Dear ICES friends,
We are delighted to present the latest 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 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
Tensions between China and Europe are mounting, but the prospect for pragmatic engagement
remains.
As the European Commission announced its proposed revision of the Cybersecurity Act, China at
its official level repeatedly expressed firm opposition to it and to the planned Industrial Accelerator
Act as well. What the EU labels as necessary for its strategic autonomy and industrial security
is increasingly denounced by China as protectionism that will not only degrade EU-China relations
but also hurt the global economy by disrupting supply chains. Indeed, during this period, one
could sense a degree of disappointment or even frustration from Chinese diplomats and mainstream
media toward Brussels' China policy. In the meantime, there's no sign that the EU will back down
from its intensifying de-risking agenda.
While the last edition of this newsletter reported a flurry of European leaders' visits to Beijing
and national deals with China, May has started with an international focus on Trump's visit to
Beijing, with commentators observing European anxiety of being left on the sidelines of great
power exchanges. Whether and how the outcome of this visit will influence the EU-China relations
remains to be seen. This question will be further explored in an
upcoming ICES webinar, co-hosted with Institute for China-America Studies (ICAS), on the 21st of May.
However, the prospect of engagement between Europe and China is not lost, as several articles
in this newsletter remind us: German firms in China are overall optimistic about the country's
economic outlook, and European carmakers are willingly looking to sell some of their underused
plants to Chinese producers looking to manufacture their vehicles directly in Europe.
As the international order increasingly morphs into disorder, ICES continues to foster dialogue
between European and Chinese scholars and experts, as exemplified by our upcoming 2026 Annual
Conference:
EU-China Relations in an Era of Great Power Competition and Global Order Reconfiguration.
More information can be found
here
and on our socials!
ICES wishes you a pleasant read of this edition!
NEWS ROUND
THE WEEKS' HIGHLIGHTS: PROGRESS AND PITFALLS
EU carmakers pave way for Chinese rivals as balance in market shifts
The Guardian, May 15, 2026
More and more European car companies are looking to sell some of their underused car plants to Chinese car companies as China is increasingly trying to produce vehicles directly in Europe rather than just exporting them.
China hits back in EU subsidy probe dispute; EU defends probe after Beijing backlash
China Daily and Euractiv, May 16, 2026
After Beijing urged organisations and individuals on the 15th through its commerce and justice ministries not to comply with an EU probe into the Nuctech company (specialised in security scanners for airports), Brussels defended the legitimacy of its probe, citing standard measures and EU international obligations.
EU-CHINA RELATIONS
China hopes Belgium will play bridging role in EU trade talks
Belga, May 01, 2026
After meeting with Maxime Prévot, Belgium's foreign minister, his Chinese counterpart Wang Yi expressed his hopes that Belgium will help promote dialogue between the EU and China in a constructive manner.
Brussels bars Chinese-made 'brains' of solar panels from EU funding
Euractiv and ChinaDaily, May 04, 2026
European partner banks have been instructed by Brussels to stop going forward with the financing of renewable projects that have Chinese, Iranian or Russian grid equipment. This prompted a strong diplomatic reply from China by the spokesperson of the Ministry of Commerce, calling the move "an act of stigmatization."
Irish regulator investigates Shein over data transfers to China
Reuters, May 05, 2026
The Data Protection Commission opened an investigation into Shein, the Chinese online retailer company, as European users' data could have been transferred to China against the GDPR provisions.
China's carmakers chase 'Yaris moment' to ignite overseas growth
Reuters, May 05, 2026
Chinese car companies such as BYD, Chery, Changan and others are now targeting the European market with vehicles designed for this geographic area in a bid to establish themselves in the region like Toyota with its Yaris model once did.
Europe needs bigger banks to compete with US, China, Eurogroup chairman says
Reuters, May 05, 2026
According to Kyriakos Perrakakis, the bloc's chairman of the finance ministers' group, the EU should ensure to have bigger banks and European champions to be able to compete with countries such as China or the USA.
