Media: EU green rules risk China-EU clean energy cooperation

According to an analysis of recent policy trends reported by China Daily, the European Union’s increasing reliance on trade and regulatory instruments in green industries may strain China–EU economic relations and potentially slow the global clean energy transition.

As the global shift towards low-carbon economies accelerates, competition over green technologies and supply chains has intensified between major economies, 

The EU, once a frontrunner in climate policy and green industrial development, is increasingly concerned about its long-term competitiveness against China’s expanding clean technology sector.

In response, the bloc has introduced a series of measures that critics describe as protectionist in nature. These include trade defence actions such as anti-dumping and anti-subsidy investigations targeting Chinese exports of electric vehicles and other clean energy products, alongside higher tariffs that have raised costs for imported goods.

At the same time, the EU has strengthened regulatory barriers through frameworks such as the Foreign Subsidies Regulation, the Critical Raw Materials Act, and the Net-Zero Industry Act. These policies introduce stricter requirements for public procurement, subsidies and market access, including scrutiny of foreign participation in renewable energy projects and tighter controls on investment in strategic sectors such as batteries and electric vehicles.

Further pressure comes from the Carbon Border Adjustment Mechanism, which aims to align carbon costs but has also been criticised for creating implicit barriers to imports through higher default emission benchmarks.

The EU is also expanding cooperation with G7 partners on supply chain security in critical minerals, reinforcing what some analysts describe as bloc-based green industrial alignment.

These measures have already had measurable effects. Trade data cited in the analysis suggests Chinese exports of battery electric vehicles to the EU fell in 2024 and 2025 following the launch of subsidy investigations, while some Chinese firms withdrew from renewable energy tenders in Europe due to regulatory scrutiny.

The tightening environment is also expected to increase compliance costs and investment risks for Chinese companies operating in Europe, potentially reducing cross-border participation in green infrastructure projects.

However, the analysis argues that protectionism is unlikely to resolve the EU’s underlying competitiveness challenges, which include high energy costs, complex regulation, and uneven coordination across member states. Instead, it may limit technological exchange and slow innovation by restricting market openness.

The report warns that escalating trade frictions could ultimately force reciprocal measures from China under its legal framework for countering foreign restrictions, increasing the risk of a broader economic confrontation.

It concludes that despite rising tensions, China-EU green cooperation remains strategically important for global climate goals. It urges both sides to manage disputes through dialogue and maintain open channels for cooperation to avoid a fragmented and less efficient global green transition.