China-EU trade ties are at a crossroads. Could tech bridge the divide?
South China Morning Post
by Mia NurmamatFebruary 26, 2026
AI-Generated Deep Dive Summary
China-EU trade relations are at a critical juncture, with tensions heightened by the war in Ukraine and years of unresolved trade disputes. However, there is potential for collaboration to ease these tensions through technological cooperation, as suggested by Premier Li Qiang during recent discussions with German Chancellor Friedrich Merz. Li emphasized the importance of fostering deeper joint technology development and shared research initiatives between Chinese and European enterprises and institutions, while encouraging collaboration on exploring third-country markets.
The symposium, attended by over 60 business representatives from both sides, highlighted China’s commitment to bilateral flows of innovation resources. Li proposed creating shared research platforms, broader knowledge sharing, and collaborative ventures in technology development. These measures aim to strengthen economic ties between China and Europe while addressing concerns over US-China competition, which has forced EU nations to reassess their approach to Beijing.
Merz’s visit marks a shift in Germany’s stance toward China. Previously critical of Chinese policies, Merz now appears more open to engagement, reflecting a broader trend among European leaders who have recently visited China, including those from Finland, France, Ireland, Spain, and the UK. This indicates a pragmatic recalibration of Europe’s China policy amid increasing US-China rivalry.
Analysts suggest that Berlin is adopting a more practical approach as the competition between the two superpowers intensifies. Countries caught between the US and China are reevaluating their diplomatic strategies to avoid being caught in the crossfire. By fostering technological collaboration, both China and Europe aim to navigate this complex geopolitical landscape while safeguarding mutual economic interests.
This potential reset in China-EU relations is significant for global trade dynamics. If successful, it could set a precedent for how nations balance competing interests with major powers like the US and China. The
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Originally published on South China Morning Post on 2/26/2026