China and the EU Enter a Phase of Growing Tension in Trade Negotiations

29 June 2026 13:53
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According to materials from the Italian publication L’Antidiplomatico, negotiations between China and the European Union on economic and trade issues have entered a phase of growing tension. This is happening on the eve of the first meeting of the new trade and investment consultation mechanism.

As L’Antidiplomatico reports, citing a source close to the negotiations, the discussions this week were tense and took place in an atmosphere of deep disagreements and mutual distrust. The Chinese side expressed serious criticism toward Europe, pointing to a lack of sincerity in the approach of the European partners.

The publication notes that, despite formal readiness for dialogue, the European Union continues its course toward strengthening protectionist measures and preparing new economic restrictions. According to L’Antidiplomatico, this position is causing concern in Beijing regarding the effectiveness of the new consultation mechanism, which was created to stabilize economic relations.

L’Antidiplomatico quotes the source as saying that the EU demonstrates readiness for dialogue but avoids addressing key issues while simultaneously preparing additional restrictions. This makes the outcome of the first official meeting uncertain.

The Italian publication also highlights the main contentious topics: the lack of progress on Chinese-made electric vehicles, issues related to price commitments, export controls, access for European goods to the Chinese market, and supplies of rare earth elements. It is separately noted that the European Union has initiated nine investigations against Chinese companies under the foreign subsidies regulation.

According to L’Antidiplomatico, the director of the Center for China-EU Relations at Fudan University, Jian Junbo, described the European approach as ineffective. He noted that Brussels is trying to solve its internal problems through external measures.

This dynamic reflects Europe’s growing strategic dilemma. The desire to protect its markets and technological advantage clashes with the need to maintain stable economic ties with China, which remains one of the European Union’s key trading partners. Without a genuine compromise on the main issues, both sides risk entering a prolonged period of mutual containment, which could ultimately have a negative impact on the European economy.

IR
Bei Gao

Bei Gao

Analyst. China

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