
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


Al-Ahram Weekly
9 hours ago
- Al-Ahram Weekly
Hundreds of Lebanese welcome Pro-Palestinian militant released after 40 years in French jail - Region
Hundreds of Lebanese gathered near Beirut International Airport on Thursday to welcome Georges Ibrahim Abdallah, the pro-Palestinian Lebanese militant released after 41 years in French detention, according to Hezbollah-affiliated Al-Mayadeen. French authorities deported Abdallah a day earlier than expected in what Al-Mayadeen described as an attempt to disrupt the planned reception and celebrations. The outlet referred to Abdallah as a 'revolutionary activist'. A post on X by the network said: 'After 41 years in a French prison, Lebanese revolutionary and activist Georges Ibrahim Abdallah has finally been freed. Today, he arrived in Beirut, reuniting with his family and comrades, as countless supporters have long awaited his return.' 'Despite relentless Western pressure to trade his political principles for his legal right to freedom, Abdallah never caved in, choosing to spend most of his life behind bars rather than abandon the cause he stands for,' it added. A photo taken on 3 July 1986 shows former Lebanese militiaman Georges Ibrahim Abdallah during his trial for complicity in the murder of two diplomats, for which Abdallah was sentenced to life imprisonment. AFP Supporters gathered outside the airport, waving Lebanese and Palestinian flags and chanting in support of Abdallah. Some banged on drums and held up Palestinian and Lebanese Communist Party flags and a banner reading, 'George Abdallah is free — a Lebanese, Palestinian and international freedom fighter on the road to liberating Palestine,' AP reported. 🇱🇧 DIRECT I Le monde continue d'arriver devant l'aéroport de Beyrouth en soutien à Georges Ibrahim Abdallah. L'ancien prisonnier politique, enfermé pendant 41 ans, devrait arriver dans les prochaines minutes. Enorme émotion sur place. — Révolution Permanente (@RevPermanente) July 25, 2025 Abdallah, a former leader of the Lebanese Armed Revolutionary Factions, was convicted in France in 1987 over the 1982 assassinations of a US military attaché and an Israeli diplomat. He became eligible for release in 1999 but remained imprisoned amid political opposition from successive French governments, under pressure from the United States and Israel. Follow us on: Facebook Instagram Whatsapp Short link:


Al-Ahram Weekly
10 hours ago
- Al-Ahram Weekly
French move, global outrage at starving Gaza put recognizing Palestine on map in Europe - War on Gaza
Israel's genocidal war and starvation policies in Gaza have sent shivers down the spines of millions around the world and reignited a momentum in several European countries to push leaders to recognise Palestinian statehood. Pressures on various European capitals to return to demanding that Israel accepts a two-state solution increased after French President Emmanuel Macron announced on Thursday that his country would recognise a Palestinian state in September at the upcoming UN General Assembly. The French announcement of intent to become the 143rd country to recognize Palestinian Statehood was met with warm praise in the Arab world from Egypt, Jordan, the Arab Gulf States, and the Palestinian presidency. In the UK, MPs and broad segments of the public were pressuring the government of Prime Minister Keir Starmer to follow in the French steps. In Germany and Italy, two countries that have long supported the two-state solution to the Israel-Palestine conflict in principle, the governments of Chancellor Friedrich Merz and Prime Minister Giorgia Meloni said that while they support a ceasefire in the Gaza war and unfettered entry of aid to alleviate the suffering of the Palestinians but the timing for recognizing aPalestinian statehood might not be right. For nearly two years, endless pro-Palestinian demonstrations across Europe pressured several governments into coming out against the Israeli war, but could not pressure them into recognizing Palestinian statehood. The French announcement came a few days after France, the UK, and Italy joined 23 European nations and Japan, New Zealand, and Australia in calling for an immediate end to the Israeli war in Gaza and the unfettered entry of aid to the strip to prevent famine in the strip. Earlier this month, the EU rejected a proposal put forward by Spanish Prime Minister Pedro Sanchez, whose government has led the charge in opposing the Israeli war in Gaza from its start within the old continent, to suspend the EU-Israel Association agreement and block imports from illegal Israeli settlements in the occupied West Bank over Israeli violations of international law. This week, in several European capitals, demonstrations and outrage by broad segments of the public over the death of starving Palestinians on top of 200,000 killed and wounded since October 2023, plus calls by many left-leaning and pro-Palestinian MPs for recognition of the State of Palestine, have increased pressure on several European governments to consider the matter. These public calls in the old continent for leaders to recognise Palestinian statehood have also intensified in the past several days as the images of dead or dying, starving, and emaciated Palestinians, including children, due to the five-month-old Israeli blockade on any food or water to Gaza. They also intensified after Israel and the US walked away from ceasefire talks with Hamas, mediated by Egypt and Qatar, dashing hopes among many around the world that the carnage in Gaza was nearing its end. On Friday, Ireland's Prime Minister Micheál Martin, a staunch opponent of the Israeli war in Gaza, welcomed France's move, calling it 'very significant' and noting it would make France the first G7 nation to take such a step. Ireland, Spain and Norway formally recognized Palestine in May 2024. Mounting pressure In Westminster, a parliamentary report published Friday urged immediate recognition of Palestinian statehood. 