【Text by Observers Network, Liu Bai】The tariff policies of the Trump administration have stirred up the "calm waters" of global economic development. In the face of continuous signals of goodwill and cooperation from China, the EU has acted "sentimentally," unable to shake off its illusions about the US, and even taken restrictive measures against China.
"The EU finds itself in a geopolitical dilemma between China and the United States," wrote an article published by The New York Times on July 6. On one hand, the EU tries to reach a trade agreement framework with the Trump administration to avoid being subjected to high tariffs; on the other hand, it is dissatisfied with China's policies on issues such as the Ukraine conflict, and recently imposed restrictions on purchasing Chinese equipment under the pretext of "unfair competition." However, facing the turbulence in the global trade situation, it has no choice but to maintain a relatively stable relationship with China, the world's manufacturing powerhouse.
Notably, when the EU sets trade barriers against Chinese products, it often faces swift countermeasures from China: launching anti-dumping investigations on EU pork and brandy, initiating subsidy investigations on certain dairy products, etc. On July 6, China also took equivalent restrictive measures against certain medical devices imported from the EU.
A U.S. scholar put it plainly: in fact, Europe does not have a "China card" to play. Due to the high degree of economic interdependence between China and the EU, the EU has very limited room to pressure China, and China's countermeasures have made it realize this reality.
"The EU is dissatisfied with China on one side and faces U.S. tariffs on the other."
The article wrote that the EU was originally established to promote cross-border commerce and has always been a firm advocate of free trade. However, as the U.S. disrupts the global trade system to narrow its trade deficit, increase fiscal revenue, and boost domestic manufacturing, the EU is becoming increasingly isolated.

On July 4, European Commission President von der Leyen attended a press conference. Visual China
European Commission President von der Leyen had previously taken the initiative, hinting at the possibility of establishing new partnerships with a trade group consisting of 11 countries, including Japan, Vietnam, and Australia, but not including the United States or China.
Other EU officials, however, have been in a state of passive defense for months. This is because, although the EU has objections to the policies of both the United States and China, it is also affected by both countries and is caught between them.
In China, EU leaders plan to hold a summit in Beijing in late July, with arrangements constantly changing. Recently, the Chinese foreign minister visited Europe to prepare for the summit, while EU officials emphasized that there are still many pain points between the two sides, including the issue of "trade imbalance."
The article stated that this divergence became more evident over the weekend. The EU recently implemented measures under the International Procurement Instrument (IPI) to restrict Chinese companies and products from participating in its public procurement of medical equipment, continuing to set barriers for Chinese companies in the public procurement field, citing the so-called "unfair treatment" and the need for "fair competition."
In response, China issued a notice on July 6, deciding to take relevant measures in government procurement activities against certain medical devices imported from the EU. A spokesperson for the Ministry of Commerce emphasized that the EU ignored China's goodwill and sincerity, took restrictive measures, and built new protectionist barriers. China had no choice but to take equivalent restrictive measures. The Chinese measures target only medical devices imported from the EU, and products produced by EU-invested enterprises in China are not affected.
Additionally, exports from Europe to China are declining, while Chinese goods exported to Europe are surging, prompting EU decision-makers to tighten import restrictions on Chinese goods. European leaders also complain that China's subsidy policies make it difficult for European companies to compete.
Not only in trade, but EU officials also accuse China of "supporting" Russia in the Ukraine issue, purchasing Russian energy products, which weakens the effectiveness of European sanctions against Russia.

On July 6, Trump prepared to board the "Marine One" to head to the White House. Visual China
On the U.S. side, regardless of the outcome of trade negotiations with the Trump administration, it is expected that EU exports to the U.S. will face higher tariffs than the beginning of this year. U.S. officials have repeatedly stated that a 10% comprehensive tariff is non-negotiable.
To reach an agreement, EU officials may have to make concessions, which could include promising to adopt a tougher stance toward China.
China's Counterattack, "Making Europe Realize the Reality"
The article pointed out that the EU and China are still engaging in delicate maneuvering, as economic ties between the two major economies are extensive. Many European countries still heavily rely on China for industrial materials. European exports to China remain significant, especially Germany, which has long maintained a close trade relationship with China.
Danish Foreign Minister Rasmussen said on July 4 at a press conference that the EU's goal is not to decouple from China. "The key is to interact in a more equal manner and adopt a more transactional approach when dealing with issues," he said.
"Europe does not have a 'China card' to play," said Liana Fix, a researcher on European affairs at the Council on Foreign Relations.
Although the EU, like the U.S., accuses China of engaging in so-called "unfair trade practices," due to the high level of economic interdependence between China and the EU, the EU has limited space to pressure China.
The New York Times noted that China recently gave the EU a lesson, making it realize this reality.

