Is China EU's partner, competitor, or reflection of Europe's hypocrisy? It's complicated, say experts

The European Union (EU) has long struggled to define its relationship with China. As the world’s second-largest economy and a major trade partner, China holds significant economic sway over Europe.

However, concerns over human rights, economic coercion, and geopolitical security continue to create divisions among EU member states.

While some nations seek deeper economic engagement, others are calling for a more confrontational approach.

This divergence has led to a fragmented European stance on China.

At the Raisina Dialogue 2025, Firstpost’s IdeasPod initiative invited Laimonas Talat-Kelpša, Political Director, Ministry of Foreign Affairs, Lithuania and Małgorzata Bonikowska, President, Centre for International Relations, Poland for their insights on the complicated EU-China relationship.

Here are the key takeaways from the interview conducted by Gautam Chikermane, the Vice President of Observers Research Foundation (ORF) (which organises the conference in partnership with the Ministry of External Affairs).

WATCH: Why EU can’t agree on China

Lithuania’s hardline stance: A case for decoupling

Lithuania’s experience with China is a prime show of the tensions between economic pragmatism and political sovereignty.

In 2021, Lithuania found itself at the center of a diplomatic confrontation after allowing Taiwan to open a trade office in its capital, Vilnius. While similar arrangements existed in other European nations, Lithuania’s decision was particularly sensitive because it was the first such move since 2004.

“This was not a fight of Lithuania’s choosing,” said Laimonas Talat-Kelpša, Political Director at Lithuania’s Ministry of Foreign Affairs. “Our intention was not to worsen relations with any country. What we did in 2021 was simply follow a path already taken by many European nations– to open a trade office in Taiwan and allow the Taiwanese people to have representation in Lithuania to expand commercial and trade relations,” he added.

China retaliated by imposing trade restrictions and even erasing Lithuania from its customs register, effectively cutting off Lithuanian exports. Rather than backtracking, Lithuania chose to fully decouple from China, diversifying its trade towards other Asian markets. “That decoupling has made Lithuania’s economy stronger and our political institutions more resilient,” Talat-Kelpša explained. “We have diversified our trade to other Asian markets, and we are doing fine.”

Poland’s balancing act: Strategic engagement with China

In contrast to Lithuania’s hardline approach, Poland has pursued a more pragmatic strategy, maintaining close economic ties with China while reinforcing its commitments to the North Atlantic Treaty Organisation (Nato) and the United States.

Poland is one of the key European participants in China’s Belt and Road Initiative (BRI), and in 2011, it signed a strategic partnership with Beijing.

As of 2023, Poland’s trade with China amounted to €50 billion. However, this relationship is heavily imbalanced, with Poland importing €47 billion worth of goods from China while struggling to gain access to the Chinese market.

“We want to sell more to China, but accessing their market is not easy,” said Małgorzata Bonikowska, President of Poland’s Centre for International Relations. “Yes, in 2011, Poland signed a strategic partnership with China. At the time, many European nations were keen to do business with China, which led to closer economic ties.”

According to Bonikowska, Poland remains cautious, particularly regarding China’s role in critical infrastructure and telecommunications. “Regarding Huawei, the company operates in Poland– we can buy Huawei phones. However, we have been cautious about allowing it into strategic contracts,” she stated.

Europe’s fragmented approach: Three distinct camps

The contrasting policies of Lithuania and Poland spotlight broader divisions within the EU.

The strategies EU member nations have taken towards China can be grouped into three categories:

2. Economic engagement: Countries like Germany prioritise economic ties with China and seek to expand trade and investment opportunities.

3. Strategic balancing: Nations such as Poland aim to maintain trade relations while keeping a strong partnership with the United States and Nato.

4. Hardline opposition: Countries like Lithuania advocate for full decoupling from China, emphasizing national sovereignty and reducing economic dependence.

While the EU has a unified trade policy, China has the option of engaging with each of the member states on a bilateral basis. When asked if such an arrangement should be implemented by Beijing, Talat-Kelpša answered in the negative.

“I wouldn’t subscribe to the idea of dividing the EU into single member-state policies—it’s impractical,” he said. “Why have 27 different policies when you can have one? That’s the logic of European integration over the past 60–70 years.”

“The EU does act as one in key areas like trade, customs, and competition policy. It is the second-largest economy in the world after the US,” Bonikowska noted.

Challenges ahead: Security, trade, and geopolitical shifts

Beyond economic concerns, Europe faces critical security challenges. Russia’s ongoing war in Ukraine has reshaped European defence strategies, forcing the EU to reconsider its security policies.

Both Lithuania and Poland are among the leading European nations in military spending, with Lithuania committing 4 per cent of its GDP to defense, set to rise to 5 per cent, and Poland already approaching the 5 per cent mark.

Additionally, China’s alignment with Russia has raised alarm bells in Europe. If Beijing provides direct support to Moscow, it could prompt a reassessment of European-China relations. “China’s support for Russia is a concern for us,” Bonikowska said. “If China assists Russia, we will have to rethink our relationship with China.”

At the same time, Europe faces uncertainty regarding US foreign policy, particularly if a future Trump administration adopts a more isolationist stance. As Europe works to reduce its dependence on Chinese technology and supply chains, it is also exploring alternative partnerships with nations like India, though trade volumes remain significantly lower.