China in Europe: May 2025
Czech Cyberattack Fallout: On May 28, the Czech government publicly accused China of a prolonged cyberattack that compromised the foreign ministry’s unclassified networks. The campaign, attributed to China’s APT31 group operated by the Ministry of State Security, reportedly enabled Beijing to monitor diplomatic correspondence during Czechia’s 2022 European Union (EU) presidency. Foreign Minister Jan Lipavský denounced the operation as a direct attack on Czech sovereignty, vowing to summon the Chinese ambassador. “Through cyberattacks, information manipulation, and propaganda, [China] interferes in our society,” Lipavský said, “and we must defend ourselves against that.” NATO issued a statement condemning the malicious cyber campaign, observing a “growing pattern of malicious cyber activities stemming from the People’s Republic of China.” NATO Secretary-General Mark Rutte said that NATO members stood “in solidarity with the Czech Republic today,” as the alliance pledged to improve their capabilities to deter, defend against, and counter cyberattacks. The EU’s foreign policy chief Kaja Kallas emphasized the unacceptable breach of international norms and warned that the EU is “ready to impose costs” on Beijing. The United Kingdom (UK) echoed the condemnation, with Defense Secretary John Healey announcing an expansion of Britain’s cyber operations, calling the keyboard “a weapon of war” and authorizing increased cyberattacks on states such as China and Russia.
Russian Sanctions Evasion: Tensions escalated in May over Chinese assistance to Russia in circumventing Western sanctions. According to a classified German Foreign Ministry report, China and Hong Kong are responsible for approximately 80 percent of known sanctions circumvention. Ukraine’s Foreign Intelligence Service accused China of supplying numerous military-use goods to Russian factories. Beijing rejected the charges, asserting it “has never provided lethal weapons to any party to the conflict” and maintains strict export controls on dual-use items. Nevertheless, the EU and UK included several Chinese firms in their latest Russia-related sanctions package focused on Moscow’s “Shadow Fleet.” China condemned the move as “unjustified” and accused the EU of hypocrisy, pointing to the continued trade flows between Western countries and Russia.
French Engagement: As global climate cooperation stalls, France has positioned itself as a bridge-builder between China and Europe. French President Emmanuel Macron held a phone call with Chinese President Xi Jinping to discuss the global trade framework and address China’s antidumping investigation into European brandy. China had extended its probe in April, prolonging uncertainty for French cognac exporters, who face estimated monthly losses of €50 million. Macron stressed that “China and France should work together to be a reliable force in maintaining international order,” and welcomed signs of resolution. Also in May, French Environment Minister Agnès Pannier-Runacher traveled to Beijing for the first French climate-focused ministerial visit in five years. Her mission: to revive China-EU climate leadership in the run-up to the thirtieth Conference of the Parties in Brazil; the June UN Ocean Conference in Nice, France; and the Geneva negotiations on a plastics treaty. French officials framed the visit as a response to U.S. disengagement, positioning China and the EU as coleaders in climate multilateralism. In parallel, Macron embarked on a high-profile tour of Southeast Asia, visiting Indonesia, Singapore, and Vietnam from May 25 onward. His visit to Vietnam marked the first by a French president in a decade and aimed to counterbalance China’s influence in the Indo-Pacific. French officials described the trip as an effort to position France as a trustworthy partner for Asian nations navigating great-power competition. In Singapore, Macron gave the opening address at the Shangri-La Dialogue, where he argued that Russia’s war in Ukraine is destabilizing Asia by drawing in North Korean troops and exacerbating regional security threats. His trip highlights France’s strategy to reinforce economic ties, promote multilateralism, and assert an independent Indo-Pacific policy.
Germany and Netherlands Diplomacy: Paris was not the only European capital engaging with Beijing this month. The Chinese President also had a call with new German Chancellor Friedrich Merz, reaffirming the global and strategic importance of China-Germany relations and their “all-round strategic partnership.” Chinese Foreign Minister Wang Yi met in Beijing with Dutch Foreign Minister Caspar Veldkamp. The meeting produced six points of consensus, though full details were not disclosed. European officials see those bilateral overtures as China deepening ties with individual EU member states, weakening transatlantic cohesion and encouraging greater European strategic autonomy.
Trade Protection: European anxiety about Chinese trade practices continues to rise. On May 21, the European Commission opened an antidumping investigation into Chinese tire exports for passenger cars and light trucks. The EU already imposes duties on Chinese tires for buses and heavy trucks. The latest investigation was launched in response to industry complaints about price undercutting. Provisional measures could be imposed within eight months if dumping is found. The probe is part of a broader EU effort to protect strategic industries from Chinese overcapacity and export diversion triggered by U.S. tariffs.
Chinese Investment Trends: Despite rising tensions, Chinese foreign direct investment in the EU and UK grew 47 percent in 2024 to €10 billion according to a new report. That growth was driven largely by projects in Hungary, which accounted for 31 percent of all investment, while traditional destinations such as France, Germany, and the UK saw sharp declines in the share of Chinese investment. Investment was concentrated among a few corporate giants—CATL, Envision, Tencent, and Geely—and targeted battery, EV, and tech sectors.
BYD Overtakes Tesla: In a symbolic shift in Europe’s auto market, Chinese electric vehicle manufacturer BYD outsold Tesla for the first time in April. BYD registered 7,231 battery-electric vehicles (EVs) in Europe, compared to Tesla’s 7,165. Although the difference was narrow, analysts called it a “watershed moment” indicating China’s rising dominance in the EV market. BYD’s broader lineup and competitive pricing helped it capture market share even amid EU tariffs.
China-UK AI Dialogue: On May 20, the China-UK Dialogue on Artificial Intelligence convened in Beijing, cochaired by officials from both countries’ science and arms control bodies. The session explored opportunities for cooperation and aligned policies on safe and ethical artificial intelligence (AI) development. Both sides agreed to sustain dialogue, coordinate on international governance, and support capacity-building in developing countries. They also reaffirmed commitments to the UN Global Digital Compact. Despite diplomatic tensions in other arenas, AI governance remains a space for constructive China-UK cooperation.
MEPs Visit Taiwan: Taiwanese President William Lai called on the European Parliament to support a bilateral economic partnership agreement (EPA), highlighting its potential to enhance supply-chain resilience and boost mutual competitiveness. Lai presented the EPA as a “win-win” deal that would strengthen economic security. The appeal was made during a meeting in Taipei with European Parliament members Reinis Poznaks and Beatrice Timgren.
Greenland: Greenland’s Business and Mineral Resources Minister Naaja Nathanielsen warned that the territory could turn to Chinese investors if American and European firms fail to act. “We are trying to figure out, what does the new world order look like? In those terms, Chinese investment is of course problematic, but so, to some extent, is American,” said the minister. In contrast, Nathanielsen called the EU a “good fit” for investment. In May, China also reaffirmed its support for Denmark’s sovereignty over Greenland when Wang met with Danish Foreign Minister Lars Løkke Rasmussen in Beijing.
