Commentary: The New Rules of Engagement for Europe and China

1. Sino-European relations are shifting from geopolitical tensions to institutional competition over market rules and governance, exemplified by a European Parliament delegation's visit to China, the first in eight years [para. 1].

2. Led by Anna Cavazzini, the delegation visited Beijing and Shanghai from March 31 to April 2, signaling resumed functional contact amid low trust, with political trust as a long-term goal [para. 2].

3. Contact resumed not due to resolved differences but after China lifted 2021 mutual sanctions in April 2025, which had frozen the Comprehensive Agreement on Investment [para. 3].

4. Engagement is driven by mutual needs: Europe requires direct info on the Chinese market, while China, in its 15th Five-Year Plan's first year, prioritizes trade stability and rule-shaping [para. 4].

5. Agenda focused on digital economy, e-commerce, product safety, and customs; meetings included regulators, lawmakers, e-commerce firms, and Pudong Airport inspections, emphasizing regulatory alignment over diplomacy [para. 5].

6. Prompted by EU's March customs reform—the biggest since 1968—eliminating the 150-euro duty-free threshold, adding a 3-euro fee per parcel from July (permanent November), and making platforms deemed importers [para. 6].

7. Delegation inspected Chinese supply chains pre-EU rules; China advances platform regulations like antitrust and data management, requiring docking of regulatory systems [para. 7].

8. Tensions persist but shifted to technical issues like platform liability, taxes, and subsidies, impacting global business costs and operations [para. 8].

9. Core issue: who sets globalization rules? [para. 9].

10. January's EV subsidy dispute resolved via minimum price commitment, lifting EU tariffs; trade focus now on frameworks, not existence [para. 10].

11. Relations compartmentalized: cooperation in green tech (China's scale/cost, Europe's standards/finance), but rule-bound, e.g., Carbon Border Adjustment Mechanism enforcement in January [para. 11].

12. Relationship mixes cooperation, competition, caution; upcoming visits by EP delegations in May and July indicate sector-specific coexistence [para. 12].

13. Shift from symbolic clashes to regulatory friction; China must actively shape rules via openness to gain global influence [para. 13].

14. Authors: Wang Wanying (Ningbo University assistant researcher/lecturer), Ma Xiaolin (Zhejiang International Studies professor, Ningbo distinguished researcher) [para. 14].

15. Views are authors' and not necessarily Caixin's [para. 15].