President Xi Jinping and French President Emmanuel Macron recently held talks on the sidelines of the G20 Summit in Bali, Indonesia, in their first face-to-face meeting since the start of COVID-19.

The recent increase in high-level interactions between China and France, as well as Germany, sends a positive sign for China-European relations. Of course, differences between the sides still exist, but the most important thing is to increase trust, which can only be built and increased through dialogue and cooperation.

European countries used to identify China mainly as a partner. However, they changed their perception of China more than three years ago, saying that China is not only a cooperative partner, but also a competitor and systemic rival. This new perception has complicated China-EU relations. The increased competitiveness in Europe's China policy has made bilateral relations more complicated and added uncertainties to their cooperation.

While Europe has changed its perception of China, China's perception of Europe has not changed. China has always regarded European countries as comprehensive strategic partners.

How should one view Europe's new perception of China, such as seeing China as a competitor and systemic rival? With the rapid development of China's economy, there will inevitably be economic competition between China and some European countries. What both sides should do is ensure that this competition is healthy.

Charles Michel, president of the European Council, said during his recent visit to China that the EU is ready to work with China to push forward the process of the China-EU Comprehensive Agreement on Investment and make supply chains more stable. There is no doubt that the ratification and implementation of the investment agreement would be of great significance to fair competition and equal market opening between China and France, and between China and other EU member states.

In addition, in markets such as Africa and Central Asia, China and France could strengthen cooperation to leverage their respective strengths, and China and France could cooperate with Africa and other places under the Belt and Road Initiative. Similarly, China and France could cooperate on the EU's Global Gateway strategy.

China and Europe have formed a deep economic dependence that is mutual. The two sides should conduct special exchanges and dialogues on supply chain security to enhance trust and reduce misgivings.

The author is director of the Chinese Academy of Social Sciences' Institute of European Studies.