THE current trajectory of Sino-EU bilateral trade is imperiled by a suite of misaligned economic, trade, industrial and fiscal-monetary policies. This policy misalignment is eroding the foundations for enhanced economic cooperation, constructive coordination and equitable industrial collaboration necessitating immediate and systemic rectification. The European Union’s posture suggests a preoccupation with its structural trade imbalance and diminishing aggregate output, which appears to be manifesting in a deliberate constriction of Chinese market access. This is achieved through a proliferation of discriminatory investigations and deployment of unilateral instruments a suite of economic statecraft that increasingly targets Chinese economy, its industries and corporate entities. This represents a shift from positive-sum integration to a zero-sum competitive mindset.

Critically, under the guise of regulatory due diligence, the EU is engaging in extraterritorial information requisition, demanding extensive, non-essential proprietary and domestic data from Chinese entities. This practice represents a clear case of regulatory overreach, having devolved from legitimate market supervision into an intrusive probing of sovereign boundaries. This erodes mutual economic credibility, compromises the integrity of sustainable supply chains, and destabilizes the transactional equilibrium of bilateral trade and commerce.

The paradox of the EU’s stance is starkly illustrated by European Commission President Ursula von der Leyen’s recent address to French business leaders at the Mouvement des Entreprises de France (MEDEF), where she affirmed the necessity of dialogue with China “by using our instruments.” This formulation reveals a profound strategic dissonance: a call for dialogue delivered........

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