Europe struggles to define China policy amid competing priorities

• EU's daily trade deficit with China approaches one billion euros.
• 55% of the EU's industrial base is at risk, per France's national planning agency.
• Europe faces dependence on Chinese raw materials for its defense industry.

Europe is struggling to establish a unified and clear policy towards China, marked by conflicting actions and a lack of strategic agreement. Discussions on China were postponed twice at a recent summit and relegated to late-night sessions. This reflects a broader challenge where China is often viewed as important but not urgent, despite growing competition in sectors like electric vehicles, batteries, and pharmaceuticals. European companies face unfair trade practices driven by Chinese state aid and overcapacity, leading to significant job losses and a substantial trade deficit. The issue has evolved from purely economic to strategic, with Europe's dependence on Chinese raw materials and components impacting its security and defense industry. China is actively promoting a new world order, as evidenced by the Shanghai Cooperation Organization meeting attended by leaders from China, Russia, India, and Turkey.