Mikołaj Woźniak, Karolina Czarnowska
1.01. China warns EU against restrictions on carbon emissions trading
The Chinese Ministry of Commerce (MOFCOM) has deemed the EU’s Carbon Border Adjustment Mechanism (CBAM) to be unfair, and in response has announced that it will take decisive action to protect its own development interests.
The Carbon Border Adjustment Mechanism (CBAM) is an EU tool designed to ensure fair carbon pricing for the production of high-emission goods imported into the EU, and to encourage cleaner industrial production in third countries. The mechanism entered into force on January 1, 2026, following coordinated implementation in all EU member states.
The Ministry spokesman said that the EU disregards China’s efforts in green and low-carbon development by setting significantly higher default carbon intensity benchmarks for Chinese products and planning to increase them annually over the next three years. He also mentioned that the arrangements do not reflect either China’s current situation or its future development trajectory, and constitute unfair and discriminatory treatment of China, as well as violating the rules of the World Trade Organization.
According to China, the EU is promoting new forms of trade protectionism, ignoring its historical responsibility for emissions and differences in the technological capabilities of individual countries, and imposing its own carbon emission standards on developing countries. China also called on the EU to abide by climate and trade rules, abandon protectionism, maintain open markets, facilitate trade and investment, and maintain the stability of global supply chains. It also emphasized its willingness to cooperate with the EU in addressing global climate change challenges.
5.01. Martin-Xi Meeting
Prime Minister Micheál Martin paid an official visit to China from January 4 to 8. During his visit, he visited Beijing and Shanghai. The programme of his visit to the capital included meetings with Chinese President Xi Jinping, Premier Li Qiang, and National People’s Congress Chairman Zhao Leji. In Shanghai, the Prime Minister met with Mayor Gong Zheng and business leaders. This was the Irish Prime Minister’s first visit to China since 2012.
The meetings focused on bilateral relations between Ireland and China, including economic and trade relations, EU–China relations, and common global challenges. During his visit, the Irish Prime Minister also met with representatives of twelve Irish universities and their Chinese partners from the higher education sector.
During the meeting between Prime Minister Micheál Martin and Xi Jinping on January 5, both sides confirmed that, since the establishment of a strategic partnership for mutually beneficial cooperation in 2012, trade between the two countries has quadrupled. The Chinese side confirmed that it is ready to work with Ireland to strengthen strategic communication, deepen mutual political trust, and expand practical cooperation, to bring more benefits to both nations and provide greater impetus to China–Europe relations.
The importance of strengthening economic and trade cooperation, seeking synergies in development strategies in areas such as artificial intelligence, the digital economy, pharmaceuticals, and health, as well as encouraging mutual investment, cooperation in education, culture, and tourism, and strengthening people-to-people ties, was emphasized. President Xi Jinping also pointed out that today’s world is undergoing changes and turmoil, which further highlights the importance of the above measures.
The Chinese side also emphasized that Ireland would take over the rotating presidency of the EU in the second half of the year. In this regard, Ireland is expected to play a constructive role in ensuring the healthy and stable development of China–EU relations. Ireland confirmed its readiness to play a constructive role in the development of relations between the EU and China and confirmed that China plays an indispensable role in international affairs and has made a positive contribution to maintaining the authority of the UN and promoting multilateralism and peace in the world. Ireland unequivocally supports the One China Policy and is committed to strengthening and developing a strategic partnership for mutually beneficial cooperation between the two countries.
It is worth noting that, due to the continuing cool relations with Brussels, China is showing growing interest in establishing individual contacts with European Union countries. Beijing also treats bilateral meetings to convey its views on relations with the EU.
Martin’s visit took place two weeks after Beijing announced tariffs on EU dairy products, imposing temporary duties of up to 42.7%. This is the latest in a series of measures against EU exports, widely seen as retaliation for the EU’s tariffs on electric vehicles. Ireland is one of Europe’s largest exporters of dairy products, with farms shipping more than 90% of their production, worth around €6 billion. It was one of the EU countries that voted in favour of imposing tariffs on Chinese electric vehicles.
