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 week we have all been waiting for: The 25th EU–China Summit was held in Beijing on 24
July to mark 50 years of diplomatic relations. It brought together EU leaders António Costa
and Ursula von der Leyen, and Chinese President Xi Jinping and Premier Li Qiang. While
expectations had been lowering as the summit drew closer, both sides reaffirmed their shared
commitment to a rules-based global order, multilateralism, climate action, and deeper
cooperation. Reflecting on the event, comments from Brussels are mostly negative, again
highlighting the lack of outcomes and the discrepancy in the EU's and China's approaches to
their bilateral relationship, as well as the persistent distrust. Despite symbolic progress,
tensions remain high.
Broader trade dynamics complicated the bilateral relationship further. Chinese banking sanctions
and European comments at the business symposium raise concerns for the evolvement of bilateral
relations at the current "inflection point". While the EU-US trade deal avoids a further trade
war between the two sides, it imposes US goals without resolving the issues between the EU and
the US, thereby further questioning the EU's ability to defend its values. Concerns are raised
in Brussels that US President Trump's reluctance to cooperate with the EU on trade issues with
China could affect future EU-China negotiations.
Following these two eventful weeks, we will be taking a brief newsletter summer break. We
look forward to updating you on the summit's implications when we resume publication in
September.
NEWS ROUND
THE WEEKS' HIGHLIGHTS: PROGRESS & PITFALLS
Joint EU–China press statement on climate
(European Council, July 24, 2025)
Resulting from the summit, the EU and China issued a joint press statement on climate. Ahead of COP30, this statement reaffirms their climate leadership. Despite not containing any new commitments, it is seen as a good sign for international climate cooperation and as the key symbolic agreement of the summit.
China slams EU banking sanctions as tensions rise ahead of key summit
(South China Morning Post, July 21, 2025)
Reacting to the EU's sanctioning of two small Chinese banks, China’s Ministry of Commerce called for the immediate cessation and expressed its "strong dissatisfaction and resolute opposition to this move". The EU announced the sanctions earlier as part of its latest package of measures against the Russian war in Ukraine.
EU–CHINA RELATIONS
Beijing reaffirms normalisation of ties with EU ahead of July summit
(Reuters, July 16, 2025)
Ahead of the summit, the Chinese Foreign Ministry confirmed that it is normalising ties with the European Parliament. Despite the disputes, both sides are willing to improve dialogue and cooperation.
Airbus signs fresh deal with Chinese partner amid talk of massive China order
(South China Morning Post, July 16, 2025)
Airbus and the Chinese AVIC Xi’an Aircraft Industry Group have signed a new cooperation deal to produce more A321 jets in China. This "mega-deal" is an extension of a similar cooperation on Airbus' A320.
Chinese business group urges fairness in EU tariff measures on EVs
(China Daily, July 17, 2025)
The China Chamber of Commerce to the European Union (CCCEU) delegation's automotive working group urged EU officials to ensure fair and equitable market access for Chinese electric vehicle (EV) companies . They warned that the EU's de-risking approach could lead to de-coupling from China.
Sanctioned German China expert visits Beijing in sign of easing restrictions
(South China Morning Post, July 23, 2025)
Mikko Huotari, the executive director of the Mercator Institute for China Studies (MERICS), visited Beijing from July 14 to 17, at the invitation of the Chinese Academy of Social Sciences (CASS). Since MERICS was sanctioned by China in 2021, this first visit to China indicates an easing of travel restrictions and a possibly increased future engagement between Chinese and European researchers and think tankers.
25th EU–China summit
(European Council,
July 24, 2025 ;
Chinese Ministry of Foreign Affairs, July 24, 2025)
On July 24, the 25th EU–China summit took place in Beijing. In the meetings, António Costa, Ursula von der Leyen, Xi Jinping and Li Qiang discussed the bilateral relationship, as well as global and geopolitical issues. Among other topics, they addressed shared responsibilities, discussed climate cooperation, the war in Ukraine, the trade partnership and human rights issues.