EU slaps steep anti-dumping duties on Chinese adipic acid imports
The Brussels Times, May 05, 2026
Imports of adipic acid from China found in infant formula will now have anti-dumping duties set between 29.1% and 42.3% in the EU, following temporary duties in November.
EU plan to phase out Chinese tech could cost bloc over $400 billion, Chinese study
says; Chinese mission says the IAA is also cause of serious concern
Reuters and China Daily, May 06, 2026
According to China's Chamber of Commerce to the EU, the EU's latest cybersecurity law proposal would risk costing the bloc more than $400 billion over the next five years. The Chinese Mission to the European Union expressed similar worries in its press briefings on the Cybersecurity Act and the IAA, saying it would affect "bilateral economic ties."
EU anti-dumping complaints against Chinese chemicals at record high
FT, May 06, 2026
Half of new cases of anti-dumping complaints from the EU are now from the chemical sector, as European companies are launching cases after cases targeted at Chinese imports.
Belgium urges EU to save industry by getting tough on China
Politico, May 06, 2026
After returning from his trip to China, Belgium's foreign minister struck a decidedly more pessimistic tone when describing what the EU's stance towards China should be. Talking about industrial overcapacity, Maxime Prévot told the media that the 27-nations bloc risked becoming a coalition of frogs if it does not act more firmly towards China.
Ford is in 'very advanced' talks to sell part of EU plant to China's Geely, but
there's more
eletrek, May 06, 2026
Ford is reportedly looking to sell a part of its Spanish plant in Valencia to the Chinese company Geely. This deal might also entail the sale of a new vehicle that Geely would produce for Ford.
How to avoid a trade war with China? MEPs debate on The Ring
EuroNews, May 06, 2026
MEPs from S&D and EPP debated for EuroNews on what the best steps to take to avoid a trade war should be: Sakis Arnaoutoglou argued for pragmatic engagement and an end to escalation and Nicolás Pascual de la Parte called for a tougher stance and de-risking.
China-EU investment deal should stay in 'deep freezer', outgoing trade chief warns
SCMP, May 07, 2026
Sabine Weyand, the director general for Trade in the EU said to the European Parliament that the Comprehensive Agreement on Investment (signed in 2020 but never implemented) "was an agreement from another time and for another China."
Chinese EV maker Leapmotor taps Stellantis' Spanish plant for EU production
SCMP, May 07, 2026
The Chinese EV maker Leapmotor has agreed with Stellantis to open a line in a Spanish plant to build its cars aimed at European customers directly in Europe.
Wang Yi Holds Talks with Diplomatic Adviser to the French President Emmanuel Bonne
FMPRC, SCMP,
France Diplomatie and ChinaDaily, May 08, 2026
Emmanuel Bonne, Diplomatic Adviser to French President Emmanuel Macron met with the Minister of Foreign Affairs in China Wang Yi on the 8th of May to discuss the partnership between the two countries. The talks also touched upon the one-China principle, returning cultural relics "illegally acquired from other countries" and both countries' support for de-escalation in the Middle-East and the reopening of the Strait of Hormuz.
China-Europe Railway Express trips top 130,000
CGTN, May 09, 2026
The China-Europe Railway Express has now reached 130,000 trips with a total cargo value of more than $520 billion.
German firms in China more upbeat about economy despite Iran war, trade headwinds:
survey
SCMP, May 12, 2026
In a new survey from the German Chamber of Commerce in China polling German companies in China on the country's economic outlook, 37% of respondents "expected China's economy to improve over the next six months", 22% points more than from last year.
'Frogs in a well': Chinese diplomat slams Europe's 'outdated' approach to China
SCMP, May 12, 2026
At a conference held by the European Union delegation to China in Beijing, Li Jian, director general of the Chinese foreign ministry's Department of European affairs accused Europe of taking "an outdated, inward-looking approach to China."
Chinese Mission to the EU and Zhejiang Province Jointly Hold Thematic Promotion Event
"A New Journey for China–EU Cooperation: Discover Zhejiang"
FMPRC, May 12, 2026
On May 11, 2026, the Mission of China to the EU and Zhejiang Province co-hosted a thematic promotion event entitled "A New Journey for China–EU Cooperation: Discover Zhejiang" in Brussels.
