August 6th European Commission introduces a temporary countervailing duty on lightweight thermal paper from China
On August 6th, 2026, the European Commission published Implementing Regulation (EU) 2026/1914, introducing a temporary countervailing duty on imports from China of certain types of lightweight thermal paper, applicable as of August 7th, 2026.
In the course of its anti-subsidy investigation, the Commission found that Chinese producers benefited from various forms of public support, including preferential financing, tax incentives, grants, and the provision of goods and services on preferential terms. At the same time, Chinese imports into the EU increased significantly, rising by 423% over the investigation period, while their share of the EU market increased from 1.4% to 8.2%.
The Commission also identified an average price undercutting margin of 10.4% and significant injury to the EU industry, including a 20% decline in production and a 21% decrease in sales. Due to the low level of cooperation from Chinese exporters, the Commission applied “best facts available” to non-cooperating companies, establishing a provisional duty of 28.8% for Guangdong Guanhao High-Tech Co. and 70.5% for other imports from China.
The decision is part of the EU’s policy aimed at mitigating the negative effects of Chinese subsidization of production and restoring a level playing field in the EU market. The proceeding also demonstrates the Commission’s growing willingness to use trade defense instruments against Chinese companies benefiting from state support. Although the measure is primarily sector-specific, it represents another example of the EU taking a stricter approach to subsidized competition from China.
August 6th Germans are open to a more hawkish policy towards China
According to a survey by the European Council on Foreign Relations published in August, Germans are in favour of a tougher policy towards China. Around 49 per cent of respondents view China as a rival or adversary, whilst only 38 per cent view the country positively. Germany is well ahead of the second-placed country among the 13 surveyed – France – where 43 per cent of citizens regard the PRC as a rival.
Germany thus stands out from the other European countries surveyed, where China is more often perceived as a ‘necessary partner’ or ally. It is worth noting the discrepancy between public opinion and Berlin’s position to date at EU level. Whilst France, Italy, Lithuania, the Netherlands and Spain have recently been pressing the European Commission to tighten trade defence measures against China and to speed up action in this regard, Germany has refused to join this initiative, advocating instead for closer industrial ties with Beijing.
Berlin’s shift in stance towards Beijing is linked to a widespread slowdown in manufacturing across Europe, which is particularly acute for the German economy as China’s largest economic partner in Europe. For years, cooperation between the two economies has contributed to their shared industrial success. However, the current growth of industry in China poses a competitive threat to German manufacturing.
According to data from the Federation of German Industries, the country’s industrial sector is losing around 15,000 jobs a month. Meanwhile, a report by the European Council on Foreign Relations think tank stated that the German manufacturing sector lost around 420,000 jobs between 2019 and 2025. In 2025 alone, the sector lost around 124,100 jobs (a fall of 2.3 per cent, almost twice as many as in 2024).
In the first quarter of 2026, the number of people in employment fell by 157,000 year-on-year. The Institute for Employment Research estimates that up to 800,000 jobs could disappear within 15 years, whilst McKinsey forecasts that by 2030, as many as three million jobs may require extensive retraining or a career change. The situation is particularly difficult in the automotive industry, which faces significant competition from China.
It is also worth noting that German politicians are divided on the issue of policy towards China. Whilst as many as 60 per cent of supporters of the Christian Democrats and Social Democrats view the PRC as an adversary or rival, parties considered to be on the extremes – the right-wing Alternative for Germany and The Left – are noticeably more inclined to view China as an indispensable partner.
The AfD, which has taken the lead in many national opinion polls and is tipped to win in some of this year’s primaries, displays the most positive attitude towards China. Around 45 per cent of respondents regard China as an indispensable partner, 5 per cent as an ally, 31 per cent as a rival, and 8 per cent as an adversary.
Until now, Berlin has opposed measures to protect European industry implemented by the European Union. In 2024, Germany voted against the imposition of anti-subsidy duties on Chinese electric vehicles. However, Berlin’s approach to Beijing is changing. During a conversation with investors, the CEO of Volkswagen called on the European Commission to impose tariffs on Chinese-made plug-in hybrid electric vehicles and praised the very same tariffs on electric vehicles that he had vocally opposed in 2024.
At the EU leaders’ summit in June 2026, Germany also backed a stronger set of trade defence tools aimed at China. These included measures such as the ‘Buy European’ provisions of the Industrial Accelerator Act and restrictions on high-risk Chinese technologies.
Trade talks between the EU and China are set to continue in August and September, and ministers from both sides will meet with the EU in October to assess progress in restoring balance to relations. In October, heads of state, including Merz, are due to meet in Brussels to decide on specific measures to stem the influx of Chinese imports.
August 7th The EU imposes provisional anti-dumping duties on Chinese silicon-manganese steel wire
On August 7th, the European Commission imposed provisional anti-dumping duties ranging from 75.3 per cent to 102.4 per cent on certain silicon-manganese steel wires originating in China. These materials are used as filler materials in welding applications in the construction, automotive, shipbuilding, aerospace, energy, defence, electronics and electrical engineering sectors. The rates for individual companies are as follows: 75.3 per cent for Changzhou City Yunhe Welding Material Co., Ltd., 102.4 per cent for Juli New Material Technology Co., Ltd. and Shandong Juli Welding Co., Ltd., 93.1 per cent for cooperating exporters, and 102.4 per cent for all other Chinese producers.
The application of individual rates for a given company is subject to the presentation of a valid commercial invoice containing the required declaration. In the absence of such an invoice, a rate of 102.4 per cent applies to all other imported goods.
The duties are the result of an investigation launched on December 11th, 2025, following a complaint by seven EU producers who provided evidence of dumping and the resulting material injury to the EU industry. The Commission has provisionally concluded that the EU industry has suffered material injury caused by dumped Chinese imports. The EU industry comprises 18 producers, and the investigation revealed a deterioration in sales, market share, profitability, investment capacity and employment.
The Commission also concluded that there are no compelling arguments against the imposition of measures on the grounds of the Union’s interest. However, the Commission has not yet decided whether anti-dumping duties will be levied retrospectively on previously registered imports.
August 10th Chinese firm SAIC’s investment in a car factory in Ferrol raises security concerns
SAIC Motor, China’s largest electric vehicle manufacturer and owner of the MG brand, is to build its first factory in Europe in Ferrol, in the Spanish region of Galicia, despite security concerns. The initial budget for the factory is set at 200 million euros. It is expected to employ 1,000 people and produce 120,000 cars a year. The aim of building the plant is to avoid the 45 per cent tariffs that the EU imposes on Chinese cars.
