After successfully compelling the previous U.S. administration to agree to a trade truce through a combination of economic leverage and strategic resistance, China is now applying a similar tough approach toward Europe.
China has responded to European trade restrictions by accusing the bloc of protectionism, curtailing exports of vital minerals, and deepening its partnership with Russia. Notably, China’s top leader affirmed support for Moscow shortly before hosting a European Union leaders’ summit this week.
This hardline stance reflects Beijing’s approach to ongoing trade and geopolitical disputes with Brussels. China demands that Europe remove steep tariffs on Chinese electric vehicles and halt further trade barriers. Meanwhile, EU officials view China as indirectly backing Russia’s war in Ukraine and express concerns over China’s practice of flooding markets with artificially cheap goods that threaten European industries.
China has recognized its leverage amid external pressures. It weathered the U.S.-initiated trade war by highlighting Western dependence on Chinese supplies of critical minerals. Analysts suggest Beijing believes it holds a stronger hand now, given signs of waning Western unity, especially as the United States’ 'America First' policy has weakened traditional transatlantic ties.
Simona Grano, a China specialist at the University of Zurich, observes, "Beijing perceives the global order as unsettled. The U.S. appears stretched thin, distracted by multiple international conflicts and domestic divisions."
"Amid signs of fatigue and fragmentation within the transatlantic alliance, Chinese leadership sees increased opportunities to assert its interests, particularly in trade, technology, and security," Grano added.
This strategic outlook is evident in China’s handling of the upcoming summit featuring Xi Jinping and European Commission President Ursula von der Leyen, alongside other senior EU officials. The meeting marks 50 years of diplomatic relations—a milestone typically used by Beijing to celebrate partnerships.
However, the summit’s details reveal China’s perception of power dynamics. Though it was Brussels’ turn to host the rotating summit, the event is held in Beijing. The meeting, initially planned for two days, has been shortened to a single day, and expectations for significant outcomes remain low.
The 27-member EU faces a delicate balancing act: pursuing a trade deal with the United States, which urges a firm stance on China, while striving to maintain steady relations with Beijing.
In recent years, Brussels has taken a more confrontational tone regarding the substantial trade imbalance with China, which exceeded $350 billion last year, as well as China’s close ties with Russia.
In a recent address to the European Parliament, von der Leyen criticized China for "flooding global markets with cheap, subsidized products to eliminate competitors" and for discriminatory practices against European businesses operating in China. She also highlighted concerns that China’s backing of Moscow destabilizes Europe.
Von der Leyen intends to raise these issues during the Beijing summit, though China’s recent assertiveness suggests it will resist such criticisms.
Mao Ning, spokesperson for China’s foreign ministry, countered von der Leyen’s remarks by stating that the European Union’s "mindset" requires adjustment, not China’s trade conduct with Europe.
Earlier this year, China restricted exports of rare earth minerals to Europe, alarming high-tech industries and temporarily halting production lines at European auto parts manufacturers. More recently, China retaliated against EU restrictions on government procurement of Chinese medical devices by imposing similar bans on European medical equipment.
Despite its confrontational posture, Beijing must avoid alienating Europe excessively. China relies on European markets to absorb its surplus production of electric vehicles, batteries, and solar panels. Intense domestic price competition has eroded profits, prompting Chinese leadership to caution companies against "disorderly and low-price competition." Europe’s market importance has increased as other markets become less accessible.
Grano notes, "Europe remains a crucial economic partner for China. However, if Beijing miscalculates, it risks growing isolation."
China continues to assert its close alliance with Russia, viewing it as a key counterweight to Western influence. Europe has long criticized Beijing for purchasing Russian oil and supplying dual-use technologies that prolong Russia’s conflict in Ukraine.
While China officially claims neutrality on the Ukraine conflict, skepticism persists in the West due to the depth of Sino-Russian ties. In a recent meeting with Russian Foreign Minister Sergei Lavrov, Xi Jinping called for deepening their partnership and protecting mutual security interests.
Earlier this month, China’s top diplomat reportedly told EU officials in Brussels that Beijing does not favor a swift end to the Ukraine war, fearing it might redirect U.S. focus toward Asia. The remarks were shared confidentially by a European official and initially reported by an Asian news outlet.
China has declined to comment on these reported statements.
Victor Gao, a former Chinese diplomat and vice president of a Beijing think tank, disputed the claim, arguing that China believes the U.S. can simultaneously influence developments in Asia and Ukraine.
Gao also dismissed European critiques of China-Russia relations, suggesting Europe should focus on its own internal progress rather than geopolitical rivalry.
"From the Chinese viewpoint, Europe is not considered a geopolitical rival. They believe Europe overestimates its own influence," Gao said.
China’s strategy toward Europe aims to divide and conquer. It views the EU as hawkish and seeks to soften the impact of its policies while courting major European businesses, particularly those from Germany and France.
Optimism that Beijing will assist Europe in pressuring Russia to end the conflict has diminished, and prospects for a trade compromise remain bleak.
"There is a profound lack of trust between the two sides," said a senior policy analyst specializing in China-Europe relations.
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