A high-level summit between the European Union and China this week underscored persistent deep divisions over trade imbalances and market access, with some progress on export controls. While both sides expressed a desire for cooperation, the detailed exchanges revealed significant hurdles to easing economic friction.

Last week, Beijing updated its export control catalog to include critical technologies for battery cathode materials and refined lithium extraction, potentially adding new regulatory hurdles for international companies dependent on Chinese advanced material processing and broadening its strategic grip on global supply chains.

China's exports of natural graphite are rebounding over the first four months of 2025, recovering from an initial dip after China revised its regulations in late 2023, when it expanded the list of controlled graphite types.

Today, China's Ministry of Commerce (MOFCOM) announced sanctions on eight Taiwanese companies, including major aerospace and shipbuilding firms, subjecting them to stricter export control measures.

U.S. and Chinese officials have confirmed that they finalized details on implementing an agreement that loosens bilateral export controls. However, the specific terms of the agreement, and whether they will be made public, remain unclear.

Earlier this week, China's General Administration of Customs (GACC) published some guidelines outlining the procedures and required documentation for exporting controlled dual-use items.

Beijing has cast a new shadow over a $35 billion merger between U.S. software giants Synopsys and Ansys, postponing its regulatory approval. The decision comes as the latest ripple in escalating U.S.-China tech tensions.