Welcome to the 64th issue of the CEEasia Briefing.
In this issue, we dissect the following topics:
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China-Slovakia ties
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Europe talks FTA with India
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EU-China relations amid tariffs
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1. Slovak officials visit to China
What’s going on? Slovak Finance Minister Ladislav Kamenický and Economy Minister Denisa Saková visited China for four days to strengthen trade and economic ties. The visit included investment seminars, B2B meetings, and the signing of cooperation agreements aimed at attracting new Chinese investment to Slovakia.
Going deeper… The highlight of the visit was an investment seminar in Hefei, co-organized by Slovak and Chinese institutions. Thirteen Slovak firms from various sectors—such as energy, aviation, food, pharmaceuticals, trade, real estate, human resources, law, architecture, and business consulting—attended the event. They showcased their products and services and explored opportunities for collaboration. Several memoranda of cooperation were signed, and Slovak firms engaged in B2B sessions with Chinese partners. Both ministers also met with the mayor of Hefei to discuss opportunities for deepening economic cooperation.
Moreover… This visit follows the largest Slovak delegation to China in November 2024, led by Prime Minister Robert Fico, accompanied by eight ministers and 71 entrepreneurs representing 54 firms. That time the delegation participated in three business forums and held approximately 500 B2G meetings with nearly 230 Chinese state and business representatives. Despite the scale of this engagement, the trip did not yield concrete or valuable outcomes. Moreover, many Chinese investments were already agreed upon under the previous governments that had a more critical attitude towards China (e.g. battery factory in Šurany), demonstrating that Slovakia can engage economically with China without shifting toward a solely pro-Chinese orientation.
This means… The current Slovak government is pursuing a foreign policy aimed at actively developing economic ties with Beijing, positioning Slovakia as an attractive hub for Chinese investment and job creation. However, this approach presents a strategic risk for Bratislava. First, it creates a vulnerability by providing China with political and economic leverage. And combined with Prime Minister Fico’s upcoming visit to Russia, it adds to the trajectory of Slovakia’s foreign policy that may undermine the country’s credibility and reliability as a partner within the EU’s economic and foreign policy framework.
2. FTA talks between EU and India
What’s going on? India and the European Union (EU) are intensifying efforts to conclude a long-awaited Free Trade Agreement (FTA), with the next round of talks set for May 12–16, 2025 in New Delhi. This stance follows renewed political commitment after European Commission President Ursula von der Leyen’s visit to India – earlier this year – where both sides agreed to speed up negotiations and finalize the agreement by the end of 2025.
Going deeper… In the past decade, trade between India and the EU has grown by around 90%. However, negotiations have been in slow motion, at best, due to differences on key areas including vehicles, pharmaceuticals, and agriculture. India also aims for easier access to the services market and employment of skilled professionals, especially in the IT sector, where it is globally competitive. Environmental regulations like the EU’s Carbon Border Adjustment Mechanism (CBAM) have added points of friction, as have debates on digital privacy and regulatory standards.
However… The current international context appears to have changed gears on these talks. The protectionist shift under Donald Trump’s presidency — particularly the imposition of tariffs and the general skepticism toward multilateral trade — prompted both India and the EU to reconsider the reliability of the USas a stable partner. The FTA is thus increasingly seen as a way to diversify supply chains, reduce trade vulnerability, and strengthen strategic autonomy in a growingly unpredictable world.
This means… A successful FTA would be a welcomed step and turning point in India-EU relations. For India, it would open up European markets and support its push for self-reliance, economic diversification and resilience. For the EU, it’s a strategic move to engage more deeply with India and the Indo-Pacific in general to hedge against global supply chain disruptions. The agreement would also mark a shift away from the protectionist legacy of recent years, signaling renewed trust and commitment to open, rules-based trade and elevated ties.
3. Europe-China engagement amid tariffs
What’s going on? Beijing is working to rally allies amid its escalating tariff dispute with the US. “Calling on Western countries to uphold multilateralism and open cooperation”, China has launched a diplomatic charm offensive aimed at Europe. In a symbolic gesture of goodwill, last week, it lifted retaliatory sanctions on current and former EU lawmakers imposed in response to EU’s 2021 sanctions imposed on Chinese officials over alleged human rights abuses in Xinjiang Uygur autonomous region.
Going deeper… China is seizing the disruption caused by US tariffs under President Donald Trump to strengthen ties with the EU. It has urged Brussels to lift export controls, reduce tariffs on electric vehicles (EVs), and revive the long-stalled Comprehensive Agreement on Investment (CAI). Diplomatic engagement has intensified, with recent high-level meetings including Spanish Prime Minister Pedro Sánchez and EU Trade Commissioner Maroš Šefčovič. A high-level EU-China summit is scheduled for July 2025.
However… The lifting of sanctions, while symbolic, is seen as insufficient. EU officials remain cautious, noting that China has yet to offer any substantive trade concessions. While some member states, such as Spain, are more open to engagement—driven by Chinese investment in green energy and batteries, and a reliance on China as a market for pork exports—broader concerns remain. These include China’s industrial overcapacity, its close ties with Russia, and fears that Beijing will reroute surplus exports from the US to Europe in response to tariffs. Furthermore, despite China’s push for deeper economic ties, the EU continues to prioritize its strategic relationship with the United States.
This means… While diplomatic exchanges between China and the EU are set to increase, a major realignment is unlikely without more concrete offers from Beijing. Brussels is reportedly preparing a counterproposal to Trump focused on jointly addressing Chinese industrial overcapacity—indicating a tilt toward Washington, even if it requires a firmer stance on Beijing.
Quick takes on CEEasia developments
CHINA | In addition to a high-level visit to China, a delegation from the town of Brezno in central Slovakia, along with representatives of the Horehronie region’s tourism sector and educational institutions, paid an official visit to China. The aim of the visit was to establish new partnerships and deepen cooperation in the areas of tourism, sports, education, and culture.
HONG KONG | Peter Kmec, Deputy Prime Minister of the Slovak Republic for the European Union Recovery Plan and the Knowledge Economy, met with Chief Executive John Lee in Hong Kong to sign a Memorandum of Understanding (MoU) on Cooperation in Science, Research, and Innovation. He also visited Shenzhen, where he met with Jeff Wang, Senior Vice President of Huawei, as well as representatives of Slovak, Czech, and Austrian businesses.
SOUTH KOREA | Negotiations for a second batch of K2 main battle tanks between Seoul and Warsaw stalled due to disagreements over pricing, technology transfer, and the terms of local production. A new agreement was anticipated by April 2025. But the contract’s cost may have more than doubled, largely due to the inclusion of locally manufactured K2PL variants. Rising costs and unresolved disputes now threaten future production and have sparked protests at a key Polish defense plant.
SOUTH KOREA | Around 10,000 South Koreans have left Hungary in recent months, shrinking the community to 3,000–5,000 people. The exodus is linked to struggles in Hungary’s battery sector and a shift in production to the US.
VIETNAM | A delegation from the Hanoi People’s Council, led by Vice Chairwoman Phung Thi Hong Ha, visited the Czech Republic for 4 days to discuss strengthening of cooperation in infrastructure, health care, and intermunicipal relations. The delegation met with Prague’s Mayor Bohuslav Svoboda, officials from the Regional Councils in Brno and Cheb, as well as representatives of automotive company Skoda Auto.
