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Policy Briefing

EU–Asia Relations Briefing — March 09, 2026

Published March 9, 2026 — 06:02 UTC

EU–Asia Relations Briefing — March 09, 2026

Automated policy briefing on EU–Asia Pacific relations generated with AI-powered web search.

Political Relations & Strategic Rivalry

Executive Summary

In the last 48 hours, there have been no major EU-China summits or new EU sanctions on Chinese entities directly linked to Russia's military-industrial complex. The most notable development was a statement from Chinese Foreign Minister Wang Yi on March 8, 2026, emphasizing the importance of Europe holding a "correct perception" of China and asserting that interdependence does not equate to risk, reflecting Beijing's diplomatic engagement amidst the EU's "de-risking" strategy.

EU Institutional Actions

No major institutional actions in this period. The last significant EU sanctions package targeting Chinese entities was in December 2024.

Key Bilateral Developments

  • EU-China: Chinese Foreign Minister Wang Yi, speaking on March 8, 2026, highlighted that for China-Europe relations to remain stable, Europe must maintain a "correct perception" of China. He noted a strengthening of relations since the previous year, with increased two-way trade exceeding $1 trillion and over 2 million European tourists visiting China under visa-free policies. Wang Yi also stated that "interdependence is not a risk; intertwined interests are not threats; and openness and cooperation will not weaken economic security; but building walls and barriers will only lead to self-isolation."

Sector Analysis

Trade/Investment: Chinese Foreign Minister Wang Yi noted that two-way trade between China and Europe surpassed $1 trillion, indicating continued significant economic ties despite broader geopolitical tensions.
Defence/Security: No major developments in the last 48 hours. The most recent EU sanctions on Chinese entities for supporting Russia's military-industrial complex were part of the 15th sanctions package in December 2024, targeting seven Chinese and Hong Kong entities with stricter export controls and comprehensive sanctions.
Technology/Digital: No major developments.
Climate/Energy: No major developments.

Implications for Analysts

  • For Europe: Analysts should note the continued Chinese diplomatic efforts to shape the narrative around economic interdependence, aiming to counter the EU's "de-risking" rhetoric by framing it as potentially leading to "self-isolation."
  • For Asia: For Asia-Pacific dynamics, China's emphasis on the benefits of interdependence and open cooperation, as articulated by Wang Yi, signals Beijing's ongoing strategy to maintain and potentially strengthen economic ties with European partners despite geopolitical strains and the EU's strategic recalibration.

Outlook

Strained
While diplomatic channels remain open, the lack of recent high-level summits and the ongoing rhetorical pushback from China against the EU's de-risking strategy suggest underlying tensions persist, preventing a significant improvement in political relations.

Economic Relations, Trade & Investment

Executive Summary

The European Union has announced the termination of anti-dumping duties on polyester fiber products (PSF) from South Korea, effective March 18, 2026. This decision, following a long-standing imposition of duties, is expected to positively impact South Korean exports to the EU market. No other significant EU trade defense measures or new EU-Asia trade agreements have been reported within the last 48 hours.

EU Institutional Actions

  • European Commission: On March 5, 2026, the European Commission announced its decision to terminate anti-dumping duties on polyester fiber products (PSF) originating from South Korea, with the termination taking effect from March 18, 2026. This follows duties that had been in place since 1993.

Key Bilateral Developments

  • EU-South Korea: The termination of anti-dumping duties on South Korean polyester fiber products (PSF) by the European Commission, announced on March 5, 2026, is expected to facilitate the entry of these products into the EU market. This decision comes after continuous efforts by the Korean government and synthetic fiber industries to engage with the EU.

  • EU-Indonesia: No major developments in the last 48 hours. The EU-Indonesia Comprehensive Economic Partnership Agreement (CEPA) was formally signed on September 23, 2025, and is anticipated to take effect in early 2027, pending ratification by the respective legislatures.

Sector Analysis

Trade/Investment: The impending termination of anti-dumping duties on South Korean polyester fiber products signifies a positive adjustment in specific trade relations, potentially increasing South Korean exports in this sector. There have been no new tariffs, Free Trade Agreements (FTAs), or sanctions reported in the last 48 hours concerning EU-Asia trade.

Defence/Security: No major developments in the last 48 hours.

