The Embassy of the People's Republic of China in Romania organized on June 18, 2025 at its office building an important event dedicated to the trade relations between  China and Romania, namely the “Minds Conference on China-Romania Trade Relations” with the theme “Promoting Win-Win Cooperation: Deepening China-Romania All-round Partnership of Friendly Cooperation”.  

Mr. Song Xianmao, the Counselor at the Economic and Commercial Office of the Embassy of the People's Republic of China in Romania, delivered the keynote speech. 

Based on the mutual consent, IRSEA is presenting bellow the keynote speech.

“Renewing traditional friendship and deepening win-win collaboration. Working together to open up new prospects for China-Romania trade relations.

In recent years, the economic and trade cooperation between China and Romania has yielded impressive results. Having exceeded the 10 billion US dollar threshold for four consecutive years, bilateral trade in goods achieved an impressive new record of 13.45 billion US dollars in 2024. China has established itself as a key trading partner for Romania outside the EU. An ever-growing number of Chinese enterprises are directing their investments into Romania, spanning sectors such as renewable energy, manufacturing, trade, and services. Their contributions have not only generated substantial tax revenues but also created countless jobs, significantly enhancing Romania's economic and social development while improving the quality of life for its citizens.

Currently, the global economy grapples with various challenges, including a lack of dynamism, geopolitical tensions, anti-globalization sentiments, and chaotic governance. While the threat of tariff and trade wars looms large, I remain convinced that economic globalization is an irreversible historical trend, with its positive momentum far surpassing the resistance it faces. We must be confident in our ability to collaboratively steer economic globalization toward the direction desired by people worldwide. China not only benefits from economic globalization but also plays a crucial role as a key advocate for its advancement. China has steadfastly advocated for inclusive economic globalization, resonating with the aspirations of nations around the globe, especially those of developing countries. The goal is to work together to broaden and equitably share the "cake" of economic globalization, fostering mutual advantages, win-win outcomes, and shared prosperity for all. China emphasizes inclusive growth that respects diverse national circumstances and encourages partnerships aimed at joint advancement rather than the dominance of any single state. This highlights China's approach to addressing one of the most pressing questions of our time: "What lies ahead for economic globalization?"

In recent years, China has emerged as a stabilizing force in the global economy. As the world's second-largest economy, it contributes approximately 30% to global economic growth and serves as the primary trading partner for over 150 countries and regions. For years, it has held the title of the world's largest trader and the second-largest importer of goods. China's role is indispensable for ensuring the stability and efficiency of the global production and supply chain. Furthermore, the nation is rapidly advancing the development of new quality productive forces, fueling the transformation and enhancement of the global economy. China is dedicated to a robust opening-up strategy, presenting significant market advantages for businesses worldwide through an enhanced business environment and a refined negative list for market access. The country is boosting global connectivity by advancing collaboration and nurturing the growth and prosperity of regions along vital routes, supported by efficient logistics networks such as the China-Europe Express and the Western Land-Sea Corridor. Additionally, China is making remarkable progress in its green transformation, offering effective "Chinese solutions" to global climate challenges and promoting sustainable development through innovative and cost-effective, eco-friendly technologies. Since the start of this year, China's economy has shown impressive resilience, achieving a 5.4% GDP growth in Q1 despite external shocks and internal challenges. Despite weak global demand and the imposition of high tariffs by certain countries on China, China’s substantial advantages in foreign trade continue to stand out. From January to May, the added value of industrial enterprises above designated size increased by 6.3% year-on-year. The production index for the service industry saw a remarkable year-on-year increase of 5.9%.From January to May, goods trade grew by 2.5% year-on-year. Exports notably rose by 7.6% in April and 6.3% in May, demonstrating China's strong competitive edge despite global trade uncertainties. With no doubt, the promising future of the Chinese economy will open up a wealth of opportunities for countries worldwide, including Romania.

