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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

In a run-up to a EU-China summit scheduled in July, the high-level diplomatic dialogues between Beijing and European capitals are becoming more frequent. In addition, Trump's capricious tariff policies are creating momentum for the EU and China to possibly stabilise and improve their relations. However, the measures against China for dumping and accusations against its alleged cyber attacks, which the Chinese side denied, cast some shadow over the prospect and display the existing hurdles to bilateral rapprochement. Security and economic concerns, including China’s slowing economy and declining European investment confidence in China, are significant challenges to bilateral relations. These developments underscore the complex and evolving nature of EU-China relations, characterised by a mix of cooperation and contention across various sectors.

Many think tank discussions on EU-China relations have taken place over the past period, and even more are expected in the upcoming weeks. ICES is contributing to these exchanges by organising events on EU- China(-US) relations amid rising global trade tensions. We believe that open-mindedness and a focus on both the broader strategic interests and specific policy areas will be conducive to uncovering more common ground between the EU and China.

NEWS ROUND

THE WEEKS' HIGHLIGHTS: PROGRESS & PITFALLS

Xi Jinping and Friedrich Merz call

Xi Jinping Has a Phone Call with German Chancellor Friedrich Merz
(Chinese Ministry of Foreign Affairs, May 23, 2025)

After the German elections, as a reaction to the newly elected German Chancellor Friedrich Merz's request, he and President Xi Jinping held a phone call. Xi congratulated Merz on taking office, and both stressed the importance of bilateral relations in the complex international landscape.

The new German government adheres to the one-China policy and is aiming for a pragmatic and constructive strategic partnership and further cooperation.

Czech Republic says China behind cyberattack on ministry, embassy rejects accusations
(Reuters, May 28, 2025)

The Czech Republic accused China of being responsible for a "malicious cyber campaign" that had targeted the Czech Foreign Affairs ministry's communication network since 2022. China refused the allegations and asked to end what the embassy calls "microphone diplomacy".

Czech official speaking

EU–CHINA RELATIONS

BYD Hungary event

BYD opens European center in Hungary, beefing up China-EU NEV cooperation
(Global Times, May 16, 2025)

The Chinese EV-producing company BYD has opened a European centre in Budapest, Hungary. It will be used as a sales, development and service hub, most likely creating more than 1000 jobs. This is seen as a milestone in EU–China cooperation and a possibility for joint research.

Wang Yi Has a Phone Call with Polish Foreign Minister Radoslaw Sikorski
(Chinese Foreign Ministry, May 19, 2025)

In a call with Polish Foreign Minister Radoslaw Sikorski, the Chinese Foreign Minister Wang Yi stated that China expects Poland, as the holder of the rotating Council presidency, to play a greater constructive role in advancing China–EU relations toward progress.

Both countries are evaluated as important partners and crucial to jointly maintain the post–World War II international order.

China and Poland flags
Temu package with cart

EU to impose €2 tax on low-cost items in blow to Temu and Shein
(Financial Times, May 20, 2025)

EU trade commissioner Maroš Šefčovič proposed to levy a handling fee of 2 euros on small packages sent to EU consumers. This is considered a blow to low-cost online retailers like Temu and Shein.

Chinese packages make up nine out of ten imported packages entering the EU.

Chinese investments in Europe have increased for first time since 2016
(South China Morning Post, May 21, 2025)

For the first time since 2016, Chinese investments in Europe – especially in Hungary – rose. With an increase of 47%, about 10 billion euros were invested, making it more than half of all Chinese foreign investments in high–income economies.

Hungarian city view with ads
Bernd Lange speaking in EU Parliament

Brussels could hit China with tariffs to reach US trade deal, says top EU lawmaker
(Euractiv, May 21, 2025)

Bernd Lange, chair of the European Parliament’s international trade committee, proposed working with the US to impose tariffs on China, mainly targeting steel, to remove US tariffs on EU exports.

EU investigates allegations of dumping of tyres from China
(European Commission, May 21, 2025)

The European Commission launched investigations assessing whether anti–dumping measures are warranted on imports of car tyres and light lorries from China, harming EU tyre producers.

Stacked car tyres
EU Parliament speaker on Huawei case

European Parliament names 5 lawmakers targeted in Huawei bribery scandal
(South China Morning Post, May 22, 2025)

The EU Parliament named five lawmakers involved in a bribery scandal investigation involving Huawei. While Huawei is denying the accusations of corruption, the parliament’s committee on legal affairs will now vote on waiving immunity.

