Mikołaj Woźniak, Konrad Falkowski
3.06. Sefcovic-Wang meeting
On the sidelines of the World Trade Organization ministerial meeting in Paris, Maros Sefcovic, Commissioner for Trade and Economic Security, and Wang Wentao, Minister of Trade of the People’s Republic of China, held talks. After the meeting, Sefcovic announced that both sides “were working hard to address issues in their trade relationship,” especially ahead of the summit scheduled for July of this year. In addition to existing issues, such as electric cars from China and European brandy, the issue of China’s dominance over key minerals (rare earth elements) and the export restrictions imposed by the PRC in this regard was also raised.
However, a spokesperson for the Chinese Ministry of Commerce provided more information about the meeting itself, emphasizing that the talks were “focused, frank and in-depth” and covered “urgent and important issues such as the EU anti-subsidy case against China regarding electric vehicles, China’s anti-dumping case against EU brandy and export controls.”
Regarding Chinese electric vehicles, a spokesperson for the Chinese Ministry of Commerce stated that “consultations on price commitments between China and the EU on electric vehicles have now entered their final stages, but efforts from both sides are still needed.” What’s new is that the European side has proposed to simultaneously “explore new technical paths, and China will assess the feasibility of the EU proposal from a legal and technical perspective.”
In the case of Chinese tariffs on European Union brandy, the PRC reached a degree of agreement with interested French companies, which submitted applications for price commitments to the Chinese investigating authority. The spokesperson indicated that the applications were being analyzed and assessed, and a final verdict is expected by July 5, 2025.
Minister Wang also clarified the latest controversial issue, China’s export controls on rare earth metals. He emphasized that “the implementation of export controls on rare earth metals and other items is an internationally accepted practice.” At the same time, China understands the European Union’s concerns and is ready to establish “a green light for qualified applications to expedite the approval process.” Furthermore, he instructed his working group to maintain effective communication with the European side on this matter and hoped that the EU would “take effective measures to facilitate, safeguard, and promote the regulation-compliant trade of high-tech products with China.”
5.06. The Chinese Embassy in the Philippines responds to Kaja Kallas
At the turn of May and June, Kaja Kallas, High Representative of the Union for Foreign Affairs and Security Policy, undertook an official trip to Asia, during which she spoke at the IISS Asia Security Summit: The Shangri-La Dialogue. She then traveled to the Philippines, where she met with Foreign Minister Enrique Manalo and Philippine President Ferdinand Marcos Jr. The purpose of the visit was to deepen cooperation in the field of security and defense. During a joint press statement, Kallas indirectly addressed the contentious issues in the South China Sea, saying: “European Union is a firm believer in international law […] We have UNCLOS [the United Nations Convention on the Law of the Sea], we have the maritime security arrangements and routes there. So, we reject any unilateral changes to the status quo, including use of coercion. And, of course, we are supporting all the partners who are believers of international law, and we are willing to defend the law as well, because if you do not defend the law, then the situation in the world and global sphere would be much, much different.”
As expected, these words did not go unnoticed by Beijing, which addressed the situation through its embassy in Manila. A spokesperson for the Chinese embassy responded to a request for comment with the following initial words: “China’s sovereignty, rights and interests in the South China Sea have been established in the long course of history, are solidly grounded in history and the law, and are consistent with international law including the UN Charter.” He further asserted that the disputes between China and the Philippines concern ” a matter of territorial sovereignty, which falls outside the scope of the UNCLOS,” and that the Arbitral Tribunal, which issued its 2016 statement regarding the South China Sea and the dispute there, violated “the principle of state consent, exercised its jurisdiction ultra vires [beyond its scope of authority], and rendered an award that disregards the law.” Therefore, China does not fully respect or accept this ruling, calling it illegal and invalid. He continued his statement by noting that the situation in the South China Sea “remains generally stable recently, and freedom of navigation and overflight in this area has never been an issue,” and that any tensions in these waters “are not caused by China.” He concluded by adding that the European Union has no right to interfere in the maritime disputes between China and the Philippines, as it is not a party to either conflict. Similarly, the EU’s criticism of China’s “legitimate efforts to safeguard its territorial sovereignty and maritime rights and interests” is unfounded in such a situation.