Technology/Digital: No major developments in the last 48 hours. Definitive anti-dumping duties on acrylonitrile-butadiene-styrene resins (ABS) from Taiwan and South Korea were imposed on February 13, 2026, outside the 48-hour window.

Climate/Energy: No major developments in the last 48 hours.

Implications for Analysts

  • For Europe: Analysts should monitor how the termination of anti-dumping duties on South Korean PSF impacts the EU's domestic polyester fiber industry and whether this signals a broader trend in the EU's approach to trade defense measures with key Asian partners.
  • For Asia: Analysts in Asia, particularly in South Korea, should assess the market opportunities arising from the removal of EU anti-dumping duties on PSF and consider how this might influence investment and production strategies for affected industries.

Outlook

Stable
The specific termination of anti-dumping duties with South Korea indicates a targeted adjustment rather than a broad shift, maintaining overall stability in EU-Asia economic relations.

Digital Policies & Innovation

Executive Summary

The EU-Singapore Digital Trade Agreement (DTA) officially entered into force on February 1, 2026, marking a significant step in streamlining cross-border digital transactions and setting global standards for digital trade. Concurrently, the EU continues to deepen its digital cooperation with South Korea through joint Horizon Europe projects focusing on semiconductors and AI, with four co-funded projects announced in July 2024 and further discussions in December 2025. While no entirely new digital partnership initiatives were announced in the last 48 hours, these recent developments underscore a deepening of EU-Asia digital collaboration, particularly in critical and emerging technologies.

EU Institutional Actions

  • European Commission: The EU-Singapore Digital Trade Agreement (DTA), the EU's first standalone bilateral digital trade agreement, entered into force on February 1, 2026. This agreement aims to establish transparent rules for cross-border digital transactions, enhance consumer trust, and address unjustified barriers to digital trade.
  • European Commission: In July 2024, the European Commission, alongside the Republic of Korea, announced the selection of four collaborative projects in semiconductors, jointly supported with a total investment of approximately €12 million. These projects, co-funded by the Horizon Europe Chips joint undertaking and the National Research Foundation of Korea, focus on heterogeneous integration and neuromorphic chips for more efficient AI systems.
  • European Commission: Negotiations for Japan's association to Horizon Europe are set to conclude by the end of 2025, which would allow Japanese researchers to participate in the 2026/2027 Horizon Europe Work Programme on equal terms with EU partners.

Key Bilateral Developments

  • EU-Singapore: The EU-Singapore Digital Trade Agreement (DTA) officially came into force on February 1, 2026. This agreement is designed to promote paperless trade, ensure the validity of electronic signatures and invoices, prohibit customs duties on electronic transmissions, and prevent unjustified data localisation requirements and forced transfers of software source code. The second EU-Singapore Digital Partnership Council meeting in December 2025 reaffirmed cooperation in AI, online safety, verifiable credentials, cybersecurity, cross-border data flows, semiconductors, and quantum technology.
  • EU-South Korea: Four co-funded semiconductor projects were announced in July 2024, stemming from a joint call launched in February 2024 under the EU-South Korea Digital Partnership. These projects, with a total investment of around €12 million, focus on heterogeneous integration and neuromorphic computing for AI applications. South Korea officially joined Horizon Europe in March 2024, enabling its researchers to apply for grants in Pillar II of the program from 2025. Further discussions in December 2025 at the third Digital Partnership Council meeting in Seoul emphasized continued collaborative work on semiconductor research, 6G, AI, and quantum technologies.
  • EU-Japan: The EU and Japan held their third Digital Partnership Council in Tokyo in May 2025, agreeing to deepen collaboration on AI, 5G/6G, semiconductors, high-performance computing, and quantum technology. This included enhanced research on 6G networks through the "6G MIRAI-HARMONY" joint research project.
  • EU-Vietnam: On March 6, 2026, Vietnam's Minister of Foreign Affairs Le Hoai Trung held phone talks with Kaja Kallas, Vice-President of the European Commission, to discuss Vietnam-EU relations, including promoting cooperation in science and technology.

