
Both targets of Trump's tariffs, the EU and China still can't get along
CNN —
As the two biggest economic targets in Donald Trump's trade war, some analysts thought the European Union and China could move closer together and stake out common ground.
But a summit between the two sides in Beijing on Thursday is instead expected to showcase the deep-seated frictions and mistrust that are widening a rift between the two heavyweights.
European Council President Antonio Costa and European Commission President Ursula von der Leyen are set to meet Chinese leader Xi Jinping and hold summit talks with Chinese Premier Li Qiang in Beijing.
The meeting comes as both countries have faced heightened tariffs on their exports to the US – with uncertainties in US trade relations driving Beijing to look to tighten ties with the EU and other major economies.
But a list of grievances between the two sides are setting that goal out of reach.
The EU was far from shy about its concerns in the lead up to the summit. Officials in recent weeks have reiterated their long-standing concerns over what they say are inexpensive Chinese goods 'flooding' European markets, raised alarms about Beijing's move to squeeze the rare earths supply chain, and decried its ongoing backing for Russia as it wages war in Ukraine.
Beijing has lashed out against those concerns, including the 27-member bloc's move last year to raise tariffs on its electric vehicles, launching a range of its own trade probes in apparent retaliation.
European Commission President Ursula von der Leyen shakes hands with Chinese leader Xi Jinping after holding a trilateral meeting including French President Emmanuel Macron in Paris in May, 2024.
Christian Liewig/Corbis/Getty Images
After the EU last month announced it was barring Chinese companies from participating in public tenders for medical devices over a certain value, Beijing hit back with its own curbs on government purchases of Europe-made devices.
On Monday, China's Ministry of Commerce slammed the EU decision to include two Chinese banks and a handful of other firms in its latest sanctions against Russia over its invasion of Ukraine. It claimed the move would have a 'severely negative impact on China-EU economic and trade relations.'
China's Commerce Minister Wang Wentao lodged solemn representations — diplomatic speak for formally expressing serious discontent — over the sanctions in a video call with EU trade chief Maros Sefcovic on Tuesday. The two officials had 'candid and in-depth' discussions on China-EU economic and trade cooperation and key issues of concern, the Chinese Commerce Ministry said in a statement.
All this sets the stage for a contentious summit, ostensibly meant to celebrate 50 years of relations, that's already been whittled from a planned two days to a single-day event.
'We should expect a very difficult moment and not a deal making moment,' said Abigaël Vasselier, head of the Foreign Relations team at MERICS think tank in Germany, during a media briefing this week.
And in some ways that mirrors frictions between the China and the US, she added: 'China has created leverage over Europe, has gone into a tit-for-tat escalation with Europe, and has linked all issues. You could almost say this looks like a Trump playbook used by China on Europe.'
The US effect
Trump's trade war – and his negotiations with both major economies – is also casting a long shadow over the summit.
There were signs earlier this year that Beijing hoped shared adversity in the face of tariff threats from the US could push China and Europe together. And earlier this month, Beijing granted a reprieve for Europe's major cognac makers following an anti-dumping probe widely seen as retaliation for the bloc's imposition of up to 45% tariffs on its electric vehicles last year.
But in separate addresses to G7 leaders and European lawmakers in recent weeks, von der Leyen made clear the bloc's deep concerns about Beijing had been unresolved.
'China is using this quasi-monopoly (on rare earths) not only as a bargaining chip, but also weaponizing it to undermine competitors in key industries,' she said to G7 leaders meeting in Canada in June.
Beijing has extensive control over supply chains for these critical minerals key in everything from EV batteries and cell phones to fighter jets and roiled global manufacturing after placing export controls on some such minerals amid its trade spat with the US. China agreed during a truce with the US in June to ease these controls.
Von der Leyen also called for unified G7 action to pressure Beijing as it 'floods global markets with subsidized overcapacity that its own market cannot absorb.'
Miners are seen at the Bayan Obo mine containing rare earth minerals, in China's Inner Mongolia in 2011.
