Dear ICES friends,
We are delighted to present the latest issue of our biweekly 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
Ongoing trade friction continues to shape the increasingly turbulent relationship between
Brussels and Beijing.
Indeed, while some dialogue continues, most notably through the new Trade and Investment
Consultation meeting scheduled for this autumn, alongside parliamentary exchanges and
bilateral member-state ties, several core trade and security disputes remain unresolved. As
Linsheng Hong from ICES puts it in his latest commentary published in The Diplomat, the EU
is still divided, calling its relationship with China a 'stable and balanced key trading
partnership', but also considering the Asian nation a 'critical long-term strategic
challenge' and a 'crucial enabler for Moscow'.
This dynamic is clearly reflected in this edition of the ICES Bulletin, which highlights
pragmatic engagement on select issues alongside new sanctions and counter-sanctions
targeting both European and Chinese entities. Anti-dumping and anti-subsidy probes launched
by the European Commission on Chinese imports are now a fixture of the news cycle. Parallel
to this, Chinese state media routinely release op-eds calling for an end to de-risking policy
while strongly criticising new European trade defence actions.
From a research perspective, this edition showcases the diverse schools of thought among
Brussels think tankers, researchers, policymakers, and columnists. While some advocate a
tougher stance toward China, several experts warn against far-reaching restrictions, calling
instead for caution and calibrated support for European industry, alongside a realistic
recognition of the need for Chinese green tech and investment.
ICES wishes you a pleasant read of this edition!
NEWS ROUND
THE WEEKS' HIGHLIGHTS: PROGRESS AND PITFALLS
Wang Yi Meets with Delegation of the Committee on Foreign Affairs of the European
Parliament
FMPRC and
Delegation of the EU to the PRC,
July 21, 2026
On July 21, 2026, China's Foreign Minister Wang Yi met in Beijing with a cross-party delegation of members of the European Parliament. In Beijing and Shanghai, MEPs discussed the geopolitical implications of EU-China ties, while reaffirming the EU's principled stance and commitment to dialogue.
Greek gas concession unlocks EU's Russia sanctions package, China adds 14 EU
entities to export control list
Politico,
Reuters,
Global Times,
July 23, 2026
The EU found an agreement among its member states on its 21st sanctions package against Russia, by making a further exception for Greece to allow the latter to send Russian LNG to countries outside the bloc. The package notably includes Chinese entities and China promptly reacted by banning dual-use items to 14 EU entities as a response and expressed 'strong dissatisfaction and firm opposition.'
EU-CHINA RELATIONS
'China's model is flawed': top MEP says trade pressure could test Beijing's stability
EuroNews,
July 17, 2026
For the chair of the European Parliament's delegation for relations with China, German MEP Engin Eroglu, the EU could leverage its access to its consumer market to force the Asian nation's hand at rebalancing what the 27-nations bloc sees as an unfair trade relationship.
China-EU think tank discusses practical collaboration on green governance
China Daily,
July 17, 2026
An academic seminar of a China-EU think tank cooperation project on green governance was held in Beijing on Thursday, with participants from both sides hailing it as a vital platform for frank dialogue and practical collaboration amid escalating global climate challenges.
China warns confidence in UK investment 'undermined' by British Steel takeover
rfi,
July 17, 2026
After the UK nationalised British Steel, previously owned by a Chinese company (Jingye), China's Ministry of Commerce denounced the move as 'forcibly' taking over the company and undermining 'Chinese companies' confidence in investing in the UK.'
Paris and Berlin vow to align on tougher trade measures against China
FT,
July 17, 2026
Both France and Germany are advocating for 'emergency measures' in order to protect the European industrial sector from Chinese imports and what they see as an undervalued renminbi.
'Made in EU': How Europe plans to use China's tech to pull level with its EV rival by
2028
SCMP,
July 18, 2026
According to Harald Hendrikse, European head of autos research at Citi, the European car industry could manage to take advantage of Chinese EV tech, components and European regulation to retain its competitive edge and close the price gap.
China's Siemens Competitor Eyes Buying Its Way Into Europe
Bloomberg,
July 18, 2026
Shenzen Inovance Technology Co. Ltd. might make new acquisitions in Europe to compete with Siemens AG and Robert Bosch GmbH
EU test pilots find 'no major hardware risks' with China's C919 jet: sources
SCMP,
July 20, 2026
The C919 is one 'step closer to winning a crucial endorsement from European safety regulators' but according to SCMP's sources the jet's actual certification's date is still unknown.
EU hits China's Alibaba with €550M record fine over illegal products
Politico,
July 20, 2026
The Chinese giant AliExpress was hit by the European Commission with a €550 million fine for not stopping the sale of harmful and illegal products in time.
China has put a Polish university on its European dual-use exports blacklist. Why?
SCMP,
July 26, 2026
As part of China's latest export control list, a Polish university was included for the first time, probably because of said university's link to EU-funded military drones and battlefield AI projects.
Italian machine tool sector wants tougher EU trade rules on China
Reuters,
July 27, 2026
Italy's machine tool industry association UCIMU is calling for increased European trade defence measures as the competition from China in this sector is mounting.
Commission imposing a definitive anti-dumping duty on imports of yarns of polyamide
originating in People's Republic of China
European Commission,
July 28, 2026
A definitive anti-dumping duty was imposed by the EU on imports of yarns of polyamide from the PRC at a rate ranging from 60% to 67.6%.
