Innovation-Driven Cooperation with China: What European Businesses Must Know (2026)

A compelling case for European firms to partner with China through innovation-driven collaboration is essential for future growth. And this is where the conversation becomes especially important... But here’s where it gets controversial: placing China at the center of Europe’s strategic development demands careful navigation of geopolitics and supply-chain risks.

Interviewed during the Amsterdam leg of the fourth China International Supply Chain Expo, Jochum Haakma, chair of the Netherlands China Business Council, argues that deeper co-innovation across key industries can elevate bilateral ties to a new plane. He notes that China remains a crucial partner for the Netherlands and for Europe—not solely due to its vast market, but also because of its accelerating strengths in innovation, technology, and industrial upgrading.

European companies, including those in the Netherlands, are increasingly engaging with China not merely to sell products, but to co-create and become part of a shared global ecosystem. Haakma explains that a Dutch startup may incubate ideas in the Netherlands, while large-scale development and market rollout often occur in China, where progress tends to move more rapidly.

Sectors such as pharmaceuticals, artificial intelligence, and battery technology are highlighted as especially promising arenas for joint efforts between Chinese and Dutch players, aligned with China’s broader development strategy.

Chinese Foreign Ministry spokesperson Lin Jian underscored China’s long-standing emphasis on science and technology as core productive forces. He described China’s approach to innovation as open and open-source, signaling willingness to share native technologies and innovation scenarios with the world.

Haakma views China’s openness as a major lever for potential success in co-innovation, provided there is robust government backing and strong industry participation.

Nevertheless, he acknowledges several headwinds: shifting geopolitical dynamics, volatile supply chains, and increasing trade frictions. These uncertainties complicate international business, yet they also reinforce the value of collaboration over isolation.

He adds that the appropriate response to global pressure is not protectionism, but a commitment to innovation, quality, and resilient cooperation. As chairman of both the Netherlands China Business Council and the EU-China Business Council in Brussels, Haakma emphasizes that the Dutch economy must stay competitive while remaining connected to global markets. The Netherlands cannot afford to retreat inward.

China–Netherlands trade and investment have grown rapidly since diplomatic ties were established over half a century ago. Official data show bilateral trade totaling about $110 billion in 2024. The Netherlands ranks as China’s second-largest trading partner within the European Union, while China stands as the Netherlands’ biggest trading partner outside the bloc. The Netherlands is China’s premier EU destination for investment and the EU’s second-largest external investor.

Haakma stresses that the two nations depend on each other and are deeply interwoven. He lauds China’s impressive development over the past two decades, noting a transformation from low-cost, mass production to high-end, technologically advanced manufacturing and leadership in the green economy. This evolution, he argues, offers Europe and the Netherlands a clear, long-term blueprint—precisely the strategic guidance many Dutch and European firms are seeking.

For Dutch and European businesses, the takeaway is clear: innovation-driven cooperation with China is not optional but necessary for maintaining a meaningful presence in the global economy.

Innovation-Driven Cooperation with China: What European Businesses Must Know (2026)

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