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
Europe and China are escalating rhetoric and gearing up their respective trade arsenals, as
frictions show no sign of abating for now, despite some efforts on both ends to foster
cooperation.
During the last two weeks, both European and Chinese media reported on what measures the College
of Commissioners would pitch on 29 May to address the EU's concerns over what leaders see as
China's industrial overcapacity and unfair competition. Before the meeting took place, European
officials and member states suggested raising tariffs, systemising import duties to whole sectors,
creating new overcapacity tools, and stepping up trade probes. China's ministries and state media
reacted with strong condemnation of what is seen as unfair and discriminatory measures that would
target China and harm Europe-China exchanges, saying that countermeasures would inevitably follow.
Subsequently, headlines raised the spectre of an impending trade war. This edition of the ICES
newsletter takes a look at how events unfolded, including the recent surprise support of Germany
to Europe's stronger stance over China and Spain's U-turn on the matter.
Donald Trump's visit to China this month had been speculated as a potential game-changer to the
Europe-China-US triangular ties. After the visit ICES was pleased to organise a webinar, co-hosted
by the Institute for China-America Studies (ICAS) on 21 May. Scholars from Brussels, Beijing
and Washington DC debated whether the limited outcomes of the event were an opportunity or challenge
to Europe-China relations.
Some recent news is also cause for prudent optimism with regards to Europe-China cooperation
and dialogue. Chinese investment in Europe reached a seven-year-high in 2025, both EU institutions
and European member states continue to engage with Beijing, and increased scientific cooperation
has broken new ground with a European-Chinese solar exploration spaceship launched on 19 May.
As the international order is shifting toward 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
European companies double down on China manufacturing despite EU de-risking push
CNBC, May 26, 2026
According to the European Union Chamber of Commerce in China, European companies are 'onshoring further in China' and expanding supply chains in the country to retain their competitive edge.
European Commission vows tougher action on trade with China
Politico, May 29, 2026
After the College of Commissioners met on Friday, the European Commission declared the EU's trade and investment relationship with China not to be 'sustainable' and new tools and mechanisms ranging from quotas, increased tariffs, systematic sectoral use of import duties were discussed.
EU-CHINA RELATIONS
China's two-wheelers ride EV wave into Europe
FT, May 17, 2026
The Chinese company Yadea, the world's biggest producer of scooters and motorcycles powered by batteries, is looking to expand to Europe, buoyed by rising oil prices as the war in Iran continues.
US, China and Russia prefer a divided Europe, Kallas warns
Politico, May 17, 2026
According to the EU's top diplomat, Kaja Kallas, the USA, Russia and China have everything to gain from a divided Europe, since when Member States band together, they have much stronger bargaining power, and that stronger measures against China will eventually be necessary to complement existing subsidies.
EU plans to force companies to buy parts from non-Chinese suppliers
Financial Times, May 18, 2026
The EU's trade commissioner is about to propose new measures that could force European companies to source their critical components from at least three different suppliers. The aim is to reduce cheap imports from China, with an expected ceiling of 30-40% of what can be bought from a single supplier.
As trade war with China looms, how can the EU defend itself?
EuroNews, May 18, 2026
The European Commission is looking at an increasing number of tools to reduce Chinese imports and protect its industries, including targeting strategic sectors with tariffs, hitting imports with anti-dumping/subsidy duties and using the anti-coercion instrument.
EU-China solar exploration spaceship launches successfully from French Guiana
RFI, May 19, 2026
The European-Chinese solar exploration spaceship has been successfully launched from French Guiana, and will eventually provide data on the Earth's magnetic field and the impact of solar winds.
Fears of new China shock as EU industry's reliance on imports grows
The Guardian, May 19, 2026
New figures on Chinese imports in Europe are getting European institutions worried about dependencies, as talks of a new China shock that will affect local jobs and factories have been raised again.