The Galician government describes the investment as the largest international project in recent decades, however, the Ministry of Defence, the Ministry of Intelligence and the National Intelligence Centre fear that the plant, situated just five kilometres from a naval arsenal, could be used to spy on the F-100 frigates being built using American technology, as well as on the Navantia shipyard. The company was offered alternative locations outside the military’s reach, such as Vigo or Gijón, but opted for Ferrol.
A spokesperson for the Ministry of Defence stated that negotiations with SAIC have been ongoing for several months and that, ultimately, no security concerns were raised. Furthermore, the project will be subject to approval by the Strategic Investment Committee, which may impose conditions relating to security issues.
The Chinese side considers the accusations regarding the risk of espionage to be unfounded, emphasising that the security issue is nothing more than an expression of protectionism. Moreover, the wave of opposition has been unable to halt the deepening and strengthening trend of Sino-Spanish cooperation.
August 10 Deutsche Bank appointed as the clearing bank for the Chinese yuan in Europe
Deutsche Bank has been appointed by China as a clearing bank for its currency, the renminbi, becoming the first bank in Europe to be granted this status. Previously, such settlements in Europe were handled by branches of the Bank of China, the Industrial & Commercial Bank of China and the China Construction Bank. In Europe, the growing importance of the yuan is underpinned by the scale of economic ties with China, reflected in the EU’s record trade deficit with China.
In recent years, the volume of yuan-denominated settlements has risen significantly, and global companies are increasingly issuing invoices directly in this currency to reduce costs and improve price transparency in their dealings with Chinese suppliers.
This initiative is designed to facilitate the direct, end-to-end processing, clearing and settlement of cross-border transactions in yuan for European financial institutions and businesses, acting as a local bridge to Chinese payment systems. This will enable European businesses and financial institutions to gain direct access to the Chinese financial system, including capital markets and liquidity infrastructure, thereby streamlining cross-border trade and investment flows and strengthening the financial ties between China and Europe. This is one of many initiatives by China aimed at internationalising the yuan and reducing dependence on the US dollar-dominated global payment system.
An RMB clearing bank is a financial institution designated by the People’s Bank of China to process and settle renminbi transactions outside mainland China. The appointment strengthens the European RMB infrastructure and cements Frankfurt’s role as an international financial centre. It enables the bank to provide direct, comprehensive processing, clearing and settlement services for cross-border RMB transactions, direct processing and clearing of transactions in the Chinese currency, more efficient cross-border payments and collections, reduced counterparty and operational risks, enhanced support for trade finance, investment activities and liquidity management, as well as improved opportunities to conduct business with Chinese counterparties using the RMB.
US President Donald Trump’s unpredictable trade policy has accelerated Beijing’s efforts to reduce its reliance on the dollar. In its five-year plan, the Chinese central bank has committed to maintaining a stable yuan exchange rate and increasing the use of the currency in international trade and investment. Deutsche Bank has long been involved in the internationalisation of the RMB, joining the Cross-Border Interbank Payment System – China’s alternative to SWIFT – as a direct participant in 2015.
This deepening financial integration is taking place at a time when the German government is pressing industry to reduce its dependence on China in the face of mounting trade tensions. China, however, remains one of the most important overseas markets for German companies, with around 5,000 firms operating in the country, ranging from major car manufacturers such as Volkswagen to industrial groups such as Siemens and Mittelstand manufacturers.
August 17th Chinese electric cars and plug-in hybrids are making ever-stronger inroads into Europe
Sales of Chinese electric vehicles are rising sharply in Europe, raising questions about tariffs. Against a backdrop of allegations that state-subsidised Chinese car manufacturers are selling vehicles in the EU to gain market share, discussions are emerging regarding the introduction of higher tariffs to protect European manufacturers. The rise in sales in Europe has occurred despite EU tariffs of up to 35.3 per cent on electric cars from certain Chinese manufacturers, on top of the standard 10 per cent import duty. Sales of electric vehicles have surged in Europe since the outbreak of the war with Iran in February, which caused shortages at petrol stations.
According to Schmidt Automotive Research, the share of electric cars sold by Chinese brands rose to 14.2 per cent in European markets during the first five months of this year. Sales of 171,800 vehicles represented a market share increase of almost five percentage points compared with the same period in 2025. Brands such as BYD, Chery, SAIC and Xpeng are targeting exports to Europe as the Chinese industry seeks to dominate the global electric vehicle market.
This is putting traditional European manufacturers under immense pressure, as stricter emissions regulations are forcing them to boost sales of their own electric vehicles. Chinese manufacturers have sold over 120 different models in Europe this year – compared with around 100 models produced by European plants.
Italy accounted for one-fifth of these exports. One manufacturer, Leapmotor, shipped thousands of its low-cost T03 electric cars to the country to take advantage of government purchase subsidies. Thanks to these subsidies, the T03 at one point cost as little as 5,000 euros – significantly less than even the most competitive models offered by rivals.
Matthias Schmidt, founder of Schmidt Research, stated that China’s share of the electric vehicle market may already have peaked, partly because China has shifted some of its focus to plug-in hybrid electric vehicles, which are not yet subject to EU customs duties. However, this loophole is set to be closed within the next 12 months, which is why China is likely to exploit this market loophole for as long as possible. Oliver Blume, CEO of Volkswagen, stated that European plug-in hybrid vehicles are uncompetitive compared to their Chinese counterparts.
According to customs data, in the first half of 2026, China exported over 199,100 plug-in hybrid vehicles to the European Union, worth $4.19 billion, representing an increase of 205.1 per cent in volume and 222.7 per cent in value compared with the previous year. Spain has become one of the fastest-growing markets, with imports of Chinese PHEVs reaching over 39,800 units worth $860 million, representing increases of 106.4 per cent and 109 per cent respectively.
August 18th Taiwan does not intend to abandon economic cooperation with Lithuania
According to Lithuanian state media, Taiwan does not intend to abandon its economic and trade cooperation with Lithuania and remains committed to further deepening these ties. Moreover, the two sides are resuming negotiations on an action plan in this area.
This was confirmed by Eric Huang, Director General of the Department of European Affairs at Taiwan’s Ministry of Foreign Affairs. He stated: “Our determination to cooperate with the new Lithuanian government to strengthen economic and trade cooperation remains unchanged.” Negotiations on the action plan were initially suspended in June and resumed at the end of July. The suspension coincided with the restructuring of the Lithuanian government.
Lithuania’s Ministry of Foreign Affairs did not provide further details on the negotiations. It stated only that their main focus was on “building durable economic ties that would contribute to the development of domestic high-tech sectors.”
The risk of a deterioration in Lithuania’s relations with Taiwan emerged with the formation of a new government in Vilnius, whose agenda included a commitment to “normalize” relations with the People’s Republic of China to a level comparable to those maintained by other EU member states. Against this backdrop, some suggested that the new government, led by Prime Minister Mindaugas Sinkevičius, would be forced to slow the deepening of cooperation with Taiwan in pursuit of improved relations with mainland China. Statements from both sides indicate that these expectations were largely misplaced.
