Welcome to the 82nd issue of the CEEasia Briefing.
In this issue, we dissect the following topics:
- Czech court acquits Chinese man suspected of espionage
- EU and China reach a preliminary agreement on trade
- New critical minerals projects approved in Poland and Slovakia
- Poland’s PM Donald Tusk and Czech Deputy PM Karel Havlíček visit India
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1. Czech court acquits Chinese man suspected of espionage
What’s going on? On Monday, November 2, a court in Prague acquitted Yang Yiming, Chinese correspondent of Guangming Daily, of charges related to suspected espionage activities in the Czech Republic and subsequently ordered his release. While the court found Yang to be linked to Chinese intelligence, it did not see enough evidence to prove that his activity reached the threat level to warrant criminal prosecution. The decisions comes following a previous ruling by the Constitutional Court, which ordered courts to apply a strict reading of the counter-espionage law, requiring prosecutors to prove material damage to the national security interests.
Furthermore… Yang Yiming was arrested in Prague in January 2026 on suspicion of establishing connections with Czech officials and obtaining information that could harm the Czech Republic. He was charged with undertaking “unauthorised activity for a foreign power” amid his alleged connection with a Communist Party-affiliated news outlet. The case also has a transnational dimension, as Yang has been known to also interact and collect information from political actors in neighboring Slovakia.
What’s next? The state prosecutor appealed both Yang’s acquittal and release from custody. The case will now be reviewed by the court of higher instance. However, as Yang was immediately released from custody, and has since fled the country, making any further proceedings obsolete.
Going deeper… China currently has in custody a representative of Czech defense conglomerate CSG, who was detained in Beijing over supposed endangering of national security. The move is largely interpreted as China’s exercise of hostage diplomacy aimed at achieving Yang’s release, a strategy previously employed against Canada over investigations of Huawei heiress Meng Wanzhou, which led to arrest of two Canadian citizens, Michael Kovrig and Michael Spavor, in 2018. As Yang has already fled Czechia, it now remains to be seen whether Beijing moves to release the Czech hostage.
Crucially, the Babiš government has announced its desire to shift the Czech China policy to a more pragmatic approach after coming to power in December 2025. The relationship has been noticeably fraught under the previous Fiala government, which has substantially deepened engagement with Taiwan. Prosecution of Yang Yiming and subsequent detainment of the CSG representative have been major hurdles to move forwards with the plan.
2. EU and China reach a preliminary agreement on trade
What’s going on? On October 5, leaders of France and Germany published an open letter on “strengthening European resilience, addressing global macroeconomic imbalances and market distorting practices.” The letter calls for more swift and efficient use of existing trade defense instruments and the establishment of new ones aimed at third countries causing ‘systemic and persistent’ market distortions, most likely referring to China. This came just days before EU Trade Commissioner Maroš Šefčovič traveled to Beijing for the second meeting of the EU-China Trade and Investment Consultations, with the explicit goal of advancing talks (and action) on trade rebalancing and reaching a preliminary agreement on hybrid cars.
Going deeper… The Franco-German paper added real weight to the EU’s shifting position on trade with China. It is significant because the two biggest member states have not always seen eye to eye on EU-China relations. The paper calls for more ex officio trade defense investigations, a sector-wide approach to market distortions, and a new instrument akin to Section 301 of the US Trade Act that would give the European Commission the power to immediately cut off access to the EU single market. This instrument could effectively supersede the existing Anti-Coercion Instrument, which was designed to tackle economic coercion but must first go through a lengthy administrative process requiring a qualified majority of EU member states. The new instrument would not only reverse this (it would be activated unless a qualified majority opposes it) but could also target issues at the core of the structural imbalances in the EU-China relationship. This includes China’s industrial overcapacity, subsidized exports, and undervalued currency, which do not qualify as instances of economic coercion.
In Beijing… Šefčovič’s trip yielded three “shared understandings” on EU-China trade. This includes the need to “moderate” China’s exports of hybrid and plug-in hybrid EVs (potentially cutting them by more than half), to lower tariffs on EU exports of certain products to China (namely car parts, olive oil, and footwear), and to “further facilitate” Chinese export licenses for rare earths and permanent magnets. While the understanding on hybrids is important, as this is precisely the segment of Chinese automotive exports that has gained ground fastest since the 2024 battery electric vehicles (BEV) duties, hybrids accounted for 2.06% of all Chinese exports to the EU between January and August 2026, pointing to the agreement’s limited economic impact.