Reuters
While von der Leyen has long been hawkish on Beijing, voices in China have seen her as pandering to the US to ease trade frictions – and are watching closely for signs that a potential US-EU trade deal could target their economy.
But China's leaders are also joining this week's summit in what they see as a relatively strong position relative to the EU when it comes the US talks.
Beijing sees its decision to play hardball with the US, by raising tit-for-tat levies and then showing the power of its rare earths leverage, as paying off – bringing the US to the negotiating table twice and resulting with an agreement for a trade framework.
Even as frictions remain – including China's purchases of Russian oil and Washington's elevated tariffs on Chinese goods – Beijing has already chalked wins, like the announced resumption of sales of Nvidia's H20 AI chips to China, in a reversal of an April US export ban.
The EU, meanwhile, is scrambling ahead of an August 1 deadline to cut a deal with the US to avert heavy tariffs – and may see more at stake than their Chinese counterparts.
'The worst-case scenario would be for Europe to find itself in a two-front trade war with the US and China at a time when Trump is pressing for some sort of Faustian bargain with Beijing,' said Noah Barkin, a Berlin-based visiting senior fellow at the German Marshall Fund of the United States think tank.
'Rebalance'?
With this backdrop, chances for any concrete outcomes appear low to observers on both sides, who instead stress that dialogue can be a form of progress in itself.
Europe has been clear that it doesn't want to cut ties with China, but rather 'rebalance' its economic relationship, which saw a more than 300 billion Euro deficit last year. It also aims to 'derisk' its supply chains, and work together with China on shared global issues like climate change – a potential area of agreement this week.
But experts say a key hold-up for Europe has been a sense that Beijing is unmoved by Brussels' core concerns.
'We haven't had an EU-China summit that produced real deliverables for many years and this one won't be any different. That is a reflection of Beijing's refusal to address the EU's two biggest concerns: an increasingly imbalanced economic relationship that poses a growing threat to European industry and China's ongoing support for Russia,' said Barkin.
China has rejected Europe's concerns about industrial overcapacity leading to a flood of exports as baseless, with one state media outlet recently saying that instead of 'rebalancing trade,' Europe to 'needs to recalibrate its mentality.'
BYD electric cars at a vehicle presentation event in Berlin this May.
Annegret Hilse/Reuters
Instead, Beijing is expected to continue to push for setting minimum prices of Chinese-made EVs in Europe instead of tariffs, as well as unfettered access to European technology and markets. And even as Russia ramps up its assault on Kyiv, Beijing is unlikely to give any sign of a shift in that position on Moscow, its close partner.
Chinese Foreign Minister Wang Yi reportedly told the European Union's top diplomat earlier this month that Beijing can't accept Russia losing its war against Ukraine as this could allow the United States to turn its full attention to China.
China has long claimed neutrality in the war and defended its 'normal trade' with Russia, while ramping up purchases of its oil and shipping goods Western leaders say power Russia's defense industry.
But observers in China still feel there's room for collaboration as the two sides sit down on Thursday.
'To solve challenges from climate change to AI and global conflicts, the European Union needs China, and China needs the European Union,' according to Wang Yiwei, director of the Institute of International Affairs at Renmin University in Beijing.
Alluding to the view that the EU can be a counterweight for China against US frictions and a partner in promoting globalization, he added: 'If China and the European Union seek win-win cooperation, the so-called new Cold War cannot prevail.'
