[Source/Observer Network by Shao Yun]

According to a June 13 report by Hong Kong's South China Morning Post, following the conclusion of the second round of economic and trade talks between China and the United States, EU countries are "intensely analyzing" recent statements, posts, and other materials released by both sides in an attempt to find clues as to how the aftermath of their interactions will reshape Europe's trade relations with China, the U.S., and other countries. The report直言ly pointed out that this once again made Europe realize that its fate is increasingly influenced by the intentions of the two great powers, China and the United States.

"The EU Marginalized Due to the Showdown Between China and the U.S." On June 13, the South China Morning Post believed that although phased results were achieved during the talks in Geneva and London, temporarily stabilizing the situation, the EU still faces uncertainty in future trade negotiations with China and the U.S.

For instance, the report mentioned that U.S. Treasury Secretary Janet Yellen hinted on the morning of June 11 that the deadline for reaching agreements with major trading partners would be extended beyond July 9, specifically naming the EU as an example of "genuine negotiation." However, just hours later, U.S. President Donald Trump publicly stated that he saw no need for an extension and indicated that he was ready to send formal letters notifying the content of the agreement to various countries "in about a week and a half or two weeks."

"We'll send those letters out at that time. I think you understand, this letter will tell them: This is the agreement, take it or leave it," Trump said.

Photo caption: Joerg Wuttke, ZUMA Wire

The South China Morning Post pointed out that timing is crucial for Europe. Recent reports from European media suggested that the China-EU Summit is expected to take place on July 24. The EU has long believed that how the Trump administration adjusts tariff levels after the deferral period ends will profoundly influence whether substantial results can be achieved at the summit.

"If there is a reversal on July 24, such as imposing a 50% tariff on Europe and a 30% tariff on China, I personally wouldn't be surprised," said Deborah Elms, director of the Rhodium Group, a Singapore-based think tank focused on trade policy. "The situation may indeed differ then, but you cannot expect clarity or assume the future will be better."

Elms added, "I want to say to Europeans—it's difficult—but you must separate U.S. policies from your own interests. What is beneficial to you?"

In numerous trade issues, the most pressing one currently is China's decision in April to impose export controls on various medium and heavy rare earths and magnets. The South China Morning Post reported that some EU business groups have indicated that Chinese authorities have begun issuing licenses. In response, European Commission spokesperson Olav Gjers on June 10 said, "As far as I know, we have not received any formal communication on this matter."

As the world's largest producer and processor of rare earths, China has legally introduced new regulations to implement export controls on certain rare earth-related items with military and civilian dual-use attributes. This move aims to fulfill international non-proliferation obligations while safeguarding national security, drawing concern from Europe. A recent article in Germany's Der Spiegel referred to this as a "metal crisis akin to the energy crisis of 2022" and believed that "in the short term, the EU has no choice but to compromise with China."

Notably, in multiple areas where China and Europe have differences, China has shown some goodwill toward Europe. On June 10, the Ministry of Commerce announced that due to the complexity of the case, the anti-dumping investigation into pork products originating from the EU and others would be extended by six months until December 16, 2025.

This year marks the 50th anniversary of the establishment of diplomatic relations between China and the EU. According to a June 4 report by Bloomberg, European aircraft manufacturer Airbus is likely to sign orders for hundreds of aircraft with China next month to commemorate the long-term bilateral cooperation between China and the EU. It is reported that the scale of this order ranges from 200 to 500 aircraft and covers various models, including narrow-body and wide-body aircraft.

However, on the EU side, despite reports that French cognac producers have proposed a "minimum import price" to China in exchange for the cancellation of anti-dumping measures, the EU has successively implemented discriminatory measures against Chinese enterprises.

On June 10, the EU announced a 62.4% "anti-dumping duty" on hardwood plywood imports from China under the pretext of protecting domestic industries. On June 2, EU member states voted to ban Chinese medical device manufacturers from participating in public procurement projects worth more than 5 million euros within the EU for the next five years under the International Procurement Instrument.

In response to the EU's protectionist practice of restricting Chinese enterprises' participation in medical equipment public procurement, China has expressed firm opposition. A commerce ministry spokesperson said on March 3 that the EU's relevant decisions and discriminatory measures not only harm the interests of Chinese companies but also use unilateral tools to disrupt fair competition and build new trade barriers.

The spokesperson pointed out that the current global economic order is suffering severe shocks from unilateralism and protectionism. As responsible major economies, China and the EU should adhere to WTO rules, uphold principles of fairness, transparency, and non-discrimination, meet challenges with mutual openness, resolve disputes through dialogue and cooperation, and jointly maintain the healthy development of Sino-European economic and trade relations. We hope the EU corrects its mistaken practices, and China will closely monitor the EU's subsequent actions and take measures to firmly safeguard the legitimate rights and interests of Chinese enterprises.

According to a briefing by the commerce ministry spokesperson on March 9, recently, Minister Wang Wentao of the Ministry of Commerce held talks with EU Commissioner for Trade and Economic Security Vladimir Sucha in Paris. Both sides had focused, candid, and in-depth discussions on urgent and important issues such as the EU's anti-subsidy case against Chinese electric vehicles, China's anti-dumping case against EU brandy, and export control. They tasked their working teams to work intensively to prepare for the economic and trade aspects of the important agenda this year between China and the EU.

The spokesperson said that the price commitment negotiations for the electric vehicle case between China and the EU have entered the final stage, but both sides still need to make efforts. The EU side proposed simultaneously exploring new technological paths, and China will assess the feasibility of the EU's proposals from legal and technical perspectives. The spokesperson emphasized that China has fully demonstrated its sincerity in resolving trade disputes between China and the EU through dialogue and consultation. We hope that the EU will meet us halfway and properly address our concerns, creating conditions for further expanding cooperation between China and the EU.

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