Europe Draws Hard Line With China Over Ukraine And Trade

The European Union’s top diplomat has called on China to lift export restrictions on rare earth elements and warned that Chinese firms’ continued support for Russia’s military operations in Ukraine presents a significant threat to European and global security.

EU foreign policy chief Kaja Kallas issued the statement on Wednesday, July 2, 2025, following a high-level meeting with Chinese Foreign Minister Wang Yi in Brussels on Wednesday.

The discussions came amid growing economic and geopolitical tensions between the EU and China, even as Europe seeks to maintain a stable relationship with the world’s second-largest economy.

The EU is hoping to stabilize its ties with China, especially as global trade dynamics continue to shift following U.S. tariffs and protectionist measures under former President Donald Trump.

On the other hand, the mood between Brussels and Beijing has been increasingly strained.

Disputes over trade practices, market access, and technology flows to Russia have overshadowed efforts at rapprochement.

In a strongly worded statement, Kallas urged Beijing to abandon what she described as “distortive trade practices.”

These include China’s restrictions on the export of rare earth materials, vital resources used in electronics, renewable energy, and defense technologies.

She emphasized that these limitations pose a significant threat to the reliability of global supply chains and put European industries at risk.

“We call on China to end its restrictions on rare earth exports, which are undermining supply chain stability and harming European companies,” Kallas stated.

She also pushed for “concrete steps to rebalance the trade relationship, ensure fair competition, and increase mutual access to markets.”

However, security concerns dominated the discussions.

Kallas underscored the EU’s growing alarm over the role Chinese firms may be playing in supporting Russia’s war in Ukraine.

The Chinese government insists that it does not provide military assistance to Moscow.

On the other hand, European officials maintain that Chinese companies have supplied key components, such as microchips and parts used in drones.

These supposedly enable Russia to sustain its military operations.

Calling the war in Ukraine a matter of European and global security, Kallas urged China to stop any material support for Russia’s military-industrial complex.

“Chinese companies aiding Russia’s illegal war effort pose a direct threat to European security,” she warned.

She urged Beijing to support a “full and unconditional ceasefire” and to back a “just and lasting peace in Ukraine.”

The Brussels meeting was part of preparatory talks ahead of a high-profile summit scheduled for July 24–25.

There, top EU leaders, including European Council President Antonio Costa and European Commission President Ursula von der Leyen, are set to meet with Chinese President Xi Jinping and Premier Li Qiang in Beijing.

Earlier in the day, Wang Yi also held discussions with Antonio Costa.

In a statement released by China’s Foreign Ministry, Wang emphasized the need for mutual respect and understanding.

He warned that “unilateralism and acts of bullying” were harming the international rules-based order.

While he did not name specific countries, the comment was widely interpreted as a veiled criticism of Western sanctions and trade policies.

In addition to trade and Ukraine, the two sides addressed tensions in the Middle East and Iran’s nuclear ambitions.

Both Kallas and Wang welcomed the recent de-escalation between Iran and Israel, but Kallas urged Tehran to return to negotiations over its nuclear program.

“Europe is ready to facilitate talks,” she said, adding that Iran should “immediately resume dialogue” to ensure the peaceful nature of its nuclear activities.

The two diplomats also reaffirmed their shared commitment to the Nuclear Non-Proliferation Treaty (NPT).

They called it the foundation of the global effort to prevent the spread of nuclear weapons.

The EU, alongside the UK, France, and Germany, remains a party to the 2015 Iran nuclear agreement that the United States withdrew from in 2018.

Iran continues to insist that its nuclear program is entirely peaceful and denies any intention of developing nuclear weapons.

As the EU and China prepare for their upcoming summit, Wednesday’s meeting made clear that while both sides seek cooperation, serious challenges remain, from trade and security to global nuclear stability.

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