August 19th China orders domestic entities not to cooperate with the EU’s investigation into JD.com
China has stated that the EU’s investigation into the Chinese e-commerce giant JD.com constitutes “improper extraterritorial jurisdiction” and has ordered organisations and private entities not to participate in or assist with the investigation, a sign of the ongoing trade tensions between the two superpowers. The order was issued by the Ministry of Justice and is linked to legislation introduced in April, which expanded Beijing’s ability to exert economic pressure in the face of strained relations with its trading partners.
This is already the second such case this year, as in May China issued a similar order suspending an EU investigation into the Chinese security firm Nuctech. This statement is a further sign of Beijing’s irritation at the increasingly strained relations with Brussels. European regulators and authorities have investigated several Chinese e-commerce platforms under the EU’s Digital Services Act and have launched anti-dumping campaigns across all sectors.
In May, the European Commission launched an investigation into JD.com’s $2.5 billion bid to acquire the German electronics retailer Ceconomy, citing concerns that JD.com may have received foreign subsidies that could distort the EU market. JD.com is China’s largest e-commerce retailer by turnover, whilst Ceconomy operates over 1,000 stores across Europe under the Saturn and MediaMarkt brands.
As part of the investigation, the EU has demanded extensive clarifications from the Chinese entity, which, according to the Chinese ministry, constitute a serious breach of international legal principles and are also excessive and unnecessary. The Chinese ministry stated that the EU is abusing its investigative mechanism regarding foreign subsidies and threatened that China would take retaliatory measures.
The deal was initially expected to be finalised in the first half of this year, before the European Commission launched a detailed investigation in May. The European Commission has until October 2nd to reach a decision. JD.com declined to comment, whilst the European Commission stated in a press release that its rules on foreign subsidies do not discriminate against companies on the basis of their nationality or ownership and are in line with the EU’s international obligations.
Analysts say that Beijing hopes to counter EU resistance to its growing trade surplus by targeting trade policymakers in Brussels, whilst at the same time courting the more sensitive Member States on an individual basis.
August 19th Johannes Volkmann calls on Europe to protect its industry from China
On August 19th, the German daily Bild published an interview conducted by the newspaper’s editor-in-chief, Paul Ronzheimer, with Johannes Volkmann, a foreign policy expert from Germany’s Christian Democratic Union (CDU). During the interview, Volkmann warned of the need for immediate action in response to Beijing’s economic and trade policies.
In his view, Germany is currently losing “between 10,000 and 15,000 industrial jobs every month, with a significant share of this decline resulting from overcapacity and unfair competition from China.” He subsequently referred to the increasingly common term “China shock 2.0”, a reference to the “China shock” of the early 21st century following China’s accession to the WTO. In this context, Volkmann argued that China’s export policy poses a threat to all major sectors of German industry, since “where Chinese manufacturers gain market share, German manufacturers lose it.”
He also addressed what he described as a “price conflict”. In his view, this refers not only to China exporting increasingly large volumes of products and technologies to the German market, but also to a systematic decline in Chinese imports from Germany. According to the CDU politician, this unfavorable trend for the German economy is not driven solely by the innovativeness of Chinese industry, but primarily by Chinese subsidies supporting domestic companies, thereby giving them an unfair competitive advantage in the German and broader European markets.
Volkmann therefore argued that measures targeting China, including countervailing duties, are essential despite his awareness of their potential negative economic impact on German consumers and the political costs for parties seeking to adopt a tougher policy towards Beijing. “I am nevertheless convinced that we must continue down this path, because inaction will ultimately lead to far greater costs for our economy,” he added.
At the end of the interview, Volkmann issued a broader warning and called on European countries not to passively observe the actions of the People’s Republic of China, but to act while there is still an opportunity to do so, even if this results in retaliatory measures from Beijing. He stressed that “the problem is similar to that with Russia, when we became dependent on them.” In his view, “it is therefore extremely important now that we do not allow ourselves to be paralyzed by fear of the dire forecasts from economic research institutes concerning the threats we face, but instead treat them as motivation for a rapid change of course in our China policy.”
In the broader European context, he added that despite Europe’s growing dependence on China, the relationship is not entirely one-sided, as China is also dependent on the European market to some extent. According to Volkmann, Europe constitutes China’s most important market, particularly given the limited availability of the US market, meaning that China cannot afford to lose access to Europe.
August 20th Hengtong Optic-Electric opens a branch in Spain
Chinese fiber-optic manufacturer Hengtong Optic-Electric, which has been on the US list of restricted entities since 2021, has opened a branch in Madrid. The company began operations in March 2026, while its registration reportedly took place at the end of July. Hengtong is one of the world’s largest fiber-optic manufacturers, while the group has been operating in the Spanish market since 2016, when it acquired the Aragon-based company Cablecom.
According to the Spanish newspaper The Objective, the decision is part of the deepening of Spain’s economic relations with China. Hengtong Optic-Electric was placed under US restrictions over allegations that it supported the modernisation of China’s armed forces and the development of infrastructure relevant to intelligence and cybersecurity. At the same time, the Hengtong Group is involved in the China–Chile Express project, which envisages the construction of a submarine fiber-optic link between Chile and Hong Kong. The project is being carried out by China Mobile together with HMN Technologies, a Hengtong Group company, and Hengtong Optic-Electric.
The development is relevant to EU–China relations primarily from the perspective of economic and technological security. It demonstrates that, despite growing concerns in the United States and among some European countries regarding Chinese technology companies, Spain remains open to their investment. The move also coincides with Prime Minister Pedro Sánchez’s stated intention to deepen industrial and technological cooperation with China.
At the same time, the presence of a Chinese company subject to US restrictions could increase tensions between Spain’s approach to economic cooperation with Beijing and the broader Western policy of protecting critical infrastructure, strengthening cybersecurity, and reducing risks associated with Chinese technologies.
August 25th Slovakia advocates ‘friendly competition’ between the EU and China rather than the creation of barriers
Slovak Prime Minister Robert Fico, following talks in Bratislava with European Council President Antonio Costa – who had begun his annual tour of EU capitals – said that the European Union should engage in “friendly competition” with China, rather than treating the country as an enemy and erecting barriers. The Prime Minister also criticised the imposition of new tariffs or barriers and urged the EU to strive to achieve better results on its own. According to Fico, China is a country with which the EU should compete in a friendly spirit and seek mutual benefits.
