Trade and political tensions: Beijing suspends two meetings with Brussels

Both blocs have sought to maintain a dialogue to manage their differences, as evidenced by ongoing bilateral summits and exchanges between think tanks, in an effort to prevent the situation from escalating into a direct confrontation.

However, cancelling meetings is a common tactic used to signal dissatisfaction with the policies implemented by one of the parties.

China and the European Union are at once vital economic partners, direct economic competitors and systemic rivals. Together, they account for over a third of global GDP and nearly 30% of world trade, remaining deeply intertwined despite ongoing geopolitical tensions.

China is the EU’s third-largest trading partner, with bilateral trade in goods and services exceeding €845 billion.

Brussels, however, has become increasingly defensive against Chinese state subsidies and industrial overcapacity, particularly in sectors such as electric vehicles (EVs), wind turbines and solar technology. For this reason, it is actively pursuing a ‘de-risking’ strategy, focusing on diversifying supply chains, reducing vulnerabilities in strategic sectors and strengthening the Critical Raw Materials Act.

Both the EU and China share a common interest: the green transition. Ongoing cooperation covers emissions trading schemes, water management and the transition to a circular economy. Last year’s bilateral summit in Beijing led to this development, even as the two blocs remained divided by geopolitics and systemic rivalry.

The EU is keeping up the pressure on Beijing over its relationship with Russia, closely monitoring and taking action against any Chinese entities and supply chains that are supporting Russia’s military campaign in Ukraine.

Brussels is keeping a close eye on supply chain security: access to rare earths and restrictions on exports of critical raw materials remain, as is well known, key points of contention and strategic manoeuvring on both sides.