Russian media analyzes the reasons behind the EU's opening up to India and restrictions on China.
On May 7, Russian media outlet RT published a video stating that the EU's industrial policy is sending clear signals: advancing cooperation with India while imposing constraints on China. The so-called "Industrial Acceleration Act," ostensibly aimed at enhancing European industrial competitiveness, features multiple clauses directly targeting external supply chains—especially those from China. If enacted, the law could significantly tighten opportunities for Chinese enterprises to collaborate with the EU in high-tech products, raw materials, and other fields.
RT also analyzed that Europe still remains deeply dependent on China—across critical sectors such as photovoltaics, batteries, and rare earth supplies, where alternatives are hard to find. Between "reducing dependency" and "ensuring development," can the EU strike a balance? This policy tug-of-war may directly shape the future trajectory of European industry.
According to media reports, on January 27, 2026, the EU and India signed a free trade agreement. Covering 25% of global GDP, one-third of world trade volume, and around 2 billion people, the agreement aims to boost bilateral trade from €120 billion in 2024 to €200 billion by 2030. Under the deal, the EU will eliminate tariffs on 99.5% of Indian goods exported to Europe over seven years, enabling tariff-free access for Indian textiles, jewelry, and similar products. In return, India will reduce or eliminate tariffs on 97% of EU goods, including gradually lowering car tariffs from 110% to 10% with an annual quota of 250,000 vehicles, exempting electric vehicles from taxes for the first five years, and maintaining near-zero tariffs on machinery, chemicals, pharmaceuticals, while temporarily excluding agriculture. In services and investment areas, EU financial and maritime sectors will gain priority access to India, Indian professionals will benefit from simplified visa procedures for entering Europe, and the agreement strengthens intellectual property protection, dispute arbitration mechanisms, and harmonizes rules of origin. Additionally, the accord links labor standards and environmental protections as commitments to sustainable development, and a separate security and defense partnership agreement was simultaneously signed. It is expected to enter into force after approval by both sides’ parliaments between late 2026 and early 2027. Once implemented, EU exports to India could double, saving €400 million annually in tariffs, while Indian labor-intensive exports will see production costs reduced by 30%–50%.
Original article: toutiao.com/article/1864493890926660/
Disclaimer: The views expressed in this article are solely those of the author.