Dear ICES friends,
We are delighted to present the newest issue of our bi-weekly newsletter.
Few relations are as crucial and valuable as the ones - past, present and future - connecting Europe
and China. At the ICES, we believe that regular knowledge-sharing can be the bedrock that empowers
mutually beneficial partnerships and the foundation for fruitful collaborations. Every first and
third week of the month, we highlight the latest developments and fresh ideas across various fields
to enhance cross-continental communication and understanding. We invite you to explore the key
news highlights, insights, and top event recommendations from the past two weeks.
The ICES' Takeaway from this Edition
The keyword of the last two weeks is “tariff,” with the Trump administration imposing
“reciprocal” tariffs on most countries, seemingly targeting China in particular and causing
unease in the EU. In this context, EU- China relations are currently characterized by a mix
of cautious economic cooperation and deep strategic tension. On the one hand, high-level
communications - such as the Spanish PM's visit to Beijing, the call between Ursula von der
Leyen and Li Qiang, or Commissioner Šefčovič's talk with his Chinese counterpart and the
resumption of the discussions to replace EU tariffs on Chinese EVs with more flexible
measures - indicate diplomatic efforts and possible rapprochement between the EU and China.
On the other hand, global uncertainty during the 90-day "reciprocal" tariff pause, European
fears of cheap imports from China and the myth of a "reverse Kissinger" contribute to a lack
of optimism for a profound improvement of EU-China relations. The transatlantic divide is
not automatically leading to an EU-China rapprochement. Although official rhetoric has
softened, the broader European sentiment toward China remains negative.
The so-called reciprocal tariffs, although not yet fully enforced, have already profoundly
reshaped not only the global economy but also the international landscape. The Europe-China
relationship is likely to evolve as well. The extent of its evolution will depend, to some
degree, on what both sides take away from this pivotal moment. The core lesson for EU-China
relations may be the necessity of developing an autonomous logic to develop the bilateral
relations. To improve stability and predictability, more strategic thinking and fewer purely
transactional considerations need to be sought. No abrupt course changes of the EU are
expected in the near future. Rather, the EU is likely to keep its options open on both sides
- as increasing EU-Japanese relations and diplomatic efforts to China and the US show.
However, there is hope that the willingness to intensify relations, as underlined by Ursula
von der Leyen and Antonio Costa's solicitation to meet Xi Jinping in Beijing at the end of
July, is a positive step towards more trust-building efforts and in- depth discussions
between the two sides.
NEWS ROUND
THE WEEKS' HIGHLIGHTS: PROGRESS & PITFALLS
EU, China will look into setting minimum prices on electric vehicles, EU says
(Reuters, April 10, 2025)
Amid escalating tariff and trade tensions, the recent decision by the EU and China to enter talks on reconsidering European tariffs on Chinese electric vehicles marks a step toward de-escalation and dialogue. Both parties agreed to explore introducing minimum prices as an alternative to tariffs and expressed readiness to begin negotiations.
(Euronews, April 12, 2025)
While EU–China rapprochement seemed to be a possible outcome of the US-introduced tariffs, analysts see various obstacles to improving bilateral ties due to non-alignment regarding the war in Ukraine, great export capacities of Chinese goods to Europe, ideological differences and overall geopolitical agendas.
EU–CHINA RELATIONS
EU and China Split over Taiwan Issue ( European External Action Service, April 1, 2025; Chinese Mission to the EU, April 2, 2025)
The EU stated its direct interest in preserving the status quo in the Taiwan Strait to maintain regional and global security and prosperity, as mainland China is conducting military drills in the area. Meanwhile, the Chinese spokesperson of the Chinese Mission to the EU expressed dissatisfaction with the statement and called for refraining from external interference in internal matters. He stressed that Chinese military exercises display a warning and defence of national sovereignty.
China Was EU's Largest Car Importer for Third Straight Year in 2024
Yicai Global, April 3, 2025
China remains the EU's largest car importer. For the 3rd year, Chinese cars worth 12.7 billion euros comprised the largest part of passenger car imports to the EU. China is now the world's largest auto exporter.
Diversifying from Russia and China perceived as main goal during the EU–Central Asia summit
(Euronews , April 3, 2025; European Commission , April 3 & 4, 2025)
During the first EU–Central Asia summit, the leaders discussed diversifying trade exchanges away from Russia and China, protecting multilateralism and boosting diplomatic ties and exchanges. The EU is attempting to decrease its dependencies on Russia and China, seeking alternatives for raw materials, renewable energies, technological developments and connectivity in Central Asia.
