Overview

• China is actively seeking a partnership with the EU to counterbalance strained trade relations with the U.S., exacerbated by high American tariffs.
• EU leaders are engaging in renewed dialogue with China, including a planned July summit in Beijing, to address trade imbalances and reduce tensions over tariffs on electric vehicles.
• Chinese investments in European industries, particularly in Hungary’s battery and auto sectors, signal Beijing’s strategic effort to deepen economic integration with the EU.
• The EU remains cautious about forming a deep alliance with China, citing concerns over trade deficits, industrial subsidies, and geopolitical differences, including China's stance on Russia and human rights.
• Chinese officials have criticized U.S. tariffs as unilateral economic abuse, framing their outreach to the EU as a commitment to multilateralism and open markets.