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 detailed in our last edition of the ICES newsletter bulletin, the latest Trade and
Investment Consultation (TIC) mechanism meeting between China and the EU yielded some
concrete results, notably regarding Chinese exports of electric and hybrid vehicles.
However, official Chinese statements strongly criticised both reported and announced plans
for further economic security tools, ranging from ‘Made in Europe’ requirements and
supply-chain diversification to a proposed €2 fee on small parcels, solidarity mechanisms,
and a Single Market ‘kill-switch’. Beijing characterised this approach as
counterproductive, describing it as ‘talking while fighting’, and warned of potential
retaliatory measures should it deem them necessary.
ICES was pleased to host renowned experts Zhou Mi and Oliver Radtke for a webinar evaluating the outcomes of the TIC. Panellists generally agreed that the meeting laid down
the essential groundwork for future dialogue while addressing pressing concerns of EU
member states, including Germany.
A further source of tension over the past two weeks involved the EU’s updated Arctic
Strategy, which highlights concerns over increasing US, Chinese, and Russian activity in
the region. In response, Chinese officials cautioned against adopting a ‘Cold War
mentality’ and asserted that Beijing's engagement in the region remains fully compliant
with international law.
To read more about what the new strategy entails, and China’s own involvement and
objectives in the region, you can read our latest commentary by Pacôme Ducorail, research
assistant at ICES, on the topic here.
Meanwhile, recent reporting highlights the broader fallout of European trade defence
measures. While Ukraine faces indirect collateral damage from tariffs aimed at Chinese
products, Japan and South Korea are at risk of being directly targeted by EU trade defence
instruments. At the same time, European de-risking from China could open key markets to
third-country industrial players, enabling major manufacturing hubs like India to capture
market share in sectors such as chemicals, furniture, and machinery.
To support a deeper understanding of these developments, ICES maintains the EU-China Policy Library,
which enables analysts and researchers to examine rare earth export controls, economic
security measures, regulations, and proposals originating in Brussels and Beijing. The
collection now includes nearly 90 entries.
Additional updates will follow quarterly. Furthermore, last month, ICES provided readers
with targeted analysis on European Trade Defence mechanisms.
You can read the latest edition of the EU-China Policy Deep Dives and subscribe to it here!
ICES wishes you a pleasant read of this edition!
NEWS ROUND
THE WEEKS' HIGHLIGHTS: PROGRESS AND PITFALLS
China and EU pledge climate cooperation
China Daily, October 23, 2026
China's Minister of Ecology and Environment Huang Runqiu has reaffirmed the nation's commitment to maintaining close communication and deepening cooperation with the European Union on major issues in international multilateral processes.
China slams 'Cold War mentality' after new EU Arctic plan
France24, October 22, 2026
China opposed the European Union's new Arctic strategy and security concerns, rejecting a ‘Cold War mentality’ while defending its partnership with Russia and polar activities as peaceful and compliant with international law.
EU-CHINA RELATIONS
Germany, France to tighten ‘Made in Europe’ stance, pressuring
China’s auto industry
SCMP, October 18, 2026
France and Germany proposed restricting public subsidies and procurement for electric vehicles strictly to automakers that conduct manufacturing and research within the European Union, pressuring Chinese carmakers to invest locally.
EU Leaders discuss energy prices, budget, Ukraine during two-day
summit in Brussels
European Council, October 19, 2026
At the European Council summit of 16–17 October, European Commission President von der Leyen addressed EU-China trade imbalances by outlining plans for dialogue, existing trade tools, and new measures: the DiversifyEU initiative, a Solidarity Mechanism, and fast single-market access restrictions.
Soaring energy costs push EU to release oil reserves, delay
regulations
The Brussels Times, October 19, 2026
Following the European Council’s summit of 16-17 October, Ursula von der Leyen announced a series of EU measures to address surging energy prices and trade imbalances with China, including releasing 100 million barrels of oil, postponing the EU Methane Regulation, extending state aid flexibility, and upgrading joint energy purchasing capabilities.
Chinese FM, Bulgarian deputy PM pledge to expand practical
cooperation
People’s Daily Online, October 20, 2026
Chinese Foreign Minister Wang Yi met with Bulgarian Deputy Prime Minister Alexander Poulev on Monday in Sofia, with both sides agreeing to expand practical cooperation.
Beijing warns London of ‘firm countermeasures’ if it aligns with
EU import curbs on EVs
SCMP, October 20, 2026
China's Ministry of Commerce warned the UK of firm countermeasures if London aligns with EU restrictions on Chinese electric vehicle imports rather than following World Trade Organization rules.
Emboldened EU readies China company ‘kill switch’ as Beijing
warns Brussels not to ‘fantasise’
SCMP, October 20, 2026
The EU, supported by Germany, is developing a mechanism to remove Chinese companies from its market over economic coercion, prompting Beijing to warn that aggressive tactics will not extract further trade concessions.
