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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 March draws to a close, this edition of the ICES newsletter examines the growing divergence between European capitals that are increasingly open to rapprochement with China and Brussels’ renewed calls for de-risking. One month on, the war in Iran continues to shape EU-China relations, as the 27 member states face yet another energy shock. This dynamic is accelerating the shift towards renewables and, in turn, reinforcing cooperation with China in this area.

Therefore, interdependence between China and Europe seems unlikely to diminish soon. While the EU tries its best to revive its industrial sector and innovation following the recommendations of the Draghi report, it remains difficult to prevent consumers from turning to more affordable foreign goods amid ongoing economic uncertainty.

Similarly, the continued rupture of the transatlantic alliance is also pushing European capitals to consider China as a potential alternative partner, showing again the importance of the broad geopolitical context on China-Europe relations. In the meantime, differences in how Europe and China approach key security issues, including Ukraine, still require clearer communication and mutual understanding.

ICES wishes you a pleasant read of this edition!

NEWS ROUND

THE WEEKS' HIGHLIGHTS: PROGRESS & PITFALLS

Germany’s Merz floats EU-China trade deal as European capitals soften on Beijing but Brussels disagree
SCMP and EuroNews, March 26, 2026

While the German Chancellor said he could envision a potential future trade deal with China, the Commission’s spokesperson for trade policy highlighted the need for Beijing to “meaningfully” address distortive economic practices.

EU-CHINA RELATIONS

EU sanctions Chinese and Iranian companies for cyberattacks
Reuters and State Council Information Office, March 16, 2026

China-based and Iranian companies (Integrity Technology Group, Anxun Information Technology and Emennet Pasargad) got sanctioned by the European Union for cyberattacks against its member states, a move denounced by the foreign ministry of China as “erroneous.”

EU’s Huawei hardliners get top court backing
Politico, March 19, 2026

An adviser of the European Court of Justice produced a legal opinion that supports rules blocking telecom operators from using suppliers such as Huawei to be established by the EU and not simply member states.

WTO to examine EU complaint over China high-tech patents
Euractiv, March 20, 2026

The WTO will put together a panel to examine a complaint originating from the European Commission regarding China’s alleged practice of pressuring high-tech companies into lowering fees by “allowing its courts to set binding worldwide royalty rates.”

De Wever urges EU to harden stance on China's trade practices
Belga News Agency, March 21, 2026

The Belgian Prime Minister denounced China’s “unfair competition” in a letter to the European Commission, warning that Beijing’s policies will harm the industrial base of Europe.

Chinese commerce minister meets Volkswagen, Bosch heads
Reuters, March 23, 2026

Commerce Minister Weng Wentao from China met with the heads of the Volkswagen Group and Bosch to “properly resolve trade frictions through dialogue and consultation.”

EU demands 'serious reform' of the WTO to stop flood of Chinese exports
Euractiv, March 23, 2026

The EU trade chief Maroš Šefčovič insisted on the “overcapacities” of the Chinese economy which are “creating a lot of problems in the European economy.”

China's defense ministry sends delegation to Europe for institutional dialogues
EEAS, Xinhua, NATO, March 23, 2026

A delegation from China's defence ministry visited Europe from March 23 to 29 for a series of institutional dialogues, including the 15th China-European Union dialogue on defence and security policy and the 9th China-NATO security policy dialogue.

Shaping the Future of Multilateral Climate Governance: EU-China Cooperation in a Changing Global Landscape
EEAS, March 26, 2026

The Hanns Seidel foundation Beijing Representatives Office and the EU-China Think Tank Engagement on Green Governance project organised an event with 120 participants in Beijing underscoring both entities’ commitment to climate and environmental progress.

EU agrees to fine online platforms importing unsafe products
Reuters, March 26, 2026

With 5.8 billion low-value e-commerce parcels (mostly from China) entering the EU in 2025, the bloc agreed to crack down on platforms that would sell illegal or unsafe products, with fines for non-compliance, responsibility for duties and safety and an end of the duty exemption on parcels under 150 euros.

GLOBAL GOVERNANCE INSIGHTS SELECTED BY THE ICES

Trump Seeks Help to Reopen Hormuz. Europe Says No.
Foreign Policy, March 16, 2026

European leaders have largely rebuffed American pleas for help to reopen the functionally closed by Iran Hormuz strait, signalling their nations’ will to not get involved in the war.

EU liberals pitch NATO-style trade pact with Canada, Japan and South Korea
Politico, March 18, 2026

The Renew Europe political group in the European Parliament wrote a “Geoeconomic Deterrence Pact” paper urging European leaders to form a pact with Japan, Canada and South Korea to economically deter the USA and China.

Europe Clinches Critical Mineral Access With Australian Trade Deal
NYT, March 24, 2026

Australia and the EU announced an agreement for a trade deal meant to facilitate access to Australian aluminium and lithium among others for the EU.

EU’s Šefčovič confirms push for Western steel club with US and UK
Politico, March 28, 2026

The EU’s trade chief confirmed the European Commission’s push to create a Western steel alliance with the UK and the USA to counter China’s overcapacity.

