European Commission Executive Vice-President and trade chief Valdis Dombrovskis gave his reassurance that the bloc does not intend to decouple from China, one of its largest trading partners.
"De-risking is not decoupling. And the EU has no intention of decoupling from China," Dombrovskis said when addressing the Bund Summit in Shanghai on Saturday, ahead of a high-stakes dialogue with Chinese leaders including Vice-premier He Lifeng next week in Beijing as both sides seek to shore up shrinking trade.
Dombrovskis vowed to step up ties with China to manage trade issues and address global crises such as climate change. But he also stressed the EU should minimise dependencies for "a select number of strategic products" and act in a proportionate and targeted way to maintain the bloc's "open strategic autonomy".
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"We have to protect ourselves in situations when [our] openness is abused," Dombrovskis said.
In 2022, the EU racked up a deficit of almost €400 billion (US$426 billion) out of a total trade volume of €865 billion. Two-way trade dropped 7.8 per cent in US dollar terms in the first eight months, according to Chinese customs authorities.
Dombrovskis is the highest-ranking EU official to visit China this year as Beijing and Brussels navigate a complex geopolitical situation.
Both sides have a long list of gripes and demands. The EU has long complained about the trade deficit and a lack of fair access to the Chinese market. The bloc has also prodded Beijing to cooperate on climate change and the conflict in Ukraine.
Meanwhile, the EU's talk of "de-risking" policies has led to consternation in China, with Beijing demanding clarification as Brussels appears more hawkish in aligning with Washington's combative approach towards China.
The EU's latest probe into a "flood" of cheap Chinese electric vehicles (EVs) into the continent has added fresh strains to trade ties that have long been hailed as the ballast for a broader relationship.
China has condemned Brussels' "sheer protectionism", suggesting EVs will be front and centre on the agenda when Dombrovskis heads to Beijing. The EU claims to have ample evidence that Chinese carmakers have been given state subsidies.
The rise in geopolitical tensions "increases uncertainty for international businesses, leads to more state involvement in the economy and risks starting subsidy races," Dombrovskis said in his speech.