Energy ministers confront Europe's dependence on China's power storage dominance
EuroNews, May 13, 2026
The EU's energy ministers gathered and discussed the current European dependence on Chinese-made storage capacity for wind and solar power.
China 'very disappointed' with Europe's planned investment restrictions, diplomat says
Reuters, May 13, 2026
At a conference in Madrid, a Chinese diplomat told that China was "very disappointed" by the EU's plans to restrict Chinese investments, referring to Europe's "controls, limitations and sanctions" as pushing China "into corners, to react and close the door."
Carmakers fear production hit after EU sanctions on Chinese chipmaker
FT, May 14, 2026
Following sanctions on Chinese suppliers of chips, EU carmakers are worried production could be affected and EU officials are now looking into potential opt-outs to avoid such disruptions.
Opening Speech by European Union Ambassador to China Mr Jorge Toledo at the 2nd
EU-China Conference: navigating beyond the inflection point
EEAS, May 15, 2026
The European Union Delegation to China hosted on the 15th of May in Beijing a conference on EU-China relations, with the aim to think of what the future China-Europe relation will look like and "how can major powers coexist in a world that needs cooperation but is increasingly shaped by mistrust?"
GLOBAL GOVERNANCE AND REGIONAL ISSUES SELECTED BY THE ICES
German defense minister says EU must take more responsibility for its security
ChinaDaily, May 02, 2026
German Defense Minister Boris Pistorius said on Saturday that the planned withdrawal of US troops from Germany was "foreseeable" and called on Europe to take greater responsibility for its own security.
In Talks With Iran, China Calls for Opening of Strait of Hormuz
NYT, May 06, 2026
China's foreign minister met with his Iranian counterpart on the 6th of May and called for more sustained efforts in opening the Strait of Hormuz and ending the war with the USA and Israël.
EU, Brazil and China launch coalition to boost integrity and effectiveness of carbon
markets
Pub Affairs Bruxelles, May 08, 2026
The European Commission, along with China and Brazil, launched on May 7th the Open Coalition on Compliance Carbon Markets, an initiative that aims to "strengthen global cooperation on carbon pricing."
EU-Japan joining hands to break China's supply chain grip
Asia Times, May 08, 2026
At the 7th High-Level Economic Dialogue between the EU and Japan, both entities focused on the vulnerabilities arising from China's current hold over the critical minerals and clean technology manufacturing markets, and how a partnership between them could address such issues.
US, EU and China profoundly split on AI intimacy
Asia Times, May 09, 2026
Anthropomorphic AI services, i.e. AI chatbots meant to mimic human connection through personalised conversations are being increasingly regulated in China, the USA and the EU, albeit in very different ways. China has moved to regulate those chatbots with flagging of risky conversations and users in distress, while the USA calls for transparency rather than prohibition, and the EU uses its risk-based framework of general principles.
US revises UN resolution on Iran but China, Russia still expected to veto
The Straits Times, May 09, 2026
Washington changed its UN resolution on Iran and its demands for the latter to stop attacks and mining activities in the strait of Hormuz, but the new version is still unlikely to convince China and Russia, as both will likely veto such a resolution.
Netherlands protests US proposal to further bar chip giant ASML from China market
SCMP, May 13, 2026
The Dutch government has positioned itself against a recent proposed US law that would restrain the Dutch ASML semiconductor equipment company to access the Chinese market.
Xi-Trump summit: all you need to know from the final day of the meeting in Beijing
SCMP, May 16, 2026
After two days of a highly anticipated visit of President Donald Trump in China to meet President Xi Jinping, both sides tried to display stability, cooperation, new trade deals but questions remain on how the fraught relationship between the two states will evolve.
WHAT CAUGHT OUR EYE: CURRENT RESEARCH AND COMMENTS
The European Union in the New Trade Disorder
CSIS, May 01, 2026
Federico Steinberg makes the case that the EU stands at a crossroads as the world slips into a fragmented order.