TikTok faces €500 million fine for illegally shipping European user data to China
(Euronews, April 3, 2025)
Concerns over how ByteDance illegally shipped European user data from TikTok to China reportedly resulted in a fine of over 500 million euros. Ireland’s Data Protection Commission is issuing the fine after an investigation found a breach of European privacy rules.
Commission watching for Chinese steel and electronics imports amid trade war
Euronews, April 4, 2025
Due to the US-introduced tariffs leading to overcapacity, the EU expects that Chinese exports to the US might soon be redirected to the European market. Therefore, the Commission announced increased surveillance of incoming goods, including Chinese renewables, steel and electronics.
Phone call between President von der Leyen and Chinese Premier Li Qiang (European Commission , April 8, 2025; Xinhua , April 8, 2025)
EU Commission President von der Leyen and Chinese Premier Li Qiang held a phone call to discuss current relations on the 50th anniversary of EU–China diplomatic ties. Von der Leyen stressed the responsibility of Europe and China to support a strong, free and fair trading system. She called for negotiations to improve global economic stability and predictability. Li Qiang suggested that China and the EU jointly safeguard free and open trade and investment and maintain the stable and smooth operation of global supply chains.
China and EU discuss trade in response to U.S.' punitive tariffs
(Reuters, April 10, 2025)
In response to the US tariffs, China's Commerce Minister Wang Wentao and the European Commissioner for Trade and Economic Security Maroš Šefčovič exchanged views on strengthening their economic and trade cooperation. In addition to the talks about EV minimum price commitments, the call included the Chinese urges to safeguard the rules-based multilateral trading system and improve the business environment and communication.
Xi Jinping Meets with Spanish Prime Minister Pedro Sánchez
(Chinese Ministry of Foreign Affairs, April 11, 2025)
Chinese President Xi Jinping met with Spanish Prime Minister Pedro Sánchez in Beijing. Xi highlighted the need for solidarity and coordination to promote peace, stability and prosperity. Looking back on 20 years of a comprehensive strategic partnership, both states want to deepen the bilateral cooperation and maintain exchanges.
EU leaders plan trip to Beijing in July for summit with Xi Jinping
(South China Morning Post, April 11, 2025)
It was reported that EU leaders plan to travel to Beijing in late July to hold a second successive EU–China summit with President Xi Jinping in China. As reports suggest that the Chinese top leader is not expected to return to Europe before 2026, the EU leaders’ willingness to travel to China is understood as an effort to re-engage with Beijing in the context of transatlantic issues.
GLOBAL GOVERNANCE INSIGHTS SELECTED BY THE ICES
Wang Yi on Outcomes and Goals of China-Russia Practical Cooperation
(Chinese Ministry of Foreign Affairs, April 1, 2025)
The China–Russia high-level meeting in Moscow on April 1st underlined the strengthened bilateral cooperation leading to development and rejuvenation under Presidents Xi Jinping and Vladimir Putin. Wang Yi identifies the following key issues for future cooperation: the strengthening of material cooperation, innovation sharing, industrial integration and global development through initiatives and regional cooperation.
China announces counter tariffs on US goods in showdown with Trump; Europe puts its
response on hold during 90-day pause
(CNN, April 9, 2025;
China Daily, April 10, 2025)
US–President Donald Trump's “reciprocal” tariffs, introduced on April 2nd, impose a 10% baseline tariff on all imports and target US–American friends as well as enemies. China was hit especially hard, with a tit–for–tat American retaliation leading to tariffs of 104%, excluding Chinese–made electronics. In contrast to the EU's balancing efforts, China responded with preparedness, confidence and quick countermeasures.
ICES–NOTED REGIONAL ISSUES
Japan: High Representative/Vice-President Kallas holds second EU-Japan Strategic
Dialogue with Foreign Minister Takeshi Iwaya
(European External Action Service, April 4, 2025)
Vice-President of the European Commission Kaja Kallas and Japanese Minister for Foreign Affairs Takeshi Iwaya held the second EU–Japan Strategic Dialogue in Brussels. The dialogue included discussions on deepening cooperation under the EU–Japan Security and Defence Partnership. Both sides aim for close collaboration and joint commitment to a rules-based international order, peace in Ukraine and stability in the East China Sea and the South China Sea.
