The European Union’s trade deficit with China has doubled over the past decade, fueling growing frustration in Brussels over what officials describe as a flood of low-cost Chinese products into the EU.
Beijing’s continued support for Putin’s illegal invasion of Ukraine is also a major sticking point. The EU’s top diplomat, Kaja Kallas called China the “key enabler” of Putin’s war and urged Beijing to halt its support to Russia’s military-industrial base. In response, China has indicated that it does not want to see Russia lose the war.
It was not surprising then that a summit in Beijing between top EU and Chinese leaders at the end of July produced few tangible results.
Just ahead of the summit, I spoke with Finbarr Bermingham (X:@fbermingham), Europe Correspondent for the South China Morning Post, to explore what’s really driving the tensions in EU–China trade. We discussed the growing trade imbalance and how China’s rare earth export controls and unwavering support for Russia are reshaping the relationship.
Date of Recording: July 18th, 2025.
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Chinese leader, Xi Jinping (L) and EU Commission President, Ursula von der Leyen (R) |
DIVE DEEPER:
Additional information on the topics covered in this episode:
- China | EU and China agree on plan to iron out rare earth export restrictions, von der Leyen says - Finbarr Bermingham, Xinlu Liang, South China Morning Post (July 24th, 2025)
- EU hails progress on China's rare earth curbs but insists trade be rebalanced - Jorge Liboreiro, EuroNews (July 24th, 2025)
- Beijing's Trade Tactics, Ukraine Stance Cast Pall Over Europe-China Ties - Kim Mackrael, Lawrence Norman, Chun Han Wong, Wall Street Journal (July 24th, 2025)
- Brussels and Beijing talk trade and Ukraine, but deliver few concrete results - Denis Staunton, The Irish Times (July 25th, 2025)
- EU and China agree to strengthen co-operation on climate change - Denis Staunton, The Irish Times (July 24th, 2025)
- Exclusive | China tells EU it does not want to see Russia lose its war in Ukraine: sources - Finbarr Bermingham, South China Morning Post (July 4th, 2025)
- Key moments in EU-China trade frictions - Xiuhao Chen and Ryan Woo, Reuters, (June 23rd, 2025)
- Kaja Kallas Exposes China's Role in Russia's War Against Ukraine - EU Debates, Youtube (April 9th, 2025)
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