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
The most notable development in EU-China relations in February was German Chancellor
Friedrich Merz’s visit to China during the Chinese Lunar New Year. Against the backdrop of
domestic economic growth pressures and a complex external environment shaped by relations
with both the United States and China, the Chancellor reportedly prepared for the trip
through detailed consultations with German think tanks and industrial representatives.
During the visit, Merz addressed issues related to trade imbalances and China’s role in the
war in Ukraine. The overall tone of the visit remained constructive, with emphasis on
partnership and cooperation.
More broadly, both the EU and China appear to be reassessing their respective security arrangements
and trade partnerships. In this context, it is not altogether surprising that the EU is trying
to up its engagement with China, but with reaffirmed caution.
As February ends,
the joint US-Israeli attacks against Iran took the international community by surprise.
China has condemned what it regards as an infringement on Iran’s sovereignty in the recent
military actions. The EU and European countries have criticised Iran’s retaliatory strikes
against US and Israeli interests in the region. This new development will undoubtedly affect
both China and Europe, given their respective security, trade, and energy interests.
ICES wishes you a pleasant read of this edition!
NEWS ROUND
THE WEEKS' HIGHLIGHTS: PROGRESS & PITFALLS
EU seeks ‘more structured’ dialogue with China
Euractiv, EuroNews
and
Reuters, February 20, 2026
While ties between China and the EU have taken a hit following perceived imbalances in their relationship, Trade Commissioner Maroš Šefčovič affirmed the EU will “step up its diplomatic engagement with China”. He also called to bring changes to the “Most Favoured Nation” rule in the WTO, saying that China is putting up barriers to its market while profiting from low tariffs.
EU bans Chinese bodies from critical tech programmes, including AI and chips
SCMP, February 21, 2026
The EU banned Chinese organisations from access to the Horizon Europe grants for innovation and research. The reasons invoked were of security and potential dual-use by Chinese tech bodies.
EU-CHINA RELATIONS
Commission launches investigation into Shein under the Digital Services Act
European Commission, February 17, 2026
The European Commission started in the 17th of February an official investigation into Shein on “sales of illegal products in the EU”, “addictive design of the service”, and potential lack of transparency on the recommendation algorithms.
A new starting point for China-EU relations
TheParliamentMagazine, February 17, 2026
Ambassador Cai Run, Head of the Chinese Mission to the EU argues that China and the EU have the opportunity to deepen their trade and political exchanges, with mutual respect and handling unavoidable frictions with dialogue and consultations rather than protectionism.
BMW in talks with EU on tariff exemption for 'Made in China' Minis, Handelsblatt
reports
Reuters, February 25, 2026
The European Commission is currently exchanging with BMW on a new minimum pricing model for German electric vehicles that are made in China.
Merz in China: Germany Between De-Risking and Strategic Partnership
The Diplomat, NYT and FMPRC, February 27, 2026
After spending two days in China, German Chancellor Friedrich Merz committed to a “comprehensive strategic partnership” while mentioning “persistent trade distortions”. Xi Jinping affirmed that China would “share development opportunities with Germany and the wider world” and called for a renewed partnership based on mutual support.
GLOBAL GOVERNANCE INSIGHTS SELECTED BY THE ICES
EU should be ready to enact Mercosur deal despite resistance, trade chief says
Reuters, February 20, 2026
Despite French opposition and legal obstacles, the EU’s trade chief affirmed that the Mercosur free trade agreement should be ready for implementation in the coming months.
At A.I. Summit, India Tries to Find a Way Between the U.S. and China
NYT and Global Times, February 21, 2026
India organised in February the A.I. Impact Summit in New Delhi, inviting key actors and states of the field, including China, in order to “position itself as a distinct, third-way alternative, centred on the Global South and A.I. as a public good”.
European Commission and China statement on the recent judgement of the Supreme Court
of the United States
European Commission and Reuters, February 22, 2026
The European Commission has called for “full clarity on the steps the USA intends to take” after the Supreme Court of the United States’ judgement on the International Emergency Economic Powers Act. Similarly China called on the US to get rid of tariff measures following the ruling.
How China plans to dominate global trade long after Trump
Reuters, February 24, 2026
As US tariffs keep on creating uncertainties over global supply chains, China is moving to multiply free-trade agreements across the world and to present an alternative to US presence in the international trade structure.
ICES-NOTED REGIONAL ISSUES
'No red lines': Spain reveals EU supergroup’s plan to challenge US and China
Politico, February 19, 2026
The EU’s 6 biggest economies are forming an informal club dubbed “E6” to try and address recurring decision-making blockages, including on relations with China and the USA.
China Amps Up Pressure on Japan With Export Bans
NYT, February 24, 2026
On Tuesday 24 February, China announced exports’ restriction to Japanese companies that are tied to defence interests, as the diplomatic feud between the two countries continues.