The Chinese media present the Slovak Prime Minister’s stance as an argument in favour of a more pragmatic EU approach towards Beijing. They point out that, for many large EU companies, China is an important market, a supplier of essential raw materials, a manufacturing base, a source of corporate revenue and, nowadays, also a centre of innovation. At the same time, they criticise the EU’s derisking policy, tariffs, and investment and export controls, arguing that Europe’s competitiveness problems stem primarily from its own weaknesses, such as high energy costs, regulation and a slower pace of innovation.
In this narrative, Fico emerges as an advocate of an approach in which Beijing is a competitor but not an adversary, and in which the EU should strengthen its own economy and maintain independence in its relations with China, rather than adopting a more confrontational policy modelled on that of the United States.
August 31st A Chinese court has frozen Nexperia’s assets worth over $300 million in connection with a dispute with Wingtech
A Chinese court has frozen assets worth over $300 million belonging to the Dutch chip manufacturer Nexperia and the hardware division of its Wuxi-based subsidiary in connection with an ongoing ownership dispute with its Chinese parent company, Wingtech Technology. The application to freeze the assets was made by Wingtech and its subsidiary Yucheng Holding, according to documents filed by Wingtech with the Shanghai Stock Exchange.
These measures cover Nexperia’s 100 per cent stake in Nexperia Semiconductor China, Nexperia Semiconductor Wuxi and Nexperia Semiconductor Shanghai, as well as 99 per cent stake in Nexperia Semiconductor Technology Shanghai. The asset freeze came into effect between August 20th and 25th and is set to remain in place until August 2029.
The company stated that the case has not yet been heard on its merits, and that the measures imposed by the court “do not affect Nexperia’s day-to-day operations, management or business continuity”. The Chinese court case provides Wingtech with new opportunities in its efforts to regain control of Nexperia, although it does not change the company’s management or resolve the wider ownership dispute. Nexperia, headquartered in the Netherlands, is a leading expert in the development and manufacture of essential semiconductor components. Its components are used in a wide range of electronic projects – from automotive and industrial applications to mobile and consumer applications.
In May, Wingtech and Yucheng filed a lawsuit against Nexperia, its holding and equipment companies, and three members of its management, seeking 8 billion yuan in damages. The Chinese companies allege that the defendants implemented or assisted in enforcing what they described as ‘discriminatory restrictive measures’ imposed by the Netherlands. The dispute began following the Dutch authorities’ intervention in Nexperia in 2025, citing concerns regarding the potential transfer of technology, funds and production assets abroad.
A Dutch commercial court subsequently suspended Nexperia’s CEO and transferred the voting rights attached to the shares held by Wingtech to an independent board. Although the Dutch government later suspended the intervention order, Wingtech has still not regained control of the voting rights in the company. The dispute over ownership of Nexperia has strained relations between China and the Netherlands and had previously also contributed to disruptions in international supplies of the company’s integrated circuits.
September 2nd, 2026, Šefčovič calls for a rebalancing of EU-China trade relations
On September 2nd, 2026, Maroš Šefčovič, European Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency, gave an interview to Euronews. The discussion focused on the substantial trade deficit between the European Union and the People’s Republic of China. The EU has set China an October deadline to deliver “concrete results” in reducing its trade surplus; otherwise, Beijing could face “harsher measures” from the EU. The deficit concerns EU-China trade in 2025 and, according to Eurostat, amounts to nearly €360 billion, with imports from China totalling €560 billion and EU exports to China reaching €200 billion.
In Šefčovič’s view, the issue of the trade deficit with China is “super political”. He stressed that European leaders expect the Commission to deliver results by October. If negotiations and talks with Beijing fail to produce tangible outcomes, Brussels may resort to trade defence instruments to prevent the deficit from widening. The EU’s trade chief did not specify which instruments or measures might be used.
He did, however, state that Brussels was seeking to finalise a “diversification instrument” designed with China in mind. He also noted that EU member states are now considerably more united on the objectives of the negotiations. According to Šefčovič, they “want to see the direction of travel” and even expect “a pilot scheme”.
In early October, Šefčovič is expected to travel to China to meet his Chinese counterpart, Minister of Commerce Wang Wentao. The outcome of the meeting could have implications for the further development of economic and political relations between the EU and China.
September 3rd, 2026, China’s Ministry of Commerce responds to Šefčovič’s remarks
On September 3rd, 2026, one day after European Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency Maroš Šefčovič gave his interview, a spokesperson for the Ministry of Commerce of the People’s Republic of China presented China’s position in response to a journalist’s question at the ministry’s regular press conference. The spokesperson began by noting that China had taken note of the European commissioner’s remarks.
He added that, in recent years, China had consistently worked to uphold the consensus reached by Chinese and EU leaders, strengthen dialogue and communication with the EU on economic and trade matters, and manage various frictions and differences.
The spokesperson then referred to meetings under the Trade and Investment Consultations (TIC) format, as well as bilateral talks between representatives of China’s Ministry of Commerce and their counterparts at the European Commission. During these talks, the two sides engaged in “in-depth, candid and constructive communication” on issues of mutual concern and instructed their respective teams to conduct several rounds of substantive consultations. The spokesperson also stressed that neither side should make unilateral demands or impose conditions, nor should either side “threaten to close its market as leverage”.
The spokesperson argued that the EU should take responsibility for addressing its own economic challenges, emphasising that China was not their source and could instead be a partner in resolving them. Rather than blaming Beijing, Brussels should seek to work with China to address these issues. The spokesperson stated that “Protectionism leads nowhere; win-win cooperation is the right path”. He added that China remained open to strengthening regular, institutionalised communication on trade, resolving differences and advancing practical cooperation. He also expressed China’s willingness to work towards a more balanced and further developed trade relationship between China and the EU.
In conclusion, the spokesperson expressed the hope that the European Union would uphold the principles of free trade, work alongside China to safeguard the existing rules-based international trading system centred on the World Trade Organization, and refrain from sliding further into the “quagmire of protectionism”.
September 4th, 2026, The European Public Prosecutor’s Office and the Supreme People’s Procuratorate of China sign a cooperation agreement
European Chief Prosecutor Laura Kövesi and Procurator-General of the People’s Republic of China Ying Yong signed on September 4th, 2026 a cooperation agreement between the European Public Prosecutor's Office and the Supreme People's Prosecutor's Office of the People's Republic of China. The European Public Prosecutor's Office is responsible for investigating, prosecuting, and bringing to justice perpetrators of crimes affecting the EU's financial interests.
Ying Yong led the Chinese prosecutorial delegation to the European Public Prosecutor's Office in Luxembourg from September 2 to 4, local time, at the invitation of European Chief Prosecutor Laura Kövesi. He also held a working meeting with the new European Chief Prosecutor, Andrés Ritter, as Kövesi is stepping down. During the visit, Ying also met separately with Koen Lenaerts, President of the Court of Justice of the European Union, and Claude Wiseler, President of the Chamber of Deputies of Luxembourg.
