Can EU-China Cooperation Over Climate Change Bridge Growing Trade Disputes?

The recent EU-China summit highlighted significant tensions and challenges in their bilateral relations. Central to the discussions were trade imbalances and geopolitical issues, particularly China's stance on the Ukraine conflict and its close ties with Russia. The European Union has expressed concerns about China's trade practices, including unfair subsidies and export controls on rare earth elements, which have exacerbated the trade deficit, reaching 305 billion euros in 2024.

The EU has urged China to improve market access for European companies and address regulatory barriers that hinder fair competition. Furthermore, the EU is wary of China's support for Russia, warning of potential consequences if China provides material aid to Russia's military-industrial complex. EU leaders have called on China to use its influence to encourage a ceasefire in Ukraine and to engage in peace negotiations.

On the economic front, the EU has implemented tariffs on Chinese imports, such as electric vehicles, in response to perceived unfair trade practices. In retaliation, China has increased tariffs on European goods like brandy. These measures have strained the economic relationship, but both parties have shown a willingness to address critical issues, such as the export of rare earths, by establishing a new mechanism to prevent supply bottlenecks.

Despite these challenges, there is a mutual interest in enhancing cooperation on climate change. Both sides have committed to expanding efforts in reducing emissions and developing green technologies, emphasizing the importance of a collaborative approach to achieving global climate goals. While tensions remain high, there is cautious optimism for progress in resolving trade disputes and fostering a more balanced and constructive EU-China relationship.