Latest news with #EUChinaSummit
Forbes
a day ago
- Business
- Forbes
European Trade Tensions Rise Ahead Of The July Summit In China
EU High Representative and Vice-President for Foreign Affairs and Security Policy Kaja Kallas (R) ... More shakes hands with China's Foreign Minister Wang Yi during a meeting as part of the 13th EU-China Strategic Dialogue, in Brussels, on July 2, 2025. EU foreign affairs chief Kaja Kallas on Wednesday urged Beijing to stop undermining Europe's security, as China's top diplomat held talks in Brussels ahead of a leaders' summit later this month. (Photo by François WALSCHAERTS / AFP) (Photo by FRANCOIS WALSCHAERTS/AFP via Getty Images) Strained relations between the European Union and China have put their upcoming summit in late July at risk. During their discussions in mid-June, EU delegates opted not to hold an economic meeting with Chinese officials to discuss trade. The Financial Times reported that a 'lack of progress on numerous trade disputes' was why the meeting was not held. Then, during a meeting between EU and Chinese officials on July 2, China opted to dramatically increase tariffs on several EU products. Chinese Foreign Minister Wang Yi even hinted that China may cancel part of the upcoming two-day summit between EU and Chinese officials due to the growing and ongoing tensions between both parties. As the trade disputes worsen, it is unclear how European and Chinese officials will proceed with the July 24-25 summit. But if European leaders want China's help in convincing Russia not to continue aggressive invasions past Ukrainian borders, diplomats must first quell trade disputes and smooth the flow of commerce. The trade tensions between the EU and China emerged in October 2024, after the Europeans 'raised tariffs on Chinese electric vehicles to as high as 45.3%,' Newsweek reported, while the Chinese imposed duties on imported brandy from the EU. Since then, the trade battle between the EU and China has increased. In April 2025, China announced that it would restrict exports of rare earth minerals to Europe. The statement was met with outrage from the EU. These minerals from China are vital as they are used in the production of electric vehicles, medical equipment, military hardware, and much more. Following the restriction on these rare earth minerals, many European companies were forced to shut down their production lines. While the EU and China impose tariffs on a variety of goods, the United States also recently implemented duties on numerous countries around the world. This includes tariffs on the EU and China. For example, the U.S. has imposed a 10% baseline rate on EU tariffs, but rates for steel (50%) and cars (25%) are significantly higher. Meanwhile, U.S. duties on Chinese goods remain as high as 55%, Reuters reported. As a result, this has put a strain on trade relations between the U.S. and the EU, as well as the U.S. and China. The trade tensions have also led to higher production costs for defense contractors within the United States and Europe. Politico also reported that this could lead to 'crucial supply chain disruptions.' Both the EU and China have been negotiating with the U.S. to reduce these rates. Rather than seeking reconciliation, however, the EU and China have further played into these disagreements. In June, the EU banned Chinese medical devices from many public procurement contracts. Additionally, senior EU officials accused the Chinese government of attempting to 'blackmail' Europe after it imposed restrictions on the export of rare earth minerals. In response, European Commission President Ursula von der Leyen called on the EU to stand together as the organization fights against China's economic policies. This upset Chinese officials. In early July, China announced a ban on European medical device companies, which can no longer sell products to the Chinese government. Additionally, China imposed higher duties on European brandy. This resulted in European officials confronting their Chinese counterparts. The European Parliament has also recently condemned China for the restrictions on rare earth minerals. Despite this tension, the July summit may still proceed. In a recent statement made by the Chinese Foreign Ministry, the announcement read that China was committed to 'deepening [its] dialogue and cooperation' with the Europeans. Continued discussions could result in the easing of tariffs, and improve trade relations between the EU and China. This would grant the EU access to China's rare earth minerals, some of which are used for European military hardware. In preparing for the July summit, the European Council held a meeting on June 26-27. One of the significant discussion topics during the two-day event was the current 'geoeconomic challenges' for the EU, namely wars raging in Ukraine and the Middle East. The EU has served as an intermediary in both conflicts, but negotiation attempts have not ended either war. Adding China as an intermediary during negotiations, however, might sway the outcome of current and ongoing diplomatic discussions. China has economic interests in both Eastern Europe and the Middle East. If China serves as a balanced mediator during diplomatic discussions in both conflicts, this could bolster China's trade relationships with the countries in both regions. Lastly, EU representatives met with their Chinese counterparts for the 13th Strategic Dialogue in Brussels on July 2. During the discussion, delegates addressed EU-China relations and current trade issues between both parties. They stressed the need for 'fairer economic and trade cooperation.' They also concluded that it was 'important to find concrete solutions to rebalance the economic relationship,' according to a Chinese government press release. How this will be addressed, however, is unclear. No one is certain if and how the trade dispute between the EU and China will be resolved. But officials from both entities will work tirelessly to address their trade disputes during the July 24-25 summit. For both parties, it will be essential to move past these issues. For example, the European Commission's trade profile on China states that in 2024, 'EU imports of manufactured goods accounted for 97% of total imports from China.' Similarly, the profile noted that 'EU exports of manufactured goods consisted of 88% of total exports to China.' In other words, the EU and China have a significant trade relationship. Resolving their trade differences will ease burdens on supply chains and global trade, and easing tariffs will make things more affordable for EU and Chinese consumers. It would also reduce the burden on defense manufacturers and contractors, as well as their production lines. Otherwise, if the trade disputes between the EU and China continue, this will bring further burdens on the economy of EU member states as well as China, thus harming global stability.
