The European Union has affirmed that it will not sever economic ties with China as a prerequisite for a trade agreement with the United States under President Donald Trump’s administration. This statement from the European Commission comes amidst reports suggesting that the White House has encouraged nations to choose between economic relations with Washington or Beijing.
Although the United States has not officially confirmed such demands, there are indications that President Trump is open to making countries choose between the two global powers to secure concessions from his administration’s tariffs, which have affected both allies and adversaries. In a media interview, he suggested that some regions, like Latin America, might benefit from distancing themselves from China.
The suggestion of decoupling has prompted a strong response from Beijing, which has warned against making deals that undermine China’s interests. The Chinese Ministry of Commerce has stated that any such actions would be met with reciprocal countermeasures, emphasizing China’s capability to protect its interests against unilateralism and protectionism.
On the European front, the European Commission has emphasized that its trade negotiations with the United States are separate from its relations with China. The Commission’s deputy spokesperson, Arianna Podestà, clarified that discussions with the US are ongoing and focused on achieving mutually beneficial outcomes, distinct from EU-China relations. Podestà reiterated that the EU’s approach towards China remains centered on “de-risking” rather than “decoupling,” with the primary concern being the safety and well-being of EU citizens.
The term “de-risking” was introduced by European Commission President Ursula von der Leyen to describe efforts to mitigate dependencies on China, particularly in sensitive sectors such as high-tech and dual-use goods. In response to US tariffs, China has reportedly restricted exports of critical minerals and magnets, a move seen as leveraging supply chains for political purposes.
Von der Leyen has recently adjusted her stance, advocating for a “transactional” foreign policy that allows for constructive engagement with countries like China, despite differing fundamental values. This shift comes in the wake of conversations with Chinese Premier Li Qiang, wherein both parties acknowledged their responsibility to support a reformed global trading system.
While an EU-China summit is scheduled for July, speculation about a potential reset in EU-China relations has been downplayed by Brussels, which remains cautious about the risk of low-cost Chinese exports flooding the EU market due to US tariffs. Von der Leyen has warned against absorbing global overcapacity and market dumping.
According to Eurostat, in 2023, the United States was the leading destination for EU exports, valued at €501.9 billion, followed by China at €223.5 billion. Conversely, China was the largest source of imports to the EU, totaling €516.2 billion, ahead of the United States at €346.7 billion.