China woos Slovakia with AI, robotics pitch as EU trade friction mounts
SCMP and
Reuters,
July 28, 2026
China encouraged Slovakia to explore 'cooperation in clean energy, robotics and artificial intelligence' as Peter Pellegrini, the Slovak President, visited Beijing. Xi Jinping expressed his hopes that the Sino-Slovak pragmatic links will lead to an overall more constructive EU-China relation.
The EU's foreign subsidy rules are deterring Chinese firms. At what cost?
Politico,
July 30, 2026
While the FSR has allowed strong deterrence when it comes to Chinese exports and investments, experts question whether it might be too strong a tool and not an impediment for other investors.
Chinese businesses warn EU's proposed cybersecurity and industrial bills violate WTO
rules
Global Times,
July 31, 2026
Chinese industrial and commercial circles have voiced strong concerns over the EU's proposed Cybersecurity Act (CSA2) and the Industrial Accelerator Act, arguing that the measures go beyond legitimate security needs.
Spain courts Chinese firms but looks to EU for ground rules
Reuters,
July 31, 2026
Spanish regions are trying to both attract Chinese investments and productions of EVs and batteries on their territory while campaigning at the EU-level to ensure that investements rules will protect member states' economies.
Temu hit with EU charges for not cooperating in December raid
Reuters,
July 31, 2026
The European Commission imposed charges on Temu, the Chinese online retail giant, arguing that during the December raid in Dublin's Temu headquarters, the company did not cooperate with EU investigators.
GLOBAL GOVERNANCE AND REGIONAL ISSUES SELECTED BY THE ICES
China's Xi Jinping launches new AI alliance: What is it?
Al Jazeera,
July 17, 2026
China announced a new coalition of 29 countries, the World Artificial Intelligence Cooperation Organisation (WAICO) at a tech conference in Shanghai. At the event, China's President Xi Jinping urged his counterparts to cooperate on AI and advised against any one country dominating the sector.
Quebec 'doubles down' on Europe in bid to de-risk from US, China
Euractiv,
July 19, 2026
Quebec's international affairs minister called for deeper economic relations with Europe, as well as stronger collective supply chain resilience, going as far as calling it a 'moral imperative' in light of current geopolitical uncertainty and to face China and the USA.
The EU is walking a tightrope between the world's major hegemons
Euronews,
July 24, 2026
Amid mounting trade frictions with China, the EU also had to contend with new US duties from 10 to 12.5% linked to claims of lack of enforcement of forced labour.
Tata Power eyes first solar exports to Europe as EU curbs China reliance
Reuters,
July 27, 2026
The Indian company is now targeting new exports of solar equipments towards Europe, trying to take advantage of the recent European drive for diversification from China.
Europe's AI safety rules take on US rogue agents and Chinese ambitions
Politico,
July 27, 2026
The EU's AI act and the new powers it is bound to give to the European Commission could come at the right time for the bloc, as one of Open AI's latest model's agent recently hacked another American AI development company, and right as China's latest models are reaching new capacities.
WHAT CAUGHT OUR EYE AND ICES CONTRIBUTIONS: CURRENT RESEARCH AND COMMENTS
The EU-China trade war: what if Beijing hits back?
euobserver,
July 17, 2026
Frances Li questions whether an agressive EU industrial and trade defence policy against China would not be too much of a risk in light of the latter's capacity to escalate a confrontation if needed. Instead, the author argues for defensive measure that can be framed as such, limiting the probability of retaliation.
The EU's Contradictory Narratives on China
The Diplomat,
July 17, 2026
Linsheng Hong from ICES argues that EU-China relations are now caught between economic stabilisation and security distrust. Both sides are trying to maintain trade exchanges and pragmatic engagement, but the EU's latest assessment of its strategic environment may complicate the process.
Europe Still Has Leverage Over China
The Diplomat,
July 17, 2026
Tim Rühlig makes the case that China still depends heavily on the EU's single market and on the remaining edge that the bloc has on certain areas in research and technology, and that this leverage should be used while it is still possible.
Why Europe's China Anxiety Is About More Than China
The Diplomat,
July 20, 2026
Eleonora Longhi Gelati and Dingding Chen look at the reasons why Europe has grown so distrustful of China and argue that trade is not the only culprit, as the EU increasingly perceives the other side as a 'challenge to the organisation of global order itself.'
China is not pulling up the ladder
Substack,
July 25, 2026
David Fishman addresses the current argument according to which China's economic development strategy is not leaving enough space for the Global South to develop by still overcrowding the lower value-added production sector. For Fishman, this argument is moral in nature but not necessarily grounded in development theory.
Energy shock: why oil and gas prices have risen less than expected
ECB,
July 27, 2026
Lea Demuth, Ana-Simona Manu and Arthur Stalla-Bourdillon explain that energy prices' increases remained relatively low following the Iran war compared to previous conflicts because oil markets were better prepared, China's massive oil stockpiling helped buffer the shock, and overall lessened demand in Asia softened the blow.
Full text: China's Position on the So-called Excess Capacity Issue
Xinhua,
July 28, 2026
China's Ministry of Commerce released a document titled 'China's Position on the So-called Excess Capacity Issue.' It denounces the Western use of 'overcapacity' and 'trade surplus' associated to China's industrial policy and instead argues the success China had in this field was simply a result of its reforms and innovation.
Two Priorities for EU-China WTO Reform Cooperation
EUI,
July 30, 2026
Guohua Yang and John Alistair Clarke suggest in their policy paper two priorities for the WTO reform where the EU and China could cooperate: sending the signal that both sides are attached to restoring the organisation to a functional status and a joint advocacy of negotiations on the WTO governing industrial policy.
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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.