London Daily

Focus on the big picture.
Tuesday, Jul 21, 2026

EU rings alarm bell on China — but isn’t sure how to respond

EU rings alarm bell on China — but isn’t sure how to respond

Many equate the situation to the EU’s misread of its relationship with Russia. Others don’t want to cut off that many economic ties.

It’s not the kind of talks China wants Brussels to have — let alone on the cusp of President Xi Jinping prolonging his reign.

Just a day before the Communist Party congress concludes on Saturday and essentially dubs Xi the Chinese leader for life, EU leaders officially began a collective rethink about the bloc’s increasingly fraught relationship with China, displaying a sense of urgency unseen prior to the Russian war against Ukraine.

In a three-hour-long conversation, the 27 EU leaders one by one took the floor at the European Council meeting in Brussels to express their heightened concern.

But while the diagnosis was unanimous — Beijing has grown increasingly bellicose on both the military and economic fronts while cozying up to a warmongering Russia — the recommended treatments were disparate.

Some equated the situation to the EU’s misread of its relationship with Russia. Others shied away from the direct parallel but nevertheless called for the EU to reduce its dependency on China’s technology and raw materials. Then there were those — notably including German Chancellor Olaf Scholz — who insisted the EU must remain a beacon of global trade, even with China.

The varying opinions reflect the difficulties the EU will face in the years ahead as China shifts from looming threat to imminent menace.

“We must not repeat the fact that we have been indifferent, indulgent, superficial in our relations with Russia,” Italy’s outgoing Prime Minister Mario Draghi implored in a closing press conference, relaying the message that many leaders offered during the discussion.

“Those that look like business ties,” he added, “are part of an overall direction of the Chinese system, so they must be treated as such.”

Belgian Prime Minister Alexander De Croo echoed Draghi’s sense of alarm.

“In the past, I think we’ve been a bit too complacent as European countries,” he told reporters. “On some domains, [China is] a competitor — it’s a fierce competitor. On some domains, we also see that they have hostile behavior. … We should understand that in a lot of economic domains, it’s also geostrategic.”

European Commission President Ursula von der Leyen went further and gave Xi a personal thumbs down.

“We’re witnessing quite an acceleration of trends and tensions,” she said. “We’ve seen that President Xi is continuing to reassert the very assertive and self-reliant course China has taken.”

Even the generally pro-Beijing Hungarian Prime Minister Viktor Orbán agreed the EU should become more “autonomous” during the discussion, according to another EU diplomat.

And German Chancellor Olaf Scholz — who is planning a trip to China next month and is set to become the first Western leader to greet Xi as the newly reappointed leader — also warned his fellow EU leaders of Beijing’s economic future, according to a senior diplomat briefed of the no-phone-allowed conversation.

Scholz told fellow leaders that China could well be the source of the world's next financial crisis, while the country is in danger of entering what economists call a middle-income trap, according to the diplomat.

Yet while everyone was eager to spin a line about their China concerns, they split on how to address those fears.

The Baltic countries, whose years of warnings about Russia’s revanchist intentions fell on deaf ears in much of Europe, are pushing a more hard-line approach to China.

“The more Russia threats they face, the less interested they are in working with China,” one diplomat said, referring to the Baltic countries.

Lithuania, for instance, became a target of China’s trade embargo after it began building closer economic ties with Taiwan. Earlier this year, Estonia and Latvia followed Lithuania’s move to leave Beijing’s 17+1 economic club, which they criticize as a Chinese attempt to divide EU countries.

Conversely, Scholz continued to defend Germany’s need to trade with China despite the geopolitical shifts at play. Borrowing some Trump-era rhetoric, he flatly rejected the notion of “decoupling.”

“The EU prides itself on being a union interested in global trade and it does not side with those who promote deglobalization,” he said.

Just this week, Scholz reportedly backed a deal by Chinese state-run shipping giant Cosco to acquire a share of the Hamburg port — despite strong opposition from within his own government.

Asked about the port deal in a press conference, Scholz would only say that "nothing has been decided yet,” adding that “many questions” remained to be clarified.

Possible frustration over Scholz’s trip to China — on which he also plans to bring a business delegation — was also reflected in the EU leaders’ meeting, albeit implicitly. Latvia’s Prime Minister Krišjānis Kariņš, for instance, said China is “best dealt with when we are 27, not when we are … one on one.”

