Published：May 15, 13:32Last updated：Jun 15, 18:00

EU-China Trade Relations Evolve Amid Consultation Mechanism and Mutual Benefits

May. 15, 2026 13:32

On May 15, 2026, China's Ministry of Justice, in collaboration with the Ministry of Commerce, identified the EU's investigation into Chinese entities under its Foreign Subsidies Regulation as improper extraterritorial jurisdiction. The announcement prohibits any organization or individual from enforcing these measures, emphasizing China's commitment to protecting its sovereignty and the rights of its citizens and entities.

Summarized

94News

16Media

Jun. 13, 2026 04:12

On June 9, representatives from China and the EU agreed to work towards practical outcomes in their trade and investment consultation mechanism, aiming to stabilize and sustain bilateral economic relations. Despite recent EU trade protection measures targeting Chinese companies, the economic ties between China and the EU are deeply intertwined. For instance, while Europe highlights trade deficits, a significant portion of profits from Chinese-manufactured goods sold in Europe benefits European companies. Additionally, China's contributions to Europe's green transition and cost reduction in industries like electric vehicles and wind energy demonstrate mutual benefits. The article emphasizes that cooperation, not confrontation, is the way forward for both sides.

Jun. 15, 2026 18:00

China's domestic car market is struggling, with sales dropping 19.7% year-on-year from January to May. However, exports surged by 67.7%, with new energy vehicles accounting for 173,200 units. The EU is particularly affected, as 21% of China's car exports went to Europe in Q1 2026, following U.S. tariffs on Chinese EVs.

Trade tensions between the EU and China persist, but recent developments highlight efforts to stabilize relations through dialogue and cooperation. China confirmed ongoing communication with the EU after reports of postponed high-level talks, with China's commerce minister still planning a visit. Both sides agreed to achieve practical results in the first meeting of the China-EU Trade and Investment Consultation Mechanism on June 9, aiming to stabilize bilateral economic relations and promote sustainable development. Despite EU trade protection measures targeting Chinese companies, the economic ties between the two remain deeply intertwined, with mutual benefits in sectors like green transition and cost reduction in industries such as electric vehicles and wind energy. Huanqiu+2

🏗️ Steel Tariff Developments

The EU's planned steel tariffs effective July 1, 2026 remain contentious, with China maintaining these violate WTO rules. Meanwhile, the UK government is considering dropping some planned steel tariffs after manufacturers warned of significant cost increases, with representatives meeting industry leaders to finalize exemptions. These developments occur against the backdrop of broader EU efforts to restrict Chinese manufactured goods priced below European equivalents. Huanqiu+3

🔄 Supply Chain Reshaping

The EU continues developing tools to diversify supply chains, modeled after its Russian energy decoupling strategy, requiring critical materials from at least three sources. China's Foreign Ministry spokesperson Lin Jian emphasized the mutual benefits of current China-EU supply chain cooperation, urging the EU to uphold market economy principles. The EU maintains these measures are about resilience rather than protectionism. Bloomberg+3

🤝 Diplomatic Engagement

China's Vice Commerce Minister Ling Ji met with EU Director-General for Trade and Economic Security Henrik Jørgensen in Brussels to discuss the new consultation mechanism. Both sides emphasized dialogue over protectionism, with analysts viewing the mechanism as a positive step to stabilize bilateral trade. The meetings occurred amid China's warnings against protectionist measures that could harm European consumers. Huanqiu+2

⚖️ WTO Reform Discussions

China remains active in WTO reform talks, emphasizing the need for flexible decision-making and development-focused reforms. While not directly mentioned in recent reports, this ongoing engagement forms part of the broader context of China-EU trade relations, where differing approaches to addressing trade imbalances continue alongside multilateral engagement. Huanqiu+2

He YadongEuropean UnionTongfang WeishiMinistry of Commerce ChinaForeign Subsidies Regulation