The EU is experiencing a prolonged “China shock” as a flood of Chinese EVs into Europe helped push Beijing to a record surplus with the bloc. New data showed China’s trade surplus – where its exports to the EU exceeded imports from the bloc – was $83bn (£61bn) in the first three months of 2026. China sold goods worth about $148bn to the EU in the first quarter, but imported just $65bn from the bloc, according to analysis of 2026 customs data by Mercator Institute for China Studies (Merics). The…
Tag: International trade
The great energy pivot: US oil and Chinese solar are the winners in Trump’s war on Iran
In the open seas, an armada of empty tankers has quietly turned west. A record number of super-sized vessels are now heading to the US, where oil drillers and refineries are preparing to profit from Donald Trump’s war in the Middle East. Almost 30 of these vessels, each able to hold 2m barrels of oil, are contracted to load US crude, destined for a global market facing the biggest supply crisis in history. It is just over five years since the shale revolution made the US a net energy exporter…
UK steel exports to EU at risk as bloc doubles tariffs and halves quotas
The EU is to go ahead with plans to double tariffs and halve quotas on imports of steel from July, in a move designed to curb Chinese imports but which could damage UK exports to the bloc. The decision by EU lawmakers and member states after late night talks on Monday, will reduce duty-free quotas by 47%. Exact country allocations have yet to be determined. The EU industry commissioner, Stéphane Séjourné, hailed the agreement as the “strongest ever” safeguard agreed and a “victory for our steel mills, our steelworkers and…
China overtakes US as Germany’s top trading partner
China has overtaken the US as Germany’s top trading partner, figures have shown, as the chancellor, Friedrich Merz, prepares for his first visit to Beijing since taking office. Merz will head to China on Tuesday and will be welcomed with military honours on Wednesday in Beijing by the prime minister, Li Qiang, before later meeting the president, Xi Jinping, for talks over dinner, his spokesperson, Sebastian Hille, said. Germany’s Federal Statistical Office released figures on Friday showing that China is back on top as the country’s most important market with…
US and Japan unveil $36bn of oil, gas and critical minerals projects in challenge to China
Japan has drawn up plans for investments in US oil, gas and critical mineral projects worth about $36bn under the first wave of a deal with Donald Trump. The US president and Sanae Takaichi, Japan’s prime minister, announced a trio of projects including a power plant in Portsmouth, Ohio, billed by the Trump administration as the largest natural gas-fired generating facility in US history. As a diplomatic row between Japan and China over the security of Taiwan continues, testing the Japanese economy, Takaichi said the projects would strengthen her country’s…
Trump unveils $12bn critical minerals stockpile scheme in apparent move to counter China’s dominance
Donald Trump has announced the creation of a critical mineral reserve worth nearly $12bn, a stockpile that could counter China’s ability to use its dominance of the hard-to-process metals as leverage in trade talks. “Today we’re launching what will be known as Project Vault to ensure that American businesses and workers are never harmed by any shortage,” Trump said at the White House on Monday. He compared it to the Strategic Petroleum Reserve (SPR), which was created in the 1970s when an Arab oil embargo led to a disruptive shortage…
Chinese car firm Chery to open European base in Liverpool
Chinese carmaker Chery is to open a research and development headquarters in Liverpool, in a move that could pave the way for a deal for the British manufacturer Jaguar Land Rover to build its cars. State-owned Chery’s commercial vehicle arm will base the headquarters for its European operations on Merseyside, including research, engineering, and commercial functions. Chery has already made a mark in the UK car market through its Omoda and Jaecoo brands, and it is launching its eponymous brand with an advertising campaign featuring former England footballer Peter Crouch.…
What happened when Starmer met Xi Jinping? – podcast
Keir Starmer held talks with the Chinese leader Xi Jinping this week and proclaimed Britain should have a more ‘sophisticated’ relationship with China. Pippa Crerar, who was with the prime minister on the trip, tells Kiran Stacey what all this means The Guardian
Burner phones and lead-lined bags: a history of UK security tactics in China
When prime ministers travel to China, heightened security arrangements are a given – as is the quiet game of cat and mouse that takes place behind the scenes as each country tests out each other’s tradecraft and capabilities. Keir Starmer’s team has been issued with burner phones and fresh sim cards, and is using temporary email addresses, to prevent devices being loaded with spyware or UK government servers being hacked into. The employment of such tactics may sound dramatic but they are par for the course in an age of…
Starmer’s fraught visit to China will tell us what he really thinks of the UK’s place in the world | Peter Frankopan
This week, Keir Starmer will reportedly visit China. This will be the first trip of this kind by a British prime minister since Theresa May’s three-day visit to Beijing in 2018. Since then, relations between London and Beijing have become increasingly fraught, caught between growing security concerns and deep economic interdependence. Allegations of espionage and influence operations have sharpened political and public suspicion in the UK, even as deep trade links and supply chains on which the country depends make disengagement unrealistic. As fierce debate about the recent approval for…