Fei Shengchao, the Chinese ambassador to Belgium, says that the “success” of a huge car plant in Flanders is a prime example of what can be achieved by “working together.”
The ambassador, speaking in Brussels, pointed to the importance of the Volvo car plant in Gent, Flanders as an example of the added value China was, he said, able to provide to EU countries like Belgium.
Owned by a Chinese conglomerate, the plant employees 7,000 people (“and not a single Chinese person”) and is the biggest employer in Flanders.
“This shows what cooperation can do in improving the competitiveness of a European country.”
The country’s car production capacity, he noted, had seriously declined over the years but the success of the Volvo operation was an “excellent” example of what can be achieved by close cooperation.
Volvo Car Gent is based in the port of Ghent and the site consists of a welding factory, spraying factory, final assembly and various adjacent areas. With 186,313 cars produced (2024) per year, it is seen as one of the strongholds within Volvo.
It currently builds the XC40, EX40, EC40 and V60 models and, from the second quarter of 2025, the EX30.
The first fully electric Volvo, the EX40, has been produced at the Ghent factory since the second half of 2020 and the second fully electric Volvo, the EC40, since the second half of 2021. A third fully electric Volvo, the EX30, will be built in Ghent from the second quarter of 2025.
Speaking separately, on the company website, Stefan Fesser, CEO Volvo Car Ghent, said, “Volvo Car Gent is also the first to assemble batteries for the electric Volvo EX40. Our employees receive intensive training to be able to work in this brand new factory and were involved in this ground breaking technology from the start.”
The issue of EVs has been the subject of conflict between the two sides in recent times and the ambassador acknowledged this while also saying there had been “some progress” in recent negotiations aimed at resolving the matter.
He noted that the Belgian plant was producing “state of the art” electric vehicles and this is an example of how cooperation can significantly increase the competitiveness of European companies and nations.”
In an address at the city’s press club at Schuman, he spoke of “rising tensions” caused to world trade as a result of President Trump’s controversial tariffs.
The experienced diplomat insisted that “no one benefits” from “trade wars” and cautioned again a further escalation in current trade conflicts.
He said, “Dialogue is always the best solution. Trade wars and tariffs produce no winners.”
Amid the fallout from Trump’s tariffs, he also advocated “strong” political and economic ties with the EU, saying the relationship between the two sides had been wrongly portrayed in the media.
In a wide ranging briefing he also spoke about climate change and the war in Ukraine, saying China would continue to press for a peaceful outcome to the conflict.
The ambassador was addressing international reporters and others on the issue of world trade and tariffs.The debate, moderated by EUReporter publisher Colin Stevens, focused on China’s “position against the abuse of tariffs” and what was at stake for international trade.
The ambassador accepted that, currently, tensions were high over the tariffs and this has caused “instability and uncertainty.”
But he also noted that while the trade measure announced by the U.S had sparked “drastic market fluctuation” he added that “tariffs are not new and have always been there”.
What was at stake, he said, was in the economic interests “not just of certain countries but everyone” and he warned that, while efforts had been made to defuse tensions in the last few days, “this may not be a one off.”
There was, he added, “concern” about long-term stability in economic markets particularly for the major trading nations and markets of the world.
The diplomat, who took up his post in Brussels only last June, said that “despite external pressures” the “good news” was that China’s economy had shown its resilience in a way that “many would not have predicted.”
The country’s GDP last year, he told the meeting, grew by 5% which, while not comparing with even higher figures in previous years, “is quite impressive.”
The first quarter of this year showed equally “impressive” growth – 5.4% – and this was across a diverse range of sectors, including housing, finance, digital, semi conductors and AI.
The economy for the remainder of the year is expected to enjoy double digit growth, said the ambassador, a diplomat for over 30 years.
China was, he noted, already the world’s biggest trading nation and much of its continuing growth was being driven by a healthy domestic market which meant the country was “no longer wholly dependent” on overseas trade and exports for its economic success.
He cited as one example the recent 5-day Labour Day holiday in China which saw record number of movement among the population – 300million visits (6.4% up on the previous year) and record spending levels – equivalent to $25bn, a 180% increase on 2024.
“This proves the resilience and strength of the Chinese economy,” he said.
The EU and China together account for almost a third of global trade in goods and services and for over a third of global GDP. In 2023, EU-China trade in goods and services exceeded €840 billion.
But the EU has a persistent trade deficit with China, with the EU importing more goods than it exports. In 2024, the EU imported goods worth €517.8 billion.
The EU-China relationship has been marked recently by rising tensions, not least over the issue of electric vehicles (EVs).
The ambassador, however, told the meeting that disputes were “normal” but that “some progress” had been made in recent talks between the two sides in order to resolve outstanding issues, such as EVs.
He said, “Dialogue is always the best solution. Trade wars and tariffs produce no winners and are not the way to settle difficulties or differences. They lead to just more chaos and create more problems and not just for the countries directly involved but the whole world.
“The best approach is dialogue otherwise you may end up with no trade. It is natural for there to be disputes from time to time and that is why things like dialogue and the WTO are so important.”
“This is how the trading system has worked for years and, I hope, will continue to do so. Talking works far more than tariffs.”
China has said Europe should drop its export controls on certain high-tech products, including semiconductors, as well as tariffs on Chinese electric vehicles (EVs). Beijing, in its turn, has been opening up sectors such as telecommunications, banking or manufacturing for foreign investment.
The ambassador warned that “complex issues” did not always have “quick and easy solutions” and bemoaned what he called a “lack of mutual trust and understanding” between the West and China.
He pointed out, in conclusion, that the EU and China trades an estimated $2.6 bn every day of the year and that trade between the two has rocketed “300 fold” since the 1970s and 1980s. Back then it was about $2.4bn pa but is now some $780bn, he said.
Despite the way the EU-China relationship was sometimes portrayed in the media he said, “We are not in a state of conflict and nor is there a sort of cold war between us.
“China does not pose a threat to Europe or the West. How could it?”