6.06. Barrot-Wang telephone conversation
French Minister of Europe and Foreign Affairs Jean-Noël Barrot held a telephone conversation with his Chinese counterpart, Wang Yi, on June 6, according to the Chinese Ministry of Foreign Affairs. According to the statement, Wang noted that both China and France highly value their independence by cultivating traditions of independence and broadly defined autonomy. This, in turn, leads to a situation in which both sides “must strengthen strategic mutual trust and respect each other’s fundamental interests,” the Chinese Foreign Minister said. He emphasized the Taiwan issue, calling it “China’s internal affair,” which Beijing sees as significantly affecting “China’s national sovereignty and territorial integrity,” making it a different issue from the war in Ukraine. Wang expressed hope that France will remain committed to the “one China” principle and “uphold the right position and oppose NATO’s interference in Asia-Pacific affairs.” He added that it is in the interests of both China and France to support a multilateral order in which free trade prevails and to oppose the politics of fear and unilateral intimidating actions.
Barrot, for his part, reaffirmed his country’s implementation of the “One China” policy and reaffirmed that “France always regards China as a friend and partner.” He also counts on maintaining and developing high-level bilateral relations. The French foreign minister stated that expanding people-to-people contacts and cultural exchanges are a “signal of opening up.” Furthermore, he opposed the initiation of trade and customs wars – in his opinion, consultations and dialogue are the proper way to resolve economic and trade disputes.
10.06. Han Zheng in Spain
From June 10 to 13, 2025, Vice President of the People’s Republic of China Han Zheng paid an official visit to Spain. The visit was connected with his participation in the UN Ocean Conference in Nice. This meeting held special significance in the context of strengthening relations between China and Spain, as well as with the European Union. Notably, it took place less than two months after Prime Minister Pedro Sánchez’s previous visit to Beijing, underscoring Spain’s growing role as a mediator between the EU and China.
The highlight of the visit was a meeting between Han Zheng and Prime Minister Pedro Sánchez on June 11 in Madrid. The discussions addressed key global challenges such as climate change, development financing, and tensions in international trade. Both sides emphasized their commitment to multilateralism, international law, and the role of the United Nations. Prime Minister Sánchez stressed the importance of a rules-based international order and free trade, warning of the consequences of global trade wars. In the context of the 50th anniversary of diplomatic relations between the EU and China, both parties emphasized the need to build mutual trust and respect for shared values.
Special attention was also given to the 20th anniversary in 2025 of the Comprehensive Strategic Partnership between Spain and China. Building on Sánchez’s visit to Beijing several months earlier, both sides are implementing an Action Plan through 2028, covering cooperation in areas such as economy, agriculture, science, innovation, green energy, and cultural and educational exchange. Both Spain and China expressed a desire to strengthen political trust, collaborate in international organizations, and promote the development of advanced technologies such as e-mobility, photovoltaics, and green hydrogen.
On June 12, Han was received by King Felipe VI of Spain, to whom he conveyed greetings from President Xi Jinping. Their conversation addressed the development of economic relations, particularly in the fields of new energy, food industry, e-mobility, agriculture, and education. The two leaders also discussed the international situation, expressing their will to promote stability and peace, especially in the context of the conflicts in Ukraine and the Middle East.
Following meetings with Prime Minister Sánchez and King Felipe VI, Han traveled to Seville, where he met with Juan Manuel Moreno, the head of the Andalusian regional government. Last year, the region attracted Chinese investments exceeding 2.5 billion euros. According to forecasts by the Spanish tourism lobby Turespaña, the number of Chinese tourists visiting Spain this summer is expected to increase by 36% compared to the previous year. This would make Spain the fastest-growing travel destination in Europe among Chinese travelers. In the trade sector, the parties highlighted the benefits of recent decisions by Chinese authorities, such as the approval of additional Spanish pork products for import and the suspension of anti-dumping duties. These moves are seen as gestures of goodwill, fostering further development of bilateral economic relations.