China's firms have a glaring weakness as they face a barrage of EU probes
SCMP, May 19, 2026
Chinese companies' usual strategy of fast expansion in the European market with little legal consultation for feasibility studies is now proving an obstacle for several companies as they face stricter and more complex European regulations than anticipated.
Chinese investment in Europe surges to 7-year high despite rising trade tensions
SCMP, May 20, 2026
Chinese investments in Europe reached new records (€16.8 billion) in 2025, but those investments might be soon drying up according to MERICS as more pressure from Beijing and Brussels is expected.
EU shortlists tungsten, rare earths for first stockpile to curb reliance on China
Reuters, May 20, 2026
The first joint stockpile of critical raw materials in the EU will include tungsten, rare earths and gallium according to Reuters.
EU bets Germany will back trade clampdown as 'Chinese steamroller' squeezes industry
Politico, May 20, 2026
The Commission is aiming to amp the pressure on Berlin to support tougher stance vis-à-vis China, as Germany is more and more affected by job losses, slow growth and thus more likely to accept trade defence mechanisms.
MOFCOM vows countermeasures if EU introduces new trade tool
Global Times, May 21, 2026
The spokesperson for China's Ministry of Commerce declared that if the EU were to introduce a new tool to address what it perceives as China's overcapacity, then it will 'disrupt the stability of global production' and 'ultimately backfire.'
European carmakers face EU pressure to diversify chip suppliers
EuroNews, May 21, 2026
According to EuroNews, the EU is likely to mandate carmakers like Renault or Volkswagen to prevent dependence on single chip suppliers, in a move aimed at limiting China's current influx of exports to the EU.
Developments in China's economy now have a bigger impact on EU: ECB
The Business Times, May 22, 2026
For the European Central Bank's chief economist Philip Lane, 'Asia matters substantially more for the euro area now than it did a decade ago.'
Do not get 100% of your supply from one country, EU industry chief says
EuroNews, May 22, 2026
Stephane Séjourné, EU Industry Commissioner has explicitly urged EU businesses to not 'make 100% of your supplies in one country.'
China 'won't win anything' if it 'destroys' Europe's industry, French minister tells
Euronews
EuroNews, May 23, 2026
The French minister for foreign trade called for harsher measures towards China and 'all countries weaponising foreign trade.'
5 EU countries call for tougher trade weapons to tackle China
Politico, May 25, 2026
A group led by France and including Italy, Spain, the Netherlands and Lithuania are calling on the EU to launch further probes into unfair trade practices and to create new defence trade mechanisms.
President Xi Jinping Holds Talks with Serbian President Aleksandar Vučić
FMPRC, May 25, 2026
On the afternoon of 25 May, 2026, President Xi Jinping held talks with Serbian President Aleksandar Vučić, who is on a state visit to China, at the Great Hall of the People in Beijing.
Germany resists EU members' push for a tougher stance on China
EuroNews, May 26, 2026
The German Minister for Trade Katherina Reiche is visiting Beijing this last week of May, in a bid to reinforce industrial cooperation with China, as other major economies of the EU are calling for a more assertive attitude towards China on trade and overcapacity.
China stalls Airbus approvals to pressure Europe on homegrown Chinese jets, Bloomberg
News reports
Reuters, May 27, 2026
Approvals on Airbus deliveries in China is being stalled as a consequence of European delays when it comes to the certification of Chinese COMAC aircrafts.
China accuses Dutch warship of 'provocative acts' in South China Sea
Politico, May 27, 2026
China's navy declared through one of its spokesperson that a Dutch frigate had been intruding in waters near the Paracel Islands and launching helicopters into Chinese airspace.
Senior Chinese legislator meets European Parliament delegation
Xinhua, May 27, 2026
Li Hongzhong, vice chairman of the National People's Congress Standing Committee, met with the European Parliament's delegation for relations with China led by chair Engin Eroglu in Beijing on Wednesday.
China says EU 'cherry picking' to justify trade curbs, warns of response
Reuters, May 28, 2026
The foreign ministry of China talked of 'cherry picking' data, referring to the EU's reported decision to broaden tariffs and quotas on Chinese goods.
