology, and economic security. The recent imposition of tariffs on Chinese EV’s and China’s tit-for-tat measures targeting European imports (probe on EU dairy products) reflect escalating tensions that could affect the stability of trade relations across sectors. For Benelux companies deeply integrated into global supply chains, these developments will demand proactive adaptation.
However, these challenges also present unique opportunities for strengthening the Benelux-China economic partnership. China remains one of the EU's most important trading partners, and within this relationship, the Benelux countries play a pivotal role. From Rotterdam’s vital shipping connections to Luxembourg’s financial services and Belgium’s advanced manufacturing, Benelux firms are well-positioned to capitalize on China's ongoing growth and demand for European products and services.
Recent trends show that European companies, who were already invested in China, continue to expand in China despite geopolitical risks. German direct investment in China surged in 2024 (6.5 billion EUR in 2023, 7.3 billion EUR in 2024 by September 2024), signalling that Europe’s largest economy still sees long-term potential in the Chinese market. This is an encouraging sign for Benelux firms, who can leverage their strategic locations and strong trade infrastructure to foster deeper connections with Chinese counterparts.
As China seeks to diversify its European partnerships, Benelux is well-positioned to serve as a stable, reliable gateway for Chinese enterprises entering the EU market. Recent diplomatic engagements, such as China’s outreach to Poland and Hungary, suggest that China is keen on forming strategic alliances within Europe. The Benelux region, with its open economy and high level of expertise in sectors like logistics, clean energy, and digital innovation, is uniquely suited to benefit from this trend. As we also published a couple months ago, the Benelux region stands for nearly 10% of the EU’s GDP.
To further solidify economic ties, it is key for the Benelux business community to engage with Chinese counterparts in dialogues that promote mutual interests. Collaboration in key sectors such as green energy, technology, and finance can strengthen resilience and reduce the impact of global trade tensions. The upcoming initiatives, including cross-regional working groups in agriculture, AI, and finance, present valuable platforms for our members to explore opportunities in the Chinese market.
While the political landscape within the EU may be evolving, the longstanding economic ties between the Benelux and China remain a cornerstone of our international relations.
Author: Jonathan Xu