Indeed, despite concerns that these Chinese concessions would dissuade some European capitals from supporting the Commission’s tougher stance on China, the European Council meeting in mid-October made clear that progress in one product or sector category cannot resolve the EU’s “structural” and “unsustainable” trade deficit with China. In addition to the “kill switch” proposed by France and Germany, von der Leyen has highlighted further instruments under development, namely the DiversifyEU initiative, aimed at strengthening supply-chain security, and the Solidarity Mechanism, intended to further counter economic coercion or retaliation.
This means… The EU will continue negotiating product-specific agreements with China, with calls to extend quotas and safeguards from the hybrid deal to Chinese chemicals and machinery next. At the same time, it seems likely to shift from a product-specific to a sector-wide approach in its trade defense toolbox, while seeking to strengthen the powers of the European Commission and other EU-level institutions at the expense of its member states. The aim is to build a credible deterrent comprising both new and strengthened instruments that can be deployed swiftly and decisively to counter China’s own economic practices. As China’s calculations rely on a divided, slow, and bureaucratically complex EU, the joint proposal by its two biggest member states is a step in the right direction.
3. New critical minerals projects approved in Poland and Slovakia
What’s going on? On October 9, the European Commission approved 47 new strategic projects under the Critical Raw Materials Act, including four in Poland and two in Slovakia. Poland’s projects include two initiatives by Polish mining company KGHM focused on metal recycling and copper extraction, TDM’s electronic waste recycling project, and Leonardo CRM4Defence initiative, aimed at recycling critical raw materials utilized in the defense industry. Slovakia secured approval for Slovalco’s aluminum production and CMK’s GaRefine gallium recycling project.
Going deeper… The decision comes against the backdrop of growing concerns about Europe’s dependence on China, which has in recent years imposed a series of export controls on critical raw materials, including gallium and germanium. These restrictions have exposed vulnerabilities in Europe’s supply chains and accelerated its efforts to reduce strategic dependencies through diversification and de-risking supplies without severing economic ties with China.
Why it matters… The projects will strengthen Europe’s access to critical raw materials essential for key industries. Slovakia’s GaRefine stands out as the only initiative focused on gallium, a metal essential in the semiconductor value chain as well as in defense technologies. Expanding domestic production and recycling could reduce reliance on imports, strengthen European industrial competitiveness, and support the EU’s 2030 targets for securing critical raw materials.
4. Poland’s PM Donald Tusk and Czech Deputy PM Karel Havlíček visit India
What’s going on? Two high-level visits took place in October between India and Central Europe. Polish Prime Minister Donald Tusk, accompanied by a business delegation of around 100 leading CEOs and industry representatives, visited India at the end of October, while Czech First Deputy Prime Minister and Minister of Industry and Trade Karel Havlíček completed a four-day visit to Bengaluru in mid-October. The visits reflect growing interest on both sides in translating recently warming political ties into concrete economic outcomes.
Going deeper… During Prime Minister Tusk’s visit to New Delhi, India and Poland reaffirmed their Strategic Partnership (established in 2024) and set a target for doubling bilateral trade by 2030. Their discussions covered cooperation in defense, space, nuclear energy, critical minerals, semiconductors, AI and infrastructure, alongside opportunities arising from the recently concluded EU–India Free Trade Agreement. Both sides also highlighted the potential of the India–Middle East–Europe Economic Corridor and cooperation in shipping and maritime connectivity.
Meanwhile… Havlíček’s visit took place in Bengaluru, where he met Karnataka’s leadership and representatives of major Indian companies, including Infosys and BEML, and participated in a Czech-Indian business forum aimed at connecting Czech industrial expertise with India’s expanding manufacturing and technology sectors. The program also included the opening of a new facility at Gopalan Aerospace, manufacturing drones and Unmanned Aerial Vehicles (UAVs), and the signing of a cooperation memorandum involving Czech company Witkowitz covering zero-emission energy and sustainable solutions, wastewater treatment and small modular reactors (SMRs), as well as unmanned systems, firefighting systems and civilian and defense applications.