Additionally, as has always been the case, EU countries are at odds over how closely to align with the more anti-China U.S. stance, especially after President Joe Biden’s administration characterized China as his country’s “most consequential geopolitical challenge.”

Dutch Prime Minister Mark Rutte, while backing calls to work with the U.S. on tech development, warned about Europe’s Americanization in handling China relations: “It’s important that Europe operates as self-confident as possible, but also independently, and that there is equality and reciprocity, so that we are not a kind of extension of America but that we have our own politics vis-à-vis China.”

Finnish Prime Minister Sanna Marin, meanwhile, called on the EU to work with all democracies against China’s rise in the tech field.

“We shouldn't be building that kind of strategic, critical dependencies on authoritarian countries,” she said when asked about the EU's concerns about China. “We would need in the future [to] work with other democratic countries also to build this kind of export routes together, with [the] United States, with Great Britain, with Japan, with South Korea, Australia, India, New Zealand, for example.”

Newsletter

Related Articles

0:00
0:00
Close
Miliband Sets Climate and International Law at Centre of UK Diplomacy
US Gasoline Returns to $4 as Renewed Iran Fighting Disrupts Oil Flows
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Orders 50% Tariffs on Selected Canadian Imports
Pentagon Discloses Nearly 100 US Troop Injuries During Renewed Iran Fighting
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
US Judge Pauses Paramount Skydance and Warner Bros Discovery Merger Over Antitrust Concerns
NHS England Faces Growing Retention Pressure Among Younger Midwives
UK Data Centre Expansion Faces Water and Grid Capacity Challenges
UK Defence Shares Rise After John Healey Appointment and Continued Spending Commitments
OECD Urges UK Government to Review Pension Triple Lock to Protect Public Finances
Bank of England Keeps Cautious Approach as Energy Costs Threaten Inflation Progress
County Councils Call for Wider Devolution and Long-Term Social Care Funding Reform
IMF Urges UK Government to Maintain Fiscal Discipline as Growth Forecast Slows
Russian Warship Holds Live-Fire Exercises Near UK Coast as Royal Navy Monitors Activity
Mitie Agrees Three Point One Billion Pound Takeover by OCS in Another Blow to London Listings
JPMorgan Chase Warns Bank Levies Could Hit UK Growth and Drive Capital Away
UK Unemployment Holds at Four Point Nine Percent as Labour Market Shows Resilience
UK Government Borrowing Falls Below Forecasts as Treasury Receives Early Fiscal Boost
John Healey Cuts VAT on Household Electricity Bills After Cancelling National Digital ID Scheme
Andy Burnham Forms New Labour Government With Ten-Year National Renewal Plan
EU Imposes Record €550 Million Digital Services Fine on AliExpress
UK Publishes Updated Consumption-Based Carbon Emissions Data
English Regions Prepare for Expanded Devolution and Infrastructure Powers
Russell Group Backs New Government and Calls for Stronger University-Industry Links
Bank of England Maintains Restrictive Monetary Policy Amid Persistent Inflation
Climate Progress Report Renews Debate Over the UK's Net Zero Strategy
New UK Government Launches Drive to End Rough Sleeping and Expand Social Housing
Prime Minister Andy Burnham Appoints John Healey as Chancellor in Cabinet Reshuffle
OECD Calls for Structural Reforms as UK Economy Faces Slower Growth
International Monetary Fund Expects UK Economic Growth to Slow to One Percent in 2026
Andy Burnham Takes Office as UK Prime Minister and Unveils Decade-Long Reform Agenda
London’s Housing Starts Collapse as Planning and Building Costs Stall Development
Charlie Sheen’s Daughter: "My Dad Didn’t Buy Me a House, My Breasts Bought It"
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Naturally Conceived Identical Quadruplets Born in Rare Brisbane Delivery
Tate Brothers Fight British Extradition Bid After Miami Arrests
Burnham Reshapes Britain’s Government Around Living Costs, Devolution and Security
Jingye Demands Full Compensation After Britain illegally Nationalized British Steel
Just Another Liar or a Robin Hood? Andy Burnham Pledges Cost-of-Living Help in First Speech as UK Prime Minister
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Police Block Cockroach Janta Party’s March to Parliament as Education Protests Intensify
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Turkey Explores S-400 Transfer to UAE in Bid to Rejoin F-35 Program
Josh Kerr Breaks Twenty-Seven-Year World Mile Record at London Diamond League
×