Xi urges China, France to be reliable forces for maintaining international order
(Xinhua, May 22, 2025)

During a phone call, Chinese President Xi Jinping urged French President Emmanuel Macron to jointly safeguard the UN authority and status, the economic order and true multilateralism. The bilateral ties are valuable for promoting multilateral cooperation and economic growth.

Xi and Macron shaking hands
Wang Yi and Caspar Veldkamp meeting

Wang Yi Holds Talks with Foreign Minister of the Netherlands Caspar Veldkamp
(Chinese Ministry of Foreign Affairs, May 22, 2025)

China’s Foreign Minister Wang Yi met with the Dutch Foreign Minister, Caspar Veldkamp, in Beijing. The two countries pledged deeper cooperation to tackle international challenges. Both stated to be united in their support for free trade and multilateralism.

EU threatens to walk away from trade showdown with China over lack of progress
(South China Morning Post, May 23, 2025)

EU ambassador Jorge Toledo warned that the EU is willing to walk away from trade talks with China if meaningful progress is not made, as the discussions on Chinese EV minimum pricing have not been successful so far.

Workers at Chinese EV assembly line
Rolls of tinplate metal

EU acts against dumped imports of tinplate from China
(European Commission, May 28, 2025)

The European Commission imposed anti–dumping duties of 13%–62% on tinplate imports from China. This is following an investigation that preceded the imposition of measures, which showed that imports of tinplate from China had been dumped on the EU market, and is supposed to protect the EU tinplate industry.

European business in China: European confidence survey 2025
(EU Chamber of Commerce in China, May 28, 2025)

According to the latest EU Chamber of Commerce in China survey, European businesses have never been as pessimistic about doing business in China. Slower growth and geopolitical worries explain these developments.

Luxury mall interior in China
Macron speaking at Shangri-La Dialogue

IISS Shangri-La Dialogue 2025: President of the French Republic Emmanuel Macron delivers the Keynote Address
(International Institute for Strategic Studies, May 30, 2025)

During the French President Emmanuel Macron's address at a major defence summit in Singapore, he warned that China would risk NATO's deeper involvement in Asia if Beijing does not do more to stop North Korea from taking part in Russia's war on Ukraine.

GLOBAL GOVERNANCE INSIGHTS SELECTED BY THE ICES

Plastic bottles and packaging

China puts anti-dumping duties on plastics from US, EU, Japan and Taiwan
(Politico, May 18, 2025)

China has announced to impose anti–dumping duties on plastics from the US, EU, Japan and the Taiwan region. The highest duties of 74.9% are levied on POM copolymers from the US, while the EU shipments will face 34.5% duties.

90 days to economic collapse: UN and experts sound alarm over security at sea
(United Nations, May 20, 2025)

The UN Secretary–General, António Guterres, urged great powers to uphold international maritime law and overcome geopolitical rivalries. He warned that global trade, marine ecosystems and international peace are endangered by traditional and new threats, including piracy, trafficking, cyberattacks and territorial disputes.

Maritime security at sea at sunset
LNG carrier ship at sea

Soft China dampens Asia LNG demand while Europe's imports ease
(Reuters, May 26, 2025)

Asian imports of liquefied natural gas (LNG) stagnated in May while Europe's continued to ease due to seasonal changes and Chinese import decreases.

Trump delays EU tariffs until July 9, European markets rally
(Reuters, May 26, 2025)

After a phone call with European Commission President Ursula von der Leyen, US President Donald Trump withdrew from his threat to impose 50% tariffs on imports from the EU. He restored the July 9 deadline to allow for negotiations. This change was visible in the EU markets; the euro hit its highest level against the dollar since April 30.

Donald Trump wearing Make Europe Great Again hat
Signing ceremony of the mediation group

China forms new global mediation group with dozens of countries
(ABC News, May 30, 2025)

China and more than 30 other countries have established an international mediation–based dispute resolution group. By signing the Convention on the Establishment of the International Organisation for Mediation in Hong Kong, these countries aim to advocate for mutual understanding and consensus–building through dialogue as a conflict resolution tool. The organisation is understood to increase Chinese influence in conflict areas.

ICES-NOTED REGIONAL ISSUES

People observing Arctic landscape

Tensions rise as superpowers scrap for a piece of the Arctic
(BBC, May 24, 2025)

China, describing itself as a "near–Arctic state", is determined to become a polar superpower, attempting to get involved in infrastructure projects, real estate and hoping to establish a permanent regional presence. However, the Arctic is experiencing a race with competition from not only China but also Russia, Europe, India and the US.

