The European Union finds itself caught between two giants: Xi’s China and Trump’s America. The bloc is trying to secure a trade deal with the US before facing potential tariffs, while also pushing for stability with China.
Leaders from the European Union will meet Chinese officials in Beijing in late July, but hopes are low. Tensions have been high, with both sides accusing each other of unfair trading practices. The EU has moved to curb government spending on medical devices from China, citing unfair treatment of European companies.
However, the EU’s economic ties with China are extensive, and many countries remain dependent on Chinese industrial materials. Despite this, exports to China have dwindled, while imports have surged. The EU is working to tighten restrictions on cheap products from fast-fashion retailers Shein and Temu.
The US has disrupted global trade, pushing the European Union into a difficult position. It wants to “show the world that free trade with many countries is possible,” according to Ursula von der Leyen, the president of the European Union’s executive branch. However, officials are likely to make concessions to secure an agreement, including a tougher stance toward China.
The EU agrees that China has pursued unfair trading practices, but its economy is deeply intertwined with China’s. China has limited global exports of rare earth magnets, causing delays and disruption for European companies. The EU has joined the US in restricting high-tech exports to China, which has annoyed Chinese officials.
With tensions running high, the outlook for meaningful changes or a closer relationship between Europe and China appears dim. The tone from Europe is not positive, with leaders calling China’s actions “dominance, dependency and blackmail.”
Source: https://www.nytimes.com/2025/07/06/world/europe/european-union-china-tariffs.html