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Home Diplomacy

China To Begin Talks with Europe Over Trade Tensions

Menkiti Onyebuchi Bernie by Menkiti Onyebuchi Bernie
June 30, 2025
Reading Time: 2 mins read
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China To Begin Talks with Europe Over Trade Tensions

Chinese Foreign Minister Wang Yi on a tour of Europe Amidst Trade Tensions With Europe. Credit: Wikicommons/HongKongfp

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In an effort to strengthen ties with the bloc in the face of growing geopolitical unrest and a growing divide with the United States, China’s top diplomat, Wang Yi, is scheduled to travel to France, Germany, and the European Union’s headquarters in Brussels beginning Monday.

Beijing has presented the trip as an opportunity to strengthen ties with Europe and advance world peace, highlighting the China-EU relationship as a crucial “anchor” in a world in turmoil. With conflicts, protectionism, and great-power rivalry on the rise, the visit takes place at a time when the international order is becoming more and more strained.

China presents itself as a neutral power, but European capitals have criticized it for allegedly supporting Russia in its ongoing war in Ukraine. Western officials will probably put pressure on Wang to adopt a more resolute position on ending the war because they contend that Beijing’s diplomatic and economic assistance has kept Moscow afloat.

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High-level discussions with France’s Minister for Europe and Foreign Affairs Jean-Noël Barrot, Germany’s new Foreign Minister Johann Wadephul, and EU Foreign Policy Chief Kaja Kallas are all on Wang’s schedule. The war in Ukraine, global security, and trade are expected to dominate discussions.

In recent months, there has been an increase in economic tensions between the two parties. Calls for harsher measures against what Brussels considers unfair practices have been stoked by the EU’s widening trade deficit with China, which is currently over $357 billion. Due to worries about government subsidies, the EU placed tariffs on Chinese electric vehicles in June. Although a tentative agreement on the export of liquor has not yet been finalized, China responded with duties on goods, including French cognac.

The conflict has expanded to encompass public procurement as well. Citing Beijing’s market access restrictions, the EU recently prohibited Chinese companies from bidding on specific medical device contracts. China accused the EU of applying double standards and denounced the action as discriminatory.

Exports of rare earth elements are another hot spot. Since April, China, which leads the world in production and refining, has tightened export licensing regulations. Beijing has suggested a “green channel” to expedite exports to EU nations in response to worries expressed by European industry.

Deep disagreements still exist, especially regarding market access, subsidies, and strategic alliances, despite the fact that both parties have indicated an interest in stabilizing relations. Strengthening its ties with Europe may help Beijing fend off growing pressure from Washington. However, given the deteriorating trust and increasing tensions, any progress during Wang’s visit seems doubtful.

Nevertheless, despite growing political and economic tensions, the trip represents an attempt by China to continue to engage with a significant international partner.

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Tags: China-EUKaja KallasTRADEUnited StatesWang Yi
Menkiti Onyebuchi Bernie

Menkiti Onyebuchi Bernie

Editor

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