Xinhua Commentary: EU's regulatory turn risks undermining fair competition
Xinhua, May 02, 2026
For Zhang Zhaoqing and Ding Yinghua, the EU's proposed Industrial Accelerator Act and Cybersecurity Act point to a shift in EU-China policy, one that favours protectionism, but the consequences on global cooperation and competition could be far from positive, according to the authors.
Decoding China: Beijing courts Europe amid US dysfunction
DW, May 05, 2026
Dang Yuan argues that China has much to gain from Europe's increasing isolation from the USA as it will facilitate among others creating new alliances in a multipolar world order, including with Europe itself.
Europe's dilemma – to use China's turbines to meet its renewable targets or not
The Conversation, May 05, 2026
Chee Meng Tan comments on Europe's current industrial dilemma regarding its use of Chinese turbines. As energy security questions become ever more pressing and emission reductions' targets' deadlines are fast approaching, the EU must choose between securing quick installation of new wind turbines thanks to Chinese technology or take the much slower and expensive road of diversifying its suppliers.
EC reportedly recommends members exclude Huawei, ZTE gears; move to increase costs,
impact bilateral ties: analysts
Global Times, May 05, 2026
Tao Mingyang argues that the European Commission's reported move to exclude Huawei and ZTE from local telecom operators' connectivity infrastructure "overstretches the concept of security", as it would increase clients' costs and be a new point of friction in China-EU cooperation.
China's Retaliation Playbook for EU's "Made in Europe," Cybersecurity Push
Brussels Tea House, May 06, 2026
Yulin and Joachim Zhang explore in a short guide what Beijing's retaliation toolkit developed in response to the EU's "Made in Europe" and Cybersecurity Act will entail, how it might affect European companies, through 4 different scenarios, noting that Beijing's underlying message however is one of an open hand as it would not benefit either from a trade war with the EU.
Why the EU sees Chinese solar tech as a major security risk
DW, May 07, 2026
Marie Sina summarises the reasons why Europe is becoming increasingly distrustful towards Chinese-made tech in the solar tech sector, as experts warn of safety and blackout potential issues. Brussels is therefore looking actively at steps to reduce its dependence, notably through its revised proposed Cybersecurity Act.
How EU's 'security anxiety' will translate into substantial economic costs
Global Times, May 07, 2026
The Global Times explores in this opinion piece the potential consequences of the revision of the Cybersecurity Act, and argues that the "security anxiety" at the source of this new version will end up costing the EU over $400 billion over the next five years, citing the China Chamber of Commerce to the EU's latest report on the topic.
China shouldn't view a tired US as signifying a Europe ready to pivot
SCMP, May 10, 2026
Sophie Wushuang Yi draws a prudent portrait of the current faultlines between the EU and the USA and how they might facilitate a deeper EU-China engagement — or not.
Dictated more by short-term considerations, EU's China policy is not sustainable
Global Times, May 10, 2026
Stefano Manservisi talks with Global Times about the EU's China policy, and its shortcomings as it focuses on short-term considerations.
Europe should behave more like China does if it wants to survive this age of chaos
The Guardian, May 11, 2026
Mark Leonard calls for a stronger European stance in an age of "un-order", one in which China is remarkably well prepared thanks to its stockpiling of critical energy and technology supplies and overall autonomy in security and industrial sectors. He therefore argues to refrain from further European investments in the US and instead to favour domestic companies, while presenting a harsher front towards China.
The EU and China are stumbling into a trade war
The Economist, May 12, 2026
The Economist warns of higher and higher chances of a trade war between China and the European Union and looks at the reasons that might explain why there is little attention directed towards this issue at the moment.
EVENTS
Over the past two weeks, the ICES has actively participated in a series of events. We are delighted to share some of our insights:
On Thursday, 7 May 2026, the Institute for China-Europe Studies (ICES) was happy to host a closed-door roundtable on Innovative Thinking in Europe-China Relations and Cooperation. This brainstorming discussion featured scholars from Chinese and European think tanks.
The speakers identified several points of frictions, including: counter-productive narratives, a gap between International Relations experts thinking in geopolitical terms and technical experts, a complicated visa policy for Chinese visitors, and China's strengthening of its economic security through export controls and supply chain regulations.
