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    1. Home
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    Headlines

    EU-China Trade Frictions

    Published by Global Banking & Finance Review®

    Posted on July 23, 2025

    3 min read

    Last updated: January 22, 2026

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    Tags:International tradefinancial marketseconomic growthinvestment

    Quick Summary

    EU-China trade tensions rise amid diplomatic milestones, with sanctions, investigations, and calls to de-risk from dependencies.

    EU and China: Navigating Trade Tensions Amid Diplomatic Milestones

    Overview of EU-China Trade Relations

    BEIJING (Reuters) -Chinese and European Union leaders will meet in Beijing on Thursday for a summit marking 50 years of diplomatic ties. Here is a timeline of EU-China trade tensions in recent years.

    Timeline of Trade Tensions

    Mar 22, 2021 - The EU sanctions four Chinese officials over alleged human rights abuses in Xinjiang, its first significant sanctions on China since the 1989 Tiananmen Square crackdown. China sanctions 10 EU politicians and think tanks in response.

    Recent Developments

    May 20, 2021 - The European Parliament halts ratification of a comprehensive investment pact with China following Beijing's sanctions.

    Sanctions and Investigations

    Dec 3, 2021 - China imposes an unannounced embargo on Lithuanian exports, after Vilnius allowed Taiwan to open a de facto embassy. 

    Future Implications

    Mar 30, 2023 - European Commission President Ursula von der Leyen says the EU must "de-risk" from trade and supply chain dependencies on China. 

    Sep 13, 2023 - The EU launches an anti-subsidy probe into Chinese EV exports to assess whether to impose punitive tariffs.

    Jan 5, 2024 - China opens an anti-dumping investigation into brandy imports from the EU.

    Apr 9, 2024 - The EU announces an investigation into subsidies received by Chinese suppliers of wind turbines.

    Jun 17, 2024 - China opens an anti-dumping investigation into pork and its by-products from the EU.

    Aug 21, 2024 - China opens an anti-subsidy probe into dairy imports from the EU.

    Oct 8, 2024 - China imposes temporary anti-dumping tariffs on EU brandy, hitting brands from Hennessy to Remy Martin.

    Oct 29, 2024 - The EU approves imposing extra tariffs of up to 35.3% on Chinese-made EVs for five years, but negotiations continue.

    Jan 20, 2025 - On the day of U.S. President Donald Trump's inauguration, Von der Leyen says the EU should "expand trade and investment ties" with China where possible, in an apparent softening of Brussels' stance.

    Apr 30, 2025 - China lifts sanctions on some EU lawmakers and institutions imposed in 2021.

    Jun 20, 2025 - The EU bars Chinese companies from participating in public tenders for medical device purchases exceeding five million euros.

    Jul 4, 2025 - China spares major cognac producers from duties of up to 34.9% on European brandy imports.

    Jul 6, 2025 - China retaliates with restricting government purchases of medical devices from the EU that exceed 45 million yuan ($6.3 million) in value.

    Jul 8, 2025 - Von der Leyen accuses China of flooding global markets with overcapacity and enabling Russia's war economy in a fiery speech at the EU Parliament. 

    (Reporting by Xiuhao Chen and Ryan Woo; Editing by Aidan Lewis)

    Table of Contents

    • Overview of EU-China Trade Relations
    • Timeline of Trade Tensions
    • Recent Developments
    • Sanctions and Investigations
    • Future Implications

    Key Takeaways

    • •EU and China mark 50 years of diplomatic ties amid trade tensions.
    • •Sanctions and counter-sanctions have strained relations.
    • •Recent probes into subsidies and dumping highlight ongoing issues.
    • •EU aims to de-risk from Chinese trade dependencies.
    • •Future trade relations remain uncertain amid political shifts.

    Frequently Asked Questions about EU-China trade frictions

    1What is trade tension?

    Trade tension refers to the economic conflict arising from protectionist policies, tariffs, and sanctions imposed by countries against each other, often leading to disputes and negotiations.

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