
2025 marks 50 years of official diplomatic relations between the European Union and China and the Chinese Mission organized this week in Brussels a large reception to celebrate and meet the European counterparts. The event coincided with the positive news that China lifted the 2021 sanctions against MEPs, an act of reciprocation on the EU’s sanctions against Chinese officials. This was matched by the Parliament’s move also this week to lift all restrictions on exchanges with China.
Can the first week of May 2025 also mark the contemporary renaissance of the EU-China relations, following the middle ages of the not so distant diplomatic and trade spat between world’s Number 2 and 3 economies? One can only hope so amidst an overly catastrophic orange tornado, Donald Trump.
Trump’s Inferno
MAGA (Make America Great Again) is nothing but the synonym to massive global trade wars, recession, diplomatic and ethical decadence. Trump’s tariffs, announced during last month’s Liberation Day which was euphemism for Doomsday, have already cost the world economy somewhere between 5 to 10 trillion USD. Too subtle?
While the mere US economy suffers now a very high chance of MYGOD MAGA recesssion, both the EU and China try to contemplate Trump’s exorbitant tariffs of 20% “reciprocal” or whatever that means, 25% on cars and car parts and 25% to steel and aluminium to the EU and to China 145%. The EU is already ready to respond with 95 billion EUR tariffs against the US if the break of 90 days ends up being a fiasko, which is very likely given the grotesque negotiation tactics of the Trump ensemble. Similarly China has responded with 125% tariffs against the US goods. Who on earth wins in this shooting gallery?
Noone. It really takes a first year student in economics to get that bloody trade wars in the 21st century of advanced globalization are like shooting oneself in the foot or better said both feet. Why Trump is doing that anyway? Because he is poised to dismantle the universe out of the pledge to his original bizarre electorate to do so and out of mere clinical insanity, powered though officially by the US constitution who makes him omnipotent, coupled naturally with his yes men courtyard. Too subtle again?
EU-China relations, a silver lining?
The truth is that the world economy is in peril and the 50 year anniversary of diplomatic ties between two of the three largest economies in the world is simply a beacon of hope. As the EU and China trade value in 2023 was 739 billion euros in 2023, it takes no master in rocket science for someone to understand that, amidst a torrential rain of trillions of dolars in losses due to the tariffs, the EU and China relations are the rainbow at the end of the storm.
The world’s stability today lies in the hands of these two major partners. To succeed world peace and avoid global recession the EU should start by cooling down on its extravagant tariffs against Chinese electric vehicles. The reason being simply that in a dance of trillions of dolars in losses due to tariffs the world cannot afford a few hundreds of billions EUR more in losses, this time stemming from the EU-China EV tariffs. Once upon a time, the EU wanted to be a good sport by parroting US foreign policy and target China. Today though the situation is completely different as the once friend and biggest trade partner at the other side of the Atlantic has turned out to be a foe.
And of course, just like it happened this week with the lifting of sanctions and exchange restrictions, China will be sure to reciprocate by cancelling retaliation like the case against EU dairy. If the EU and China don’t broker a trade truce soon, then we are doomed. Too subtle once more?
Wind of EU change
Things seem to be moving, luckily, in the right direction as the EU policy makers are super efficient and savvy in quantitative methods. Next July the EU leaders, Ursula Von der Leyen-head of the European Commission and Antonio Costa-head of the European Council, are anticipated to travel to Beijing to visit China’s President Xi. The scope of the visit is one, seize the momentum of the Trump mess and turn the page on the EU-China relations, hopefully.
The world expects a lot from this visit but more than anyhing else a freeze of EU-China trade tariffs amidst a whole Atlantic ocean of tariffs. Evidently, the turbulence of the global economy threatens overtly prosperity and the ability of the people to make the plethora of ends meet at some point. If one adds to that tariff Apocalypse the scores of war conflicts today, Gaza, Syria, Sudan, Congo, Myanmar, Kashmir, you name it, the horizon seems so very gloomy.
Next July, the EU delegation should carry inside its luggage to Beijing the magic toolbox to avoid a global recession and an imminent thirld world war. Can Ursula and Antonio do the trick? No, but their efficient cabinets can, potentially or hopefully.
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