Greenland says it will turn to China if US and EU shun its mining sector
(Financial Times, May 27, 2025)

Greenland’s minister for business and mineral resources warned the US and EU mining companies to hurry up and invest in the Arctic territory. Otherwise, Greenland will have to look into Chinese investment options.

Greenland minister speaking

WHAT CAUGHT OUR EYE: CURRENT RESEARCH AND COMMENTS

Mining trucks in Africa

The tumultuous path toward EU–China–Africa trilateral cooperation on Critical Raw Materials in Africa
(Africa Policy Research Institute, May 20, 2025)

The Africa Policy Research Institute (APRI) published a commentary examining evolving EU–China–Africa relations. Analyst Christian Géraud Neema Byamungu argues that trilateral relations are shaped by the diverging motivations of each actor and EU–China–Africa interdependence in critical raw materials is not heavily affected by geopolitical confrontation. However, cooperation opportunities are most effective under African leadership and in midstream and downstream activities.

Chinese investment rebounds despite growing frictions – Chinese FDI in Europe: 2024 Update
(MERICS, May 21, 2025)

In a report by MERICS and the Rhodium Group, Chinese FDI in Europe has been evaluated as rebounding for the first time since 2016, mainly due to record greenfield investments and improved M&A. However, the investment geography shifted from Germany, France and the UK to Hungary. Overall, Chinese investments remain limited in Europe.

MERICS report front page
Bruegel report on frontier innovation

Which companies are ahead in frontier innovation on critical technologies? Comparing China, the European Union and the United States
(Bruegel, May 22, 2025)

The Bruegel paper on AI, semiconductors, and quantum computing compares China's, the US's, and the EU's frontier innovations. It emphasises US innovation domination in quantum computing and AI and Chinese leadership regarding semiconductors. European innovators perform relatively well in quantum computing; however, they do not show innovation leadership in any of those fields.

Urging China, EU cooperation, former WTO head Pascal Lamy points to ‘common ground’
(South China Morning Post, May 28, 2025)

The former WTO Director–General Pascal Lamy told the South China Morning Post that the EU and China should work together based on common ground to resist Trump's "mafia–like hostage–taking" tariff policies and ensure the rules–based order. He suggested complementary European and Chinese countermeasures for trade negotiations with the US and stressed that the WTO work may have to continue without US support.

Pascal Lamy and WTO panel discussion
Dr. JIAN Junbo speaking

The Future of China-EU Relations Holds Great Potential
(Bauhinia Magazine, May 30, 2025)

Dr. JIAN Junbo, Director of the Centre for China–Europe Relations at Fudan University, argues that China–EU relations are facing new challenges, driven by global power shifts such as the rise of US trade protectionism and trends of de–globalisation, the Russia–Ukraine war, and intensifying geopolitical tensions. The EU increasingly approaches its relationship with China through the lens of security and political considerations, which has begun to affect not only trade and investment but also cultural and academic exchanges.

Despite these tensions, the potential for future cooperation remains strong. Europe’s growing interest in strategic autonomy could create more space for independent engagement with China.

Both sides have a shared interest in open markets, multilateralism, and tackling global challenges, including climate change and technological governance. While disagreements persist, mutual interdependence and global responsibilities may encourage more stable and pragmatic relations in the long term.

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. We are delighted to share some of our insights:

EIAS logo

On May 20, the European Institute for Asian Studies (EIAS) organised a book launch event on the book of "Chinese Assertiveness, Ideational Mobilization, and the Rise of Xi Jinping – Achieving Something" by Friso MS Stevens. The author impressively summarised the CCP leadership history and Chinese repositioning under Xi Jinping.

The Bruegel event "Lessons from the Euro crisis and EU–US relations between crises, shared values and geopolitical tension" on May 21 offered great insight into European past crises and the evolving EU–US relations. The conversation explored previous economic crises and drew lessons from past for current transatlantic relations.

Bruegel logo
ICES logo

The ICES webinar on May 27, "EU–China–US Relations Amid Global Tariff Tensions," brought together three speakers who discussed the past, present and possible future of trilateral relations amid the current tariff war. The discussion included key topics such as negotiation strategies with the US, broader geopolitical considerations, ideological influences, the role of the WTO and the implications for multilateral cooperation.

On May 30, as part of the GIGA China Series, researchers from the University of Copenhagen presented their insights into Russian and Chinese state–sponsored propaganda on Twitter/X. The study showed that Chinese accounts mainly shape narratives to reinforce internal stability, while Russian posts are used to exacerbate polarisation in Western democracies.

GIGA logo

We are looking forward to announcing our upcoming webinars in the following 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.