(Reuters, April 10, 2025; Chinese Ministry of Foreign Affairs, April 10, 2025)
After Ukrainian allegations claiming that around 155 Chinese citizens were fighting on the Russian side in Ukraine, China reaffirmed its support for peace efforts and underlined that the PRC is not a party to the war. Spokesperson Lin Jian called the remarks "irresponsible" and the claims "groundless."
LATEST UPDATES FROM HAINAN
(CGTN, April 14, 2025)
Hainan Expo, the China International Consumer Products Expo, started its 5th edition in Hainan province. Despite the US tariffs, the event displays China’s commitment to high-level openness. This year’s focus lies on innovation and global collaboration, attracting international participants.
WHAT CAUGHT OUR EYE: CURRENT RESEARCH AND COMMENTS
(Foreign Affairs, April 4, 2025)
Prof. McFaul and Prof. Medeiros claim that the widely discussed "reverse Kissinger" attempt of US policymakers – balancing China through aligning with Russia – is merely an illusion. The analogy to the 1970s is flawed due to the Sino–Russian strategic partnership and their negative view of the US.
The Rhodium Group published a note on European policy options to react to US tariffs and corresponding consequences. To protect European manufacturing competitiveness, the EU should respond to Chinese cheap imports with a WTO-compliant, more structural approach, looking into new trade tools instead of reacting with tariffs.
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Reacting to unpredictability of the current US administration and China’s rise, ECFR fellow Elli–Katharina Pohlkamp suggests that Japan and the EU have to quickly deepen their strategic alignment in various sectors to shape the arising world order. A more cohesive EU–Japan alliance could safeguard shared economic and threatened security interests.
The Global Times' expert comment on EU–Chinese re-negotiations on EV pricing concludes that these talks, as well as the current high-level exchanges, are crucial in stabilising bilateral trade relations and addressing trade disputes.
In Bocconi's latest policy brief, Daniel Gros and Weinian Hu discuss the EU’s anti-subsidy tariffs on Chinese EVs, arguing that the economic rationale is weak given Europe’s strong export position and high consumer prices. They question the extent of actual subsidies and highlight the unprecedented nature of the case.
As China and the EU commemorate 50 years of diplomatic relations, Europe is at a crossroads. The return of Trump and the US retreat from multilateralism have strained transatlantic ties, raising doubts about the reliability of its traditional ally.
In contrast, China offers a stable and consistent approach, emphasising cooperation and multilateralism. With a history of pragmatic engagement, the EU and China share common ground in global trade and sustainable development. In a shifting world order, Europe must rethink its alliances and consider new partnerships to achieve true strategic autonomy.
Note: This abstract is based on content originally published in Chinese. The English translation aims to convey the main ideas faithfully, though some differences in interpretation or expression may exist.
EVENTS
Over the past two weeks, the ICES has actively participated in a series of events, and we are delighted to share some of our insights:
The Belgian–Chinese Chamber of Commerce webinar "From Beijing to Delhi: Will India’s rise redefine China’s role in the world?" on April 8 offered insight into the evolving relations of the two most populous countries in the world. Key points included India's self-focused and non-siding foreign policies, the rejection of a China-like development and the stark contrasts in soft power strategies and governance. The webinar highlighted how both nations are often mischaracterised and underscored the need for more nuanced analysis and understanding.
Sciences Po Paris' CERI organised an event on April 10 titled "Changing China: the Party, the State and its global role in the Xi Jinping Era." The roundtables highlighted the academic disagreement on European leverage, the current unpredictability in global affairs and the Chinese strength and even positive momentum during the tariff war introduced by the Trump administration. A unified European approach towards China would benefit from greater independence.
"US–Russia rapprochement: What is the end game?", a Chatham House discussion on April 10, highlighted the importance of developments in Ukraine for Europe. The panellists argued that profit-led US behaviour might even strengthen ties between China and Russia and that the Chinese low-cost approach in Ukraine underlines its non-participation, while it might benefit from the weakening of Russia. Europe needs to show political will, arm and deter.
We also look forward to announcing and presenting our events in this section of our upcoming newsletters.
CONTACT WITH US
Linkedin: Institute for China-Europe Studies (ICES)
Website: ices-eu.org
If you are interested in publishing your article on our website, email us at: info@ices-eu.org info@ices-eu.org, with the Subject 'Article Submission_Name_Surname'.
Thank you for being a part of our newsletter community! We appreciate your continued support and engagement. Stay tuned for more exciting updates in our upcoming editions. If you have any suggestions or feedback, we would love to hear from you.
Please note that all news and views cited in this bulletin, if not otherwise indicated, do not represent the position of ICES.