China is actively pursuing stronger collaboration with the European Central Bank (ECB), as stated by Premier Li Qiang during a recent meeting in Beijing with ECB President Christine Lagarde. This meeting comes amidst ongoing trade tensions between China, the European Union (EU), and the United States, particularly following significant tariffs imposed by former President Donald Trump on various countries. Li emphasized the importance of cooperation in the face of increasing aversion to globalization, highlighting that mutual benefits can only be achieved through collaborative efforts.
He encouraged the EU and China to foster open cooperation while maintaining multilateral coordination. Furthermore, Li expressed China’s eagerness to enhance market connectivity and industrial synergy with the bloc. During Lagarde’s visit, she also convened with Pan Gongsheng, the governor of China’s central bank.
This meeting resulted in the signing of a memorandum of understanding aimed at furthering cooperation. Additionally, they agreed to establish an annual meeting mechanism between the central bank governors, according to a statement from the People’s Bank of China. The trade dynamics have notably shifted since Trump reinstated tariffs, presenting challenges to global economics.
While Chinese exports to the 27-nation EU have seen a substantial 12.0% year-on-year rise as of May, exports to the United States have sharply declined by 34.5%. Notably, exports to key EU economies such as Germany and France surged by over 20%, in contrast to stagnant imports from the EU. Lagarde’s visit signals an intention to mitigate trade friction, as seen by China’s decision to postpone a verdict regarding a major investigation into pork imports from the EU.
Moreover, the two parties are inching closer to resolving disputes related to EU tariffs on Chinese electric vehicles, illustrating a willingness to enhance trade relations amidst challenging circumstances.