The Standard
2 days ago
- Politics
- The Standard
EU chief von der Leyen survives confidence vote by large margin
European Commission president Ursula von der Leyen delivers her speech during a statement on the preparation for the EU-China Summit, Tuesday, July 8, 205 at the European Parliament in Strasbourg, eastern France. (AP Photo/Pascal Bastien)
CTV News
2 days ago
- Politics
- CTV News
EU official Ursula von der Leyen comfortably survives a confidence vote
European Commission president Ursula von der Leyen delivers her speech during a statement on the preparation for the EU–China Summit, Tuesday, July 8, 2025 at the European Parliament in Strasbourg, eastern France. (AP Photo/Pascal Bastien) BRUSSELS — European Commission President Ursula von der Leyen comfortably survived a vote of no confidence on Thursday, as an overwhelming number of European Union lawmakers rejected a censure motion against her. The motion contained a mix of allegations against von der Leyen, including text messaging privately with the chief executive of vaccine maker Pfizer during the COVID-19 pandemic, misuse of EU funds and interference in elections in Germany and Romania. The motion was defeated in a 360-175 vote against it, with 18 lawmakers choosing to abstain during a plenary session at the European Parliament in Strasbourg, France. Von der Leyen wasn't present for the vote. The vote has been a lightning rod for criticism of Von der Leyen — who led the EU drive to find vaccines for around 450 million citizens during the pandemic — and her European People's Party, or EPP, which is the largest political family in the assembly. They're accused of cozying up to the hard right to push through their agenda. The EU parliament shifted perceptibly to the political right after Europe-wide elections a year ago. 'We won't vote with the far-right and we do not support this motion. This vote was little more than a far-right PR stunt from Putin-loving populists,' Greens group President Terry Reintke said in a statement after the poll, referring to Russian President Vladimir Putin. However, she added: 'We are ready to build pro-European majorities, but we will not be played by the EPP in their desperate deregulation agenda and their desire to consistently form anti-European majorities with the far-right.' The censure motion, the first at the European Parliament in over a decade, was brought against the European Commission president by a group of hard-right lawmakers. On the eve of the vote, Hungarian Prime Minister Viktor Orbán said on Facebook that it would 'be the moment of truth: on one side the imperial elite in Brussels, on the other patriots and common sense. There is no getting out of it, it is essential to make a choice.' He posted: 'Madam President, the essence of leadership is responsibility. Time to go!' Von der Leyen's commission has frequently clashed with Orbán over his staunchly nationalist government's moves to roll back democracy. The European Commission has frozen Hungary's access to billions of euros in EU funds. The second biggest group, the Socialists and Democrats, has said that the censure motion was a result 'of the EPP's irresponsibility and the double games.' During debate on Monday, S&D leader Iratxe García Pérez said to the EPP: 'Who do you want to govern with? Do you want to govern with those that want to destroy Europe, or those of us who fight every day to build it?' The EPP has notably worked with the hard right to fix the agenda for hearing von der Leyen's new commissioners when they were questioned for their suitability for their posts last year, and to reject an ethics body meant to combat corruption. Lorne Cook, The Associated Press
South China Morning Post
5 days ago
- Business
- South China Morning Post
‘Pessimistic': Ukraine war, trade expected to mar progress at China-EU summit this month
European Union envoys to China say they have low expectations of any substantial achievement at the coming EU-China summit while citing complex trade challenges and the ongoing Ukraine war 'I am sorry to be pessimistic – the next EU-China summit will be a wonderful summit with wonderful statements of principles, but I doubt that we will get some strategic incremental progress,' said Italy's ambassador to China, Massimo Ambrosetti, at the World Peace Forum in Beijing on Friday. European Commission President Ursula von der Leyen and European Council President Antonio Costa will travel to Beijing for the summit, which is expected to take place over two days from July 24, coinciding with the 50th anniversary of EU-Chinese relations. 05:05 Trump and Xi discuss Taiwan, troubled US-China trade ties in call breaking stand-off Trump and Xi discuss Taiwan, troubled US-China trade ties in call breaking stand-off 'We have to realistically consider that the preparation of the summit was, of course, influenced by the negotiations on tariffs – between the EU and the US, between China and the US – it is a terribly complicated context,' Ambrosetti said. 'So it's not surprising that probably we will not have all the results that we hoped for. 'But it's always good to have dialogue and institutional interactions, provided that we look at the future in a really strategic, longer-term perspective.' The summit will take place two weeks after the July 9 deadline set by US President Donald Trump after he waged a global tariff war targeting all major trading partners. US officials now say they will take effect on August 1 The EU member states – once deemed 'nastier than China' by Trump – have been racing to secure a deal, but there have been no breakthroughs.