China is negotiating with EU over its steel trade measures, Chinese commerce ministry
says
Reuters, May 28, 2026
According to China's commerce ministry, China has started negotiations with the EU under the WTO framework on the 27-nations bloc limits on duty-free steel imports.
EU fines China's Temu €200M over illegal products
Politico, May 28, 2026
Temu, the Chinese e-commerce website, was fined by the European Commission for €200 million, over failure to check for illegal products sold in the bloc.
EU probes deal that would give Chinese retailer a stake in France's Fnac Darty
RFI, May 28, 2026
A European investigation for Foreign Subsidies has been opened into JD.com's potential buyout of German Ceconomy, one of Fnac Darty's largest shareholders.
Spain distances itself from call for EU to get tougher on China
Politico, May 28, 2026
Spain has turned back on what seemed like initial support for a French-led initiative to raise the EU's trade defence mechanisms and tools against China, saying that agreement had only been established on a technical, not political level.
Berlin gives the OK for tougher trade action on China
Politico, May 29, 2026
Germany has indicated it was open to 'discussing stronger trade defence measures' to address overcapacity from China.
China's int'l trade promotion body voices opposition to EU's cybersecurity act
revision
CGTN, May 30, 2026
The China Council for the Promotion of International Trade (CCPIT) on Friday denounced the draft revision to its Cybersecurity Act as 'unreasonable content.'
China, EU discuss establishment of trade and investment consultation mechanism:
ministry
Xinhua, May 30, 2026
China and the EU are discussing the establishment of a trade and investment consultation mechanism and will hold related dialogue, the Ministry of Commerce said Saturday.
Beijing threatens retaliation over EU moves to curb China imports
Politico, May 30, 2026
In a statement made on 30 May, the Chinese ministry of commerce announced that 'if the EU insists on unilaterally introducing new trade instruments and adopting discriminatory restrictions, China will take resolute countermeasures and effective steps to safeguard its own interests.'
GLOBAL GOVERNANCE AND REGIONAL ISSUES SELECTED BY THE ICES
China says preliminary agreement reached with US to lower some tariffs
Politico, Global Times and The White House, May 17, 2026
According to the Commerce ministry of China, Washington and Beijing reached an agreement to decrease tariffs and aircraft as well as agricultural deals were reportedly reached after President Trump's visit to Beijing.
Europe is falling further behind the US and China on access to innovative medicines
FT, May 19, 2026
Patients in Europe are now 'waiting a median of nearly a year and a half for new treatments' according to the annual Waiting to Access Innovative Therapies Index by the European Federation of Pharmaceutical Industries and Associations (EFPIA).
WHAT CAUGHT OUR EYE: CURRENT RESEARCH AND COMMENTS
Stung into action: How Europe can deter both China and the US
Euractiv, May 17, 2026
For Thomas Moller-Nielsen, the EU has little leverage over China and the USA but that does not mean it should not have the one it has, namely its existing trade defence mechanisms and potentially new, quicker to deploy tools.
The Trump-Xi summit brings more problems than solutions for Europe
Euractiv, May 18, 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 must break China's grip on rare earths pricing to spur investment, sector body
says
Reuters, May 20, 2026
Bernd Schaefer, CEO of EIT RawMaterials, an agency in part funded by the EU, argues in Reuters that Europe must 'build its own pricing system for specialty metals and rare earths to reduce reliance on China.'
The flaws in the European Union's proposed Industrial Accelerator Act and how to fix
them
Bruegel, May 21, 2026
Ignacio García Bercero, Ben McWilliams and Simone Tagliapietra analyse the current limitations of the proposed IAA, among which: the 20 percent contribution to the EU GDP manufacturing target, the origin-based content rules and the lack of transparency on which sectors are affected by the IAA.
China and Russia's strategic duo endures – but its limits are clear
Chatham House, May 21, 2026
Yu Jie reflects on the visit of Vladimir Putin to China and the pragmatic, mostly circumstantial and geographically determined partnership between Russia and China.
