Protectionism undermines China-EU cooperation

The European Union has intensified protectionist policies against China in the green economy, raising concerns over technological and industrial competitiveness. The EU has launched multiple trade defense investigations, including antidumping and antisubsidy probes, targeting Chinese clean technology products such as battery electric vehicles and biodiesel. High tariffs have been imposed, increasing import costs and shielding EU-made products from competition. Market access restrictions are another key measure, with the EU’s Foreign Subsidies Regulation scrutinizing Chinese companies in renewable energy projects like solar and wind power. New laws, including the Critical Raw Materials Act and the Net-Zero Industry Act, introduce local content requirements and caps on imports from third countries. The EU is also tightening foreign direct investment screening, particularly in batteries and electric vehicles, to raise compliance costs for Chinese firms. Regulatory barriers are further escalating tensions, with the Carbon Border Adjustment Mechanism (CBAM) imposing higher carbon emission values on Chinese products. The EU is also forming exclusionary supply chain alliances within frameworks like the G7, reinforcing its green protectionism. These moves create a 'protective shield' for EU industries while complicating cooperation with China. Despite historical collaboration in green transitions, the EU’s policies are reducing bilateral cooperation potential. China’s strong green production capacity and the EU’s regulatory leadership in climate action could have driven joint progress, but current measures are undermining that dynamic. The growing friction risks destabilizing the global green transition and deepening economic divisions between the two regions.