Mikołaj Woźniak, Konrad Falkowski
EU statement on Chinese exercises in the Taiwan Strait
In early April, the People’s Republic of China conducted military exercises around the so-called “rebel province”, i.e. Taiwan. More precisely, the Chinese navy conducted its exercises to the north, south and east of the island. The discussed maneuvers were to be a clear signal and a “stern warning” against separatist tendencies in Taiwan. Meanwhile, the President of the Republic of China, Lai Ching-te, was called a “parasite.” The message about separatism and being a “parasite” was presented in satirical illustrations and an animated video by the Eastern Theater Command of the People’s Liberation Army. Taiwan did not hold back and in response to the PRC ships approaching its shores, it also sent its own military forces to meet them.
The European Union has responded to the heated situation in the Taiwan Strait, noting that the actions of the Chinese army at sea are stoking tensions in the region, which in turn is undesirable because peace and stability in the strait are of strategic importance not only for the region itself, but also for the entire globe. The European External Action Service’s statement on the matter stressed that the European Union “has a direct interest in the preservation of the status quo in the Taiwan Strait.” Moreover, it expresses its opposition to “unilateral actions” aimed at disrupting the status quo through the use of force or coercion. The EU called on “all parties to exercise restraint and avoid any actions that may further escalate tensions”. According to Europe, the Taiwan issue should be resolved through dialogue.
Ursula von der Leyen-Li Qiang telephone conversation
On April 8, the President of the European Commission, Ursula von der Leyen, held a telephone conversation with the Prime Minister of the People’s Republic of China, Li Qiang. The main topics of the conversation were the state of relations between Brussels and Beijing and the 50th anniversary of EU-China relations. As noted in the official readout on the EC website, “the two leaders held a constructive discussion during which they took stock of bilateral and global issues.” The conversation quickly turned to Donald Trump’s rampant tariffs in the global economy. Von der Leyen emphasized the importance of the responsibility that the EU and China bear due to their status as the two largest economies. In her opinion, they should jointly support the reform of the trade system, which would be based on the principles of freedom, fairness and equality. The readout indicated that, according to Von der Leyen, China plays a key role “in addressing possible trade diversion caused by tariffs, especially in sectors already affected by global overcapacity.” Therefore, the leaders discussed the establishment of a mechanism that would allow for tracking possible shifts. Furthermore, the EC President drew attention to the urgent need to find “structural solutions to rebalance the bilateral trade relationship.” These solutions would also facilitate access for European companies, products and services to the Chinese market.
The issue of the war in Ukraine was also raised, and the position of the European Commission did not change here. Von der Leyen confirmed that a united Europe stands on the side of “a just and lasting peace in Ukraine” – here she clearly emphasized that “any conditions for peace must be determined by Ukraine”. Von der Leyen, aware of China’s key role in potentially ending the conflict, invited the People’s Republic of China to “intensify its efforts” that would allow the intended goal, i.e. peace, to be achieved. The EC’s announcement also states that the planned EU-China summit will take place in July and will be “a fitting opportunity to commemorate the 50th anniversary of diplomatic relations.”
For comparison, it is worth presenting the Chinese version of the Von der Leyen-Li conversation here. According to the statement published on the website of the State Council of the People’s Republic of China, the Chinese Premier indicated that both sides are each other’s most important trading partners, and that the economies of China and the EU “are highly complementary”, which is why the interests of Brussels and Beijing are not in opposition to each other. China is ready to cooperate with the EU in order to maintain solid and effective high-level communication. This, in turn, would translate into mutual trust and the resolution of existing disputes, which, according to Li, should be resolved through dialogue and consultation.
The Chinese premier referred to the US tariffs, calling them “indiscriminate.” He said that their imposition “is a typical case of unilateralism, protectionism and economic bullying.” Therefore, China has taken appropriate measures to safeguard its sovereignty and security. Moreover, these measures are also defending “international trade rules and international fairness and justice”, as Li said. Furthermore, he emphasized that China and the EU are “great advocates of economic globalization and trade liberalization.” They are also “staunch defenders and supporters of the World Trade Organization.” He added that China will gradually open up, strengthen cooperation, and share the gains of its development with partners from the European Union and other parts of the world. In the statement of the State Council of the People’s Republic of China, the war in Ukraine – or rather the “Ukrainian crisis”, as it is usually referred to in the Chinese narrative – was never mentioned – either directly or indirectly. Interestingly, not even the words of von der Leyen, who, in line with the EU message, raised this issue, were quoted.
