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China-EU Relations at a Crossroads

Political Tensions and the Atmosphere in Brussels

As China and the European Union (EU) mark the 50th anniversary of diplomatic relations, the relationship is experiencing both cooperation and growing tensions. While trade remains strong, disputes over tariffs, human rights concerns, and geopolitical issues are creating a more challenging diplomatic landscape. At the same time, Brussels, the heart of EU policymaking, is witnessing an increasingly tense political climate as European institutions grapple with both internal divisions and external pressures.

China-EU Relations: From Trade Partners to Strategic Rivals?

The China-EU relationship has undergone a significant transformation over the decades. From an initial trade volume of just $2.4 billion in 1975, bilateral trade has now surged to $780 billion annually. However, economic interdependence has not prevented diplomatic strains.

One of the most notable recent developments is the Chinese government’s decision not to send President Xi Jinping to a commemorative EU-China summit in Brussels. Instead, Premier Li Qiang was dispatched, a move that many in the EU see as a deliberate diplomatic snub.

Trade disputes are another flashpoint. The EU has imposed tariffs on Chinese electric vehicles, arguing that heavy state subsidies distort competition. In response, China has targeted European industries, particularly the French cognac sector, with retaliatory tariffs. These escalating trade tensions have raised concerns over a potential economic conflict that could disrupt global supply chains.

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The Political Atmosphere in Brussels: Fractures and Uncertainty

Brussels remains the centre of EU political manoeuvring, but the atmosphere among key institutions—the European Parliament (EP), the European Commission (EC), and the journalistic press corps—is growing increasingly tense.

European Parliament: A New Composition, Old Divisions

Following the European elections in June 2024, a new parliamentary composition has taken shape, yet divisions over China policy remain. While some lawmakers advocate for maintaining strong trade ties, others push for a tougher stance on human rights, technology transfers, and security risks.

The Parliament’s more hawkish members, particularly those from Baltic states and Eastern Europe, are pushing for stricter trade barriers and sanctions on Chinese companies with suspected links to Beijing’s military and surveillance industries. Meanwhile, lawmakers from Germany and France, where industries depend heavily on Chinese markets, are advocating for more balanced engagement to avoid economic fallout.

European Commission: Kaja Kallas Leads a Tougher Foreign Policy Approach

The European Commission, under President Ursula von der Leyen, continues to balance diplomacy with strategic autonomy. However, with the appointment of Kaja Kallas as the EU’s new High Representative for Foreign Affairs and Security Policy on December 1, 2024, Brussels has taken a firmer stance on China. Kallas, the former Prime Minister of Estonia and a strong advocate for European security has been vocal about the risks of Chinese economic coercion and strategic dependence.

Under her leadership, the EU has intensified efforts to counter foreign interference, particularly in sectors deemed critical to Europe’s security and technological sovereignty. Kallas has also pushed for greater alignment between the EU and NATO in addressing Chinese influence operations and hybrid threats.

Tensions within the Commission have also surfaced. While Kallas and Trade Commissioner Valdis Dombrovskis advocate for stricter measures against unfair Chinese trade practices, some commissioners from more trade-dependent member states remain hesitant about escalating tensions with Beijing. These internal debates highlight the challenges of crafting a unified EU approach toward China.

Covering a Shifting Landscape

The Brussels press corps, which closely follows EU-China relations, has also noticed a shift in the political atmosphere. European journalists have reported increasing frustration among EU officials over Beijing’s unwillingness to engage in genuine dialogue on sensitive topics such as human rights and security. Some correspondents covering the EU-China relationship have noted a more defensive tone from European policymakers, who feel that China is not reciprocating Europe’s diplomatic efforts.

Furthermore, China’s influence operations in Europe remain a major topic of discussion in the press. Investigative reports have highlighted concerns over lobbying efforts, economic coercion, and espionage allegations, all of which add to the broader sense of caution among European decision-makers.

Brussels and the Broader Geopolitical Landscape

Beyond China, Brussels remains a hub for high-stakes international diplomacy. The EU continues to play a leading role in supporting Ukraine against Russian aggression, as evidenced by recent European Council meetings where Ukrainian President Volodymyr Zelenskyy called for increased sanctions on Moscow.

At the same time, domestic political tensions are rising. Belgian trade unions have announced a general strike for March 31, protesting government policies perceived as harmful to workers. This internal unrest adds another layer of complexity to the already strained political atmosphere in Brussels.

A Defining Moment for China-EU Relations

As China and the EU navigate their 50th year of diplomatic relations, their partnership faces significant challenges. While economic ties remain strong, political tensions over trade, security, and diplomatic engagement are growing.

In Brussels, these issues are playing out against a backdrop of increasing political fragmentation. The European Parliament is divided, the European Commission is balancing competing interests, and the press corps is documenting a rapidly evolving relationship.

With the EU’s new foreign policy leadership under Kaja Kallas and European politics shifting following the 2024 elections, the coming months will be crucial in determining whether China and the EU can manage their differences and maintain a stable partnership—or whether strategic rivalry will take centre stage.

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