China in Europe: June 2025
China’s Top Diplomat in Europe: Chinese Foreign Minister Wang Yi arrived in Europe on June 30 for a multicountry tour to stabilize relations ahead of the China-EU summit in late July. In Brussels, Wang met EU foreign policy chief Kaja Kallas for a high-level strategic dialogue. Wang will travel to Berlin to meet with German Foreign Minister Johann Wadephul (Wang’s first meeting with the new Conservative-led government in Berlin). Then, in Paris, Wang will meet French Minister for Europe and Foreign Affairs Jean-Noël Barrot. Officials in Beijing framed the visit as an opportunity to mark the fiftieth anniversary of diplomatic relations between China and the European Union. Guo Jiakun, spokesman for the Chinese foreign ministry, emphasized how China-Europe relations are an opportunity to counter “unilateralism, protectionism, and bullying practices,” a veiled jab at the United States. Guo also called for Beijing and Brussels “to keep the world peaceful and stable, safeguard multilateralism, free trade, international rules, fairness and justice, and act firmly as anchors of stability and constructive forces in a volatile world.”
UK China Audit: The British government finally released its long-anticipated “China Audit,” intended to guide policy toward China. The audit acknowledged that China’s global power is “an inescapable fact” and asserted that “not engaging with China is therefore no choice at all.” While promising a “secure and resilient” trade-and-investment relationship with China, the government simultaneously admitted that “instances of China’s espionage, interference in our democracy, and the undermining of our economic security have increased in recent years.” As a result of the audit, the government pledged £600 million in new funding for the intelligence services and announced a new recruitment drive for Mandarin speakers at the Foreign Office. London also introduced the Foreign Influence Registration Scheme, a mechanism designed to monitor malign foreign activity based on the American Foreign Agents Registration Act. However China was notably left off the highest security tier, which instead was reserved for Iran and Russia. Critics argued that omitting China from the tier reflected a reluctance to confront China head-on.
Von der Leyen at G7: European Commission President Ursula von der Leyen delivered a blistering critique of China at the Group of Seven (G7) summit in Kananaskis, Canada. Von der Leyen accused China of employing “dominance, dependency, and blackmail” in its trade relationships. She warned of a “new China shock” and denounced the country for “weaponizing” rare earth exports. Von Der Leyen said China has consistently violated the norms of the international system, undercut intellectual property rights, and leveraged industrial subsidies to dominate global supply chains. The commission president’s remarks signal a return to a more hawkish stance from earlier in her tenure, when she championed the “de-risking” agenda in China-EU relations. Chinese officials quickly responded, calling her claims “baseless” and “filled with prejudice.”
Super Embassy in London: China’s proposed new embassy in London (expected to be the largest in Europe) will be near sensitive telecommunications and financial infrastructure in the City of London, raising concerns of espionage. The American House Select Committee on the Chinese Communist Party issued a stark warning to Britain, saying, “The proposed structure’s size and proximity to sensitive communication cables and financial centres could pose an unacceptable intelligence threat not only for Londoners, but for the UK, Five Eyes, and Europe as a whole.” The White House echoed the concern, reportedly warning London that the embassy’s proximity to undersea data cables used by American banks could create surveillance vulnerabilities. The Dutch parliament has also raised the alarm about the embassy’s location. Despite those warnings, the British cabinet has worked to smooth the planning-approval process for the embassy.
Trade War Escalate: On June 20, European Commission formally barred Chinese companies from public procurement contracts for medical equipment exceeding €5 million. The move followed an investigation under the EU’s International Procurement Instrument, which concluded that European firms faced unfair treatment in China’s own medical contract bidding. EU Trade Commissioner Maros Sefcovic described the ban as a defensive measure to “level the playing field,” pointing to China’s protectionist policies and preference for domestic suppliers. Beijing slammed the decision, and warned of retaliation; the Chinese commerce ministry declared, “China will take necessary steps to resolutely safeguard the legitimate rights and interests of Chinese enterprises.” The ban adds to a growing list of commercial disputes between the two powers, including EU tariffs on Chinese electric vehicles and Beijing’s ongoing investigation into European brandy imports.
British Warship in Taiwan Straits: The Royal Navy’s HMS Spey crossed through the Taiwan Strait on June 18 as part of a long-planned deployment. London characterized the move as a routine, lawful exercise of navigation rights in international waters. China’s Eastern Theater Command responded by accusing Britain of “public hyping” and trying to “cause trouble.” China claimed the waterway constitutes its sovereign territory, while Britain aligned its stance with that of Taiwan, the United States, and other partners who assert the strait remains international. Taiwan’s foreign ministry issued a statement welcoming the patrol as “concrete actions to defend the freedom of navigation in the Taiwan Strait.” China’s irritation deepened days later when UK Junior Trade Minister Douglas Alexander visited Taiwan for bilateral economic talks.
Piraeus Fraud Scheme Uncovered: The European Public Prosecutor’s Office coordinated a major operation across four countries to dismantle a €700 million customs fraud ring involving Chinese goods. The scheme allegedly funneled undervalued e-scooters, apparel, and electronics through the Chinese-controlled port of Piraeus in Greece and then onto black markets in France, Italy, Poland, Portugal, and Spain using shell companies and falsified invoices. The crackdown underscores growing EU concerns about Chinese control over key logistics infrastructure.
Chinese Banks in Russian Sanctions: The European Commission is preparing to sanction two Chinese banks as part of its eighteenth sanctions package against Russia. The banks, based in Chinese provinces bordering Russia, are accused of facilitating cross-border payments that help Russia circumvent Western financial restrictions.
China’s “World Bank” in Europe: The China-backed Asian Infrastructure Investment Bank (AIIB) announced plans to open its first European office in London before the end of 2025. The AIIB cited London’s deep capital markets and global reach as reasons for selecting the city over Frankfurt or Paris. Critics argue that hosting the AIIB contradicts the UK’s national security priorities, especially amid rising concerns over cyber espionage, dual-use technology exports, and the Chinese embassy’s surveillance potential.