EU and China agree on plan to iron out rare earth export restrictions, von der Leyen
says
(South China Morning Post, July 24, 2025)
During the EU–China summit, both sides agreed on a new export supply mechanism to help unblock bottlenecks regarding rare earth elements and magnets, one of Brussels' key concerns for the leaders’ meeting.
EU–China cooperation ‘only right choice’, Premier Li Qiang says at business symposium
(South China Morning Post, July 25, 2025)
At the business symposium held in the frame of the EU–China Summit, the Chinese Premier Li Qiang urged for a healthy economic relationship characterised by both competition and cooperation. He further advertised to find new grounds for collaboration. European Commission President Ursula von der Leyen stated that trade relations have reached an "inflection point" and that the issue of Chinese overcapacity needs to be addressed.
Is EU’s global clout fading amid gruelling stand-offs with China and the US?
(South China Morning Post, July 29, 2025)
The results of the modestly successful EU–China summit and the trade negotiations with US President Trump led to a critique claiming European humiliation and the inability to defend EU interests.
Temu accused by EU of breaking rules with illegal product sales
(South China Morning Post, July 29, 2025)
Following the European Commission's preliminary finding in 2024 that the Chinese-owned e-commerce firm Temu was in breach of European regulations, the digital chief highlighted the lack of Temu's assessment of risks for its users, as required by DSA standards.
GLOBAL GOVERNANCE INSIGHTS SELECTED BY THE ICES
The 2028–2034 EU budget for a stronger Europe
(European Commission, July 16, 2025)
The European Commission presented its proposal for the Multiannual Financial Framework (MFF), intended to steer the new long-term budget of approximately 2 trillion euros for 2028–2034.
EU, US to form metals alliance to counterbalance Chinese overcapacity
(Reuters, July 28, 2025)
European Trade Commissioner Maroš Šefčovič announced that, as part of the trade deal, the EU and the US will develop a metals alliance to mitigate the impact of subsidised Chinese production.
US and EU avert trade war with 15% tariff deal (Reuters, July 28, 2025; European Commission, July 29, 2025)
After the meeting of US President Trump and European Commission President von der Leyen, a framework trade agreement between the US and the EU was announced. The deal includes a 15% tariff on most EU goods imported to the US, as well as European investments and purchases of US goods, and strengthened cooperation.
US and China agree to work on extending the tariff pause deadline in trade talks in
Stockholm
(APNews, July 30, 2025)
In the third round of trade negotiations between the US and China in Stockholm, both sides agreed to work on extending a deadline for new tariffs.
ICES-NOTED REGIONAL ISSUES
Joint statement following the EU–Japan Summit 2025
(European Commission, July 23, 2025)
The EU and Japan held the 30th EU–Japan Summit in Tokyo on July 23. Both sides emphasised shared values, the implementations of partnerships and dialogues in various areas and aligning views on international affairs.
WHAT CAUGHT OUR EYE: CURRENT RESEARCH AND COMMENTS
The EU is doing itself no trade favours in pushing China on Russia
(South China Morning Post, July 16, 2025)
Nikola Mikovic argues that pressuring China to influence Russia in resolving the war in Ukraine will not aid European interests. He states that this would not serve the interests of either side.
A smart European strategy for electric vehicle investment from China
(Bruegel, July 16, 2025)
In the Bruegel policy brief on EV investments, Simone Tagliapietra, Cecilia Trasi and Gregor Sebastian argue that while Chinese EV investment aids EU decarbonisation, it brings various risks and calls for a unified EU strategy to align it with climate, industrial and security aims.
Will the United States Push Europe Toward China?
(CSIS, July 18, 2025)
Ilaria Mazzocco's CSIS commentary suggests that the White House should balance its approach towards the EU and evaluate how bilateral actions interact with the EU–China summit. Helping to empower the EU could benefit US interests in EU–China negotiations.
