EU-China Climate Ties: Cooperate, Don’t Compete, Says Report

Green Tech Race Offers Chance for Shared Prosperity

Instead of erecting trade barriers, the European Union should seek common ground with China on clean technology trade and investment. Leveraging its strengths in rule-making, the EU can shape a global deployment environment that benefits both economies.

China’s Green Tech Dominance

Chinese companies are setting rapid paces in green technology, evident in advancements like Contemporary Amperex Technology’s electric vehicle batteries capable of 520km range after a five-minute charge. BYD Co.’s recent ultra-fast charging system launch and China’s annual solar panel production capacity exceeding 1.2 terawatts highlight this leadership.

Europe’s Strategic Crossroads

Faced with China’s formidable green manufacturing capabilities, Europe has a critical decision. It can adopt a defensive industrial policy, focusing on supply chain security and tariffs, or pursue a collaborative agenda. The latter allows Europe to utilize its expertise in setting regulations, building international coalitions, and establishing norms to guide green investments and standards.

Interdependence in Climate Transition

Despite recent strains in EU-China relations, collaboration on clean trade is achievable. The climate transition presents a shared challenge where both blocs are interdependent. Europe’s decarbonization pace impacts Chinese assets, while China faces potential repercussions for non-alignment with global norms. The critical question is how they can manage this interdependence constructively.

A Pragmatic Partnership Framework

Seizing the opportunity for a climate partnership requires a deal that serves both parties’ economic interests. For the EU, this means reducing dependence on Chinese imports while advancing its own value chain. For China, it involves maintaining access to crucial export markets amidst a changing global trade landscape. This necessitates a pragmatic approach from both sides.

Key Pillars for Cooperation

Effective cooperation hinges on several factors. Firstly, agreement on local content requirements is crucial. The EU aims for at least 40 percent domestic production of green technologies by 2030, emphasizing higher-value activities like research and development (R&D) to foster job creation and resilience.

Secondly, fostering joint ventures is vital. These have been instrumental in China’s technological advancements and are emerging within the EU’s battery and automotive sectors. Properly structured, joint ventures can drive mutual benefits and embed cooperation into long-term industrial strategies.

Thirdly, trade measures must be carefully considered. EU tariffs on Chinese EVs, though substantial, cannot solely bridge competitiveness gaps. Such measures should complement strategic efforts like local content rules and industrial partnerships. Misapplication risks further weakening Europe’s technological standing rather than facilitating its catch-up.

Fourthly, structured mobility schemes are essential. Restricting visas for Chinese engineers is counterproductive. Facilitating talent exchange between EU and Chinese firms would encourage R&D and design activities to occur in Europe, not just final assembly.

Economic and Geopolitical Dividends

Collaborating on decarbonization promises significant economic and geopolitical advantages for both the EU and China. Such cooperation would enhance the EU’s resilience, strengthen its industrial base, and solidify its leadership in clean technology. China could offload surplus green goods, secure market access, and demonstrate its commitment to green growth internationally, particularly as the United States scales back its climate action.

Shared Interests in Green Growth

The EU and China share more common ground than often recognized. Both are net importers of fossil fuels and major producers of zero-carbon technologies, creating a shared interest in sustaining global demand for green products. Amidst growing global uncertainty, both have prioritized the energy transition as a pathway to innovation and competitiveness.

The current window for establishing a climate partnership is closing. The upcoming months are critical for adhering to the Paris Agreement’s 1.5°C goal. While the recent EU-China Summit set a foundation for closer cooperation, the September Council of the EU meeting, under Danish presidency, will be pivotal as EU nations finalize their 2035 climate targets ahead of the UN Climate Change Conference in Belem, Brazil.

With key European nations advocating for a robust industrial and investment plan, EU leaders must devise a framework for industrial transformation at the September meeting. This framework must include how the bloc will engage with China.

Europe appears to be adopting China’s strategy of building new systems before phasing out old ones. However, to succeed, it must emulate China’s coherent, long-term planning across the entire clean tech value chain.