Three leaders, one message: Europe is on its own
EPC, May 22, 2026
Ivano di Carlo comments on the recent visits of Donald Trump and Vladimir Putin to China, describing these diplomatic exchanges as broader symptoms of a return to a great powers competition world order, in which transactional bargaining is the norm to guarantee influence and power in designated spheres.
Serbia can help build bridges between Europe and China
SCMP, May 24, 2026
Aleksandar Vučić, the President of the Republic of Serbia, writes in the South China Morning Post on the advantages that Europe could gain from closer cooperation with China, drawing from his own experience as Serbia is now one of China's closest allies in the region.
Protectionism undermines China-EU cooperation
ChinaDaily and Global Times, May 25, 2026
Sun Yawen summarises the reasons why the EU's recent de-risking trend carries another type of risk, namely hampering the global green transition, a topic on which the EU and China usually cooperate. The Global Times editorial team makes a similar point, in reaction to the Spain, France, Italy, Netherlands and Lithuanian policy paper pressing for more assertive stance towards China on trade.
Brussels Needs a New Narrative on China-EU Relations
The Diplomat, May 27, 2026
Nadine Godehardt and Maximilian Mayer question the current EU strategy of grandstanding when dealing with China, and instead suggest having more positive public diplomacy and official exchanges while retaining an assertive negotiating style behind closed doors. They insist on the importance of strategically positive narratives in China policy, as it is often much more well received.
A few thoughts on China-EU economic and trade relations
euobserver, May 28, 2026
H.E. Ambassador Cai Run explains how the China-EU trade relation is not as unbalanced as one may think, insisting on the recent efforts made by China in recent years and months to address the European concerns.
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 18 May 2026, the Heinrich Böll Stiftung organised an event on the Electrotech Revolution and its Geopolitics. Participants highlighted the current shift from fossil fuels to renewables and electrification, thanks to cheaper technology, better batteries, and economies of scale. This allows emerging markets to 'leapfrog', skipping the use of intensive fossil fuel to power their economic growth, and instead privileging electrotech. Speakers then debated the geopolitical consequences of the electrotech revolution, whether the petrostates vs electrostates was a useful dichotomy, and the leading role of China in this technology race.
On 19 May 2026, Carnegie Europe hosted a public debate with Noah Barkin and Anu Bradford on the question: Is Europe in danger of becoming a U.S. or China colony? Both experts agreed on the necessity for Europe to be better coordinated on economic security matters when dealing with both the USA and China, and to stop playing defence, as both powers rely on the European market, which can in theory be leveraged to obtain technology transfers and investments.
On 21 May 2026, ICES, in partnership with the Institute for China-America Studies (ICAS), hosted the following webinar: Trump's Visit to China: Key Takeaways for U.S.-China-Europe Relations. Speakers underscored the very limited achievements of the meeting, namely the lack of concrete details on future deals between the two countries, and what amounted more to an uneasy truce and strategic stability than a grand bargain or reconciliation. As a result, Europe-China relations are unlikely to change radically from the de-risking agenda on the European side, and the countermeasures of such defence mechanisms on the Chinese side. Finally, the Taiwan issue was evoked by the speakers as one of the key tests of the China-US relation, and Europeans will watch closely as the consequences on their own relations with both powers could be dramatically upended in case of a conflict.
On 29 May 2026, the European Policy Centre discussed whether Europe can lead amid a growing leadership deficit. Speakers argued that the EU faces overlapping pressures from war, geoeconomic shocks and weak economic prospects, while political leadership is lacking at both national and EU levels. Public expectations for joint European action remain high, but leaders often avoid difficult decisions because of domestic constraints. The Franco-German engine is weakened, EU institutions lack effective coordination, and upcoming MFF negotiations may expose deeper divisions. Participants concluded that Europe needs political courage, stronger public trust and new sources of leadership beyond traditional major powers.
On 10 and 11 June 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.