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
As the year 2025 draws to a close, contending issues between China and EU remain,
exemplified by the new EU economy security doctrine, while some small progress (on Chinese
rare earth elements' exporting licenses being renegotiated, for example) should be noted.
The EU thus continues its push to protect its industries from supply chain shocks,
developing new economic and legal tools to safeguard European preference and limit its
dependencies on materials and energy sources. However, economic competition between the two
blocs does not obfuscate cooperation on environmental multilateralism, like at the latest
COP 30, or even between Chinese and European EV companies, as the two remain profoundly
intertwined. This edition of the bulletin also looks at the latest developments concerning
Hainan free trade port, which will officially launch its island- wide special customs
operations on December 18.
Importantly, the USA's new National Security Strategy is deeply worrying its Western allies,
now trying their best to forge new partnerships with interests-aligned or like-minded nations
to better guarantee their security and economic interests against new threats and challenges.
Events held in Brussels, for example, displayed a strong will by European and Indo-Pacific players
to hedge their security guarantees in that regard. The USA's official defiance towards its current
allies risks once again to influence the EU's approach to China, as it might justify either rapprochement
or further derisking.
This is ICES' last biweekly bulletin of 2025, we wish you a
very happy holiday season and we will see you back in January 2026!
NEWS ROUND
THE WEEKS' HIGHLIGHTS: PROGRESS & PITFALLS
EU abandons WTO case against China over alleged coercion of Lithuania
South China Morning Post, December 02, 2025
The EU terminated a dispute case towards China at the World Trade Organisation which centred on Beijing's alleged coercion of Lithuania, as "key objectives behind this dispute have been met".
EU aims to improve defences against economic threats, such as China export curbs
Reuters, December 03, 2025
The European Commission released its economic security doctrine which includes measures to strengthen trade resilience and ensuring economic security through new tools.
EU-CHINA RELATIONS
EU looks at legally forcing industries to reduce purchases from China
Guardian, December 03, 2025
According to Stéphane Séjourné, industry commissioner, the EU is thinking of forcing industries through legal means to create a European preference to lower China’s purchases and dependencies.
‘Buy China’ trend, price wars push German industry to localise, seeing rivals as
leaders
South China Morning Post, December 02, 2025
German companies are likely to soon partner with their rivals in China, as competitors on the ground are due to overtake them, in large part due to the nationalist “Buy China” push.
UK delays decision for third time on China’s plan for Europe’s largest embassy
Reuters, December 03, 2025
A new deadline has been announced by the British Department of Housing to green light China’s plan for a new embassy in London, following local opposition to the project.
German foreign minister in China urges end to supply chain uncertainty
Reuters, December 08, 2025
Johann Wadephul, German Foreign Minister, visited China on the 8th to appeal for an end to the uncertainty surrounding rare earths and Chinese semi-conductors’ exports to Europe.
Amicable exchanges, joint declarations but few concrete deals: Macron’s visit to China
Elysée, FMPRC, December 05, 2025
After a 3-days visit of French President Macron to China with high honours including a visit to Chengdu and Sichuan University, joint declarations on Ukraine, Palestine, climate change, multilateralism and nuclear energy were reached.
European industry faces ‘life or death,’ Macron says — and China needs to help
Politico, December 07, 2025
The French President argued in the press that China needs to invest in Europe “just like EDF and Airbus previously went to China”. Otherwise Europe might have to impose tariffs.
Hitting China with tariffs should be ‘last resort’, German foreign minister says
South China Morning Post, December 09, 2025
According to Johan Wadephul, German Foreign Minister, applying tariffs to imports from China could turn into a dangerous “spiral”.
Supply chain diversification away from China is progressing from talks to action, EU
chamber says
CNBC, December 10, 2025
According to Jens Eskelund, president of the European Union Chamber of Commerce in China, dependencies on China are being discussed in much more detail than they were before.
China says talks with EU on electric vehicle minimum price plan resumed
Reuters, December 11, 2025
China’s commerce ministry discussed the minimum price plan for China’s electric vehicles to be sold in the EU, restarting talks on the matter.
EU to impose 3 euro duty on e-commerce parcels from July 2026
Reuters, December 12, 2025
In order to address the influx of cheap e-commerce products from China, the EU’s finance ministers agreed to apply a 3 euro customs duty on low-value parcels.
GLOBAL GOVERNANCE INSIGHTS SELECTED BY THE ICES
Multilateralism works even as US, fossil fuel industry oppose climate action, UN chief
says
Reuters, December 3, 2025
While the COP30 yielded disappointing tangible outcomes, it still showed that multilateralism is possible despite the absence of the USA and the current fraught international context.
France calls to delay crunch Mercosur vote
Politico, December 14, 2025
The French government asked to postpone the Mercosur December deadline to better protect European agriculture needs, as tensions widen among the 27 on that topic.
ICES-NOTED REGIONAL ISSUES
China, Russia discuss Ukraine, reach ‘consensus’ on Japan during Chinese minister’s
visit
Reuters, December 03, 2025
Russia and China agreed on several issues as Chinese foreign ministers visited Moscow. Russia aligned with China on the recent diplomatic row with Japan over Taiwan.