During the meeting with Kovesi and Ritter, Ying emphasized that China and the European Union are comprehensive strategic partners. Since the establishment of diplomatic relations, both sides have been guided by the principle of mutual respect, striving to find common ground while respecting differences, and pursuing open, win-win cooperation. Ying stated that China's prosecutorial authorities, as national legal oversight bodies, will continue to fulfill their responsibilities by serving the overall interests of the state, delivering justice to citizens, and upholding the rule of law.
He added that the Supreme People's Procuratorate of China is ready to cooperate with the European Public Prosecutor’s Office in line with the strategic guidelines of the Chinese and EU leaders to enhance exchanges, dialogue, and mutual trust, and to strengthen practical cooperation in combating crime, providing legal assistance in criminal matters, recovering illicitly obtained assets, and exchanging legal experience, so as to provide solid legal guarantees for deepening China-EU cooperation.
The signed agreement sets out practical modalities for judicial cooperation between the institutions, in accordance with the existing legal framework. Its aim is, in particular, to intensify the fight against organised crime groups that harm the EU's financial interests, money laundering, and corruption, and to improve the recovery of criminal assets. The agreement also includes an action plan for 2026-2028, which aims to contribute to the development of effective cooperation practices in these areas. Under the agreement, the parties will also hold regular consultations on issues of common interest, increase the number of mutual visits, and exchange judicial expertise.
In recent years, the European Public Prosecutor's Office has conducted major operations across several Member States to disrupt international criminal networks controlled by Chinese nationals involved in the large-scale import of textiles, electric vehicles, and consumer goods through multi-million dollar VAT and customs fraud. These legal actions, which have led to the seizure of tonnes of smuggled goods and the freezing of tens of millions of euros in key logistical areas such as the north-central Italian region of Prato, are a response to the European Public Prosecutor's Office's persistent warnings about the growing influence of organised crime networks exploiting cross-border EU legal loopholes to launder money.
September 5th-11th, 2026, Puisto visits China
Finnish Minister of Economic Affairs Sakari Puisto made an official visit to the People’s Republic of China from September 5th to 11th. The itinerary included three cities: Beijing, Xiamen and Shanghai. The minister was accompanied by a delegation representing 40 Finnish companies, including Nokia, Nordea, KONE, UPM and Metsä Group. The delegation’s presence was primarily linked to Finland’s participation in the 26th China International Fair for Investment and Trade (CIFIT), held in Xiamen from September 8th to 11th.
Before his departure, Puisto stated: “The accompanying business delegation is exceptionally large. Finnish companies offer competitive solutions that promote, for example, more efficient and smarter industry, the circular economy, the clean transition and the health sector.”
According to the announcement, Puisto was scheduled to meet his Chinese counterpart, Minister of Commerce Wang Wentao, on September 7th. The Finnish side indicated that the ministers would discuss trade and economic cooperation, challenges relating to China’s business environment, and the possibility of finding a solution that would allow Finnish pork exports to China to resume. These exports had been restricted due to African swine fever (ASF). Finland intends to designate areas free from the disease and resume exports to the Chinese market from those areas.
China’s Ministry of Commerce published an official readout of the meeting. According to the Chinese side, Wang noted that bilateral trade and economic relations had continued to improve in recent years, with cooperation in various fields becoming increasingly close. Positive examples of this development included Finland’s status as Guest Country of Honour at this year’s CIFIT and the use of dedicated mechanisms, such as the China-Finland Joint Economic and Trade Commission and the Committee for Cooperation between Innovative Enterprises.
Wang also expressed the hope that the Finnish government would continue to provide a fair, open and non-discriminatory business environment for Chinese companies investing in Finland.
Wang also addressed China-EU relations, stating that maintaining overall stability in economic and trade relations between the two sides was of great significance under the current circumstances. He referred to recent intensive consultations between China and the EU under the Trade and Investment Consultations (TIC) mechanism and expressed the hope that Finland would uphold free trade and encourage the European side to work with China towards a stable and balanced relationship between the two major trading partners. He also called for economic and trade disputes to be resolved through dialogue and consultations in accordance with World Trade Organization rules.
The Chinese readout also included Puisto’s position. The Finnish minister reportedly stressed that his country attached great importance to economic and trade cooperation with China and was keen to expand trade, investment and green innovation cooperation through various bilateral mechanisms. He welcomed the establishment of the EU-China trade and investment consultation mechanism and expressed the hope that dialogue would help both sides reach a consensus, address their respective concerns and prevent trade frictions from escalating.
In the following days, the Finnish Minister of Economic Affairs participated in the aforementioned trade fair. According to a statement issued by the Embassy of Finland in Beijing and the Consulate General of Finland in Shanghai, Finland used CIFIT to promote cooperation in three key areas:
Sustainability through innovation.
Improving quality of life through health and wellbeing.
Enhancing competitiveness through digitalisation.
Finland’s national pavilion featured, among others, Finnish Minerals Group (FMG), a state-owned company operating in the mining and battery industries; KONE, a provider of elevators, escalators and smart building solutions; Nokia, a Finnish telecommunications technology company; and Metso, a supplier of mining, aggregates and metals processing technologies.
During the visit, Puisto also met with the leadership of Fujian and Guangdong provinces to discuss economic and trade cooperation. In Shanghai, he attended a seminar for the business delegation and member companies of FinnCham Shanghai, met with city officials and delivered a lecture at Tongji University. The Finnish government’s announcement ahead of the visit highlighted the importance of the Shanghai leg, noting that “The visit offers an opportunity to support the business conditions of Finnish companies in the Shanghai area where most of them are located.”
September 7th-11th, 2026, Poulev visits China
Bulgarian Deputy Prime Minister and Minister of Economy, Investments and Industry Alexander Poulev made an official visit to the People’s Republic of China in the first half of September. He met with representatives of the Chinese authorities to discuss expanding bilateral trade, increasing Chinese investment in Bulgaria and developing industrial cooperation. Poulev also participated in the 26th China International Fair for Investment and Trade (CIFIT) in Xiamen. In Beijing, he met with his Chinese counterparts: Vice Premier Ding Xuexiang and Minister of Commerce Wang Wentao.
Beginning his visit on September 7th in Xiamen, Poulev met with Chinese Vice President Han Zheng. According to the Bulgarian Ministry of Economy, Investments and Industry, the talks focused on expanding bilateral trade, coordinating investment activities and strengthening economic cooperation. Han expressed China’s readiness to deepen cooperation with Bulgaria and voiced the hope that Sofia would contribute to the sound and stable development of economic and trade relations between China and the EU.
Poulev emphasised that Bulgaria wanted to translate its good political relations with China into concrete investments and new manufacturing operations. Both sides also highlighted the need for more balanced bilateral trade and a stronger presence of Bulgarian businesses in the Chinese market, particularly through the promotion of agricultural exports.