'The UK has missed multiple opportunities to act decisively in the past. We must not let another opportunity pass us by,' wrote Emily Thornberry, the chair of the Foreign Affairs Committee in the UK Parliament. Senior Labour figures have expressed support for recognition, while the Liberal Democrats have warned that the UK must not 'fall behind' its European allies. Also on Friday, more than 220 MPs called on Prime Minister Keir Starmer to formally recognise the State of Palestine, less than 24 hours after France announced its intention to do so, according to AFP. The demand came in a letter organised by Labour MP Sarah Champion, who chairs the International Development Committee, Sky News reported. The letter stated that UK recognition would carry particular weight, given Britain's authorship of the Balfour Declaration and its former role as the Mandatory Power in Palestine. "Since 1980 we have backed a two-state solution. Such recognition would give that position substance, as well as fulfil a historic responsibility to the people under that Mandate," it added. So far, Downing Street has resisted these calls, insisting a ceasefire in Israel's war on Gaza must come first. Ministers have maintained that sovereignty should only be recognised 'at the moment of attaining statehood.' On Friday, Germany, a staunch ally of Israel, said it had "no plans to recognise a Palestinian state in the short term." A government spokesperson said Berlin considers recognition one of the final steps toward a two-state solution, adding: "Israel's security is of paramount importance to the German government." Along the same lines, Italian Foreign Minister Antonio Tajani said that while Rome could not accept the "carnage and famine" in Gaza, it was not ready to join France. "We can no longer accept carnage and famine," he said, according to ANSA. He added Italy would only recognise a Palestinian state "at the same time as their recognition of the state of Israel." Italian Prime Minister Meloni called the situation in Gaza "dramatic" on Wednesday, stating: "No military action can justify attacks against civilians." The UK PM Starmer was expected to join an emergency call with Macron and Chancellor Merz to discuss the spiralling humanitarian crisis. More than 100 humanitarian organisations have warned of imminent famine. On Friday, Médecins Sans Frontières (MSF) said its teams are "witnessing catastrophic levels of malnutrition", reporting that one in four young children and pregnant women screened were malnourished. Follow us on: Facebook Instagram Whatsapp Short link:


Al-Ahram Weekly
10 hours ago
- Al-Ahram Weekly
Unleashing mining potential - Economy - Al-Ahram Weekly
Egypt's mining sector has recently been in the limelight with a set of new exploration agreements and production increases, not only for gold, which is the most actively looked for mineral, but also phosphates and iron and other lesser-known minerals to the public like white sand. The Egypt Mining Forum 2025, which took place last week, saw agreements finalised for more gold exploration with AngloGold Ashanti, which bought Centamin and is now the operator of the Sukari Gold Mine, as well as Canada's Barrick Mining Corporation. 'Egypt is open to all forms of investment, with a particular focus on empowering Egyptian, regional, and international investors, and we stand ready to allocate additional areas for exploration and prospecting across all mineral types, reaffirming our unwavering commitment to expanding growth opportunities within the mining sector,' Minister of Petroleum and Mineral Resources Karim Badawi said. A $658 million phosphoric acid complex is currently under construction in the New Valley governorate due to a contract between a consortium of Egyptian companies and two Chinese entities. Phosphoric acid is used in many industries, the most important of which is fertilisers. The complex has an estimated production capacity of 900,000 tons annually. 'This clearly demonstrates the strong desire of international companies to expand their investments in the Egyptian mining sector, which serves as proof of major international companies' confidence in Egypt's investment climate, reflecting the success of the state's policy in attracting foreign investments,' Badawi said. Egypt recorded $446 million in revenues from mineral wealth development in the 2025 year to date, marking a 131 per cent increase compared to the previous year, Badawi told the forum attendees. The increased interest follows government efforts to streamline the sector by amending the mining law and introducing investment-friendly changes in the formula of sharing costs and profits with explorers. The most recent move was parliament's approval of a bill changing the status of the Egyptian Mineral Resources Authority (EMRA) to that of an economic authority with its own independent budget. The draft law establishes a regulatory framework modeled after the structure of Egypt's General Petroleum Corporation (EGPC), with the goal of simplifying procedures and improving flexibility so that mineral resources can be developed more efficiently and competitively. 