Video call between Maroš Šefčovič and Wang Wentao
Two days after the conversation between the President of the European Commission and the Prime Minister of China, Maroš Šefčovič, Vice-President of the European Commission and Commissioner for Trade and Economic Security, held a video conversation with his Chinese counterpart – Minister of Trade of the People’s Republic of China Wang Wentao. The conversation concerned trade between the EU and China in the face of American tariffs. Wang stated that the mutual tariffs constitute a serious violation of the interests of other countries, additionally violating the principles of the World Trade Organization and the current international trade and economic order. He emphasized that the American actions are “a typical act of unilateralism, protectionism and economic bullying”, which China strongly opposes, taking appropriate steps to defend its own rights and interests. He also noted that protectionism will get no one anywhere, and that in a tariff war, no one will emerge victorious in the end. Therefore, in order to counter American policies, China and the European Union – according to Wang – should work hand in hand to uphold the “rules-based multilateral trading system” and work together to liberalize and facilitate trade, as this will ultimately bring “more stability and certainty into the global economic and trade landscape.”
The Chinese statement further presented Šefčovič’s position. In his opinion, Washington’s customs madness has a serious impact on international trade and the European Union is ready to ensure the normalization of this trade within the WTO together with its members, including China. The EU Trade Commissioner appreciated the state of economic and trade relations with China on behalf of the European bloc, and also expressed the desire to deepen bilateral dialogue and communication. However, most importantly, Europe and China agreed to “immediately start negotiations on electric vehicle pricing commitments as well as issues related to bilateral investment cooperation in the auto sector.” The statement about the beginning of negotiations on the establishment of minimum prices for Chinese electric vehicles was confirmed by the European side through the EU spokesman. In fact, it looks like Donald Trump’s aggressive tariff policy means that instead of maintaining last year’s firm and distanced course towards China (which was what seemed to be the case), the European Union is being forced to develop a “softer” approach to Chinese electric vehicles subsidized by Beijing, and is thus being pushed to tighten cooperation with the Chinese – as Alan Crawford notes in Bloomberg.
EU-China summit in Beijing after all?
On April 11, the weekly South China Morning Post published an article by Finbarr Bermingham, in which the journalist reveals that EU leaders Ursula von der Leyen and Antonio Costa are planning to travel to Beijing in June to meet with Chinese President Xi Jinping. This is intriguing because, as we heard earlier this year, the summit was to take place in Brussels (as we wrote in the January Review), in line with the tradition of such events being rotated within EU-China relations. In March, the news spread that Xi did not intend to come to Europe, and that the PRC representative in Brussels would be Chinese Premier and No. 2 in the country Li Qiang (as we also wrote in the March Review).
Bermingham obtained information about the change in plans by EU leaders from “five people familiar with the matter.” The journalist noted that despite the lack of agreement on a precise date for the meeting, “the willingness of EU leaders to make this trip indicates serious efforts to re-establish contacts with Beijing at a time when the bloc’s relations with the United States have practically collapsed.” Moreover, such a development would only confirm the assumption that the recently very belligerent head of the European Commission has “softened” her tone towards China. This, in turn, could not have escaped the attention of the administration in Beijing. Bermingham rightly notes at the end, writing: “They [EU leaders] now seem to have accepted that in order to meet with China’s most important decision-maker, they must accept his terms.”
Europe, in need of returning to relations with Beijing, will be in a worse negotiating position, and this may lead to the representatives of a united Europe being less decisive and more willing to make concessions on their part during the summit.
Pedro Sanchez in China
On April 11, Spanish Prime Minister Pedro Sanchez concluded his Asian tour with a visit to China. It was his third visit to the country in the past two years. The main point of the program was a meeting with Chinese President Xi Jinping. The talks focused on the deteriorating international situation, especially in the context of intensifying economic rivalry and tensions resulting from the US administration’s sanctions policy, which have affected a large part of the world’s economies. In the case of China, they were supposed to amount to as much as 145%. Xi Jinping called on Western countries to work towards multilateralism and open cooperation. The two leaders stressed the importance of respecting international law, strengthening the UN system and joint efforts for a just and lasting peace.
During the visit, seven bilateral agreements were concluded, which aim, among other things, to simplify the procedures for the export of Spanish food products, cosmetics and health products to the Chinese market. For Spain, two agreements on facilitating the export of pork and cherries were of key importance. This is important due to the fact that Spain accounts for around 20% of Chinese pork imports. In 2024, the value of these exports amounted to 571 million euros.
During a joint press conference, Sanchez noted that there is potential to further deepen relations with China, but that it is necessary to consider European demands for more balanced trade relations. Currently, the EU’s trade deficit with China has exceeded $300 billion.
As part of the visit, Sanchez also met with Chinese Premier Li Qiang, where a new Action Plan to Strengthen the Comprehensive Strategic Partnership was signed. The document indicates priority areas of cooperation: economy, trade and investment; agriculture and fisheries; science, technology, innovation and green development; as well as cultural, educational, sports and tourism exchanges.
On the same day, the Spanish Prime Minister met with representatives of several of the largest Chinese companies operating on the Spanish market, mainly in the automotive, battery and renewable energy sectors. The meetings were of a promotional and investment nature – especially in the context of the fact that in 2024, 56% of Spanish electricity would come from renewable sources. Sanchez expressed interest in the innovative projects presented by the companies present at the meeting. He also held individual talks with the CEOs of Chery, Leapmotor and Envision.