The following day, September 8th, the Bulgarian Deputy Prime Minister and Minister of Economy promoted his country’s investment potential alongside a Bulgarian business delegation at the 26th edition of CIFIT, held in Xiamen. Around 100 representatives of companies and institutions from both countries participated in a Bulgarian-Chinese business forum.
Cooperation could be strengthened in several sectors, including automotive manufacturing, electronics, energy, industrial production and advanced technologies. Representatives of the Bulgarian government also held discussions with Bank of China and CITIC Group, a Chinese state-owned investment group, on strengthening financial cooperation and exploring investment financing opportunities, including through the Bulgarian Development Bank.
On September 10th, Poulev travelled to Beijing, where he held two key meetings. He first met with Chinese Vice Premier Ding Xuexiang. The discussions focused on investment opportunities in electric vehicle manufacturing, energy, advanced technologies, decarbonisation and industrial cooperation. The Bulgarian side emphasised its interest in attracting investment that would create jobs, generate high added value and facilitate technology transfer.
Ding described Bulgaria as an important partner for China in Southeast Europe and welcomed the Bulgarian government’s efforts to attract investment in electric mobility. Both politicians agreed on the need to translate their strategic partnership into concrete economic projects.
Poulev subsequently met with his Chinese counterpart, Minister of Commerce Wang Wentao. During their meeting, the two sides signed a memorandum on investment cooperation, which provides for the establishment of a joint working group. Its objectives include promoting investment relations, exchanging information on the two countries’ investment regulations and policies, and identifying potential projects.
The automotive and energy sectors were identified as priorities. Poulev stressed that Bulgaria was pursuing economic diversification, seeking investment with high added value and aiming to facilitate technology transfer. According to the Bulgarian ministry’s statement, cooperation would be conducted in accordance with EU and national legislation.
During the meeting, the ministers also discussed the state of EU-China relations. According to China’s Ministry of Commerce, Wang expressed criticism of the EU’s regulatory environment, referring to the proposed Industrial Accelerator Act, revisions to cybersecurity legislation and investigations conducted under the Foreign Subsidies Regulation. He voiced concerns that these measures were making it more difficult for Chinese companies to invest in Europe and called on Bulgaria to support more stable and balanced economic relations between the EU and China.
The Chinese side also emphasised the importance of protecting the rights and interests of Chinese investors and ensuring fair, transparent and non-discriminatory conditions for their business activities in Bulgaria.
According to the Chinese ministry’s readout of the meeting, Poulev spoke positively about economic and trade cooperation with Beijing and expressed his readiness to encourage the EU to pursue pragmatic and rational cooperation with China.
September 9th, 2026, New EU Ambassador to China Caspar Veldkamp formally begins his mission in Beijing
Caspar Veldkamp assumed the position of European Union Ambassador to the People's Republic of China on September 1, 2026. He is the first Dutch diplomat to hold this position and is a former Minister of Foreign Affairs with over thirty years of experience in European affairs, bilateral and multilateral diplomacy, and international financial institutions. He has served successively as Dutch Ambassador to Israel and Greece, Director of the European Bank for Reconstruction and Development, Member of the Dutch House of Representatives, and Minister of Foreign Affairs of the Netherlands. The mission formally began on September 9, 2026, when Hong Lei, Deputy Minister of Foreign Affairs and Director General of the Protocol Department of the Ministry of Foreign Affairs, accepted a copy of the Ambassador's credentials.
The politician arrived in Beijing on September 1st, where he met with all staff of the EU Delegation to China on his first day in office. In his inaugural address, he emphasized that taking on this mission is a great honor for him, as he will represent the 27 EU Member States and 450 million EU citizens, maintaining a constructive dialogue with China and jointly opening a new chapter in mutual exchanges and cooperation.
As Head of the EU Delegation to China, Caspar Veldkamp will chair the monthly coordination meetings of the 27 EU Member States and oversee all EU diplomatic affairs in China. His priorities include EU-China economic and trade relations, political dialogue, and managing differences, all with the aim of fostering practical cooperation in various areas between the two sides.
September 10th, 2026, Registration of Chinese steel shelving imports in connection with anti-dumping proceedings
On September 10th, 2026, the European Commission adopted Implementing Regulation (EU) 2026/2023, making imports into the EU of bolted and boltless steel shelving units and their components originating in the People’s Republic of China subject to registration. The registration requirement is linked to an anti-dumping investigation initiated by the Commission on June 10th, 2026, following a complaint filed by European manufacturers representing more than 25% of total EU production of these products.
The purpose of the registration is to allow anti-dumping duties to be levied retroactively on the imports concerned, should the investigation establish that dumping has occurred and that it has caused injury to EU industry. The Commission noted that the complaint estimated dumping margins of 62-103% and an injury elimination level of 290-310%. These figures, however, were submitted by the complainants and do not represent duty rates determined by the Commission.
The registration requirement covers specific types of steel shelving units and their components, currently classified, among others, under CN codes ex 9403 20 80 and ex 9403 99 10. The registration period expires nine months after the Regulation enters into force. The Regulation was published in the Official Journal of the European Union on September 11th, 2026, and entered into force the following day, September 12th, 2026.
September 14th, 2026, Wang-Barrot phone call
On September 14th, 2026, Chinese Foreign Minister Wang Yi and French Minister for Europe and Foreign Affairs Jean-Noël Barrot held a telephone conversation at the request of the French side, according to a statement issued by China’s Ministry of Foreign Affairs.
Wang told his French counterpart that China-France relations had generally maintained a steady trajectory of development. He emphasised that, despite the increasingly complex and volatile international situation, both countries should strengthen strategic communication and jointly address emerging risks and challenges, particularly within the framework of the United Nations Security Council.
Wang reiterated that the one-China principle constitutes “the political foundation of the China-France comprehensive strategic partnership”. He expressed the hope that Paris would maintain its existing policy towards the PRC and refrain from undermining it through “any form of official exchanges with Taiwan”. He added that France should not support Taiwan independence movements, as this would “send any wrong signals to ‘Taiwan independence’ forces”.
The Chinese foreign minister then turned to relations between China and the European Union. He stated that China and the EU should uphold their mutually beneficial partnership and resolve economic and trade disputes through openness and constructive dialogue. He criticised what he described as protectionist tendencies within the EU, arguing that such measures would not strengthen Europe’s competitiveness in global markets but would instead have the opposite effect.
As Wang put it, “Protectionism cannot enhance Europe’s competitiveness”. He added that China’s development represented “an opportunity rather than a challenge for the EU”. Wang regarded France as a country capable of promoting a more stable and pragmatic EU trade policy and positively influencing the EU’s decision-making institutions.