On 8 May 2026, the China Chamber of Commerce to the EU (CCCEU) and Hogan Lovells held an online seminar on the EU's proposed Industrial Acceleration Act (IAA). Speakers explained that the IAA aims to raise manufacturing to 20% of EU GDP by 2035, focusing on strategic sectors such as energy intensive industries, net-zero technologies, and electric vehicles.
The proposal introduces stricter "Union Origin Requirements" in public procurement and new EU-level economic security screening for foreign investments. Experts noted that Chinese companies are likely to be among the most affected and advised firms to prepare for localisation, supply chain adjustments, and enhanced compliance requirements.
On May 11 2026, the Asia-Europe Foundation (ASEF) organised its Asia-Europe Policy Panel on Economic Security in Brussels to explore how Europe and Asia can work together to maintain the Rules-Based Order through existing and new institutional instruments, partnerships and alliances.
The event focused on how to achieve Economic Security and more specifically resilience in the face of shocks linked to global upheavals, without losing the benefits that the liberal rules-based order and globalisation brought. Overall, the guest speakers underlined the benefits of multilateral institutions to reduce the asymmetry of information, to facilitate new agreements and sometimes the emergence of "minilateralism" when larger consensus could not be obtained.
On 12 May 2026, the European Union Institute for Security Studies (EUISS) organised a webinar around its latest Chaillot Paper: "Beijing's critical raw materials weapon - and how to dismantle it." The report looks at the dominance of China over key sectors and supply chains' nodes, leading Western companies to relocate to China.
The author of the paper argued that the EU has now lost expertise, suffers from limited resources and is hampered by commercial disadvantages. To counter this state of affairs, Joris Teer advocates for specific measures that include collaborating with other resource-rich countries such as Vietnam and Malaysia, as the cost of inaction will be greater than the economic harm that will come from confronting China.
On 13 May 2026, the Wilfried Martens Centre hosted a presentation on its research paper: "Made in China, Powered by Europe – Mapping the EU's strategic leverage over the People's Republic of China." Both the paper and the presentation focused on the key sectors where the EU still has economic leverage over China, notably on emerging high technologies but also thanks to its market, defence mechanism tools and its partners.
While the speakers recognised the high cost associated with strategic autonomy, they argued adopting a blunter position towards China would ultimately prevent other negative consequences on sovereignty, deindustrialisation, data security and weaponisation of dependencies.
On 21 May 2026, ICES, in partnership with the Institute for China-America Studies (ICAS) will host the following webinar: Trump's Visit to China: Key Takeaways for U.S.-China-Europe Relations
This webinar will examine the major takeaways from Trump's China visit and explore what they mean for the future of U.S.-China-Europe relations. The discussion will consider not only immediate diplomatic outcomes, but also the broader narratives emerging from Washington, Beijing, and European capitals. Is the visit a step toward pragmatic stabilization, a tactical pause in strategic rivalry, or a new phase of transactional great-power diplomacy? How should Europe interpret and respond to possible shifts in U.S.-China engagement?
On June 11 2026, ICES, in partnership with the Institute for Security and Development Policy (ISDP), the National Institute for South China Sea Studies (NISCSS) and the Institute for China-America Studies (ICAS) will host its 2026 annual conference: "EU-China Relations in an Era of Great Power Competition and Global Order Reconfiguration."
The rules-based international order is facing widening fractures, as openly acknowledged by national leaders and increasingly perceived by citizens. Structural shifts in global power distribution, intensified strategic competition, and mounting economic and security concerns have all contributed to a more fragmented international environment.
Against this backdrop, ICES considers it both timely and necessary to strengthen dialogue between Europe and China, with the participation of scholars from third parties, particularly the USA. The conference aims to provide a high-level platform for open and frank exchanges, fostering strategic clarity, reducing misperceptions, and identifying practical avenues for cooperation amid growing geopolitical uncertainty.
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Please note that all news and views cited in this bulletin, if not otherwise indicated, do not represent the position of ICES.