Europe Tries Closing Door On Beijing, Only To Leave It Propped Open

A hard-fought trade deal between Europe and Beijing is emerging, but it’s unclear if the agreement will change what has become a stark economic reality for the continent.

European Union (EU) envoys agreed to a broad, tentative deal with Beijing in October, which would cut Chinese hybrid car exports in half, Reuters reports. But the potential deal comes off as a pyrrhic victory for Europe, as much of the continent’s industry remains intimately tied to China, including the automotive industry and critical mineral mining.

“While this is being ballyhooed by the EU as a great deal, the fact is that 350,000 Chinese hybrids coming into the EU market is still a lot of cars,” energy consultant David Blackmon told the DCNF, “no doubt the European carmakers will grasp at any relief but the deal really isn’t any magic bullet protecting them from Chinese intrusion into what used to be their market.”

While China controls the supply chain for batteries and critical minerals, Europe struggles to maintain a similar level of production.

“We are more than 80% dependent on China for many critical raw materials [and] 90% for some rare earths,” European Commission President Ursula von der Leyen said at a September State of the Union Address, according to POLITICO.

“It’s making life a bit more difficult for the Chinese, but … that’s not going to stop them as it happened to the electric cars,” Felipe Munoz of Car Industry Analysis told Reuters.

Europe has grown dependent on Chinese automotive exports, specifically with hybrid vehicles. China’s exports of hybrids to the 27 EU member states tripled to $7.5 billion in the first half of 2026–triple the $2.5 billion in 2025.

That is almost nine times higher than the $845 million exported in 2021, according to Reuters.

“The number one goal of the Chinese Communist Party is accumulating power. Dependence has to run in one direction only – toward Beijing. Deindustrializing other countries is a means to this end because it renders these countries reliant on China. The Chinese Communist Party accomplishes this through a range of means, including by co-opting elites and competing unfairly — e.g., the Party supports (including through espionage) and subsidizes national-champion firms to enable them to underprice competitors abroad,” Jacqueline Neal, President of the Long Term Strategy Group told the DCNF, “these firms can then capture markets and through that, render other countries dependent on Chinese products, delivering leverage to the Party.”