For his part, Barrot stated that, since French President Emmanuel Macron’s previous visit to China, the two countries had upheld the “Dujiangyan spirit” of exchange and integration. In his view, this approach enabled both sides to “seek common ground while reserving differences”, maintain continuous dialogue and sustain the momentum of bilateral relations. He reaffirmed that France “firmly adheres to the one-China policy”. He also stated that France was willing to promote “constructive exchanges between EU and China to find solutions” to the difficulties affecting their economic and trade relations.
The final part of the statement addressed international wars and conflicts, particularly the war in Ukraine, referred to in the Chinese statement as the “Ukraine crisis”, and the situation in the Middle East. According to China’s Ministry of Foreign Affairs, Wang also briefed Barrot on President Xi Jinping’s four-point proposal for building a new security architecture in the Middle East.
Wang described the initiative as “providing public goods for regional peace and stability and playing a constructive role”. Xi presented the proposal in early September during his visit to Egypt. It addresses four key areas: peaceful coexistence and the development of a regional security architecture; respect for sovereignty and territorial integrity; adherence to international law and the UN Charter; and the need to balance development with security.
September 14th, 2026, European Economic and Social Committee calls for a balanced approach to EU-China relations
On September 14th, 2026, the European Economic and Social Committee (EESC), during the 21st EU-China Round Table held in Hangzhou, called for a more balanced approach to EU-China relations. The meeting brought together EESC representatives led by President Séamus Boland and representatives of the China Economic and Social Council (CESC), headed by President Wang Dongfeng. The EU’s newly appointed Ambassador to China, Caspar Veldkamp, also participated in the opening session.
The discussions focused on trade and investment imbalances, poverty reduction and social inclusion, and the development of human-centred artificial intelligence. The EESC emphasised that the growing EU trade deficit in goods with China posed a threat to European industry and workers. The Committee called on Beijing to strengthen reciprocity, ensure a level playing field and improve European businesses’ access to the Chinese market. Concerns were also raised regarding industrial overcapacity and market distortions.
At the same time, the EESC advocated maintaining economic cooperation with China, highlighting the importance of civil society dialogue in building mutual trust. Regarding artificial intelligence, the Committee stressed the need to safeguard human dignity, workers’ rights and ethical principles. It also reiterated that human rights and workers’ rights should remain an essential component of EU-China relations. With regard to the war in Ukraine, the EESC reaffirmed its support for Ukraine and called for a comprehensive, just and lasting peace.
September 17th, 2026, EU proposes that China limit PHEV exports to 15% of the EU market
The European Union has asked China to voluntarily limit its hybrid car exports to around 15% of the EU market as part of efforts to avert a trade war, amid rising tensions ahead of key meetings scheduled for next month in Beijing. The share now exceeds a third of the European market.
The EU also warned that, if Beijing fails to act voluntarily, it may introduce restrictive measures. According to a statement by Ursula von der Leyen, the EU will use all available tools to reduce its trade deficit with China. In a speech to the European Parliament, she stated that the EU's goods trade deficit with China—which amounted to €360.6 billion last year and increased by 9% in the first half of this year—is resulting in Europe experiencing deindustrialization, which the EU is implementing measures to counteract.
According to reports, the EU has also asked China to restrict exports of other products, including chemicals, while also seeking to increase Chinese demand for European goods.
According to the EU, the sharp increase in Chinese exports is due to overcapacity, a claim Beijing strongly denies. However, China considers these measures protectionist aimed at limiting China. EU Trade Commissioner Maroš Šefčovič also discussed this issue with Chinese Trade Minister Wang Wentao. In June, the EU set October as the deadline for achieving results in reducing the trade deficit with China, and the parties established a trade and investment consultation forum to resolve the disputed issues. The EU reportedly hopes to replicate the 1986 agreement with Japan, under which Tokyo agreed to export restrictions on Japanese vehicles, lasting until 1999.
September 18th, 2026, EU imposes definitive anti-dumping duties on Chinese alkylphosphonic acids and their sodium salts
On September 18th, 2026, the European Commission adopted Implementing Regulation No 2026/2088, imposing a definitive anti-dumping duty on imports of certain alkylphosphonic acids and their sodium salts originating from the PRC. At the same time, the regulation provides for the definitive collection of amounts previously secured by the provisional anti-dumping duty. The act was published in the Official Journal of the EU on September 21st, 2026 and entered into force on September 22, 2026. While a provisional anti-dumping duty had already been applied in May 2026, it was the regulation adopted in September that made the measures definitive.
The anti-dumping proceeding was initiated following a complaint filed by LANXESS Deutschland GmbH, representing EU industry producing alkylphosphonic acids and their sodium salts. Following the investigation, the Commission found evidence of dumping and resulting material injury to EU industry. The final rates range from 156.7% to 192.2%, depending on the producer or exporter. However, for a given shipment, the rate assigned to the producer and the relevant TARIC additional code are decisive.
The definitive anti-dumping measures are to remain in force for five years, until September 2031, unless amended or terminated prior to that time following an appropriate review. The regulation also provides for the possibility of applying individual tariffs to new exporting producers, provided that certain criteria are met.
The European Commission's decision is another example of the EU using trade defence instruments against Chinese imports. In this case, the measure concerns the chemicals sector, not consumer goods or strategic technologies. From the perspective of EU-China relations, the measure is therefore part of a broader trend of increasing protection for EU industry against imports the Commission deems dumping.
China has raised criticism that such high tariffs could effectively block direct exports of these products to the EU market, limit the competitiveness of Chinese companies, and force them to seek alternative markets, including in Southeast Asia, the Middle East, and Latin America. Given the EU's tightening of origin controls and anti-circumvention measures, Chinese exporters are advised to diversify their markets and strengthen trade compliance procedures.
September 18th, 2026, European Commission introduces provisional safeguard measures on imports of grain-oriented electrical steel (GOES)
Following the findings of a safeguard investigation launched in March 2026 into imports of grain-oriented electrical steel (GOES), also known as transformer steel, the European Commission decided on September 18th, 2026, to introduce provisional safeguard measures.
The measures cover not only GOES but also steel laminations and cores (SLCs) produced through further processing of GOES. These components are used in power transformers. The measures also apply to laminations and cores already incorporated into transformers. According to the Commission, this approach is intended to protect transformer manufacturers operating further down the value chain.
Between 2021 and 2025, combined imports of GOES and SLCs increased from 135,100 to 297,100 tonnes, representing a rise of 120%, while EU production fell from 336,600 to 306,500 tonnes. The share of imports in EU consumption rose from 34% to 57%, while the market share of EU producers declined from 66% to 43%.