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


See - Sada Elbalad
an hour ago
- See - Sada Elbalad
Cyberattack on Microsoft SharePoint Hits 400 Systems
Taarek Refaat A major security incident involving Microsoft's SharePoint platform has affected approximately 400 organizations worldwide, according to new findings by Dutch cybersecurity firm iSecurity. The updated figure, four times higher than earlier estimates, was determined through digital scans of publicly exposed servers running outdated or unpatched versions of SharePoint. The figure represents a significant jump from earlier estimates of around 100 affected entities and highlights the expanding scale of the breach. The company reached the revised estimate after analyzing digital forensics data from vulnerable SharePoint servers. 'This number is likely an undercount,' said Vaisha Bernard, Chief Exploitation Researcher at iSecurity. 'Not every attack leaves behind clear traces, so the real scope could be even wider.' The attack followed Microsoft's failure to fully patch a critical vulnerability in SharePoint, its enterprise collaboration platform. The flaw allowed threat actors to infiltrate unprotected servers, prompting a wave of cyber intrusions. Microsoft, along with Alphabet-owned Google, previously confirmed that Chinese state-linked hacking groups were among those exploiting the vulnerability. Beijing has denied any involvement. iSecurity was one of the first organizations to flag the breach, which has since drawn attention from government agencies and private-sector security teams worldwide. The escalating number of affected entities has sparked concerns over the speed and completeness of Microsoft's security response, as well as the broader vulnerabilities within enterprise cloud infrastructure. 'This kind of exposure shows how one unpatched vector can cascade into hundreds of breaches across critical systems,' Bernard added. Microsoft has since issued updated guidance and urged administrators to immediately apply the latest security patches to all SharePoint environments. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Sports Get to Know 2025 WWE Evolution Results News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks


Al-Ahram Weekly
3 hours ago
- Al-Ahram Weekly
IAEA team to visit Iran within 2-3 weeks - Region
A delegation from the International Atomic Energy Agency will visit Iran within two to three weeks, an Iranian official said Wednesday, adding that the group will not have access to the country's nuclear sites. "We have agreed actually to accept a delegation of the IAEA, a technical delegation, to pay a visit to Iran very soon, in two to three weeks," Iranian Deputy Foreign Minister Kazem Gharibabadi told reporters in remarks that followed Israeli and US strikes on Iran's nuclear facilities last month. Gharibabadi said the visit would focus on establishing new relations with the UN nuclear watchdog, noting: "The delegation will come to Iran to discuss the modality, not to go to the sites." He was speaking at the United Nations ahead of negotiations Friday in Istanbul with France, Britain and Germany, which are threatening to slap sanctions on Iran over its alleged failure to adhere to its nuclear commitments. If the European countries impose sanctions, "we will respond, we will react," Gharibabadi said. In early July, a team of IAEA inspectors left Iran to return to the organisation's headquarters in Vienna after Tehran suspended cooperation with the agency. Iran has blamed the IAEA in part for the June Israeli attacks. The United States, in support of Israel, carried out its strikes on June 22, targeting Iranian nuclear facilities at Fordo, Isfahan and Natanz. US President Donald Trump has repeatedly called the strikes a success that "destroyed" the sites, but several media outlets have reported leaked intelligence suggesting a hazier picture. Iranian Foreign Minister Abbas Araghchi said this week that Tehran has no plans to abandon its nuclear program, including uranium enrichment, despite the "severe" damage to its facilities. Talking on Wednesday about the resumption of US-Iran nuclear talks, which were cancelled in mid-June, Gharibabadi said: "The sooner, the better," though he emphasised that the United States must rule out any further military action. Follow us on: Facebook Instagram Whatsapp Short link:


Al-Ahram Weekly
8 hours ago
- Al-Ahram Weekly
Zelenskyy faces backlash as Ukrainians protest new anti-corruption law - War in Ukraine