This means… The two visits show that Central European countries view India as an increasingly important player in the Indo-Pacific and a key partner for diversifying trade, strengthening industrial capabilities and reducing supply-chain vulnerabilities. For Poland, the focus is on elevating an already established strategic partnership through investment, defense and connectivity, while the Czech Republic is looking to expand the presence of its technology- and manufacturing-oriented companies in the Indian market.
However, the benefits are not one-sided. For India, closer ties with CEE offer access to specialized industrial expertise, advanced technologies and investment, supporting its ambitions to expand domestic manufacturing (under the national program “Make in India”), modernize infrastructure and accelerate its energy transition. Implementing the EU–India FTA framework could further support these ambitions by creating new trade and investment opportunities.
Quick takes on CEEasia developments
PHILIPPINES | Polish President Karol Nawrocki made the first-ever visit by a sitting Polish head of state to the Philippines on October 6–8, where he and President Marcos Jr. agreed to deepen defense cooperation and expressed interest in building a strategic partnership. In response, Manila agreed to buy 48 S-70i Black Hawk helicopters built by PZL Mielec, with the final delivery under the 2022 contract of 32 aircraft due in August 2026.
CHINA | Chinese battery maker CATL’s Debrecen plant could receive up to HUF 320 billion (€883 million) in state aid and tax breaks, including HUF 129 billion (€356 million) in non-repayable subsidies, according to a contract signed by Hungary’s previous government in 2025 and obtained by Népszabadság, a Hungarian weekly news magazine. The agreement does not require the jobs it funds to go to Hungarian workers, and CATL’s specific business commitments were redacted.
TAIWAN | A Taiwanese delegation of biotechnology companies, universities, and industry representatives visited the Czech Republic in October to participate in the Prague.bio Conference, where the two sides signed a memorandum of understanding (MoU) for cooperation in biotechnology, research, and bioinnovation. The Czech Economic and Cultural Office in Taipei and CzechInvest also organized the first Taiwan–Czechia Hydrogen Strategic Forum in Taipei to explore cooperation in hydrogen technologies, clean energy, and research and development, and signed an MoU between Czech company MMV and Taiwan’s National Chin-Yi University of Technology on hydrogen storage and materials engineering.
CHINA | In October, the Chinese Embassy in the Czech Republic and the Czech Ministry of Industry and Trade hosted the China-Czech Enterprise Summit in Brno. Chinese Ambassador Zhou Qian, Czech Speaker of the Chamber of Deputies Tomio Okamura, and Deputy Minister Jan Sechter attended the summit. They expressed appreciation for bilateral economic cooperation and their support for deepening economic relations.
THAILAND | Slovak Foreign Minister Juraj Blanar visited Thailand in mid-October to meet Deputy Prime Minister and Foreign Minister Sihasak Phuangketkeow, marking the first high-level Slovak visit to Thailand in 21 years. The two sides discussed cooperation in trade and investment, defense, the automotive industry, energy, cybersecurity, and water management. Slovakia also reaffirmed its support for the Thailand–EU FTA negotiations. Blanar also paid a courtesy call on Thai Prime Minister Anutin Charnvirakul, during which he delivered an invitation from Slovak Prime Minister Robert Fico for an official visit to Slovakia.
SINGAPORE | The Czech National Cyber and Information Security Agency, led by Director Lukáš Kintr, attended Singapore International Cyber Week from October 12-16 to deepen cooperation with Indo-Pacific partners. Talks focused on protecting critical information infrastructure and on emerging technologies such as AI and quantum computing. The delegation also supported Czech cybersecurity firms at the accompanying GovWare event.
SOUTH KOREA | Czech and South Korean industry and trade ministers, Karel Havlíček and Jung-Kwan Kim, confirmed in October that the new power plant project in Dukovany is progressing on schedule. In addition to discussing ways to strengthen bilateral nuclear power cooperation, Minister Kim expressed concern about the EU’s proposed Industrial Accelerator Act and how it might affect the cooperation.
THAILAND | LOT Polish Airlines re-launched direct flights between Warsaw and Bangkok at the beginning of October, re-establishing a route first launched in 1977 but suspended in 2000. Operated by Boeing 787 Dreamliners, the service will increase to six flights per week from November, before switching to three weekly flights during the 2027 summer season.
