The EU‑China Reset: A Drama in the Making
It’s been a whirlwind of headlines lately – you thought the EU and China were on the brink of a new partnership, and now it looks like the plans are stalling faster than a broken espresso machine.
Why the Bad Blood
- EU takes a swing: “We’re tired of hearing the same old excuses. It’s time for real action, not polite noise.”
- China fires back: “You’ve been playing a game of one‑up on our turf. Your accusations have no substance.”
Key Takeaways
The grand vision of a fresh start? It’s now hanging in a very shaky line of sight. The sharp exchanges signal more than just diplomatic tension—they’re a warning sign that longstanding mistrust still glares bright. If negotiators want any chance of success, they’ll need to ditch the rhetoric and get into the practical stuff, and that means both parties actually listening to each other’s needs.
China Fires Back at Ursula von der Leyen’s G7 Rant
At the G7 summit in Canada, the EU’s top boss, Ursula von der Leyen, launched a full‑blown attack on Beijing, accusing it of a “pattern of dominance, dependency and blackmail” in trade. China was quick to reply.
Guo Jiakun’s “Fair‑Play” Rebuke
Guo Jiakun, the Foreign Affairs Ministry’s spokesperson, took to the podium with a mix of dignity and a punch of indignation:
- “We are strongly dissatisfied with these baseless, biased remarks.”
- “They’re a clear double‑standard show.”
It’s a reminder that the EU‑China vibe, which had briefly warmed up after President Trump’s tariffs knocked the world economy sideways, is far from smooth sailing.
Trump’s Tariffs: The Catalyst
When Trump slapped tariffs on everything from steel to wheat, the EU’s export‑heavy economy scrambled. With 1.4 billion people, China looked like the “best bet” to fill the void.
Beijing, sensing an opportunity, lifted some of the sanctions on EU parliamentarians, opened talks on the EV‑trouble, and even celebrated the 50th anniversary of EU‑China relations at the same time President Xi dropped a message of “fair multilateralism” against Trump’s unilateralism.
Xi’s Diplomatic Pep Talk
- “Both sides should keep multilateralism alive.”
- “We must oppose unilateralist bullying.”
Xi’s words were, as you’d expect from a Chinese leader, all about maintaining balance.
Von der Leyen Goes Full Hawk
Despite her earlier pledge to deepen ties, the EU boss fired shots at China’s “state‑led” economy, calling it a distortion machine and accusing it of over‑subsidizing and dumping goods. She pointed to China’s 2001 WTO debut, calling it the origin of the “biggest collective problem” in global trade.
Clues for the “new China shock” were in her words: “China still bills itself a developing country, but it clearly refuses to play by the established rules.” She slammed China for sinking intellectual property protections, over‑subbing, and taking over supply chains. “It’s not cool competition — it’s distortion.”
China’s Counter‑Blow
The Foreign Ministry didn’t bow – it struck back. Critics said the EU was handing out boltons to its own firms while starving China of competition. In turn, the Chinese side painted the EU as “European preference” and overly protective, accusing them of “over‑anxiety” instead of real over‑capacity.
- “The EU is trying to boost its growth and competitiveness but is stuck giving double‑standards.”
- “Open up, embrace cooperation, and stop the protectivist mirage.”
In the end, it’s a high‑stakes face‑off: one side accusing the other of cheating, the other calling out hypocrisy. Both want the world’s attention, but they’re swearing at each other like a couple who caught the other in a cheap affair.
Bottom Line
At this point, the EU and China are dancing around each other’s words, with Trump’s tariffs still slicking the floor. The real question is whether the partnership can survive or slip into a new kind of “China shock.” Either way, keep your eyes open – this diplomatic drama is far from over.
Rare earths dispute
EU‑US Team Up, Watching China’s Rare Earth Game
When the EU’s top boss, Ursula von der Leyen, pressed “stop” on China’s latest rare‑earth clamp‑down, the room buzzed. The trick? China’s sudden move to limit the sale of seven of the 17 rare‑earth metals – the “alphabets of tech” that keep gadgets, batteries, and missiles humming. Von der Leyen called the action “alarming” and slammed the country for turning its monopoly into a bargaining chip and a strategic weapon.
China’s Raw‑Material Supremacy
- Controls ~60% of the world’s supply.
- Owns ~90% of the refining and processing capacity.
- Uses its grip to pressure rivals and shape the market.
Despite a slight easing of restrictions over the past few days, von der Leyen warned the threat lingers and urged the G7 to stand firm in nudging China back to the drawing board.
Trump Joins the Conversation
President‑in‑caretaker Donald Trump was there, amid his ongoing push to curb China’s ascent as a high‑tech military juggernaut. He sided with the EU’s concerns, even echoing some of von der Leyen’s stern words. “Donald, you right – there’s a serious problem,” she told the American contingent, hoping the U.S. would help turn the fragile transatlantic alliance into a powerful wedge against Beijing.
China’s Response
The Chinese Foreign Ministry shot back with a headline that sounded more like a movie tagline: “We’re acting responsibly, and we’ll speed up the approval of export licences.” They scoffed at the G7’s accusations, calling them “false” and “a smokescreen to hide trade protectionism.” The spokesperson even threatened that the G7’s market‑distortion claims were a guise to contain China’s industrial progress.
Diplomacy Still on the Table
Still, Beijing kept its hand extended. Guo Duanzhang said China wants to “increase communication and coordination with the EU, properly handle trade differences, and achieve win‑win and shared prosperity.” He added, “We’ll remain opposed to any attempts that hurt China’s right to develop or upset the balance of interests.” There’s a bright‑side: an EU‑China summit is set for late July, offering a chance to reset the conversation without a full-blown showdown.
What’s Next?
- EU to keep the pressure on China’s rare‑earth sandbox.
- US lawmakers to hammer away at China’s tech ambitions.
- Live‑streamed summit in July – eyes on the boardroom.
In short, this is a high‑stakes tech chess game, and everyone’s watching the board, hoping the next move won’t be a self‑defeating blunder by any side.