The visit was met with criticism from the US administration. Treasury Secretary Scott Bessent compared Madrid’s actions to “cutting its own throat”, accusing Spain of seeking closer relations with China at the expense of Western unity. In response to these accusations, Spanish Agriculture Minister Luis Planas, then visiting Vietnam, stated: “Expanding the trade relations that we have with other countries, including a partner as important as China, does not go against anyone.” He also added that “everyone has to defend their own interests.”
Pedro Sánchez’s visit to Beijing was a signal – Madrid declares its willingness to play an active role in the dialogue between China and the EU and to promote Chinese investments in Europe.
Lithuania on its economic relations with China
Lithuanian Minister of Economy Lukas Savickas stated on April 16, when asked during an interview for BNS (Baltic News Service), that economic relations between Lithuania and the People’s Republic of China are at a very low level of intensity: “Right now, our economic ties are, well, quite minimal.” So, in order to fill this gap, “we clearly need to look for markets where our higher value-added products can go”, added the head of the Lithuanian Ministry of Economy. Hence, in his opinion, there is a need to diversify the directions of economic and trade cooperation, especially in times of geopolitical instability. “We may not always have a clear understanding of other big players’ objectives, but we can control our national economic interests in helping our businesses to diversify and maintain their competitiveness,” declared Savickas, noting that this is precisely the task and responsibility of the ministry he heads.
A clear attempt to implement the above assumption is the upcoming visits of Lithuanian President Gitanas Nauseda to Japan and Vietnam. He is to go there in June this year, and he will be accompanied by representatives of the Lithuanian government and business. Moreover, Savickas informed that Lithuania is waiting for a response from Taiwan regarding the development of bilateral cooperation. He stated that Lithuania has already taken steps in this regard, and now ” the ball is in Taiwan’s court and we expect them to make decisions.”
WTO rejects EU complaint against China over intellectual property rights violations
On April 24, the World Trade Organization (WTO) rejected a complaint by the European Union concerning alleged violations by China of its obligations under WTO agreements on the protection of intellectual property rights. The complaint was filed by Brussels in 2022 and concerned actions by Chinese courts that the EU said were systematically preventing European companies from effectively protecting patents in the telecommunications technology sector, including 3G, 4G and 5G.
The EU argued that Chinese courts were issuing so-called “anti-suit injunctions” that blocked parties from pursuing legal proceedings abroad over the same technologies. Brussels argued that the practice violated the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, part of the WTO system.
However, the WTO panel found that while the EU had been able to demonstrate the existence of an informal policy that allowed the issuance of such orders, it had failed to prove that this policy violated specific TRIPS provisions. Furthermore, the panel did not find that Chinese courts had acted unfairly or inconsistently in applying domestic law. It is worth noting, however, that the WTO found that China’s failure to publish in full a court ruling in a case involving a Chinese smartphone maker involving a US company that holds patents for 3G, 4G and 5G technologies violated transparency rules.
In response to the WTO decision, the European Union announced it would file an appeal. Given that the WTO appellate body has been inactive since 2019 (after the US blocked the appointment of new judges), the case is to be heard under the Multi-Party Interim Appeal Arbitration Arrangement (MPIA) – a temporary appellate mechanism that was established by some WTO members as an alternative to the blocked body.
China’s Ministry of Commerce confirmed on April 23 that it had received the EU’s appeal and said it would address the matter in accordance with the relevant procedures. Beijing also said it was ready to work with other MPIA participants to uphold the principles of the multilateral trading system.
China lifts sanctions against members of the European Parliament
On April 30, the President of the European Parliament, Roberta Metsola, announced the decision of the Chinese authorities to lift sanctions against five MEPs and the European Parliament’s Subcommittee on Human Rights. This decision is part of a broader context of Beijing’s efforts to ease tensions and strengthen economic and political ties with the European Union. The change of position of the Chinese authorities comes amid deteriorating trade relations with the United States, which has significantly expanded the scope of tariffs on Chinese exports in recent months.
The sanctions that have just been lifted were imposed by China in March 2021 in response to EU restrictions on Chinese officials accused of human rights abuses against the Muslim Uyghur minority. The Chinese measures targeted a total of 10 individuals and four EU entities, including European Parliament Subcommittee on Human Rights, the Political and Security Committee of the Council of the European Union, the Mercator Institute for China Studies (MERICS) in Germany, and the Alliance of Democracies Foundation in Denmark. The sanctions imposed included a ban on entry to China (including Hong Kong and Macau) for those targeted and their families, as well as a ban on conducting business and cooperating with Chinese entities.
The first signs of easing tensions appeared in September 2024. Since then, there have been numerous meetings at various political and diplomatic levels, which ultimately led to Beijing’s decision in April to partially lift the sanctions. In their statements, the leaders of the European Parliament’s political groups stressed that China’s decision does not mean that the EP has abandoned its critical approach to challenges in bilateral relations. They stressed that the European Parliament remains a consistent advocate for human rights in the international arena, while striving to maintain constructive cooperation with key global partners.
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