Yahoo
20-06-2025
- Automotive
- Yahoo
Could China's rare earth pivot ease strain on the automotive sector?
China has approved a number of rare earth export licences, a move that could provide modest relief to global manufacturers struggling with supply disruptions. But with export volumes still sharply down and no transparency on which firms benefit, Europe's automotive industry remains vulnerable to further disruption. At a press conference on Thursday, China's commerce ministry confirmed it had approved 'a certain number' of export licence applications for rare earths and magnets. These minerals are used in an array of high-tech products such as smartphones and jet engines. Rare earths such as neodymium, dysprosium and terbium are indispensable for producing lightweight, high-efficiency motors in electric and hybrid vehicles. China's announcement follows months of tension sparked by Beijing's decision in April to impose new export controls on seven rare earth elements and related products — just days after Washington introduced steep tariffs on Chinese goods. According to commerce ministry spokesperson He Yadong, China will 'continue to strengthen the review and approval' of licence applications and remains 'willing to enhance communication and dialogue' on export controls. The updated tone from Beijing also arrives just weeks before a major EU-China summit set for 24 to 25 July in Beijing, commemorating 50 years of diplomatic relations. Chinese customs data shows the stark impact of the restrictions. Exports of rare earth magnets plunged 74% in May compared to a year earlier, the steepest drop in over a decade. Shipments to the United States fell by 93%, according to a Wall Street Journal analysis. Total export volumes for May stood at just 1.2 million kilograms, the lowest since the start of the COVID-19 pandemic in early 2020. Earlier April exports also dropped by 45% year-on-year. Related EU Decoded: Is the EU losing the geopolitical race for critical raw minerals? From lithium to rare earths: Europe's strategy to power its future energy JL Mag Rare-Earth, a major Chinese magnet supplier to Tesla, Bosch and General Motor, said last week that it had begun receiving licences for shipments to the US, Europe and Southeast Asia. Since April, hundreds of export licence applications have been submitted to Chinese authorities, but only about one-quarter have reportedly been approved. Some firms have encountered requests to disclose IP-sensitive information, while others have faced outright rejections based on unclear procedural grounds. ING economist Rico Luman indicated that with 'nearly 70% of global rare earth production and more than 90% of processing taking place in China, the world remains heavily reliant' on the country. Though rare earths are not geologically scarce — cerium, for instance, is more abundant than copper — their extraction is costly, and mineable concentrations are rare. "It's not a question of scarcity, but of concentration," Luman added. China also supplies more than 90% of the world's demand for rare earth permanent magnets, frequently used in electric motors and wind turbines. Without access to these materials, the European automotive supply chain risks paralysis. The automotive sector relies heavily on rare earth magnets for electric motors, power steering, sensors and other components used in both combustion and electric vehicles. 'China's export restrictions are already shutting down production in Europe's supplier sector,' Benjamin Krieger, Secretary General of CLEPA, warned earlier this spring. His call for 'transparent, proportionate' licensing remains relevant, even as some licences begin to clear. The European Chamber of Commerce in China confirmed that while some progress has been made, challenges persist. 'The situation is improving, although the percentage of cleared licences does vary. Additionally, even once the licence is given, delays can still be seen in customs clearances,' said Adam Dunnett, the Chamber's secretary general. Beijing's latest move to ease export restrictions on key components for the automotive industry offers only limited relief to a sector under strain. The European automotive industry, already grappling with competition from lower-cost Chinese electric vehicles, remains vulnerable to material shortages, delays and discretionary actions from Beijing — thereby reinforcing China's leverage in global trade negotiations. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