6.01. Wang-Valtonen telephone conversation
On January 6, Foreign Minister of Finland Elina Valtonen held a telephone conversation with Chinese Foreign Minister Wang Yi on current international and bilateral issues.
Wang emphasized that last year, China and Finland celebrated the 75th anniversary of the establishment of diplomatic relations. He stressed that bilateral relations between the two countries had reached a new level of development, and that cooperation in various fields had yielded new results. The Chinese minister also confirmed that China would continue to pursue high-level openness to the world and deepen cooperation with Finland in areas such as energy transition, circular economy, artificial intelligence, green development and environmental protection, as well as maintaining free trade and supporting economic globalization. He also referred to China–EU relations and expressed his hope that Finland, as an important EU member state, would play a positive role in promoting a rational and objective view of China within the EU, resolving disputes through dialogue and consultation, and resuming the ratification of the investment agreement between China and the EU. Wang also explained China’s position on Taiwan and drew attention to the regressive actions of Japan’s current leader.
Valtonen, on the other hand, emphasized Finland’s support for Ukraine and the urgent need to end the war, adding that all countries have an obligation to comply with the United Nations Charter and international law.
It is worth adding that despite official statements from Beijing about remaining neutral in the event of a war in Ukraine, relations between China and Russia have become much closer in recent years and there is no sign of Sino-Russian ties weakening on the horizon.
12.01. The European Commission publishes guidelines on submitting price undertaking offers for battery electric vehicles from China
On January 12, after the negotiations between the European Commission and the People’s Republic of China, the guidelines on submitting price undertaking offers in the context of anti-subsidy duties imposed on battery electric vehicles originating in China were published. The guidelines cover various aspects to be included in the offer, including minimum import prices, sales channels, cross-compensation, and future investments in the EU.
On October 29, 2024, the European Commission concluded its anti-subsidy investigation into imports of electric vehicles from China, imposing definitive countervailing duties ranging from 7.8% to 35.3%. At the same time, both sides held several rounds of consultations to implement the agreement reached at the China–EU summit and to properly resolve the EU’s anti-subsidy case concerning Chinese electric vehicles in accordance with WTO rules.
Both the China Chamber of Commerce for Import and Export of Machinery and Electronic Products and the China Chamber of Commerce to the European Union expressed satisfaction with the progress made by China and the EU, while noting that the proper resolution of the EU’s anti-subsidy case against Chinese electric vehicles will enhance market confidence and the security and stability of related industrial and supply chains, safeguard overall economic and trade cooperation between China and the EU, and maintain a rules-based international trade order, and support deeper cooperation between China and the EU on technological innovation and green transformation.
12.01. The First Slovak–Chinese Meeting of the Intergovernmental Committee for Strategic Partnership
January 12 proved to be a fruitful day for relations between Bratislava and Beijing with the debut of a new format, namely the Intergovernmental Committee for Strategic Partnership. The inaugural meeting was held in the capital of Slovakia, which was visited by a Chinese delegation headed by Hua Chunying, Vice Minister of Foreign Affairs of the People’s Republic of China. The host side was represented by Slovak Prime Minister Robert Fico, accompanied by Minister of Foreign and European Affairs Juraj Blanár, State Secretary of the Slovak Ministry of Foreign and European Affairs Marek Eštok, and representatives of other ministries.
The meeting was reported by the Slovak Embassy in Beijing in the form of a press release. According to its content, the first meeting within this format is “a practical result of the conclusion of the Strategic Partnership between the Slovak Republic and the People’s Republic of China during the official visit of Prime Minister R. Fico to China in November 2024.” Speaking about the desire to develop pragmatic relations with China, Blanár stated: “The strategic partnership that our government has concluded with China forms an important framework for the continuation of political dialogue and the conducting of beneficial activities in areas that are priorities for the Slovak Republic.” He further emphasized that China is Slovakia’s most important trading partner in the Asian region, with annual trade turnover exceeding USD 10 billion. In his view, the dialogue between Bratislava and Beijing “focuses mainly on support for investments and trade ties, including exports, which will bring high added value to the Slovak economy.”