16.06. Von der Leyen on China at the G7 Summit
During the 51st G7 Summit, held on June 16–17 in Canada, European Commission President Ursula von der Leyen also had her moment to speak. According to a statement published on the Commission’s website, the main focus of her speech was China. She mentioned China 16 times, first stating that “today, China dominates the global market for rare earth permanent magnets.” Von der Leyen views this situation as a threat to the development of free trade: “China is using this quasi-monopoly not only as a bargaining chip, but also weaponizing it to undermine competitors in key industries.” She added that everyone trading with China has “witnessed the cost and consequences of China’s coercion through export restrictions.” She warned that even if Beijing relaxes its restrictions, “the threat remains.” Another issue she raised was the so-called new “China shock” – a reference to the original “China shock” that followed China’s entry into the WTO in 2001, which led to a massive surge in Chinese exports. In this case – according to Von der Leyen – „as China’s economy slows down, Beijing floods global markets with subsidized overcapacity that its own market cannot absorb.” This form of new “shock” is now the leading threat to the global economy, she said. She also emphasized that, despite these challenges, Europe is not in favor of “decoupling”, but rather of “de-risking”, which leaves room for cooperation instead of total disengagement. That’s why, as she announced, Europe was the first to respond to Chinese subsidies in the automotive sector, especially in the e-mobility segment. Additionally, the European Union is working to update the framework for monitoring inbound and outbound investments to avoid bolstering the military or intelligence capabilities of systemic rivals. At this point, the Commission President called for coordinated efforts to counteract China’s leverage in rare earth resources. She cited an example from 2010, when: “China imposed a rare earth trade embargo on Japan, triggering a tenfold price spike.” Despite Japan’s response, China adapted by flooding the global market with cheap rare earth elements to eliminate competition. According to Von der Leyen: “This pattern of dominance, dependency and blackmail continues today.” That’s why she is appealing to: „create alternatives along the supply chain – from mining and refining to recycling and stockpiling – and ensure critical mass of demand.” What does this mean? It means a need for investment in new mining projects and processing capacities both in G7 countries and globally. Accordingly, there is a need to “build an alternative network of trusted suppliers.” Furthermore, Von der Leyen recommends a closer look at other industrial sectors where distortions are clearly visible – such as the steel and pharmaceutical industries. And to conclude, she said: “We need to act together on non-market policies and practices,” suggesting, for example, joint monitoring of activities in specific sectors. At the very end, she called for stronger unity within the G7, stating: “We have a shared stake in economic security. The challenges we face are common. And the best responses are those we shape together”.
16.06. Lithuania without Chinese diplomats
It seemed that the diplomatic conflict between Vilnius and Beijing, ongoing since 2021, would gradually de-escalate in the current year, especially given such announcements from the new Lithuanian administration. However, at the end of 2024, Lithuania ordered three Chinese diplomats to leave its territory, accusing them of espionage. In April, during the EU-China Affairs Review, we cited statements from the Lithuanian Minister of Economy, who admitted that economic relations with Beijing are at a minimal level. Now, in June 2025, the Lithuanian Ministry of Foreign Affairs reports that “as of now, there are no diplomats or staff members accredited to work at the People’s Republic of China Embassy in Vilnius.” According to reports from outlets BNS and LRT, as of mid-May, only one Chinese diplomat remained in Lithuania, but “after a brief trip abroad, he was refused re-entry on May 18 at Vilnius Airport.” The reasons for the denial were lack of valid accreditation and exceeding the 90-day visa-free stay limit under Schengen regulations. Spokesperson for the State Border Guard Service, Giedrius Mišutis, commented on the matter: This person had exhausted the allowable time and could no longer rely on this exemption [accreditation].” Thus, the process of repairing bilateral relations between Lithuania and China is proving even more difficult than before. At this time, there is no news of any planned high-level meeting between Lithuanian and Chinese representatives. Perhaps the current situation will eventually force such developments in the near future—assuming a mutual willingness to restore proper relations.
