China cancels EU meetings amid escalating trade dispute

China has escalated its dispute with the European Union by abruptly canceling two key diplomatic meetings planned for June, according to Financial Times sources. The canceled sessions included a ministerial meeting on digital issues and a dialogue with Olof Skoog, deputy secretary-general of the European External Action Service. No official explanation was given for the last-minute cancellations.

This move occurs as trade tensions intensify. Beijing is reacting to European initiatives that limit access for Chinese products and companies to the EU market. Meanwhile, Brussels is concerned about a growing trade deficit, now reaching 1 billion euros per day. Chinese exports to the EU increased by 16.4% in the first five months of the year compared to the same period last year.

The "Industrial Accelerator Act," currently under discussion, is a focal point of disagreement. This act proposes stricter terms for Chinese products participating in public tenders and for the acquisition of European companies. Additionally, the European Commission is reviewing new cybersecurity rules that could exclude Huawei from critical infrastructure and is already limiting funding for Chinese solar energy converters.

Beijing, through its state media, states it does not seek a trade war but is prepared to take "decisive countermeasures" if the EU persists with its current policies. These developments coincide with the European Council Summit in Brussels, where the EU's strategy toward China is expected to be discussed. The European Commission, however, indicates that dialogue continues and the meetings are being rescheduled.