EU ministers: China is 'a critical long-term strategic challenge'

EU foreign ministers delivered a joint assessment on Wednesday, describing China as a "critical long-term strategic challenge" due to its "asymmetric advantages" over the EU in economic and technological fields. The ministers warned that China's dominance in key sectors and its willingness to use leverage—such as control over rare earth supplies essential for Europe's defence and green industries—pose a fundamental threat.

Tensions have escalated in recent months, with the EU setting an October deadline to rebalance trade ties through dialogue as Chinese overcapacity damages European industries. Every EU market protection move has prompted retaliation threats from Beijing. The ministers also highlighted China's role as a "key enabler" of Russia's war in Ukraine, noting that both powers seek to reshape the global order and establish regional dominance.

According to the document, Beijing's growing assertiveness, combined with its strategic competition with the US, will increasingly impact EU security, economic competitiveness, and resilience. The warning comes after the EU suffered collateral damage from the US-China trade war last year when Beijing restricted rare earth exports, jeopardising European industrial value chains.

Despite China's denial of involvement in Ukraine, EU sanctions under the 21st sanctions package targeted several Chinese firms in April. The ministers also pointed to long-term investments by China and Russia in military capabilities, technological superiority, and economic leverage. They concluded that the deepening China-Russia strategic partnership will further interconnect strategic theatres from Europe to the Indo-Pacific, amplifying security challenges.