Comparing EU with China: Policy Development and Execution (2025)

European Union

Process: Policy development is led by the European Commission, which proposes legislation, while the European Parliament and Council of the EU amend and adopt laws. The process is consensus-driven, involving multiple stakeholders and often requiring unanimous agreement among member states for major decisions (e.g., enlargement, trade agreements) Wikipedia European_Union.
Key Institutions: European Commission (executive and legislative initiator), European Parliament (co-legislator), and Council of the EU (member state representatives) Wikipedia European_Union.
Outcomes: Policies are implemented through binding regulations and directives, with a strong focus on the Single Market, climate neutrality, digital transformation, and defense. Recent initiatives include the ReArm program (€800 billion for defense), the Climate Target for 2040, and simplification of regulatory burdens for businesses Wikipedia European_Union.
Challenges: Slow decision-making due to the need for consensus, especially in areas like enlargement (e.g., Western Balkans, Armenia) and trade (e.g., US-EU tariff agreements) Joint Statement on a United States-European Union framework on an agreement on reciprocal, fair and balanced trade.
Example: The 2025 Commission Work Programme prioritizes the European Defence Union, energy transition, and social fairness, but implementation depends on member state cooperation and legislative timelines 2025 Commission work programme adopted.

Process: Policy is centrally planned and executed by the Chinese Communist Party (CCP) and State Council, with the National People’s Congress (NPC) and Chinese People’s Political Consultative Conference (CPPCC) formalizing decisions. The process is top-down, with five-year plans and annual work reports setting national priorities.
Key Institutions: CCP Central Committee, State Council, NPC, and local governments. Central-local synergy is critical for effective execution, though inefficiencies and corruption remain challenges.
Outcomes: Policies are rapidly implemented through state-led initiatives, such as "Made in China 2025," large-scale equipment renewal, and renewable energy projects. The government uses fiscal and monetary tools (e.g., increased deficit spending, treasury bonds) to drive economic stability and innovation.
Challenges: Policy coordination between central and local governments can lag, and there are concerns about administrative efficiency and corruption. However, the system allows for swift mobilization of resources.
Example: The 2025 Government Work Report emphasizes modernizing manufacturing, digital transformation, and renewable energy expansion, with specific targets for offshore wind farms and industrial digitization.

Decision Speed: China’s centralized system enables faster policy rollout, while the EU’s multi-stakeholder process is slower but more inclusive.
Flexibility: The EU’s process allows for member state adaptation, whereas China’s approach ensures uniform national execution but less local autonomy.
Focus: The EU prioritizes regulatory harmonization and long-term sustainability (e.g., climate, defense), while China focuses on rapid industrial upgrading and economic stability The European Union’s Economic Security Strategy Update.