For years, Romania has continuously voiced its concerns about the trade deficit with China, making it clear that it aims to boost exports to China in an effort to address this imbalance. Primarily, trade at its core is about mutual benefit. International trade is an essential economic activity that enables the production of goods that no single entity could create on its own. By leveraging specialized labor and optimal resource allocation, it guarantees that all participants share in the rewards. Trade has significantly enhanced production efficiency, broadened product availability, stimulated the consumer market, and catalyzed technological advancement and industrial growth. We cannot simply evaluate our economic sufferings/losses through the lens of trade surplus or deficit. Products like mobile phones, laptops, cars, and a range of other goods imported by Romania from China are officially categorized as Chinese exports, and it is nominally for sure. However, they in essence play a crucial role in promoting Romanian local consumption and have integrated into the local service sector. This integration not only stimulates Romanian economic growth but also creates jobs and increases tax revenues. Moreover, over a third of products developed by EU companies in China are re-exported back to Europe. Although it might appear that China enjoys a trade surplus, a significant share of the profits is, in fact, captured by EU companies, which underscores the ongoing expansion and openness of the Chinese market, benefiting all involved. Secondly, a trade surplus or deficit arises from a complex interplay of factors, including the macroeconomic landscape, global trade conditions, and the industrial structures of the nations involved. It is crucial to examine this issue from a developmental and dialectical perspective, rather than merely blaming one party or focusing exclusively on market access concerns for the trade imbalance. Remarkably, China stands out as the sole nation worldwide that encompasses every industrial sector recognized in the United Nations industrial classification. Its comprehensive industrial chain is remarkably advanced, and among over 500 major industrial products globally, China leads in the production of more than 220 of them. High-quality and cost-effective Chinese products have the potential to greatly meet the needs of the Romanian market, driving both economic growth and social progress in Romania. This outcome stems naturally from standard market dynamics and the global division of labor, underscoring the collaborative efforts between businesses from both nations. Practically, it reflects the decisions made by consumers. Thirdly, discrepancies in statistical standards have amplified the "imbalance effect" within bilateral trade. Each country adheres to different trade reporting rules. The discrepancies in definitions surrounding re-export trade, the methods used to calculate import and export prices, and the inconsistencies in Rules of Origin(ROO) have notably exaggerated Romania's trade deficit with China. The first example is our on-site research revealed that a clothing manufacturer in Romania is creating apparel for renowned brands like Zegna, Moncler, and Armani. The garments bear the "Made in Romania" label and are intended for sale in China. However, these products are first exported to Italy before the brands sell them to the Chinese market. Consequently, while Romania classifies these transactions as exports to EU, China classifies these products as imports from Romania, based on their country of origin. Another example is that Romanian auto gearbox manufacturers, who have achieved remarkable success last year, exporting over 1 billion euros worth of products to Germany. These components ultimately made their way to Mercedes-Benz factories in China. Notably, Romania has not accounted for these exports to China in its statistics. I suspect that many multinational companies that have established factories in Romania are experiencing similar circumstances. This suggests that the true extent of Romania's exports to China is considerably larger than the figures currently indicate. Fourthly, China has never intentionally aimed for a trade surplus. China's current account surplus as a percentage of GDP has experienced a dramatic decline, plummeting from 9.9% in 2007 to a mere 2.2% in 2024. In light of this shift, China has made substantial efforts to boost its imports by actively reducing import tariffs and pledging to eliminate tariffs for all least developed countries. Since 2018, Shanghai has proudly served as the host of the China International Import Expo, the world's first national exhibition dedicated solely to imports. Over the past seven years, both the number of countries involved and the projected transaction amounts have consistently increased, exceeding a remarkable total of over US$500 billion. For 16 consecutive years, China has maintained its status as the world’s second-largest import market. Furthermore, China's gradual relaxation of restrictions on agricultural product exports reflects its readiness to import a greater volume of high-quality goods with significant market potential. China is strategically leveraging its import potential and is committed to transforming its extensive market into a globally accessible platform for all. We actively pursue mutually beneficial relationships and win-win outcomes with countries around the world, approaching these partnerships with an open and collaborative mindset.