Activists on Wednesday called for more protests of a new law that they say weakens Ukraine's anti-corruption watchdogs, following the first major anti-government demonstration in over three years of war. The legislation has also drawn rebukes from European Union officials and international rights groups, as well as putting increased pressure on President Volodymyr Zelenskyy and endangering his public support at a critical phase of the war. Later Wednesday, delegations from Russia and Ukraine were set to meet in Istanbul for a third round of direct talks in two months, although hopes for a breakthrough were low. In the morning, Zelenskyy convened the heads of Ukraine's key anti-corruption and security agencies in response to the outcry against his decision to approve the law that was passed by parliament. 'We all hear what society says,' Zelenskyy wrote on Telegram after the meeting. But he insisted the new legal framework was needed to crack down harder on corruption. 'Criminal cases should not drag on for years without verdicts, and those working against Ukraine must not feel comfortable or immune from punishment,' he said. Zelenskyy said all government agencies agreed to work constructively and respond to public expectations for fairness and effectiveness. A detailed joint action plan is expected within two weeks, aimed at addressing institutional weaknesses, removing legal hurdles, and ensuring justice across the board, he said. Thousands of people gathered in the capital and other cities on Tuesday to urge Zelenskyy to veto the controversial bill. After he approved it, activists went on social media to call for another demonstration Wednesday night in central Kyiv. Zelenskyy has been the international face of Ukraine's determination to defeat Russia's all-out invasion, and his domestic troubles are an unwelcome diversion from the war effort. The legislation tightens government oversight of two key anti-corruption agencies. Critics say the step could significantly weaken the independence of those agencies and give Zelenskyy's circle greater influence over investigations. EU officials warn of possible setback to joining bloc Fighting entrenched corruption is crucial for Ukraine's aspirations to join the EU and maintain access to billions of dollars in Western aid in the war. 'Limiting the independence of Ukraine's anti-corruption agency hampers Ukraine's way towards the EU,' German Foreign Minister Johann Wadephul warned in a post on X. EU Defence Commissioner Andrius Kubilius, also on X, noted: 'In war, trust between the fighting nation and its leadership is more important than modern weapons — difficult to build and to keep, but easy to lose with one significant mistake by the leadership.' The Ukrainian branch of Transparency International criticised the parliament's decision, saying it undermines one of the most significant reforms since 2014, when Ukrainians ousted a pro-Moscow president in what they called the Revolution of Dignity, and damages trust with international partners. It accused authorities of 'dismantling' the country's anti-corruption architecture. Zelenskyy said the new law clears out 'Russian influence' from fighting corruption and ensures punishment for those found guilty of it. He cited years of delays in criminal proceedings involving huge amounts of money. 'The cases that have been lying dormant must be investigated,' he said in a Telegram post early Wednesday. 'For years, officials who have fled Ukraine have been casually living abroad for some reason –- in very nice countries and without legal consequences–– and this is not normal,' he said. He didn't give examples of what he said was Russian interference. The legal changes in Ukraine would grant the prosecutor general new authority over investigations and cases handled by the National Anti-Corruption Bureau of Ukraine (NABU) and the Specialised Anti-Corruption Prosecutor's Office (SAPO). Prosecutor General Ruslan Kravchenko, appointed by Zelenskyy just over a month ago, said the anti-corruption watchdogs and other law enforcement agencies would keep working as before. 'The prosecutor general has only been granted broader powers and an increased scope of authority,' Kravchenko told a news conference as officials moved to ease public concern. The anger and frustration among war-weary Ukrainians prevailed in the crowd Tuesday. Some protesters accused Ukraine's leadership of prioritising loyalty and personal connections over fighting corruption. 'Those who swore to protect the laws and the constitution have instead chosen to shield their inner circle, even at the expense of Ukrainian democracy,' said veteran Oleh Symoroz, who lost both legs after he was wounded in 2022. Russian officials relished Zelenskyy's difficulties, although Moscow faces a series of corruption cases against government and military officials. A third round of direct talks on the war The third direct meeting between Russian and Ukrainian delegations in Turkey in as many months wasn't expected to make progress on ending the war. It would likely focus on further exchanges of prisoners of war. Zelenskyy said the Ukrainian delegation in Istanbul 'will again insist on the need for an immediate and complete ceasefire, including ... strikes on civilian infrastructure.' Russian drone strikes knocked out power to more than 220,000 customers in Ukraine's northeastern Sumy region, Zelenskyy said on Telegram, adding that repairs restored most of the supply in hours. Ukrainian and Western officials have accused the Kremlin of stalling in the talks for its bigger army to capture more Ukrainian land. Earlier this month, U.S. President Donald Trump threatened Russia with severe economic sanctions and said more American weapons, paid for by European countries, would go to Ukraine. Trump hardened his stance toward Moscow after months of frustration with Russian President Vladimir Putin about unsuccessful talks for a ceasefire. Trump gave Russia until early September to agree to a ceasefire. Follow us on: Facebook Instagram Whatsapp Short link: