Europe vs China: Beijing’s ‘Free Trade’ Push Sparks Pushback

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Emanuel Macron with Xi Jinping

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Strategic analyst Sari Arho Havrén lays bare Europe’s growing unease over China’s market access demands, tech ambitions, and alleged efforts to fracture the transatlantic alliance.

By TRH World Desk

New Delhi, November 30, 2025 — A blunt warning from Finnish China-watcher Sari Arho Havrén has brought spotlight on the ongoing hard negotiations between China and Europe. She argued what Beijing really wants from Europe—and why.

In a LinkedIn post, Havrén argued that despite messaging from Beijing that “Europe is insignificant,” China is in fact pursuing three concrete objectives from the continent: free trade without reciprocity, unrestricted investment access into critical infrastructure, and a weakened transatlantic alliance.

At the heart of the trade dispute lies access to high-end European technology, particularly advanced semiconductor tools produced by Dutch giant ASML. According to Havrén, Beijing wants continued access to these niche technologies while simultaneously using Europe as a dumping ground for surplus Chinese industrial output—often under the banner of supporting the green transition.

She further warned that China seeks unrestricted investment access across Europe, including into critical infrastructure, without meaningful screening or reciprocal access for European firms in China. “There is no intent to correct the soaring trade imbalance,” Havrén wrote, calling Europe’s openness strategically naïve.

The most alarming objective, however, she flagged was Beijing’s desire to undermine the transatlantic alliance, at a time when policy alignment between Brussels and Washington is already under strain. Behind the scenes, analysts say, this cleavage is increasingly seen in Beijing as a strategic opportunity.

The post drew rapid responses from European industry voices. Belgian entrepreneur Charles Blommaert countered that Europe holds far more leverage than it realizes. He noted that China’s economy is structurally dependent on industrial exports—many of which flow directly to the European market.

“Cut or seriously reduce that market access,” he warned, “and overproduction will quickly become a political liability for the Chinese Communist Party.” He also questioned why Europe continues to accept mass imports that allegedly fail basic EU consumer protection standards.

A more confrontational stance was articulated by Greek business leader Philippos Gavroglou, who rejected any premise that Europe should even factor Beijing’s preferences into its strategy. “We don’t need them. They need us,” he wrote, urging Europe to diversify partnerships toward emerging markets such as the Philippines and Brazil, rather than remain economically tethered to China.

The exchange comes amid intensifying EU scrutiny of Chinese industrial overcapacity, state subsidies, and non-reciprocal market access, particularly in electric vehicles, clean energy equipment, and high-tech manufacturing. Brussels has already begun reviewing anti-dumping measures and foreign investment screening mechanisms as part of its broader “de-risking” agenda.

Strategic analysts say the debate highlights a growing psychological shift in Europe’s China policy—from economic optimism toward hardened realpolitik. While Europe once viewed China primarily as a commercial opportunity, it is now increasingly framed as a systemic rival with asymmetric leverage.

The question confronting policymakers, experts say, is no longer whether Europe should protect its industries and critical infrastructure—but how far it is willing to go in using its vast consumer market as a strategic tool.

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