2025 China (Shanghai) International Winding Machine, Coil, Magnetic Materials, Insulation Materials and Motor Manufacturing Exhibition. Visual China
To respond to U.S. tariffs, China has strengthened export controls on rare earth magnets, which are crucial for manufacturing various products such as cars, drones, factory robots, and missiles. As China dominates rare earth production, such restrictions can have serious impacts on other countries.
Initially, European policymakers hoped that these export controls would mainly affect American companies, but European companies also faced delays in Chinese approval processes.
The article speculated that this delay is not only due to the backlog of applications, but also related to long-standing trade disputes between the EU and China.
In recent years, European car manufacturers have found themselves far behind Chinese competitors, especially in the development of technologies such as electric vehicles and solar panels.
Therefore, EU officials are pressuring Chinese companies to transfer technology when entering the European market. In addition, the EU has joined the U.S. in restricting the export of equipment used to manufacture the most advanced chips to China.
Such actions have caused dissatisfaction in China. China has called on Europe to lift restrictions on the export of high-tech products to China as part of the discussion on restoring rare earth supplies.
Last month, a spokesperson for the Ministry of Commerce stated that Minister Wang Wen Tao further clarified China's export control policy to the EU, emphasizing that export controls on items such as rare earths are common international practice. China highly values the EU's concerns and is willing to establish a green channel for applications that meet the conditions, speed up approvals, and instruct the working level to maintain timely communication. Minister Wang proposed that the EU should take effective measures to facilitate, guarantee, and promote the compliant trade of high-tech products to China.
It is predicted that during the upcoming Beijing Summit between China and the EU this month, EU officials may continue to pressure China to obtain a more stable supply chain for rare earths.
In fact, China's implementation of rare earth controls is based on international common practice. Reuters earlier cited the words of Nils Poel, the director of market affairs at CLEPA, confirming that China's license issuance speed is "accelerating," rising from 25% to 60%, with hundreds of licenses still pending approval.
Even with the accelerated approval process, some Western countries still "take advantage of every opportunity," complaining about a so-called "rare earth shortage," continuously hyping up the idea of "weaponizing rare earths," and attacking the Chinese rare earth export licensing system.
Notably, Serbian President Vučić disclosed on June 29 that European car companies with factories in Serbia sought help from the Serbian government, hoping that Serbia would use its close relationship with China to coordinate the rare earth supply issue, and China has promised to support the "acceleration" of the approval process.
Vučić emphasized that China told him that any export restrictions are not "targeting friendly countries like Serbia."
Evidently, the EU needs to truly realize that China has always approached the Sino-European trade disputes with a problem-solving attitude, hoping to achieve cooperation through practical means.
On July 4, China announced the final ruling on the anti-dumping investigation into the import of brandy from the EU, ruling that the import of brandy from the EU exists in dumping.
A particularly noteworthy detail is that China accepted price commitments from 34 European companies, and did not impose anti-dumping duties on the relevant imported products that met the commitment conditions. These 34 companies account for the majority of EU exports of brandy to China.
This price commitment model has also been applied to Sino-European photovoltaic trade, as well as the negotiation on electric vehicle tariffs. In April, Chinese Minister of Commerce Wang Wen Tao held talks with EU Trade Commissioner Valdis Dombrovskis, and both sides agreed to restart the negotiation on the "minimum price commitment" for electric vehicles.
On July 2, Chinese State Councilor and Foreign Minister Wang Yi held the 13th round of high-level strategic dialogue with the EU's High Representative for Foreign Affairs and Security Policy, Katalin Corban.
Wang Yi stated that China is not the U.S., and the U.S. way should not be used as a mirror for China. Sino-European history, culture, and values differ, and they should not see each other as opponents just because of differences, nor seek confrontation because of disagreements. Currently, Europe is facing various challenges, but past, present, and future are not from China. He hopes the EU will truly establish an objective and rational perception of China and implement a more positive and pragmatic policy towards China.
Wang Yi said that in the face of increasing uncertainty and instability in the international situation, China and the EU, as two major powers and two major economies, should strengthen exchanges, deepen understanding, enhance mutual trust, and promote cooperation, jointly safeguarding the post-war international order and providing scarce certainty for the world.
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