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 past two weeks display a continuation of the previous weeks in EU-China relations. While we have witnessed diplomatic gestures to improve relations, the overall uncertainties and US pressure remain, absorbing both sides' attention. China has lifted its sanctions on members of the European Parliament, implying possibilities for improved diplomacy and dialogue, as well as helping to set a positive tone for the 50th anniversary of EU-China diplomatic relations. At the same time, profound differences between the two sides contribute to ongoing tensions. Structural challenges leave the EU to continue investigating Chinese subsidies, prompting retaliatory investigations by Beijing. Further, the Commission’s blacklisting of Huawei lobbyists also displays deep-rooted distrust. In short, while the current phase marks a slight, yet significant diplomatic thaw, EU-China relations remain shaped mainly by ongoing economic frictions and a shifting geopolitical landscape dominated by US influence.
NEWS ROUND
THE WEEKS' HIGHLIGHTS: PROGRESS & PITFALLS
China lifts sanctions against MEPs (European Parliament, April 30, 2025)
China is lifting its sanctions against members and committees of the European Parliament (and their families) to restore the parliamentary dialogue. The decision to lift the sanctions imposed on 10 EU individuals and 4 entities in March 2021 is seen as a re-establishment of communication and China's attempt to revive the EU–China investment deal.
(Politico, April 24, 2025)
In response to the alleged corruption investigation at the European Parliament, the European Commission will no longer meet with organisations lobbying on behalf of Huawei. In reaction, several associations in the EU’s transparency register consider suspending Huawei.
EU–CHINA RELATIONS
EU draws lessons from China clashes as it faces off against US under Donald Trump
(South China Morning Post, April 17, 2025)
In the escalating trade war, the EU is using strategies against the US that it has learned from recent trade disputes with China. Learning from the US tariff debates on Chinese EVs and the resulting pressure on the EU from China and the US, the EU is considering employing countermeasures, such as the anti-coercion instrument, as a powerful tool against the US.
China urges UK and EU to uphold multilateral trade in face of US tariffs
(Reuters, April 22, 2025)
Reacting to its disrupted trade due to the US-introduced tariff war, Chinese Foreign Minister Wang Yi urged Britain and the EU to safeguard multilateral trading systems. He sees the US actions as an open violation of WTO rules and countries' legitimate rights and interests. China is open to strengthening communication and cooperation with Europe to defend globalisation and multilateral trading systems.
Mercedes CEO urges EU to find equitable solution to China-made EV tariff dispute
(Reuters, April 23, 2025)
The CEO of Mercedes–Benz, Ola Källenius, urged the EU to find a solution to create a level-playing field for China-made EVs in Europe. He sees the pure tariff barrier as the "crudest instrument" that is not seeking a win–win situation.
WTO rejects EU claims in intellectual property dispute with China (Reuters, April 24, 2025)
A WTO panel rejected the EU's claim that China had violated intellectual property rules . While there have been no inconsistencies with WTO rules, the WTO did find Chinese violations of transparency obligations by not publishing a final decision involving a Chinese smartphone maker regarding patents for 3G, 4G and 5G mobile technology.
Commission acts against unfairly subsidised imports of mobile access equipment from
China
(European Commission, April 28, 2025)
Following an anti-subsidy investigation on unfair Chinese subsidies, the European Commission imposed countervailing duties on imports of mobile access equipment from China .
Europe has risky reliance on China for low-tech chips, auditors warn
(Politico, April 28, 2025)
The European Court of Auditors warned that the EU is deeply reliant on Chinese mainstream microchips. According to the report, the European target for contributing to the global microchip value chain by 2030 and its technological sovereignty goals seem out of reach.
GLOBAL GOVERNANCE INSIGHTS SELECTED BY THE ICES
WTO forecasts 6% bump in Chinese exports to Europe in 2025
(Euronews, April 1, 2025)
As a result of the current EU–US trade issues, the WTO forecasted a diversion of Chinese exports to Europe, as well as European exports to new markets. This would lead to a 6% increase of Chinese exports to Europe.
China vows retaliation against countries supporting US-led trade isolation
(Euronews, April 21, 2025)
China has announced to retaliate against countries that strike trade deals with the US at the expense of Chinese interests. This policy responds to Trump's "unilateral bullying" and pressure on countries to isolate China in the current tariff war.
Von der Leyen: World is ‘lining up’ to work with Europe amid Trump’s trade war
(Politico, April 22, 2025)
Ursula von der Leyen, the European Commission president, stated that European countries are seen as reliable trade partners and therefore attractive to many countries amid US-led tariff wars and global trade unpredictability.