Cheap Chinese antibiotics threaten Europe’s last major
penicillin plant
Reuters, October 21, 2026
Facing existential competition from Chinese imports in the EU market, Europe's last fully integrated penicillin plant in Austria is requesting EU anti-dumping tariffs to prevent reliance on Beijing for critical antibiotics.
Germany wants to avoid China trade war despite EU ‘kill switch’:
Merz
SCMP, October 21, 2026
German politician Merz urged China to address currency levels, industrial overcapacity, and subsidies to maintain fair trade, while Beijing rejected European pressure and asserted its readiness to defend its interests following a cap on Chinese hybrid car exports.
EU should revive talks on broader China trade deal, top MEP says
EuroNews, October 21, 2026
European Parliament trade leaders are advocating for a comprehensive trade and investment agreement with China to address broad unfair trade practices and systemic imbalances across multiple industries rather than continuing piecemeal sector-by-sector negotiations.
EU’s idea that China is caving to pressure is ‘serious
misjudgment’: ex-diplomat
SCMP, October 22, 2026
A former Chinese diplomat warned that Brussels misinterprets Beijing’s recent hybrid car export compromise as a sign of weakness, emphasising that China will not yield to trade pressure.
China, Europe should coordinate on carbon pricing, border tax:
energy transition expert
SCMP, October 23, 2026
Adair Turner has urged China and Europe to establish a joint carbon adjustment mechanism to maintain global climate action amid declining US commitment.
EU Car Woes Deepen as Trade Ministers Meet
Bloomberg, October 23, 2026
EU trade ministers meeting in Dublin are expanding their focus beyond recent car import caps to address broader trade deficits with China by targeting additional industries under pressure, such as chemicals, machinery, and medical equipment.
EU and China weigh next sectors for trade curbs
Politico, October 23, 2026
EU trade chief Maroš Šefčovič stated that Brussels and Beijing are discussing future sectors for negotiations while preparing to evaluate their October trade pact in January to address the expanding EU trade deficit with China.
EU to slap new fee on non-bloc parcels to curb influx from China
SCMP and Global
Times, October 27, 2026
Starting on November 1st and ahead of the holiday shopping rush, the European Union will impose a €2 handling fee on non-EU packages, supplementing an existing €3 charge on small parcels to curb Chinese imports. In response to this measure, a Chinese expert denounced it as a protectionist move.
China urges EU not to abuse trade remedies
China Daily, October 27, 2026
China urged the European Union on Tuesday to respect market principles and fair competition, and to refrain from abusing trade remedy instruments, following reports that the EU was considering new measures to restrict imports of Chinese products.
Merz Pitches Closer EU-Asia Ties, Warns of China Pressure
Bloomberg, October 27, 2026
Speaking in Singapore, German Chancellor Friedrich Merz called for closer Europe-Asia trade and security cooperation to counter great power pressures, withstand Chinese economic competition, and urge Beijing to stop supporting Russia's war in Ukraine.
China calls on Germany, EU to be rational on trade, supply chain
issues
Reuters, October 28, 2026
In response to German Chancellor's call to reduce economic dependencies and expand EU-Asia market access, Chinese FM spokesperson Guo Jiakun stated that China remains committed to global supply chain stability and urged Germany and the EU to resolve trade differences through dialogue.
EU trade deficit with China soars as MEPs demand ‘urgent’
rebalancing
The Brussels Times, October 29, 2026
Following a three-day trip to China, European Parliament International Trade Committee delegates called for more frequent dialogue under the Trade and Investment Consultation framework to address market access barriers, supply chain risks, and trade imbalances.
Europe’s coffin-makers warn Chinese imports could be death knell
for industry
Politico, October 29, 2026
European coffin manufacturers have formed a coalition to file an anti-dumping complaint with the European Commission, warning that low-priced Chinese imports have already forced a quarter of the continent's manufacturers to close.
France network outage puts Nokia under scrutiny as EU pushes to
phase out Huawei, ZTE gear
SCMP, October 29, 2026
A mobile network outage in France caused by a software bug in Nokia equipment affected millions of Orange customers, intensifying concerns over network resilience as European Union authorities phase out Chinese suppliers.
China's Xi urges stronger cooperation with Europe
Anadolu Agency, October 31, 2026
During separate Friday meetings with the Swiss and German presidents, Chinese President Xi Jinping urged stronger Sino-European cooperation, emphasising that trade relations are mutually beneficial and that existing problems stem from progress rather than fundamental conflict.