What China Wants
(Project Syndicate, July 18, 2025)
Yu Jie underlines the lack of Chinese ambitions to fill the void left by the US decline in global leadership and the mismatch in Western perceptions on this matter.
China’s drive toward self-reliance in artificial intelligence: from chips to large
language models
(MERICS, July 22, 2025)
The latest MERICS China Tech report reveals that China is pursuing self-reliance in AI across all levels of technology, as the government has identified progress in the field as a critical goal and is deploying strategies to achieve it on various levels. In the production of AI chips and the development of models and applications, it is catching up with the US. While critical inputs for AI are sourced domestically, external factors become increasingly relevant.
The EU–China Automotive Partnership – Promise and Perils
(EAI, July 23, 2025)
In an EAI commentary, scholars share insights from a joint study, showing that despite geopolitical and trade issues, the relationship between European and Chinese automotive companies is evolving. Chinese leadership leads to its perception as a source and a destination of cutting-edge technological innovation. Global competitiveness, therefore, often leads to collaborative partnerships that involve Chinese firms.
China-EU cooperation is inevitable and promising
(CGTN, July 24, 2025)
In his comment on the upcoming EU–China summit, Jian Junbo, director of the Center for China–Europe Relations at Fudan University, sees healthy and stable China–EU relations not only as vital to both sides but also as conducive to global stability and prosperity. Despite the current tensions, he summarises China–EU cooperation as inevitable.
EU–China: 50 years without fireworks
(EPC, July 25, 2025)
EPC's senior adviser Ricardo Borges de Castro's commentary on the EU–China summit underlines the relatively poor state of EU–China relations. He summarises that the summit cannot be understood as a success in improving relations.
EU–China ties will shape strategic room for Southeast Asia
(CNA, July 25, 2025)
Daniel Balazs, Research Fellow in the China Programme of RSIS, writes that he sees the issues and future developments underlined by the EU–China summit influencing both challenges and opportunities for Southeast Asia , a region that has suffered immensely from Trump's initial tariff salvo.
Observations on the EU–China Summit
(ICES, July 28, 2025)
ICES Executive Director Li Yang summarises the modest success of the EU–China summit, stating that the latest US challenges have influenced the uncertainties and distrust between the EU and China. He calls for more effective dialogue to bridge the gaps between the two sides' approaches.
What Does China Want in Ukraine?
(Foreign Affairs, July 29, 2025)
Da Wei, Director of the CISS at Tsinghua University, argues that China's ambivalence is limiting its role in Ukraine. While many Chinese officials want the war to end and EU–China tensions are rising, China's mediation role will remain limited due to a lack of consensus in the understanding of the war and China's close ties with Russia.
What Did the EU–China 50th Anniversary Summit Achieve?
(ChinaFile, July 31, 2025)
In the comments of several experts on the EU–China summit, a ChinaFile Conversation examines the implications for trade and security, as well as how Europe must balance its risks and needs between China, Russia, and the US. While the summit appeared as an inconsequential formality, the editors look into its implications for the EU–China relationship.
The EU–China Summit: A Midsummer Deal’s Dream
(ISPI, July 31, 2025)
The ISPI contribution reflecting the EU–China summit highlights the key issues discussed during the summit. While few tangible results and deepening distrust were witnessed, the analysis especially highlights the roles of Chinese overcapacity and the US factor in the outcomes. Europe is assessed as more isolated than ever, facing deep strategic issues.
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 July 17, we, ICES, hosted a breakfast roundtable on 50 years of EU–China relations. Introduced by a short keynote speech by Professor Men Jing, a selected group of colleagues came together for an in-depth discussion on some of the most pressing issues in EU–China relations before the summit.
On the evening of July 17, the Brussels Institute for Geopolitics hosted an event titled "Decrypting Europe’s evolving China strategy." The expert panel discussed Europe’s ‘three hats’ definition of and complex relationship with China, including its evolving bilateral ties and potential risks and opportunities for pragmatic engagement.
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.