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EU-China Trade Tensions Escalate Ahead of Pivotal July Summit in Beijing
A new chapter in EU-China trade tensions is unfolding just weeks before a key diplomatic summit set to take place in Beijing in mid-July 2025. Hopes for a reset in relations are now clouded by escalating tit-for-tat trade measures, with both sides leveraging sensitive economic sectors in a growing standoff.
On Tuesday, Chinese authorities announced a six-month extension to their anti-dumping investigation into pork imports from the European Union, citing the complexity of the case. The probe, which began in June 2024, now stretches through the end of this year and targets over €1.75 billion in pork exports, particularly from Spain, the Netherlands, and Denmark.
The move comes as the EU and China attempt to stabilise relations strained by global power shifts and lingering fallout from the U.S.-China trade war. However, analysts see the pork investigation not as a simple trade concern, but as a direct response to the EU’s recent imposition of tariffs of up to 45% on Chinese electric vehicles (EVs). The bloc argued the tariffs were necessary to counteract unfair state subsidies that were distorting the European market.
Pork and EVs have now become symbolic flashpoints. Pork is a vital export for European farmers, particularly in niche cuts like ears and feet, which are highly valued in Chinese cuisine. Meanwhile, the EU is grappling with a surge of competitively priced Chinese EVs that threaten local carmakers.
High-level discussions in Paris last week between Chinese Commerce Minister Wang Wentao and EU Trade Commissioner Maroš Šefčovič explored alternatives to outright tariffs. The EU is considering a minimum pricing framework for Chinese EVs — a compromise that could ease tensions without fully abandoning protections for European manufacturers.
“Negotiations for an agreement on a price undertaking, which would then replace the existing duties we have in place, are continuing at both technical and political level,” an EU Commission spokesperson said Tuesday.
Other flashpoints are emerging. Last week, the EU restricted Chinese medical device companies from accessing public procurement contracts in response to China’s “Buy China” policy. Meanwhile, China’s curbs on rare earth mineral exports — vital for European industry — remain a looming concern. EU officials say they have received informal indications from Beijing that the restrictions could be reconsidered, but no formal communication has been made.
Despite the friction, signs of goodwill remain. Beijing recently expanded market access for some Spanish food products, seen as a gesture ahead of the upcoming summit.
The EU-China summit, confirmed for the second half of July in Beijing, is expected to be a crucial forum to recalibrate relations and defuse one of the most complex trade disputes of the decade. Both sides hope diplomacy can avert a deeper rift and steer the relationship toward greater economic cooperation.
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