Trade Tensions Escalate: China Cancels High-Level Meetings with EU at Last Minute

Amid a surge in Chinese exports to Europe and escalating EU-China trade friction, China has suddenly canceled two important diplomatic meetings scheduled for this month in Beijing, drawing widespread attention.

According to a report by the Financial Times, sources revealed that Chinese officials canceled two dialogues in Beijing, including a ministerial-level meeting on digital issues and another meeting that was to be attended by Olof Skoog, Political Deputy Secretary-General of the European External Action Service (EEAS).

"The Chinese side has canceled two meetings planned for this month at the last minute," a source said.

According to the report, China did not provide a reason, but both sides often use such methods to express dissatisfaction with each other's policies. Last year, the EU refused to hold a key economic meeting with Beijing before the July leaders' summit due to a lack of progress on multiple trade disputes.

Since the beginning of this year, Beijing has been intensifying pressure to prevent the EU from introducing new measures to restrict Chinese exports. According to official data, Chinese exports to the EU surged 16.4% year-on-year from January to May this year, and Chinese state media has warned of a potential "trade war."

Beijing strongly opposes the EU's proposed "Industrial Accelerator Act," which would restrict some Chinese products from participating in public procurement and prohibit Chinese companies from acquiring European companies.

The European Commission has also proposed amendments to the "Cybersecurity Law" and plans to exclude Chinese companies like Huawei from telecommunications networks and solar power systems.

Furthermore, the EU has banned the use of public funds to procure inverters and other energy equipment from "high-risk countries" like China. Inverters are mainly used to control solar panel installations, and China dominates this market. This move has further deepened Beijing's concerns.

The Commission stated last month that the EU's daily trade deficit with China now stands at 1 billion euros, calling the situation "unsustainable" and threatening to impose new tariffs on Chinese goods to protect severely impacted European industries, particularly the automotive sector.

The EU also launched three anti-dumping investigations against China in June.

China's state-run Xinhua News Agency published a commentary stating: "Beijing does not want a trade war with the EU, but if the EU further targets Chinese companies or products, China will take resolute countermeasures."

Observers believe Beijing is trying to send a warning to EU leaders ahead of next week's European Council summit, where leaders are expected to discuss a tougher policy towards China.

EU officials noted that Beijing is directly lobbying EU member states in an attempt to prevent them from forming a unified stance against China.

The European Commission said the canceled meetings are "being rescheduled."

The Commission stated, "Contacts and dialogues between the EU and China at all levels continue," and mentioned a meeting held in Brussels on June 9, which was attended by Ditte Juul Jorgensen, Director-General for Trade at the European Commission, and Ling Ji, China's Vice Minister of Commerce.