Exclusive: China issues first batch of streamlined rare earth export licences, source
says
Reuters, December 02, 2025
International customers will start receiving new rare earth export licences to accelerate shipments as the summit between Xi Jinping and Donald Trump seems to be yielding outcomes.
Zelenskyy reportedly says Kyiv willing to drop NATO membership demand
Politico, December 14, 2025
In case of a future peace deal including enough security guarantees from Europe and the US, Ukraine would be potentially willing to drop accession demands to NATO.
Chinese carrier holds air drills as Tokyo, Beijing trade barbs
Reuters, December 08, 2025
As the escalating dispute between China and Japan over Japanese PM’s comments on Taiwan increased, a Chinese carrier strike group launched air operations near Japan.
HAINAN
Eyes on Hainan: Hainan FTP’s special customs operations bring opportunities to
enterprises
Xinhua, December 13, 2025
The Hainan Free Trade Port in south China will officially launch island-wide special customs operations on Dec. 18 this year, a key move to boost trade and attract global business.
Key things to know about Hainan FTP island-wide special customs operations
CGTN, December 14, 2025
Hainan’s island-wide special customs operations aim to eliminate barriers with a two-tiered customs system, described as “freer access at the first line, regulated access at the second line and free flow within the island”.
WHAT CAUGHT OUR EYE: CURRENT RESEARCH AND COMMENTS
From Doctrine to Practice: Europe’s Economic Security Evolution and the Business
Reality in EU-China Relations
ICES, December 12, 2025
Linsheng Hong’s latest ICES commentary highlights the growing tension between the EU’s new Economic Security Doctrine and European business realities. It argues that de-risking tools, if not carefully calibrated to specific sectors and supply chains, risk undermining rather than strengthening Europe’s industrial competitiveness.
Risks for Europe rise amid US-China tensions
MERICS, December 11, 2025
As 2026 approaches, MERICS has put together a list of the most probable and highest-impact risks for European businesses and policymakers. These include worsening US-China relations, competition with European firms, tech value chain dependencies, and the potential slowing of economic growth in China.
Inside the Nexperia crisis: what it means for Europe’s tech sovereignty
Bruegel, December 03, 2025
Yuyun Zhan, Alicia Garcia-Herrero and Marc Hijink examine in this podcast the Nexperia case study and how the Dutch semiconductor firm, owned by a Chinese company, became a focal point in worsening China–Europe trade relations amid US export controls.
From firefighting to strategy: How the EU’s new economic security doctrine can deliver
EPC, December 02, 2025
Ian Hernandez, Varg Folkman, Georg Riekeles and Pawel Świeboda argue that the EU should have foreseen shocks such as Donald Trump’s re-election and fragile supply chains. They propose establishing an EU Economic Security Council, a new Act, and stronger security-of-supply mechanisms.
Why Macron’s China visit and Putin’s India trip will show Europe no longer sets the
agenda
The Straits Times, December 03, 2025
Jonathan Eyal makes the case that both Macron’s visit to China and Putin’s visit to India are unlikely to bring about the reassurances both leaders are seeking from their Asian counterparts.
Trump’s new National Security Strategy – an existential threat to Europe
EPC and Politico, December 05, 2025
Janis A. Emmanouilidis and Fabian Zuleeg argue that the USA’s latest National Security Strategy is extremely critical of the EU, emboldens illiberal forces within it, and shows that the USA can no longer be seen as a fundamental ally of EU values. This point is echoed by Jamie Dettmer, who summarises it as the USA’s guiding principle being “might is right”.
Europe’s strategic dependence on China: The next energy crisis?
GIS, December 10, 2025
Karl-Friedrich Israel explains that Europe’s energy transition will be hampered by China’s control over key materials. Similarly, trade disputes are expected to impact Europe’s clean-tech supplies.
Towards a conditioning of Chinese greenfield investments in the EU
MERICS, December 10, 2025
In his commentary, Andras Mischer addresses current shortages of local parts and labour in the EU, caused by a too high share of imports from China in greenfield investments. To ensure the EU truly benefits, he argues that conditions should be imposed.
How Europe Lost, Can the Continent Escape Its Trump Trap?
Foreign Affairs, December 12, 2025
Matthias Matthijs and Nathalie Tocci write about the EU’s decision to accommodate the Trump administration and question whether this strategy effectively guarantees Europe’s defence and economic security. They argue that Europe’s appeasement has failed to deliver deals in European interests and has “normalised illiberal moves in the United States”.
EVENS
Over the past two weeks, the ICES has actively participated in a series of events. We are delighted to share some of our insights:
The Institute for China-Europe Studies (ICES) hosted a seminar on EU-China dynamics in the EV sector in Brussels. Discussions covered the state of EU-China EV relations, current challenges for Chinese and European companies, the lack of progress on price undertakings, and the new EU economic security doctrine.
On December 9, the European Policy Centre organised a conference on the EU’s new economic security doctrine. Denis Redonnet, Deputy Director-General at DG Trade and Economic Security, introduced the doctrine and exchanged views with representatives from EU politics, industry and think tanks.
The Centre for Security, Diplomacy and Strategy hosted a public event on Europe, Japan and the future of alliances. The discussion focused on Europe and Japan’s potential enhanced cooperation as tensions with China continue to mount.
CONTACT WITH US
If you want to stay informed on our events and publications do not hesitate to visit our website and follow us on social media:
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.