EU-China Trade Tensions Quietly Escalate Amid U.S. Tariff Focus

While U.S. tariffs continue to dominate global headlines, trade tensions between the European Union (EU) and China are intensifying behind the scenes, marked by tit-for-tat restrictions, tariffs, and mutual suspicion.

Recent Escalations in EU-China Trade Relations

The EU restricted Chinese firms from participating in public tenders for medical devices.

China swiftly retaliated with import curbs on EU medical products.

In a separate move, China imposed tariffs on European brandy, viewed as retaliation for the EU’s tariffs on Chinese-made electric vehicles (EVs).

A Relationship in Decline

Experts suggest the relationship has become significantly strained:

Marc Julienne (French Institute of International Relations): “What was once full of opportunity is now more about risk than reward.”

Grzegorz Stec (Mercator Institute for China Studies): The EU and China are on a collision course over industrial and trade policies, including:

China’s overproduction and export push, driven by domestic demand weakness.

The EU’s efforts to protect its industrial base from market distortions.

Ripple Effects from U.S. Tariff Policy

Analysts expected the U.S.–China tariff war to push Beijing and Brussels closer together.

However, China’s perceived success in managing U.S. tensions has lessened its interest in EU alignment.

Beijing now worries the EU may lean toward the U.S. in forming a unified front against China, particularly in tech and trade policy.

What Lies Ahead

More friction is expected, especially over rare earth export controls and Europe’s push for strategic autonomy in green tech and critical industries.

The upcoming EU-China Summit on July 24 in Beijing is unlikely to ease tensions. Leaders from both sides anticipate a tough and likely inconclusive meeting, according to insiders.