China seeks Nordic route to EU trade calm

China has offered fresh channels for easing trade tensions with the European Union after Foreign Minister Wang Yi completed a four-country Nordic tour aimed at rebuilding confidence with some of Europe’s most security-conscious governments.

Wang’s 2-8 July visit to Denmark, Sweden, Finland and Norway came as Brussels and Beijing try to prevent a deepening dispute over industrial subsidies, electric vehicles, market access, export controls and critical minerals from turning into a broader trade confrontation. The trip placed trade, green technology, shipping, healthcare, tourism and scientific innovation at the centre of talks, while allowing Beijing to test whether northern Europe could support a less confrontational EU approach.

The diplomatic push followed high-level trade discussions in Brussels, where both sides agreed to establish a ministerial-level mechanism that would meet once or twice a year. Four negotiation tracks are expected to cover export controls, trade and investment balancing, market access, and supply-chain transparency, with October emerging as a key deadline for measurable progress.

The EU’s trade deficit with China stood at about €360 billion last year, driven by imports of electric vehicles, batteries, solar equipment, machinery and consumer goods. European officials have warned that subsidised Chinese production could put pressure on strategic industries, while Beijing argues that EU restrictions on technology exports and investment screening have politicised commerce.

Wang used the Nordic leg to frame China and Europe as partners rather than rivals. In Copenhagen, he urged Denmark to play a constructive role in stabilising EU-China relations and highlighted cooperation in green shipping, life sciences and tourism. Denmark holds political weight in Brussels through its support for open trade, but it has also backed a firmer European line on economic security and resilience.

The tour carried symbolic value. It was the first visit by a Chinese foreign minister to Denmark in 15 years and to Sweden in 22 years. Sweden is China’s largest trading partner in the Nordic region, but relations have faced strain over human rights, security policy and Europe’s concerns over dependence on Chinese technology. Wang met Prime Minister Ulf Kristersson and Foreign Minister Maria Malmer Stenergard in Stockholm, where the talks covered bilateral ties and the wider EU agenda.

Finland added a sharper security dimension to the visit. President Alexander Stubb and Foreign Minister Elina Valtonen have supported a more cautious European posture towards Beijing, particularly since Russia’s war in Ukraine reshaped the security debate across northern Europe. Finland’s accession to NATO has also altered the regional balance, placing Helsinki firmly inside the transatlantic security framework. Trade dialogue with Beijing therefore sits alongside hard questions over Russia, technology transfer and strategic infrastructure.

Norway, the final stop, offered Beijing a more pragmatic opening. Oslo is outside the EU but closely tied to the single market through the European Economic Area. Its energy, maritime and seafood industries give it economic links with China, while Norway’s diplomatic tradition allows space for dialogue even during periods of political tension. Wang’s meeting with Foreign Minister Espen Barth Eide was expected to focus on trade, green transition and international security.

Beijing’s message is that the EU should expand trade rather than restrict it. China has signalled willingness to increase imports from Europe and improve communication over trade frictions. It has also pressed Brussels to ease restrictions on high-tech exports and avoid measures that it views as protectionist. European negotiators, however, want more than general assurances. They are seeking concrete steps to narrow the trade gap, improve access for European firms, and curb state-backed overcapacity in sectors where Chinese exports have surged.

The most sensitive issue remains electric vehicles. The EU imposed duties on battery-powered cars made in China after concluding that state support had distorted competition. Chinese manufacturers have responded by looking more seriously at European production sites, including plants in Hungary and other markets, to maintain access to consumers while reducing tariff exposure. The dispute has become a test case for whether Brussels can defend industry without triggering retaliation that would hit exporters, luxury brands, agriculture and aviation.

Rare earths and critical inputs have become another pressure point. China dominates several stages of processing for materials used in clean energy, defence and advanced manufacturing. European officials are trying to reduce exposure without severing commercial links. Beijing retains leverage through licensing and supply-chain controls, while the EU is developing tools to diversify sourcing, screen investment and support domestic production.