GLOBAL GOVERNANCE AND REGIONAL ISSUES SELECTED BY THE ICES
EU tariffs aimed at China hitting Ukraine, steel boss says
BBC, October 19, 2026
Metinvest CEO Yuriy Ryzhenkov urged the European Union to exempt war-torn Ukraine from new steel import tariffs, warning that equal treatment with competitors like China could reduce Ukrainian steel exports to the EU by up to 60%.
China’s rare earth magnet exports to EU and US rebound in
September
SCMP, October 20, 2026
China's rare earth permanent magnet exports to the EU rebounded by 20.5 percent month on month to 2,454 tonnes in September ahead of trade talks, despite a nearly 20 percent decline in shipments to Japan.
EU sets out a new Strategy for the Arctic
European Commission, October 20, 2026
The European Commission and the High Representative have launched an Arctic Strategy centred on security, climate, prosperity, and community opportunities by developing sustainable economic partnerships, supply chains, infrastructure networks, and secure digital connectivity.
EU Hybrid Import Caps Aimed at China May Hit Korea
Seoul Economic Daily, October 27, 2026
To address its vehicle trade deficit, the European Union plans to enforce a four-year, annually increasing import cap of 350,000 units on Chinese-made hybrids starting in December, while considering similar safeguard restrictions or tariffs for Japanese and South Korean imports.
EU’s 2027 China import curbs could reshape India’s chemical
industry export opportunities
India Times, October 28, 2026
The European Union plans to introduce import curbs on Chinese chemicals, furniture, and machinery by 2027 to lower its trade deficit, potentially opening EU market opportunities for Indian chemical exporters.
WHAT CAUGHT OUR EYE: CURRENT RESEARCH AND COMMENTS
What lessons should Europe take from China’s tightening grip on
its advanced AI?
Bruegel, October 19, 2026
Alicia García-Herrero looks at how China's Ministry of Commerce is consulting on proposed export controls for advanced artificial intelligence technologies that could restrict foreign downloads of top-tier models and hardware design know-how, pushing foreign users toward Chinese cloud servers while potentially shifting global dependence toward European open-source alternatives like Mistral.
China is starting to treat Europe as a serious strategic actor
Nikkei Asia, October 21, 2026
According to Jacob Mardell, European analysts and a growing number of Chinese experts increasingly view the European Union as a unified, powerful actor capable of leveraging its economic security policies against Beijing.
MERICS China Essentials Special Issue: EU-China economic
relations enter a critical phase
MERICS, October 22, 2026
For MERICS, as Europe hardens its economic stance to reduce supply-chain dependencies on China, Beijing may retaliate by restricting non-essential, high-volume European exports such as luxury goods and agricultural products while selectively managing critical imports and exports to protect its own growth.
Could Europe’s cost-of-living protests sharpen EU-China trade
tensions?
SCMP, October 23, 2026
Xiaofei Xu and Ji Siqi question whether violent European protests driven by cost-of-living pressures, particularly in France, could compel European policymakers to adopt a tougher trade stance and higher tariffs against China to shield domestic industries and appease public frustration.
Chinese expert debates on EU-China economic frictions
MERICS, October 29, 2026
Grzegorz Stec notes how Chinese experts anticipate that trade interdependence, fear of retaliation, and internal divisions will compel Brussels to exercise restraint, leading EU-China relations toward a framework of competitive coexistence defined by institutional rule-making rather than market share alone.
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:
On 16 October 2026, the Horizon Europe-funded QUEST project held a conference on how the EU can achieve open strategic autonomy. Experts agreed that autonomy means managing interdependence rather than seeking independence, and that the main obstacle is a lack of consensus among member states on what autonomy is for.
On 23 October 2026, the China Chamber of Commerce to the EU and Fieldfisher hosted a webinar on EU supply chain due diligence rules. Speakers outlined the Batteries Regulation, the Forced Labour Regulation and the CSDDD, and advised Chinese firms on managing conflicts with China’s data security and anti-sanctions laws.
On October 27 2026, the Haut-Commissariat à la Stratégie et au Plan hosted a panel on the future of Europe's defence industry featuring officials and policy experts. The discussion emphasised that addressing regional security challenges requires enhanced cooperation, reduced dependencies, technological innovation, and a stronger European pillar within NATO.
On 28 October 2026, Bruegel hosted an event on the implications of “China shock 2.0” for Europe. Economists from the Bank of Italy, the IMF and CREI somewhat agreed that it is a productivity shock rather than merely a trade shock, so Europe’s response need also focus on competitiveness, not trade defence alone.
On 28 October 2026, experts Zhou Mi and Oliver Radtke analysed in an ICES webinar recent EU-China Trade and Investment Consultations, concluding that the agreements averted trade escalation while laying the groundwork for future talks. They emphasised that while differences in takeaways and tariffs persist, incremental progress remains possible through shared market goals, ongoing negotiator familiarity, and mutual interests in investment stability.
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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.