Commission finds Apple and Meta in breach of the Digital Markets Act
(European Commission, April 23, 2025)
The European Commission found breaches of the Digital Markets Act by Apple and Meta. Apple breached its anti-steering obligation, resulting in a 500 million euro fine, while Meta was fined 200 million euros for not giving consumers the choice of a service that uses less personal data.
Xi Addresses Leaders Meeting on Climate and the Just Transition, Urging Jointly
Advancing Global Climate Governance
(Chinese State Council, April 24, 2025)
At the Leaders Meeting on Climate and the Just Transition, Chinese President Xi Jinping delivered a speech, stressing that confidence, solidarity and cooperation must be enhanced to improve global climate governance. Therefore, multilateralism, international cooperation, the just transition and results-oriented actions should be strengthened. China, as a world leader in “greening” efforts, is committed to largely contributing to these core principles.
Critical reactions to US seabed mining plans (Euronews, April 28, 2025; International Seabed Authority, April 29, 2025; BBC, April 25, 2025)
To secure supplies of critical raw materials, US President Trump has instructed the expedited opening of America’s continental shelf to mining companies and wants to allow US firms to mine in international waters. These actions contravene the responsible international legal regime implemented by UNCLOS, states the ISA. The European Commission has responded to this decision with deep regret, questioning the legal basis for the decision. The Chinese foreign ministry also condemned the executive order, criticizing the violation of international law.
LATEST UPDATES FROM HAINAN
Irish trade and commercial counsellor: Hainan – a gateway to the Chinese market
(CGTN, April 18, 2025)
The Irish trade and commercial counsellor in China, Joseph Keating, praised the Hainan Free Trade Port as an entry point into the Chinese market. He stressed the unique advantages of Hainan to Irish companies.
White paper spotlights Hainan's evolution into global retail tourism hub
(Chinese State Council, April 18, 2025)
During the 5th China International Consumer Products Expo, the 2025 Hainan Travel Retail White Paper was released. It states that the island is rapidly becoming a vital domestic and international consumption destination and stresses the shifts from traditional retail to new consumption models, especially with young consumers and increased duty-free shopping.
Expo in Hainan opens window for China–Europe economic ties (Xinhua, April 19, 2025)
The 5th China International Consumer Products Expo in Hainan not only attracted large audiences due to the Hainan Free Trade Port’s policy advantages and openness to global cooperation, but also included many European products and displayed the ambition to deepen economic engagement with China.
Hainan proves open gateway for investment (China Daily, April 23, 2025)
Amid global trade instabilities, Hainan Free Trade Port is currently serving as an open gateway for international investment and supply-chain resilience.
WHAT CAUGHT OUR EYE: CURRENT RESEARCH AND COMMENTS
Taking the Pulse: In Light of Trump’s Tariffs, Should Europe Get Closer to China? (Carnegie Europe, April 17, 2025)
Carnegie Europe collected several voices to understand better whether Europe should pivot towards China in the context of US tariffs. Overall, experts see US policies as a breach of trust. While they advise deepening relations with other partners, they warn about the dangers of comprehensive cooperation and dependence on China.
China’s Manufacturing FDI in ASEAN Grew Rapidly, But Faces Tariff Headwinds
(Rhodium Group, April 24, 2025)
The Rhodium Group published a comment on ASEAN being the top destination for Chinese manufacturing FDI. The authors observe that US tariffs are highly critical to the region's attractiveness to Chinese firms that diversified their supply chains away from China.
EVENTS
Over the past two weeks, the ICES has actively participated in a series of events, including the promotion of the 3rd China International Supply Chain Expo (CISCE) and the 8th China International Import Expo (CIIE), as well as the POLITICO conversation with Professor Yan Xuetong, "China’s worldview in the second age of Trump."
We are delighted to share some of our insights from selected events:
The Washington International Trade Association and the Asia Society co-hosted an event with the topic “Phase 2: The Art of the Deal with China” on April 22. The panel underlined that Beijing understands the current trade war as an effort to economically, diplomatically and geostrategically isolate China. The Chinese government is in a good position during this crisis, however, it is uncertain about Trump’s intentions and negotiation procedures.
Carnegie's conversation with the title "Finding the Way Forward on China," on April 24, stressed the importance of the Chinese Dream, Xi's large and lasting role in the state and the importance of a stable regional environment for China. Current Chinese policies are evaluated by seeing Trump as a businessman and trying to hurt the US while tariffs attack the Chinese economy.
On April 29, the Belgian–Chinese Economic and Commercial Council hosted a webinar on "Trade wars, tariffs & tactics: Understanding the real impact of US–China tensions on your business." During this event, it was emphasised that there is little understanding of the Trump administration's strategy and many questions regarding the tariff policies from the Chinese side. Overall, it was evaluated that the tariff war could benefit China rather than the US.
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.