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Beijing-Brussels trade tensions ratchet up

Dec 23, 2025, 6:57am EST
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A staff member serves a customer at the dairy section of a supermarket in Beijing.
Florence Lo/Reuters

Trade tensions between China and the European Union rose after both unveiled restrictions on key imports.

Beijing said it would impose a 43% import tariff on European dairy products, a move that comes in response to Brussels launching an investigation into Chinese subsidies for its EV industry.

Meanwhile the bloc announced increased checks on plastics, as imports from China have cooled domestic demand.

The decisions cap a year of growing friction between the economic powerhouses, with some fearing China is moving quickly to reduce its dependency on Europe: EU car exports to China have declined rapidly in recent years, while Chinese firms now make luxury products including caviar and foie gras which were previously mostly imported from the bloc.

A chart showing EU exports to China.
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