ABSTRACT
This chapter provides an overview of China's trade and investment relation with the European Union (EU). The chapter discusses the current development of China-EU bilateral trade relations and its characteristics. It explains the bilateral investment relations between China and the EU with China's investment in the EU. It summarizes the challenges to the future development of EU-China bilateral economic relations. EU foreign invested enterprises (FIEs) in the IT (information technology) industry form an important force of China's exports to largely advanced markets such as the EU and the United States. Meanwhile, China is viewed as an increasingly important strategic market by EU investors for their global business. Accompanying the rapid growth of both trade and investment relations between the EU and China in the past two decades, the two economies have become indispensable economic partners of each other. In this way, EU-China economic relations constitute the most substantial and important pillar of their bilateral relations.