'The swift alignment of the mining legislation with international best practice demonstrates unprecedented institutional collaboration. The unified commitment across Government, Parliament, and industry to defined timelines has enabled us to enact critical reforms that will drive sustainable growth in Egypt's mining sector,' said Hoda Mansour, Managing Director and Vice Chair of Sukari Gold Mines, representing AngloGold Ashanti during the forum. MP Mohamed Ismail, who submitted the demand to change the EMRA to an independent economic entity, noted that as a public service authority it is under fragmented oversight, reporting financially to the ministries of planning and finance and technically to the Ministry of Petroleum. This administrative and organisational distortion, he told the House of Representatives, has constrained the authority's performance and led to the mining sector contributing less than one per cent to the country's GDP. EMRA, now known as the Mineral Resources and Mining Industries Authority, will keep 65 per cent of its annual profits and transfer the remaining 35 per cent to the state treasury. Ismail expected the change to mark a turning point for the industry and to increase government revenues from LE2 billion to LE12 billion annually within seven years, raise the sector's GDP share to six per cent in five years, and boost exports from $1.5 billion to $7 billion within a decade. A closer look at the sector reveals that gold still attracts the lion's share of investment. A Fitch Solutions report issued early last year pointed out that in March 2021, the former minister of petroleum and mineral resources, Tarek Al-Molla, had announced that Egypt aimed to become a world-class mining hub, raising its mining exports to $10 billion by 2040, up from $1.6 in 2021. 'While we do not expect export growth to be as strong as these aims, gold production and exports have strong potential. The government is liberalising the gold sector in an attempt to encourage foreign investment, and we expect gold prices to remain high in the coming five years, which will encourage exploration and mine development,' the report noted. According to a government document cited by the news outlet Al-Arabiya, Egypt's gold sector has witnessed remarkable growth, with gold and precious stone exports surging by 74 per cent to reach $2.85 billion in the first 11 months of 2024, up from $1.64 billion during the same period in 2023. While steel makes a lot of news locally owing to the effect of price changes on the construction sector, little attention is given to the volume of production. Egypt, states the Fitch report, is emerging to be Africa's largest steel producer and second-largest producer in the Middle East and North Africa (MENA) region after Iran. Egypt's steel production continued to grow consistently throughout the Covid-19 pandemic, whereas most other countries experienced at least temporary contractions. Crude steel output reached 9.8 million tons in 2022, the second-largest in MENA after Iran. 'We forecast average annual growth of 1.5 per cent over the next decade as the government supports the industry to reduce reliance on imported steel,' Fitch said. During the period between 2019 and 2024, phosphate production saw the highest rate of growth, according to a report prepared by the Egypt Oil and Gas Group, with an annual average of eight million metric tons (mmt) compared to 3.92 mmt in 2019-2020. This reflects intensified mining activity, strategic investment, and strong export demand supporting Egypt's phosphate industry, it said. The Abu Tartur Plateau in the Western Desert is one of the largest and most promising deposits of phosphates, known for high-grade ore and substantial reserves. A detailed study titled 'Phosphate Mining in Egypt: Geology and Sustainable Development' by Mahmoud Zanaty, a geologist at US firm Haliburton, confirms that Egypt possesses four per cent of global phosphate deposits, totalling 2.78 billion tons, and produces six million tons annually, which accounts for three per cent of global output. Phosphates have diverse applications across several industries, creating vast investment opportunities. Industry observers say that in the light of the projected 25 per cent expansion in cultivated land over the next six years, there will be a higher demand for phosphate-based agricultural products, resulting in a vast domestic market. However, high production costs, especially in the Abu Tartour Plateau, which contains approximately one billion metric tons of reserves but with high impurities, represent a challenge for the sector. There is also fierce competition, especially from neighbouring African and Arab countries, such as Morocco, which has the world's largest phosphate reserves, Saudi Arabia, and Jordan. Other minerals highlighted by Egypt's Oil and Gas report showed declining or inconsistent trajectories during the five-year period. Iron production, which averaged 0.05 mmt, dropped sharply by 84 per cent and ceased entirely after 2020-21. 'Egypt's iron production declined sharply due to outdated machinery, heavy financial losses exceeding LE9 billion, inconsistent energy and raw material supplies, and a government decision to liquidate the Egyptian Iron and Steel Company,' the Fitch report said. * A version of this article appears in print in the 24 July, 2025 edition of Al-Ahram Weekly Follow us on: Facebook Instagram Whatsapp Short link: