The growing tensions between the United States and China are reshaping global trade relationships, with the European Union (EU) now reconsidering its stance towards the Asian superpower. Former US President Donald Trump’s aggressive tariff policies have played a significant role in altering the EU’s approach, leading to a potential thaw in its once-strained relations with China.
US Tariff Policies Disrupt EU’s China Strategy
Until recently, the EU was firm on working alongside the US in countering China’s growing economic influence. However, Trump’s renewed trade war and the imposition of hefty tariffs have forced Brussels to reevaluate its strategy. Adding to the complexity, influential figures like billionaire Elon Musk have entered the geopolitical scene, stirring right-wing political sentiments in Europe.
Trump’s criticism of the EU’s trade policies has been relentless. “With the European Union, we have a trade deficit of $350 billion. They don’t take our cars, they don’t take our agricultural products, they don’t take anything,” Trump declared earlier this year. This rhetoric has heightened trade tensions, affecting negotiations between Brussels and Beijing.
A report by the South China Morning Post—a publication owned by the Chinese tech giant Alibaba—highlighted that many of the EU’s trade talks with China have stalled. One of the most significant setbacks has been the suspension of discussions on tariffs related to electric vehicles manufactured in China.
China Sees Opportunity Amid US-EU Trade Tensions
While Trump’s trade policies have caused concern globally, Beijing sees an opportunity in the shifting dynamics. According to experts in China, the US-EU tensions may push Brussels to adopt a softer stance on Chinese trade policies. Given that 2024 marks the 50th anniversary of diplomatic relations between China and the EU, Beijing is leveraging the occasion to foster stronger ties with the European bloc.
“Trump’s return to the White House has increased instability and uncertainty. China and the EU, as two of the world’s largest economies and staunch supporters of globalization and trade liberalization, can offer stability for global economic growth through stronger cooperation,” says Yao Ling, Director of the European Institute at the China Academy of International Trade.
This sentiment was echoed by Chinese President Xi Jinping, who spoke with European Council President António Costa earlier this year. The two leaders agreed to hold a high-level EU-China summit, signaling a possible shift in trade relations.
The Economic Stakes: EU-China Trade Figures
Trade between China and the EU remains strong despite political challenges. According to Chinese customs data, trade between the two economies reached $785.8 billion in 2024—a slight increase of 0.4% compared to the previous year. China’s exports to the EU amounted to $516.4 billion, marking a 3% rise, while EU exports to China dropped by 4.4% to $269.4 billion.
The numbers highlight the interdependence of these economic giants. The EU remains China’s third-largest export market, while China is the EU’s largest import partner. Many experts believe that, despite political differences, economic necessities will drive closer cooperation between Beijing and Brussels.
A Shift in EU’s Stance Towards China?
The recent US tariff hikes have not gone unnoticed in Brussels. European Commission President Ursula von der Leyen, previously a vocal critic of China, has softened her stance. Speaking in Brussels, she emphasized the need for a balanced approach.
“We will continue to reduce risks in our economic relationship, but there is also room for constructive engagement with China to find solutions that benefit both parties,” von der Leyen stated.
This marks a significant departure from her previous rhetoric. Just weeks ago, at the Davos Forum, she had maintained a hardline stance against Beijing. Now, Trade Commissioner Maros Sefcovic is also echoing the need for a more cooperative EU-China trade relationship.
Conclusion: A New Phase in Global Trade Relations
As the US under Trump adopts an increasingly protectionist trade stance, China and the EU may find common ground in mitigating economic disruptions. With both economies deeply connected, a more pragmatic and cooperative approach seems inevitable. While challenges remain, the shifting dynamics indicate that global trade policies are entering a new phase—one where the EU may no longer align strictly with US policies, but instead seek a more independent and balanced relationship with China.
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