The European Union and China are entering a new, more tumultuous era in trade relations, as China has transformed from Europe’s preferred client to a formidable competitor, a Brussels lobbyist said.
Chinese businesses are likely to face tougher scrutiny in the EU market as a result, with Brussels already taking steps to transform its trade and contemplate more drastic measures to protect domestic industry from Chinese competition, according to Michael Koplovsky, senior consultant at strategic communications firm Kreab International.
“There was a recognition of China as a partner several years ago, and China is a very important market for European products,” Koplovsky said during an interview at the UBS Asia Investment Conference in Hong Kong on Thursday.
“Now, Europeans have become more suspicious, more afraid of China.”
The change in attitude is due in part to China’s rapid moves in strategic sectors including solar energy, wind, batteries and electric vehicles, where Chinese companies are now challenging the European industry, said the lobbyist, who is also a visiting professor at the European Academy.
So far, the change in attitudes towards China has not been as pronounced in Europe as in the United States, according to Koplovsky – a former senior American diplomat. Brussels tends to view its relationship with Beijing in terms of competition, while Washington tends to the concept of “strategic competition”.
However, he warned that the rift could widen further. “I don’t know where Europe will reach, but I see movement,” he said.