The described event also served as an opportunity—as the source communiqué put it – “to move from general statements to the determination of concrete steps based on thirteen agreements and memoranda of mutual cooperation signed between the Slovak Republic and China during the visit of the Prime Minister of the Slovak Republic, R. Fico, to Beijing.” Moreover, an agreement was signed between the ministries of education of Slovakia and China. This agreement concerns the operation of Slovak-Chinese bilingual sections. It is also worth noting that in the field of cultural policy, Slovakia seeks to establish a Slovak Institute in Beijing in order to promote Slovak culture in China.
During consultations between Eštok and Hua, issues related to politics—both bilateral and multilateral—were discussed. According to the Slovak State Secretary, “China is a strong international player and an equally strong partner for the Slovak Republic in promoting peaceful diplomacy and principled adherence to international law.” This is particularly important for Bratislava in the context of Slovakia’s candidacy for a non-permanent seat on the UN Security Council for the years 2028–2029. In the later part of the talks, Eštok raised the issue of ongoing global crises and conflicts; however, none were mentioned by name or discussed in detail. Emphasis was placed on the fundamental importance of European unity for Slovakia, and it was reaffirmed that the Slovak side continues to adhere to the “One China” policy. Finally, the Slovak State Secretary assured his interlocutor that Bratislava is interested in continuing “regular and substantive meetings through the mechanisms of strategic partnership as a means to jointly create as many successful projects and initiatives as possible for the citizens of both countries.”
16.01. The European Commission Imposes Duties on Imports of Fused Alumina from China
On 16 January, the European Commission announced the imposition of anti-dumping duties on imports of fused alumina from the People’s Republic of China into the European Union. Fused alumina (synthetic corundum) is a material used in the production of steel and other metals, as well as glass and ceramics. Moreover, it has wide applications in the defence-related sector. The January duties are definitive measures, and their rates will range from 88.7% to 110.6%. In addition, the Commission introduced a “duty-free tariff rate quota that allows a limited volume of Chinese imports to enter the EU without duties.” Once such a quota is exceeded, the entire shipment is automatically subject to anti-dumping duties for a period of five years.
The European Commission justified its decision as follows: “This decision was taken on the grounds of the EU’s interest, in light of the exceptional circumstances affecting both the Union industry and the Union industry downstream. The imposition of duties follows an investigation that identified unfair trade practices.”
The subsequent part of the statement notes that the duty-free tariff quota will be “gradually be reduced over the period of five years.” This is intended to help safeguard the value chain associated with the material in question. The statement emphasized that the fused alumina value chain is “critically important for Europe’s economic security, strategic autonomy and long-term industrial competitiveness.” Furthermore, the imposition of such tariffs will preserve the “industrial ecosystem” and reduce the EU’s dependence on supplies of this strategic raw material from China, in line with the “de-risking” policy.
20.01. Macron in Davos on the Need for Chinese Investment in Europe
During this year’s Davos summit, which took place between 19 and 23 January, many leaders and invited guests delivered speeches. From the perspective of the Review, however, it was French President Emmanuel Macron who made several particularly noteworthy remarks. In his address, he repeatedly raised the issue of relations between Europe and the People’s Republic of China. At the outset, he stated that there is currently “competition from China,” which is “more dangerous.” Within the framework of this competition, he pointed to issues such as excess production capacity, market-distorting practices, and the crowding-out of industrial and commercial sectors. All of this, in his view, leads to the destabilization of global trade and the international system.
Macron’s remedy for this situation lies in “greater cooperation” and in “building new approaches,” specifically “building greater economic sovereignty and strategic economy, especially for Europeans.” He further argued that addressing the global economic imbalance currently present in the world is key to resolving global economic challenges. According to Macron, the causes of today’s imbalance include “American overconsumption, Chinese underconsumption and overinvestment, and European underinvestment and lack of competitiveness.” Hence his conclusion that “what we [Europe] need is more Chinese foreign direct investments in Europe, in some key sectors, to contribute to our growth, to transfer some technologies, and not just to export towards Europe, some devices or products which sometimes don’t have the same standards, or are much more subsidized, than the ones being produced in Europe.” He added by way of clarification: “It’s not being protectionist, it’s just restoring this level playing field and protecting our industry.” Macron stated that increasing investment in Europe is crucial, but that this cannot occur without maintaining appropriate protective policies for European economies, including, among other things, reducing risks to supply chains—especially in the area of semiconductors—and diversifying trade partners.
