China announced it is banning exports of dual-use items to 14 European Union entities, including German defense company Rheinmetall, effective immediately. The move is in direct retaliation for the EU's latest round of sanctions against Russia that penalized 14 Chinese enterprises.
For the first time, Brussels granted Ukraine an exemption from EU defense loan procurement rules, permitting Chinese-made drone components to be purchased under the €90 billion Ukraine Support Loan because European suppliers cannot produce them in sufficient quantities.
The European Union and China have agreed to enter three months of negotiations aimed at resolving their massive trade imbalance and avoiding escalating trade tensions. The talks, formalized in their first joint statement in seven years, will focus on the bloc's €360bn annual import/export deficit with China, with an October deadline set for tangible results.
The European Union introduced a €3 customs charge on small parcels and low-value e-commerce imports effective July 1, 2026, ending the tax-free exemption for purchases from platforms like SHEIN, Temu, and AliExpress. The European Commission says the measure aims to prevent the 'desertification' of European high streets and address unfair competition from Chinese online retailers.
The European Commission imposed a €200 million fine on Chinese-owned online retailer Temu for failing to prevent the sale of illegal and dangerous products including faulty chargers and unsafe baby toys, following a 19-month investigation.
China unveiled new regulations aimed at countering 'unjustified' extraterritorial use of foreign laws, threatening EU firms with reciprocal measures if the bloc targets Chinese companies under proposed cybersecurity regulations. The move is seen as reinforcing China's 'legal shield' against external pressure amid the Iran war and Panama port dispute.
