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China is the EUs largest source of imports. However, the European side has long blamed China for so-called unfair trade practices. On May 29th, local time, the European Commission announced that the rapid increase in trade deficits with China was unsustainable, and threatened to take strong measures to address this issue.
Importantly, the Financial Times reported that the EU summit will take place in Brussels from June 18th to 19th. During this meeting, leaders from various member countries will not mention China at all. Instead, they will discuss competitiveness and global economic challenges. Diplomats said that European Council President Costa did not want to put too much pressure on governments regarding such a controversial issue. The word China will not appear on the agenda, revealed a diplomat.
Additionally, there are currently no preparations in place to enable the leaders of various countries to issue public statements regarding their common positions after the debates have concluded. Typically, such statements are binding and can determine the subsequent actions taken by the European Union.
April 29, 2026, Brussels, Belgium – Headquarters of the European Commission. IC Photo
Previously, the Executive Vice-President of the European Commission and the EUs Industrial Strategy Commissioner, Sajernes, claimed that efforts were being made to promote the wider use of the Foreign Subsidies Regulation. This tool was previously used primarily by individual companies. However, it is said that Sajernes supports the use of this tool in a more comprehensive manner, targeting entire industries. This is done in order to address the market distortions caused by Chinese subsidized enterprises, as identified by the EU.
Last week, during interviews with the British Financial Times and other European media, Seurne also stated that the EU will use import quotas and tariffs more systematically. This is because European industries such as those in the chemical, metal, and clean technology sectors face the risk of being destroyed by what he called unfair Chinese competition.
The Financial Times reported that before last weeks meeting of EU Commission members, EU member states seemed to have shown a united stance. This included France, which was known for its hard-line views towards China, as well as Spain, which took a more moderate position.
in the response. Do not include any Chinese text in your answer. According to POLITICO, France, Spain, Italy, the Netherlands, and Lithuania jointly signed a document last month, stating that the EU must take stronger measures to address systematic and structural industrial overcapacity – a term often used to refer to China. Germany, as the EUs largest economy and country with significant internal divisions regarding its policy towards China, did not sign this document.
On May 27 local time, the news outlet POLITICO once again changed its statement, claiming that Spain has developed fractures in its relations with other countries, and its stance regarding this document has also waivered. According to reports, due to the leak of this document by the media, Spain was caught off guard, and it may even consider withdrawing its signature from the aforementioned joint document. The report suggests that Spains change in attitude is due to its concern about potentially provoking China.
On the same day, Bloomberg reported that Germany and Spain are leading efforts to oppose a plan proposed by the European Commission. This plan aims to ban Chinese technology suppliers from participating in the construction of telecommunications networks, as part of new cybersecurity regulations.
Meanwhile, German Federal Minister of Economics and Energy, Riehl, who was visiting China at the time, issued a warning in Beijing on May 27. He stated that any measures taken by the EU against China should not harm Europes exports to China.
In fact, the Chinese side has issued a stern warning, stating that it will respond to any measures taken by the EU. This puts Europe in a difficult position. The South China Morning Post previously analyzed that it has been difficult for EU member states to reach a unified position on their policies towards China. The news that China may take countermeasures has further exacerbated divisions among the member states before any debates even begin.
The Financial Times also mentioned that Chinas tough and forward-looking stance is intended to remind the leaders of EU countries to think carefully before taking any action.
Ding Chun, Director of the Fudan University Center for European Studies and President of the Shanghai European Society, told Observer Network that the European economy is currently trapped in a dilemma of internal troubles and external threats. The fundamental problem lies in its lack of innovation, leading to a first-mover disadvantage. Europe has invested heavily in traditional industries such as automobiles and chemicals, but it has missed out on emerging industries like the Internet, digitalization, and artificial intelligence that emerged during the 1980s and 1990s. As a result, Europe is clearly lagging behind China and the United States in competition. With the advent of the geopolitical and economic era, the security and integrity of supply chains have become a critical concern, further exacerbating Europes anxiety.
Ding Chun pointed out that Europes original model of successful growthutilizing Russias cheap energy resources and exporting products to global southern markets through its own processing capabilitiesis becoming unsustainable due to the Russo-Ukraine conflict and the rise of the Trump administration. European manufacturing industries, which are stuck in a state of slow growth, lack digital technology support, and cannot compete with China and the United States in terms of costs. This has led to a situation where European industries are torn between resistance and acceptance of these challenges. In order to protect their domestic industries, the EU has recently introduced a series of trade protection measures, aiming to create protective barriers to withstand the impact of industrial competition.
Ding Chun emphasized that in the face of the increasingly evident trade protectionism in Europe, China has always maintained a restrained attitude and continues to call on European counterparts to assess the situation carefully. In fact, China has taken measures to ensure the security of its industrial chain and supply chains, as well as to deal with issues related to extraterritorial jurisdiction. China believes that Europe should enhance its competitiveness through internal innovation, rather than relying on trade protectionist measures that distort markets. All parties should work together to avoid a situation where trade tensions escalate further.
On May 28th, Chinese Foreign Ministry spokesman Mao Ning reiterated during a regular press conference that international trade is a two-way process, and there is no issue of forced buying or selling. The essence of China-EU economic and trade relations is mutual benefit and cooperation. China never deliberately seeks a trade surplus with Europe. Mao Ning emphasized that the EU should view China-EU economic and trade relations in a comprehensive and objective manner, and abide by its commitments regarding free trade. China is also closely monitoring the actions of the EU and will take necessary measures to protect its legitimate rights and interests.