The French president’s words did not go unnoticed by observers in Beijing, including the Chinese newspaper Global Times. An article referring to Macron’s reflections in Davos was accompanied by comments from one of China’s experts on EU–China relations. Jian Junbo stated that “this stance on China is not something new, or an immediate action responding to US’ recent tariff threat over Greenland. It in fact shows that the EU – as a whole – has been trying to rebalance its China approach in face of rising protectionism as well as the US’ hegemonic moves.” He further added that the Chinese see no obstacles to increasing their direct investment in Europe; the only barrier lies in the European Union’s own approach to Chinese investment. In his view, the EU “needs to demonstrate greater sincerity by eliminating obstacles currently in place for Chinese investment.”
The strong criticism of the United States voiced by Macron during his Davos speech was also seized upon by Global Times. Accordingly, the Chinese side once again emphasized the need for Europe to change its approach to relations with China and to move beyond the framework of conflicts not only along the U.S.–China line, but also the U.S.–EU axis. At the end of the article, Jian called for rejecting the policy of “de-risking” toward China in favor of a “more objective and pragmatic perspective.” The Chinese expert underscored the need for the EU to focus on “long-term cooperation,” which, in turn, would provide an impulse for increasing Chinese investment in Europe.
21.01. Guo Jiakun, Spokesperson of the PRC Ministry of Foreign Affairs, on Relations with the EU
The Ministry of Foreign Affairs of the People’s Republic of China also responded to the remarks made by the French president at the Davos summit. On 21 January, during a press conference, Guo Jiakun, spokesperson for China’s Ministry of Foreign Affairs, was asked by a journalist from China-Arab TV about Beijing’s position following Macron’s comments on the need to increase Chinese investment in Europe. Guo began his response by stating that “the China-EU economic and trade relations are mutually complementary and win-win in nature.” He went on to note that China’s competitive advantages do not stem from subsidizing specific products or industries, but rather from “huge research input, full market competition and the complete industrial chain.”
He further assured that China does not aim to create a trade surplus. “[…] on top of being the world’s factory, we hope to be the world’s market too,” he added. Guo expressed Beijing’s hope that the European side would adopt a “long-term perspective and an open attitude” toward China, and that the European Union would work with the PRC “in the same direction to promote the sustained and sound development of China–EU economic and trade relations.” Another expectation voiced by Beijing is that Europe will provide “a fair, non-discriminatory, transparent and predictable market environment for Chinese companies” which—as the Chinese MFA spokesperson emphasized—are encouraged and supported by the Beijing government to invest and operate in Europe.
24.01. Orpo in China
From 24 to 29 January 2026, Finnish Prime Minister Petteri Orpo was in Beijing on an official state visit. The purpose of the visit was to deepen political dialogue, discuss current international challenges, and strengthen economic cooperation between Finland and the People’s Republic of China.
During the visit, Orpo held a series of high-level meetings. The first was with the leader of the People’s Republic of China, Xi Jinping. During the talks, the Chairman emphasized the historical depth of Sino–Finnish relations—China and Finland have maintained diplomatic relations for more than 76 years and have developed mutual trust, respect, and mutually beneficial cooperation, which form the foundation of friendly relations between the peoples of both countries. Xi also pointed to the importance of cooperation in areas such as energy transition, the circular economy, agriculture and forestry, and technological innovation, encouraging Finnish companies to actively enter the Chinese market in order to enhance their global competitiveness.
Prime Minister Orpo, according to the Finnish side’s narrative, placed particular emphasis on Russia’s war against Ukraine. According to a statement from the Finnish government, in his conversation with Xi he stressed that Russia’s aggression against Ukraine threatens the security of Finland and of Europe as a whole and stated that no one should support Russia’s actions that violate international law. The Prime Minister called on China, as a permanent member of the UN Security Council, to act in support of a lasting peace in Ukraine and indicated that Chinese support for peace in Ukraine is crucial. In addition, Orpo noted that relations between the European Union and China are important for the global economy, emphasizing the need to promote trade based on reciprocity and equal opportunities. For its part, the Chinese side emphasized its readiness to cooperate with Finland and other partners to support an international order based on the United Nations and international law, which Xi described as key to addressing global challenges. He stressed that China and Finland should work together to promote a multipolar world and an inclusive global economy.
