While the European Union (EU) and China have expanded their economic and political co-operation in recent years, they have also faced mutual competition due to strategic differences. While China is increasing its influence in the European market, the EU is trying to balance its relations with China. Especially developments in the fields of trade, technology and security determine the dynamics of this relationship. However, the policies of the United States of America (USA) against China directly affect the strategic decisions of the EU and lead to a co-operation in the shadow of global competition.
China’s global economic and technological rise has raised concerns of the US, leading to the emergence of new dynamics in EU-China relations. In particular, China’s ‘Made in China 2025’ strategy and projects such as the Belt and Road Initiative (BRI) have been perceived as a threat to the US global leadership, which has affected the EU’s efforts to balance its relations with China.
The US trade policies and technological competition strategies against China do not coincide with the EU’s efforts to protect its own economic and security interests. This situation has led to the necessity for the EU to pursue an independent path in its relations with China. While maintaining economic relations with China, the EU adopts a more independent approach towards the US policies in the Asia-Pacific region. The US-China rivalry has directly affected EU-China relations; while the EU has strengthened its economic ties with China, it has adopted a more independent approach towards US policies in the Asia-Pacific region. This situation stands out as an important factor in shaping the EU’s global strategies.
Economic and trade relations between the EU and China have grown significantly in recent years. Both sides are among each other’s largest trading partners, playing a decisive role in global trade balances. However, these relations are strained from time to time due to disagreements in some sectors. China has become one of the world leaders in Electric Vehicle (EV) production and has started to export these vehicles to global markets, especially to Europe.
The EU claims that the entry of Chinese EVs into the European market at low prices leads to unfair competition for domestic producers and that subsidies provided by the Chinese government underlie this. In response to these concerns, the EU started to impose additional customs duties of up to 45% on Chinese-made EVs in October 2024. This decision was met with a backlash from Chinese automobile manufacturers and some of them filed a complaint against the EU to the World Trade Organisation (WTO). For example, SAIC Motor, one of the leading automobile manufacturers in China, announced that it would sue the EU, stating that these tariffs were unfair. Both sides expressed their desire to resolve this dispute through dialogue.
In November 2024, the EU and China started negotiations to find alternative solutions on EV import duties, but no concrete agreement has yet been reached. In addition to the tensions over EVs, trade disputes between the EU and China are also taking place in the dairy sector. In retaliation to the additional duties imposed by the EU on Chinese EVs, the Chinese Ministry of Commerce launched a subsidy investigation into dairy products imported from the EU in August 2024. Within the scope of this investigation, products such as fresh cheese, curd and Roquefort cheese are being examined and it is being investigated whether the EU provides unfair subsidies to these products. This step by China has led to an escalation in trade tensions between the two sides and has shown signs of a mutual trade war. While both sides aim to protect their industries, there are concerns that such steps may have negative effects on global trade.
The US perceives China’s economic rise and technological progress as a threat to its global leadership and has therefore developed various strategies. China’s progress, especially in areas such as artificial intelligence and semiconductor technologies, and US restrictions in these areas have created incentives for Chinese firms to cooperate more among themselves. This situation has raised concerns that US restrictions may harm the US rather than China in the long run.
The United States is pursuing a comprehensive containment strategy to counterbalance China’s rise in the Asia-Pacific region. This strategy is embodied in steps such as the establishment of new military bases and alliances. The deepening relations between the US and its allies in the Pacific region and China’s growing military capability have led to a shift in the balance in the region and an increased risk of potential conflict. The US strategies towards China are important factors that the EU takes into account when shaping its own policies. However, the EU adopts a more independent approach in its relations with China by pursuing its own interests. In particular, the US’ perception of China as a strategic rival and its increasing military presence in the Asia-Pacific region affect the EU’s policies in the region. While maintaining economic relations with China, the EU adopts a more independent approach towards the US policies in the Asia-Pacific region. This situation affects the EU’s policies in the region and pushes the EU to be more proactive in protecting its own interests. These dynamics contribute to the emergence of new power balances in international relations.
At a time when the global balance of power is being reshaped, relations between the EU and China are undergoing a significant transformation in the context of US policies and strategic competition towards China. This dynamic affects both the economic and political strategies of the EU, leading it to adopt a more balanced and independent approach in its relations with China. The competition between the US and China is particularly intense in the fields of technology and trade. US trade policies against China and restrictions on technology transfer affect global supply chains and cause the EU to reassess its role in this process.
While maintaining its trade relations with China, the EU tries to protect its own strategic interests in the face of US pressures. The EU sees China as both a partner and a competitor. This dual approach reveals the necessity of pursuing a balanced policy in the EU’s relations with China. Relations between the EU and China have shown significant developments in recent years. Chinese President Xi Jinping emphasizes economic relations with the EU, emphasizing cooperation rather than competition. In a telephone conversation with the President of the European Council Costa in January 2025, Xi stated that his country sees Europe as ‘an important pole in a multipolar world’ and supports Europe’s ‘pursuit of strategic autonomy’. In this context, China’s BRI and the EU’s ‘Global Gateway’ strategies offer opportunities for co-operation in infrastructure and investment projects. However, competition and geopolitical dynamics should be taken into account in these areas of co-operation. Moreover, China’s efforts to increase its international influence create dynamics in its relations with the EU. China aims to shape events by increasing its international influence and makes diplomatic moves in this direction.
In conclusion, the US strategic competition towards China directly affects the EU’s relations with China. The EU tries to manage its relations with China in a balanced manner by developing its independent strategies in this competitive environment. Under the leadership of Xi Jinping, China continues its efforts to strengthen and shape its relations with the EU. The future of these relations will be shaped depending on the strategic goals of both sides and global dynamics.