Japan looks to strike up partnerships with Europe’s defense sector
The Japan Times, February 24, 2026
As European countries are rushing to raise their military capacities, Japan is aiming to strike deals and industrial partnerships in the emerging market.
China and Europe’s reactions to the strikes against Iran
FMPRC, February 28, 2026China’s foreign ministry reacted through its spokesperson by expressing concern and calling for the sovereignty of Iran to be respected as well as for no further escalation to be triggered.
X February 28, 2026
Ursula von der Leyen expressed concern as well and the EU’s commitment to regional stability,
nuclear safety and EU citizens’ safety.
Elysée February 28, 2026
The E3 group of France, Germany and the UK assured they did not participate in the strikes
but that they were in “close contact with our international partners, including the United
States, Israel, and partners in the region”. The 3 European states also condemned Iranian
regional retaliation attacks that followed.
WHAT CAUGHT OUR EYE: CURRENT RESEARCH AND COMMENTS
Why Europe must reject Canada’s tack towards China
Euractiv, February 17, 2026
Alicia García-Herrero argues in Euractiv that ending tariffs on Chinese EVs as a quid pro quo for eased exports of European pork and wine would be a mistake and a moral fault.
Europe’s Next War
Foreign Affairs, February 17, 2026
Samuel Charap and Hiski Haukkala warn against the tensions that will remain after the end of the Russian war on Ukraine, as a potential cease-fire is very unlikely to solve any of the Russian ambitions for expansion and upcoming security dilemma with European and NATO states.
EU-China Relations in 2026: What to Watch
China Briefing, February 18, 2026
One year after the 50th anniversary of EU-China diplomatic relations, Giulia Interesse takes stock of the trade frictions, resilient exchange flows between the two entities and the cautious reopening of diplomatic channels.
As Trump retreats from climate goals, China is becoming a green superpower
BBC, February 18, 2026
China’s solar capacity is becoming a force to be reckoned with, as a result of the country massively investing in solar farms all across the land. Laura Bicker reports on the domestic impact and the competition it brings internationally in this BBC piece.
INTERVIEW: China must surrender know-how for EU access, says critical mineral CEO
Euractiv, February 19, 2026
Umicore chief Bart Sap thinks that it would be in China’s and the EU’s mutual interest for the former to share its latest technology on critical minerals and processors, in order to access the single market of the latter.
It is time for Europe to weaponise its chokepoints
Financial Times, February 22, 2026
For Martin Sandbu the EU should take a page out of China’s and the USA’s book on using supply chains to one’s advantage to preserve and raise its geopolitical leverage’s potential.
Why Germany must engage with China
IPS, February 23, 2026
According to Steven Langendonk & Matthew D. Stephen, China represents both a challenge and opportunity for Germany as it can help counterbalance hegemonic powers, as long as China preserves Germany’s autonomy.
To win Europe’s embrace, China needs to uncap the yuan
Reuters, February 26, 2026
Mike Dolan makes the case that China’s charm offensive on the EU will be more likely to be effective if it were to accept one of its biggest demands: letting “the yuan rise against the euro and level the playing field”.
China Is Winning by Waiting
Foreign Affairs, February 27, 2026
For Kyle Chan, China is passively taking advantage of the USA’s increasing disengagement from its own institutions and alliances, not by courting former American allies, but by offering clear transactional predictability.
A European solution for Germany’s China challenge
Taipei Times, February 27, 2026
Daniela Schwarzer writes on the interdependence between Germany and China and how the former can act to rebalance their relationship.
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:
On 24 February, Friends of Europe discussed the institutional, industrial and civilian perspectives of the war in Ukraine, reaching consensus on the fact Ukraine acts as the first line of the war of Russian aggression against Europe.
On February the 24th 2026, EPC hosted a hybrid panel event titled “Four years of Russia's War on Ukraine Reinforcing European support for Ukraine’s victory”.
The participants gathered on the symbolic date of the 24th of February, 4 years after Russia started its full-scale invasion of Ukraine. Participants all highlighted the resilience, resistance and creativity of the Ukrainian people which managed to resist the Russian army for so long and underscored the need for Europe to act as the superpower it could be by perpetuating and stepping up its support to the Ukrainian state, military and people.
On 24 February, the Brussels Institute for Geopolitics held a webinar on “Four years of war: Ukraine’s resilience, Europe’s reckoning”.
The event was the occasion to discuss Russia’s 4 years of invasion of Ukraine, future strategic choices, deterrence and governance in wartime.
On 26 February, EPC held a policy briefing to examine the content, background, and potential implications of the European Commission’s revised Cybersecurity Act proposal released in January.
On February 26, DAGP hosted an event on Germany’s China policy against the backdrop of Friedrich Merz’s visit to Beijing from February 24 to 26. The speakers assessed the agreements reached and the divergence observed during the trip.
CONTACT WITH US
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Linkedin: Institute for China-Europe Studies (ICES)
Website: ices-eu.org
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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.