During the visit, Orpo also drew attention to the issue of access for Finnish companies to the Chinese market and to the trade balance, noting that in trade relations between China and Finland there is a slight advantage on the Chinese side, which for Helsinki implies the need to take steps toward greater balance.
The Finnish Prime Minister then held two further meetings, respectively with Prime Minister Li Qiang and with Zhao Leji, Chairman of the Standing Committee of the National People’s Congress. Orpo’s talks with Li resulted in the signing of memoranda of understanding on future cooperation in areas such as sustainable construction, energy cooperation, animal disease management, as well as an agreement on tourism promotion and a protocol on scientific and technological consultations. The meeting with Zhao likewise underscored the mutual interest in deepening bilateral cooperation, respecting the history of diplomatic relations, and exchanging parliamentary and legislative experience.
Finally, it is worth noting that statements from the People’s Republic of China meticulously omitted issues related to the war in Ukraine. In none of them was the term “Ukraine crisis” used, nor did the word “Ukraine” itself appear.
28.01. Wang–Bonne Phone Call
On 28 January, representatives of China and France held a telephone conversation. The Minister of Foreign Affairs of the People’s Republic of China, Wang Yi, and Emmanuel Bonne, adviser to French President Emmanuel Macron, discussed both broad international political issues and current matters in Sino-French relations. Information on the course of the conversation is based on a statement issued by China’s Ministry of Foreign Affairs. According to it, Wang noted that with the arrival of the new year, the “international landscape has also undergone significant changes.” These changes, in his view, are characterized by turbulence and instability. Therefore, both countries should “strengthen communication and coordination, jointly inject much-needed stability into today’s world, and better leverage the strategic value of Sino-French relations.” The same applies to issues related to China–EU relations. Wang emphasized that China and the European Union are not rivals in the contemporary international system, but partners, as evidenced by more than 50 years of “fruitful outcomes of bilateral cooperation.” Moreover, China and the EU share similar positions on promoting multilateralism and resolving disputes through dialogue and negotiations. Wang further expressed the hope that, in light of the above, France would play a “positive role” in developing relations between Brussels and Beijing.
For his part, the French representative confirmed that France “attaches great importance to comprehensive strategic cooperation” with China and expressed its readiness to deepen strategic communication and coordination on the international stage, both on bilateral and multilateral issues. Bonne—according to the Chinese statement—noted that it is in the interest of the European Union for both sides to continue developing cooperation and to maintain the stability of bilateral relations. He also declared that France is ready to facilitate the continued improvement of relations between Brussels and Beijing.
Both sides also addressed issues related to international security. However, without providing further details, the Chinese MFA statement concluded by noting: “Both sides […] exchanged views on current hotspot issues such as the Ukraine crisis and the situation in Venezuela and Iran.”
30.01. China lowers tariffs on dairy products from the EU
According to information provided by the European Dairy Association (EDA) and Eucolait, China has lowered its proposed tariffs on certain dairy products from the European Union, ending an anti-subsidy investigation widely seen as retaliation for EU tariffs on Chinese electric cars, the two European industry associations said. In the final tariffs communicated to the European side, China is proposing additional tariffs of up to 11.7%, compared to a maximum rate of 42.7% in the provisional tariffs announced in December. According to the information, many companies will be subject to a rate of 9.5%. The European Commission and the Chinese Ministry of Commerce have not yet officially confirmed this information.
From a strategic perspective, China’s reduction of the proposed tariffs may reflect a balanced attempt to avoid serious disruptions in the supply chains of basic food products, while maintaining a firm stance. Maintaining tariffs at a low double-digit level still represents a significant cost burden for EU exporters, but it mitigates the immediate shock to bilateral trade relations.
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