The relationship between the European Union (EU) and China has entered a new, more confrontational phase in 2025. Despite diplomatic overtures and talk of resets, the reality is a deepening cycle of tit-for-tat measures, with the EU increasingly taking assertive action against what it views as China’s unfair trade practices, market distortions, and disregard for reciprocal access. This article critically examines China’s role in the latest escalation, the EU’s responses, and the broader implications for global trade and economic stability.
The most visible flashpoint in recent months has been the EU’s imposition of tariffs on Chinese electric vehicles (EVs), with duties reaching up to 45% for some state-backed manufacturers. This move followed a lengthy investigation by the European Commission, which concluded that Chinese EV makers benefited from massive state subsidies, enabling them to undercut European competitors and threaten the viability of the EU’s own green tech sector. The tariffs, set to last five years, are a clear signal that the EU will no longer tolerate what it sees as systematic market distortion by Beijing.
China’s response has been predictably retaliatory. In June 2025, Beijing extended its anti-dumping investigation into EU pork imports by another six months, targeting over €1.75 billion in exports, particularly from Spain, the Netherlands, and Denmark. This probe, initially launched in June 2024, is widely interpreted as a direct counter to the EV tariffs. Pork is a sensitive sector for both sides: the EU is a major exporter of pork offal products to China, while China is the world’s largest consumer. By weaponizing agricultural trade, China is attempting to inflict political pain on key EU member states and pressure Brussels into concessions.
What distinguishes the current round of actions is the EU’s willingness to broaden the scope of its measures. In June 2025, the European Commission announced new restrictions on Chinese medical device makers, limiting their access to public procurement contracts. This was a direct response to China’s longstanding “Buy China” policy, which systematically disadvantages European firms seeking access to the Chinese market. The EU’s message is clear: if China continues to block European companies, it will face reciprocal barriers in Europe.
The EU is also considering emergency “safeguard measures” that could be rapidly imposed on imports from China and other countries if European industries report material harm. This reflects mounting concerns over Chinese industrial overcapacity, particularly in sectors like EVs, green tech, and robotics, where artificially low-priced Chinese exports threaten the survival of European firms.
The EU’s assertiveness is not limited to traditional trade goods. In May 2025, the bloc fined TikTok €530 million for unlawfully transferring European user data to China and failing to protect it from access by Chinese authorities. This record penalty underscores the EU’s growing unease over data security and digital sovereignty in its dealings with Chinese tech firms. The TikTok case is emblematic of a broader mistrust: the EU increasingly views Chinese companies as potential vectors for state influence and surveillance, and is prepared to use its regulatory power to push back.
China’s response to EU actions has followed a familiar pattern: targeted retaliation, diplomatic complaints, and attempts to divide European unity. After the EV tariffs, Beijing filed a complaint with the World Trade Organization (WTO) and insisted on a unified minimum price for Chinese EVs across the EU, seeking to prevent individual member states from striking separate deals. Meanwhile, China’s extension of the pork probe and its restrictions on rare earth mineral exports—critical for EU manufacturing—demonstrate its willingness to use access to its vast market and resources as leverage.
These tactics are not new. China has a long history of using economic coercion to punish countries that cross its red lines, whether on trade, human rights, or foreign policy. What is different now is the EU’s growing resolve to push back, even at the risk of escalation.
Despite the rising tensions, both sides continue to talk about the need for a diplomatic reset. China recently lifted sanctions on several Members of the European Parliament, a move widely seen as an attempt to improve the atmosphere ahead of a pivotal EU-China summit in July 2025. However, these gestures ring hollow when set against the backdrop of ongoing trade disputes and market access barriers.
Negotiations are underway for a possible price undertaking on Chinese EVs—a mechanism that could set minimum prices and defuse the tariff dispute. Yet, the fundamental issues remain unresolved: China’s industrial policies, lack of reciprocity, and reluctance to grant European companies genuine market access.