The Commission considers these measures urgently necessary to protect a strategic sector of EU industry. China has become the main source of imports, with its share of total imports of the products concerned increasing from 20% in 2021 to 53% in 2025. The Commission also highlighted the problem of global overcapacity. In 2024, China’s excess production capacity in the GOES sector alone amounted to approximately 600,000 tonnes, equivalent to 20% of Chinese domestic demand.
The measure takes the form of tariff-rate quotas (TRQs) combined with a specific safeguard duty based on the difference between an established price threshold and the actual import price. For Chinese producers, the quotas have been set at 30,693.68 tonnes for GOES and 4,241.07 tonnes for steel laminations and cores, applicable until February 26th, 2027. Higher price thresholds apply to imports exceeding the allocated quotas.
The safeguard investigation is expected to last nine months and may be extended to eleven months in exceptional circumstances. If the investigation establishes grounds for definitive safeguard measures, the European Commission will submit a proposal to the Committee on Safeguards outlining the main findings of the proceedings for a vote. A positive vote would allow the Commission to introduce definitive safeguard measures, which would be announced in due course.
September 21st, 2026, Wadephul-Wang phone call
September 21 Wang Yi held a telephone conversation with his German counterpart, Johann Wadephul, during which the Chinese politician stated that China and Europe should not fight trade wars because they are comprehensive strategic partners. Wang Yi noted that China and Germany are the world's leading economies and expressed hope that, in the face of challenges posed by unilateralism and anti-globalism, Germany would maintain a rational and pragmatic approach and play a positive role in the EU by promoting free trade and rejecting protectionism.
He believes that strengthening mutually beneficial bilateral cooperation is in the interests of both sides. Furthermore, China has consistently advocated for both sides to reach out to each other and find solutions to mutual concerns through dialogue and consultation.
The German Foreign Ministry announced that the ministers agreed that a stable global economy is in the interests of China, Germany, and Europe, and that trade relations must be based on fair rules and a genuine, level playing field. Johann Wadephul stated that German-Chinese relations have been developing well in recent years, and that Germany expects further strengthening of high-level exchanges with China, another round of intergovernmental consultations, and deepening of practical cooperation in economics, trade, and other areas to build even stronger German-Chinese relations.
Germany expects China to leverage its influence in international and regional affairs and to work with Germany to find solutions, and that disputes will be resolved through dialogue. Germany has been a leading voice in the EU expressing concern about the trade imbalance with China resulting from industrial overcapacity and the undervaluation of the Chinese currency.
The Chinese statement added that the ministers also discussed Iran, Ukraine, and Taiwan, which China claims. Beijing also expects Germany to take concrete steps to maintain Sino-German relations and peace and stability in the Taiwan Strait, thus creating the necessary conditions for high-level contacts. The German side emphasized that it has consistently pursued the One-China Policy and that this position will remain unchanged. It is worth noting that Taiwan is intensifying cooperation with European countries – Vice President Hsiao Bi-Khim has made two trips to Europe in the past year, and Taiwanese Foreign Minister Lin Chia-lung visited Germany in June, which angered China.
September 24th, 2026, European Commission makes imports of Peking ducks originating in China subject to registration
On September 24th, 2026, the European Commission adopted Implementing Regulation No. 2026/2118, which makes imports of Peking ducks originating in China subject to registration from September 26, 2026. The decision is related to the Commission's ongoing anti-dumping investigation into imports of this product from China. The investigation was initiated following a complaint filed on May 26, 2026, by five Peking duck producers representing more than 25% of the total EU production of Peking ducks.
The purpose of registration is to allow for the collection of anti-dumping duties on imports made during the registration period if the investigation reveals dumping. This is intended to prevent importers from significantly increasing their imports before the introduction of duties. However, this does not mean that duties will be imposed, as future obligations will be based on the results of the anti-dumping investigation.
September 25th, 2026, European Commission imposes anti-dumping duties on Chinese pea protein imports
On September 25th, 2026, the European Commission imposed definitive anti-dumping duties on imports of pea protein from China. The tariffs range from 40.5% to 67.1% and will be in force for five years. Provisional duties were in force from April 29, 2026. Following an investigation initiated on August 29, 2025, the Commission concluded that pea protein from China was entering the EU market at dumped prices, causing injury to EU industry.
The investigation stemmed from a complaint filed on July 15, 2025, by a coalition of EU pea protein producers. Sanjia Group, Shuangta Group and the Chinese Chamber of Commerce (CFNA), among others, participated in the proceedings. Pea protein provides an alternative to animal protein in both human food and animal feed. The EU pea protein market is estimated at approximately €175 million.
September 28th, 2026, China's Gotion invests €1.1 billion in Volkswagen’s battery plant in Valencia
The Chinese company Gotion has decided to invest €1.1 billion in Volkswagen's battery plant in Valencia. According to Volkswagen, Gotion's investment will allow the company to acquire a 49% stake in the Valencia plant, which belongs to Volkswagen's battery manufacturing subsidiary PowerCo, which will remain the majority shareholder. This investment is part of a broader plan to jointly build a European battery supply chain and is also a response to Brussels's move to protect EU industry from cheaper electric vehicle imports from China, which are threatening the market share of Volkswagen and other European automotive companies.
The factory is expected to become a European hub for lithium iron phosphate battery production, which, according to Thomas Schmall, VW's chief technology officer, represents a significant breakthrough for both companies and brings VW closer to the forefront of electromobility. The German group is currently undergoing the most radical restructuring in its history, including the elimination of 100,000 jobs, and is also seeking to significantly reduce its extensive investment portfolio.
The companies will also establish cooperation in the field of cell factories in Šurany, Slovakia, and will build a new plant in Quneitra, Morocco. Both facilities will be jointly operated by Gotion and PowerCo, with the Chinese partner retaining a 51% stake. The factories, which will be jointly owned by the German brand and China's fourth-largest electric vehicle battery manufacturer, will have an annual production capacity of 37.5 gigawatt-hours of lithium-ion batteries and produce 100,000 tons of cathode materials. Battery cells from the European factories will primarily be supplied to VW, and Gotion will participate in establishing key cell production centers in Europe.
Chinese-developed electric-vehicle batteries are in high demand outside mainland China. The collaboration with VW in building plants in Europe aims to provide Gotion with easy market access, accelerating its global expansion. VW owns a 24.3% stake in Gotion, which is based in Hefei, the capital of Anhui Province in eastern China.
During the first seven months of 2026, Gotion supplied electric vehicle manufacturers with a total capacity of 34 GWh of batteries, representing a 44.2% increase compared with the same period in the previous year. The company's global market share was 4.7% in the January-July period, compared to 3.9% in the same period last year. During the first seven months of the year, Gotion, along with three larger domestic competitors (CATL, BYD, and CALB) controlled a combined 64.4% of the global electric vehicle battery market.
