From Brussels, where the public holiday has done little to distract policymakers, all eyes are on Beijing. US President Donald Trump’s visit to meet Chinese President Xi Jinping—billed as the most consequential bilateral meeting of 2026—has Europe anxiously assessing its place in a world where the two largest economies are negotiating without it.
Before departing Washington, Trump framed the talks bluntly: “We’re the two superpowers. We’re the strongest nation on earth in terms of military. China’s considered second.” Xi, for his part, invoked the Thucydides Trap—the historical pattern where a rising power challenges an established one, often leading to conflict—and asked whether the two countries could “forge a new model for relations between major powers.” Trump responded with a personal note: “It’s an honour to be with you. It’s an honour to be your friend.”
Europe’s Strategic Anxiety
For European capitals, the core fear is that Trump, facing economic headwinds at home, will strike a deal that leaves the EU out in the cold. Rare earths are a central issue: China controls the supply of 17 critical minerals used in everything from smartphones to defence systems. Beijing has shown it can turn off the tap at will, a vulnerability that Washington shares with Brussels.
“Realistically, the Trump-Xi talks are becoming very bilateral,” said Jonas Parello-Plessner, a visiting fellow at the German Marshall Fund. “And one thing is certain: Trump will only speak for himself.” Michael Bloss, a Member of the European Parliament on the delegation for EU-China relations, told Europe Today that Europe must recognise it is not at the table. “China is doing this divide and conquer policy,” he said. “But the question is, for us, how do we get more autonomy and more sovereignty?”
The debate over reliance on China is also heating up within the EU’s own borders. Energy ministers meeting in Cyprus this week confronted the bloc’s dependence on Chinese dominance in battery storage. According to Wood Mackenzie, Chinese firms now control over 80% of Europe’s residential battery storage market and nearly 88% of lithium-ion battery imports. Analysts say reducing that dependency is possible but unlikely within a decade.
A paper from the EU Institute for Security Studies noted that while Chinese energy investments have dropped since the late 2010s, and scrutiny of Chinese FDI has increased, “the legacy of Chinese involvement in the energy system persists.”
Hungary’s Funding Puzzle
Separately, the European Commission is sending a delegation to Budapest next week to explore ways to unlock billions in EU funds for Hungary. The country faces an August deadline to receive €10 billion in recovery grants, but Brussels has warned that meeting all conditions will be difficult. One option under consideration is using Hungary’s state-owned Exim Bank to channel the money, though the Commission worries about losing oversight—a sensitive issue given the rule-of-law concerns that originally blocked the funds. As Hungary’s political turmoil continues, the timing adds further complexity.
Ending Conversion Practices
In a separate development, European Commissioner for Equality Hadja Lahbib called on EU countries to end “barbaric” and “shameful” conversion practices targeting LGBTQI+ people. Responding to a citizens’ initiative that gathered over one million signatures, Lahbib said these interventions—ranging from psychotherapy to exorcism—amount to “torture” and “physical and psychological harassment that could lead to deep depression or suicide.” A formal recommendation is expected next year, though it falls short of the EU-wide ban activists sought. Lahbib acknowledged that unanimity among member states is required under Article 19 of the EU treaties, and an equality directive has been stalled since 2008.
As the superpowers meet in Beijing, Europe’s challenge is clear: to find a unified voice in a world where the biggest decisions are increasingly made by two. Whether the continent can turn that anxiety into action remains the open question.
