The European Union has surpassed the United States as the economy with the most serious trade disputes with China, driven by conflicts over semiconductor materials, rare earth magnets and other strategic sectors, according to a monthly index released by the China Council for the Promotion of International Trade (CCPIT). In November 2025 the EU ranked as China’s top source of trade tensions among 20 economies on the trade friction index, mainly caused by anti-subsidy and anti-dumping probes. Readings were elevated in semiconductor materials, rare earth magnets and liquid-crystal display products. “Unreasonable and discriminatory measures targeting Chinese companies by the EU have indeed increased,” CCPIT Spokesperson Wang Wenshuai said.
Tensions flared in September after the Dutch government temporarily took control of Nexperia, a Chinese-owned chipmaker, triggering a dispute over export controls. Beijing had earlier introduced strict licensing requirements on rare earth exports – widely seen as a response to U.S. tariffs – complicating access for European manufacturers. The two sides agreed to hold urgent talks in Brussels in October, followed by China announcing a 12-month pause on expanded rare earth export controls and confirming the resumption of some Nexperia exports to the EU. In January, Brussels formally launched its Carbon Border Adjustment Mechanism, requiring importers of carbon-intensive goods to report embedded emissions and eventually pay a carbon price.
The CCPIT accused the EU of setting “significantly inflated” default carbon-intensity values, which are expected to rise over the next three years, and of classifying some Chinese companies as “high-risk” suppliers without evidence – restricting their role in sectors such as energy, transport and 5G. “The EU is using non-technical criteria to forcibly restrict, or even ban, market access,” the CCPIT’s Wang said. “This not only seriously undermines fair competition and distorts markets, but is also self-defeating – creating risks of its own and threatening supply-chain security in the digital industry.” “China will closely monitor relevant developments,” she said, cautioning that Beijing would “respond resolutely” if discriminatory measures were taken and urging the EU to uphold technological neutrality in cybersecurity. Electric vehicles (EVs) remain a fault line in the relationship. In October 2023, Brussels opened an anti-subsidy investigation into Chinese EVs and, a year later, imposed duties of up to 35.3% for five years. Beijing responded with probes into European brandy, dairy products and pork. Tentative signs of a de-escalation emerged on January 12, when the EU issued guidance to Chinese EV exporters on submitting minimum price undertakings.
South Korea ranked third on the index. While the CCPIT did not provide details, the China Trade Remedy Information website showed that Seoul had launched anti-dumping probes last year into Chinese products including galvanized cold-rolled steel, industrial robots and single-mode optical fiber, the South China Morning Post reports.