23.06. Kaja Kallas on China at the Foreign Affairs Council (FAC)
On June 23, the monthly session of the Foreign Affairs Council (FAC) took place. This body brings together the foreign ministers of all European Union member states, chaired by the High Representative of the Union for Foreign Affairs and Security Policy.
According to the briefing issued after the meeting, the Council’s most pressing concern remains Russia and its aggression against Ukraine. Nevertheless, the second top priority topic was identified as relations with the People’s Republic of China. The third major concern was the dangerously escalating situation in the Middle East. Returning to the topic of China, the Council concluded that Beijing’s actions—such as China’s support for Russia and its aggression towards Ukraine, as well as hybrid operations (e.g., cyberattacks)—pose a threat to the security of the entire European Union. During her press conference, High Representative Kaja Kallas began by emphasizing that: “It is clear that China is one of the largest trading partners, and we have a few issues like climate change where we cooperate, but every relationship requires a dose of realism.” She then added bluntly: „China enables Russia’s war”. Moreover, China’s hybrid activities—including cyberattacks, interference in European democracy, and coercive trade practices—are significantly complicating the ability to continue relations in the previous, less confrontational and more partnership-oriented, business-focused manner. Kallas noted that hearing the views of the member states’ foreign ministers was of great importance ahead of the upcoming EU–China summit in July 2025.
26.06. Czechs Reveal Chinese Plot to Intimidate Taiwan’s Vice President Hsiao Bi-khim
In March 2024, during the visit of Taiwanese Vice President Hsiao Bi-khim to Prague (covered in more detail in last year’s Review), the Chinese embassy in the Czech Republic carried out an organized intelligence operation, according to a report published on June 26 by Czech news outlet iROZHLAS.cz. Based on findings from Czech military intelligence (Vojenské zpravodajství), diplomats from the military-aviation department of the Chinese embassy tailed Vice President Hsiao from the moment she arrived in the country. Their goal was to gather intelligence about her travel itinerary, meetings with Czech officials – including Senate Speaker Miloš Vystrčil – and to intimidate her.
The Chinese diplomats not only trailed Hsiao’s motorcade, but also violated traffic laws, including running a red light in downtown Prague. Intelligence officials assessed this as a deliberate act, not an accident. Moreover, a “demonstrative kinetic action” was reportedly being prepared as an intimidation tactic – though it was never carried out.
Czech military intelligence informed the Ministry of Foreign Affairs of the incident, describing the actions of the Chinese embassy as unprecedented in a European context. A military intelligence spokesperson labeled the diplomats’ actions as a gross violation of obligations under the Vienna Convention on Diplomatic Relations. The targeted victim, Vice President Hsiao, addressed the situation in a post on the platform X, writing: “I had a great visit to Prague & thank the Czech authorities for their hospitality & ensuring my safety. The CCP’s unlawful activities will NOT intimidate me from voicing Taiwan’s interests in the international community.” Czech Senate Speaker Miloš Vystrčil, who hosted the vice president’s visit, also responded: “I consider this a great impropriety. I don’t think it’s acceptable. We should respond as a sovereign and confident state. But this lies within the competence of the Ministry of Foreign Affairs, which must think this through carefully. We must realize that we live in a much more dangerous world than before.”
The Chinese side addressed the issue through Foreign Ministry spokesperson Guo Jiakun during a press conference on June 27. Guo stated that, in Beijing’s view, Prague had “seriously violated the One China Principle” and “grossly interfered in China’s internal affairs” by allowing Hsiao’s official visit. He referred to her using terms like “diehard Taiwan independence separatist.” Guo added that Chinese diplomats respect and comply with local laws and regulations in host countries. He urged relevant parties to “avoid being incited or used by Taiwan independence forces, and refrain from creating troubles, spreading rumors, and disrupting and undermining the bilateral relations.”
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