BUSINESS

China's Trade Tactics Spark EU Concerns Ahead of Summit

European UnionFri Jul 11 2025

Trade tensions between the European Union and China are intensifying, with the EU accusing China of unfair trade practices just before a significant meeting between the two sides.

Unfair Competition and Market Flooding

The EU claims that China is making it difficult for European companies to compete. They allege that China is flooding the market with cheap goods, making it challenging for EU businesses to survive.

Restrictions on Critical Materials

China has also imposed restrictions on rare earth magnets, which are vital for many EU industries. This has further disrupted the balance of trade between the two regions.

EU's Countermeasures

In response, the EU has imposed tariffs on Chinese electric vehicles and excluded Chinese firms from public contracts for medical devices. China has retaliated with its own measures.

EU's Accusations

The EU's top official stated that China invested early in future technologies but then began selling cheap, subsidized goods. This has hurt many Western industries, leaving China in a dominant position.

The EU claims that "made in China" goods receive a 20% price advantage in public bids, arguing that the system is rigged against them.

Upcoming Summit Amid Tensions

All of this comes ahead of a summit between the EU and China. The Chinese government has already canceled part of the meeting, indicating the heightened tensions between the two economic powerhouses.

questions

    How can the EU and China work together to establish fair and reciprocal trade practices without resorting to punitive measures?
    What specific steps can China take to reduce market distortions and overcapacity in its exports to the EU?
    If China floods the market with cheap goods, does that mean they're also flooding it with cheap jokes?

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