WHAT CAUGHT OUR EYE: CURRENT RESEARCH AND COMMENTS

A Grand New European Security Strategy
Egmont, March 16, 2026

Sven Biscop argues that it is time for the EU to develop a next “concise and convincing” European Security Strategy as the assumptions of days past are no longer relevant.

A Grand New European Security Strategy
Building Mutually Beneficial Solar Power Relations Between the EU and China

Building Mutually Beneficial Solar Power Relations Between the EU and China
Heinrich Böll Stiftung, March 17, 2026

For Dr. Katharina Franziska Braig, the EU should retain cooperation with China in the industrial solar sector as interdependence in that field is essential to guarantee decarbonisation goals.

What the war in Iran means for China
Bruegel, March 17, 2026

Alicia García-Herrero makes the case that the war in Iran, if prolonged, might reinforce some existing domestic economic issues and external demand limitations.

What the war in Iran means for China
Head of the Chinese Mission to the EU Cai Run: China’s 15th Five-Year Plan opens a new chapter of China-EU cooperation

Head of the Chinese Mission to the EU Cai Run: China’s 15th Five-Year Plan opens a new chapter of China-EU cooperation
The Brussels Times, March 18, 2026

According to Ambassador Cai Run, China-EU cooperation has strong potential in an “uncertain and turbulent international situation”, something also visible in the younger generations’ renewed interest for China.

The EU’s Industrial Accelerator Act Puts Pedal to the Metal
German Marshall Fund, March 19, 2026

Antonia Wunnerlich and Eamon Drumm discuss the EU’s latest Industrial Accelerator Acts in its broader context of fragile transatlantic relations as well as Chinese industrial overcapacity and dominance over the battery cells market.

The EU’s Industrial Accelerator Act Puts Pedal to the Metal
Quantum statecraft: the US, China and Europe

Quantum statecraft: the US, China and Europe
ISS, March 19, 2026

For Dongyoun Cho, recent advances in quantum computing means that innovation is no longer the name of the game, but infrastructure strategy surrounding it will dictate the competition between actors such as the USA, China and Europe.

Critical Raw Materials and Rare Earths: a Study of the EU and China’s Strategic Narratives
ICES, March 20, 2026

Pacôme Ducorail explores in his latest paper for ICES the strategic narratives deployed by the EU and China when it comes to Critical Raw Materials and Rare Earths.

Critical Raw Materials and Rare Earths: a Study of the EU and China’s Strategic Narratives

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:

Martens Centre conference

The Wilfried Martens Centre for European Studies hosted its Global Synergy Conference of 2026 on the 18th of March on Power, Partnerships and the Next Global Order.

The conference aimed to find clear strategic recommendations for the EU’s global positions, in light of the reorganising of the global order. Partnerships with the Global South were explored, including by building trust in the EU's reliability and predictability.

Judith Arnal, Daniel Gros, Fredrik Erixon, Oscar Guinea discussed for the European Centre for International Political Economy on March the 18th, the Draghi Report and the policy initiatives taken since then to protect European entrepreneurship and innovation.

ECIPE discussion
Politico summit

The 24th of March saw the hosting by POLITICO of a Competitive Europe Summit event, discussing the various ways Europe could address its competitiveness gap, with representatives of the EU, the private sector, and members of the civil society.

ICES followed two sessions during that day namely “The European Champions: How to make European companies competitive on the world stage” and “Economic Security: Europe’s economic future in an unstable geopolitical era”.

Euronews hosted the “From Research to Global Impact: How Europe Can Win the Competitiveness Race” event on March 24.

The talk centred on Europe’s potential in competitiveness and innovation, taking advantage of “data-driven insights into technology trends.”

Euronews event
Leiden Asia Centre

The Leiden Asia Centre hosted a CKN Knowledge Session on China’s 15th Five-Year Plan on March 24 to discuss the significance of this latest Plan, the priorities it sets out and the local implementation that will arise from it.

As security is becoming an all-encompassing concept in Europe and elsewhere in the new global (dis)order, ICES was pleased to host its “European Security and the Roles of China and the USA” webinar on March 26.

The roles of China and the US in this new direction have been and remain crucial, and this event was the occasion to discuss with both European and Chinese speakers what shape the future European security architecture might take and how China and the USA will influence it.

ICES webinar
EPC forum

At an EPC Thought Leadership Forum held on March 27, US Ambassador to the EU Andrew Puzder presented a broad defence of the Trump administration’s approach to transatlantic relations, arguing that the US and Europe remain essential partners but that the relationship is undergoing a necessary rebalancing.

He framed this shift above all around security, trade and technology, with China playing a central role in Washington’s long term strategic thinking.

On the 31st of March, Euractiv hosted a panel talk on “High energy prices and European industry – How can electricity price support be designed to promote competitiveness?”.

The talk centred on the high energy prices exacerbated by the war in Iran and the one in Ukraine before that, how it impacts European industries especially for raw materials in heavy industries such as chemicals, steel and aluminium, and how the EU can both meet its climate goals while preserving its competitiveness against American and Chinese giants.

Euractiv panel

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

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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.