The Chinese flag is draped beside the European Union flag during a EU-China Summit at the European Union Commission headquarters in Brussels. Photo: AFP

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China-EU relationsi

Breaking news, analysis and opinion on relations between China and the European Union, covering trade, investment, policy, the Belt and Road Initiative and wider issues such as the US-China trade war and human rights.

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  • Yellen’s comments come a week after the Biden administration announced steep new tariffs on Chinese electric vehicle and other strategic industries
  • The US is concerned Chinese government support is leading to more production capacity than markets can absorb, driving cheap exports and stifling global growth
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The tsunami of new-energy manufacturing flooding the industry is not the first time a wave of Chinese goods has forced institutional upheavals and left foreign firms with little room to compete.

In this week’s issue of the Global Impact newsletter, we look back at Chinese President Xi Jinping’s trip to France, Serbia and Hungary, and ponder what has changed in the ever-complex relationship between Beijing and Brussels.

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Commerce ministry move targeting EU, US, Japan and Taiwan comes shortly after CCTV-linked social media channel warns of Beijing’s deep toolbox against ‘double standards’ EU probes.

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Frustration said to be mounting on continent and evident in European Commission investigations over Chinese subsidies, such as for electric vehicles.

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Analysts discuss how Beijing could respond to Washington’s latest trade offensive, and how the impact could have repercussions beyond China’s borders.

Some EU member states with major automotive ties to China are voicing their opposition to any push to match US import tariffs, or to impose any duties at all.

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Two Chinese firms withdraw bids for Romanian photovoltaic park contracts after Brussels opens investigations under its foreign subsidies regulation.

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The Chinese president upgraded relations with Serbia and Hungary, but in France made few if any concessions to reduce the flood of Chinese imports into the EU.

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As China looks to tap Europe’s vast market for lithium batteries, Hungary has become an attractive destination for production to make logistics simpler – and bypass EU trade investigations.

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More multinationals are undergoing a ‘decoupling’ with their China-based operations, a new business survey finds as foreign direct investment sinks and analysts say expatriate staff are harder to come by.

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European firms have been revising expectations for the Chinese market while planning for a projected economic slowdown, further adding to China’s challenges and ‘setting a negative cycle in motion’.