China and Romania enjoy a highly complementary bilateral trade relationship, presenting significant growth opportunities across various sectors. Notable areas of potential include agricultural products, labor-intensive goods such as textiles and light industry items, automotive components, innovations in new energy, machinery and equipment, consumer electronics, and the rapidly growing cross-border e-commerce etc. To truly unlock this potential, we must deepen our mutual understanding, build confidence, and invigorate our collaboration. It is essential to enhance practical cooperation, increase imports from Romania, and expand the bilateral trade "cake," thereby ensuring a balanced and strong growth of trade relations between China and Romania. To this end, I propose that: First, we should jointly consolidate the foundation for cooperation. To successfully enhance the collaborative efforts surrounding the "Belt and Road" initiative and fortify partnerships between China and the nations of Central and Eastern Europe, it is imperative to leverage platforms such as the China-Romania Joint Economic Committee and the China-Romania Trade Facilitation Working Group, among others. By promoting candid and open communication, we can facilitate consistent meetings between the economic and trade authorities of both nations. This proactive strategy will guarantee timely communication of trade demands, facilitate collaborative problem identification and resolution, and create favorable policy conditions to boost the scale of bilateral trade. Second, we must foster greater consensus on cooperation. It's essential to continuously enhance trade liberalization and facilitation, while bolstering communication and collaboration between the customs, inspection, and quarantine departments of both nations. We should also prioritize the signing of additional agreements to facilitate the entry of Romanian agricultural products into China. Our Embassy is committed to supporting Romanian companies as they meet challenges related to business registration and product exports in China. We must simultaneously inspire and guide businesses from both countries to strengthen their collaboration. By promoting cooperation in production and supply chains and encouraging reciprocal investments that capitalize on each nation’s distinct advantages, we can stimulate balanced trade growth through focused investment strategies. Third, we should collaboratively enhance our mutually beneficial agenda. On one hand, it is essential to showcase Romania's competitive strengths in areas such as agricultural products, auto parts, cosmetics, and textiles. By leveraging platforms such as the China International Import Expo, the Canton Fair, and the China-Central and Eastern Europe Expo, we can continually broaden Romania's access to the Chinese market and boost its exports to China. On the other hand, we must stay attuned to emerging trends, including green development and digital transformation, and tap into the trade potential within burgeoning sectors such as new energy, cross-border e-commerce, artificial intelligence, and the digital economy. This strategic approach will enable a wider range of marketable products to penetrate each country's market, fostering mutually beneficial outcomes. Fourth, we need to collaboratively foster a strong and thriving business development environment. It is essential to swiftly address obstacles and challenges to facilitate seamless exchanges between the businesses of both sides. China is currently implementing unilateral visa-free policy to Romania, greatly facilitating Romania's economic and trade delegations to visit China and the bilateral exchanges. In stark contrast, Chinese citizens seeking to travel to Romania have recently faced significant delays and a troubling number of visa rejections. Therefore, we highly hope Romania to prioritize the resolution of these visa challenges. Furthermore, we must continue advocating for the easing of market access conditions by further lowering both tariffs and non-tariff barriers. By doing so together, we can cultivate a business environment that is open, fair, equitable, non-discriminatory, and predictable for all.

In today’s world, we have transformed into a community united with a shared future, where the fortunes of nations rise and fall together. The intertwined nature of our collective challenges, interests, and responsibilities has forged a stronger bond among all countries. It is crucial that we actively seek win-win cooperation and endeavor for harmonious coexistence, rooted in the principles of equality and mutual benefit. The Trump administration has recently misused tariffs as a tool for economic coercion and intimidation against global trading partners, including China and the EU. This approach of unilateralism and protectionism blatantly contravenes WTO rules, jeopardizing the legitimate rights and interests of nations worldwide. Furthermore, it disrupts global industrial and supply chains, hampers production and operational activities for businesses, jeopardizes consumer interests, and poses a significant threat to the stability of the global economic order.

 As advocates for economic globalization and the multilateral trading system, China and Romania must enhance their communication, coordination, solidarity, and collaboration. Together, we must uphold a fair competitive international economic and trade order, actively oppose all forms of unilateralism and protectionism, and unite to tackle challenges and risks. We should join forces to support a more inclusive economic globalization and work together to open up new prospects for China-Romania trade relations, providing vital certainty and stability to the global economy.”

The opinions expressed in this article are the author’s own and do not necessarily reflect the official policy, position or view of IRSEA