China, in turn, should commit to an ambitious 2035 emissions reduction target aligned with its 2060 net-zero goal, signifying approximately a 30 percent decrease from projected peak emissions this decade. This would bolster its international credibility and create space for a strong EU target.

Europe and China have both invested heavily in green growth. To secure the full benefits of decarbonization, they must find common cause on clean trade and investment—an area where strategic self-interest and global public goods align.

Taiwan Rejects PRC Sovereignty Claims, Urges EU Deterrence

Diplomat Roy Chun Lee Highlights Island’s Distinct Identity and Role

Taiwan has unequivocally stated it has never been part of the People’s Republic of China (PRC), asserting its sovereign status in a direct rebuttal to Beijing’s claims. Representative to the EU and Belgium, **Roy Chun Lee**, penned an opinion piece urging Europe to actively deter escalating coercion in the Taiwan Strait.

Challenging Beijing’s Narrative

The Taipei Representative Office in the EU and Belgium shared **Lee**’s article, framing it as Taiwan’s definitive perspective on its identity and international standing. This response directly counters a sponsored piece published by the Mission of China to the EU, which argued for the PRC’s sovereignty over Taiwan based on UN Resolution 2758.

Chinese international affairs commentator **Xin Ping** contended that UN Resolution 2758, passed in 1971, established the PRC’s sovereignty over Taiwan, a point **Xin** insisted is beyond debate.

Taiwan’s Historical and Legal Standing

**Roy Chun Lee** opened his argument forcefully: Taiwan has never been part of the PRC, not even for a single day. He elaborated, Since the cession of Taiwan by the Qing Dynasty to Japan in 1895, no government in China has ever exercised its jurisdiction over Taiwan.

“In fact, during the 75 years since the PRC’s founding in 1949, Taiwan has existed as a sovereign state under its official name, the Republic of China [Taiwan].”

—Roy Chun Lee, Representative to the EU and Belgium

He emphasized that this reality constitutes the prevailing status quo, with Taiwan’s sovereign existence being an undeniable fact that requires no UN membership for validation.

A Unique, Developed Identity

Over the past 130 years, Taiwan, much like many European nations, has cultivated a distinct identity. This evolution has been shaped by a rich multicultural heritage, drawing influences from Chinese, Dutch, Spanish, Japanese, and indigenous peoples.

Taiwan’s stature as a sovereign nation with a unique identity is evident in its global impact as an economic, democratic, and technological powerhouse. Its achievements, including leadership in the semiconductor industry, a top-tier economy, and high rankings in democracy and freedom indexes, underscore this point.

The island’s international recognition is further solidified by its position as the world’s 21st-largest economy and its high rankings in global democracy indices, where it is lauded as 12th worldwide and first in Asia. For example, Taiwan’s commitment to democratic principles was highlighted in the 2023 report by the Economist Intelligence Unit, which ranked it as a ‘Full Democracy’.

Combating PRC Coercion

Despite these accomplishments, the PRC persists in denying Taiwan’s sovereign existence, misinterpreting UN Resolution 2758 to assert its claims. **Lee** highlighted the resolution’s brevity and the absence of the word “Taiwan” within its text, quoting European Commissioner **Nicolas Schmit** from the previous year.

Since the resolution offers no legal basis for PRC territorial claims or denial of Taiwan’s sovereignty, China has intensified aggressive tactics, including military intimidation and economic pressure, targeting Taiwan and its regional neighbors.

Europe’s Role in Deterrence

**Lee** proposed a three-pronged approach for Europe to counter coercion in the Taiwan Strait:

• Acknowledge Taiwan as a democracy governed daily by its 23 million citizens.
• Expose and resist PRC disinformation, economic blackmail, and military intimidation.
• Foster deeper partnerships with Taiwan through expanded cooperation in trade, technology, security, and cultural exchanges, building shared resilience.