Sector Analysis

Trade/Investment: The entry into force of the EU-Singapore DTA on February 1, 2026, aims to boost digital trade by providing legal certainty for businesses, enhancing consumer trust, and removing digital trade barriers.
Defence/Security: No major developments in the last 48 hours.
Technology/Digital: Significant progress is observed in semiconductor and AI cooperation, with the EU and South Korea co-funding four projects on heterogeneous integration and neuromorphic chips. The EU and Japan are also advancing joint work on AI, 6G, and semiconductors, including the "6G MIRAI-HARMONY" project.
Climate/Energy: No major developments in the last 48 hours specifically related to digital partnerships.

Implications for Analysts

  • For Europe: Analysts should monitor the practical implementation of the EU-Singapore DTA as a template for future digital trade agreements, particularly its impact on data flows and regulatory alignment. The deepening research collaboration with South Korea and Japan in critical technologies like semiconductors and AI highlights Europe's strategy to diversify supply chains and enhance technological sovereignty through partnerships.
  • For Asia: Analysts should observe how the EU's digital partnerships, particularly with Singapore, South Korea, and Japan, influence regional digital governance standards and technological development. The focus on joint research in advanced technologies could lead to significant advancements and new market opportunities within the Asia-Pacific.

Outlook

Deepening
The recent entry into force of the EU-Singapore DTA and ongoing, concrete research collaborations with South Korea and Japan in critical digital technologies demonstrate a clear trajectory towards more integrated and strategic digital partnerships between the EU and key Asian economies.

Security & Maritime Cooperation

Executive Summary

No major specific developments regarding new maritime surveillance agreements with ASEAN members or joint naval exercises in the Indo-Pacific have been reported within the last 48 hours. However, the European Union continues to emphasize its commitment to maritime security and a rules-based international order in the Indo-Pacific, as evidenced by recent statements and strategic documents from early March 2026.

EU Institutional Actions

  • Council of the European Union: On March 4, 2026, the Council approved conclusions on an EU strategy for cooperation in the Indo-Pacific, aiming to reinforce the EU's strategic focus, presence, and actions in the region to contribute to stability, security, prosperity, and sustainable development. This strategy includes developing partnerships in security and defense, specifically addressing maritime security.
  • European External Action Service (EEAS): On March 5, 2026, the EU's High Representative for Foreign Affairs and Security Policy, Kaja Kallas, voiced significant concerns regarding maritime security, emphasizing the EU's active efforts to ensure the smooth operation of vital trade routes, including the strategic Strait of Hormuz.

Key Bilateral Developments

  • EU-India: No major developments in the last 48 hours. Previous reports from May-June 2025 indicated a joint naval exercise in the Indian Ocean to enhance maritime security cooperation and counter-piracy tactics.
  • EU-ASEAN: No major developments regarding new maritime surveillance agreements or joint naval exercises in the last 48 hours. The EU-ASEAN Strategic Partnership from 2020 prioritizes maritime cooperation, focusing on transnational maritime threats, pollution, and climate change.

Sector Analysis

Trade/Investment: No major developments in the last 48 hours. The EU's Indo-Pacific strategy generally aims to foster an open and fair environment for trade and investment, strengthen resilience, and support connectivity.
Defence/Security: The EU continues to develop partnerships in security and defense, including to address maritime security, malicious cyber activities, disinformation, emerging technologies, terrorism, and organized crime, as outlined in its Indo-Pacific strategy. The EU's EUNAVFOR ASPIDES mission remains on heightened readiness in the Red Sea/Bab al-Mandab, following reports of escalating maritime risk in the Gulf of Oman/Strait of Hormuz approaches in early March 2026.
Technology/Digital: No major developments in the last 48 hours.
Climate/Energy: No major developments in the last 48 hours.

Implications for Analysts

  • For Europe: Analysts should note the EU's consistent, albeit incrementally developing, commitment to enhancing its security presence and influence in the Indo-Pacific, particularly through maritime security initiatives and strategic partnerships, even if concrete new actions are not reported daily.
  • For Asia: Analysts monitoring Asia-Pacific dynamics should recognize the EU's sustained diplomatic and strategic engagement in the region, which, while not always involving immediate military deployments, aims to uphold international law and ensure stability in critical maritime areas.

Outlook

Stable
The EU's commitment to Indo-Pacific security and maritime cooperation remains consistent, with recent strategic affirmations and ongoing concerns about maritime trade routes, despite no new specific agreements or exercises being reported in the immediate 48-hour window.

Environment, Energy & Critical Raw Materials

Executive Summary

The EU's Carbon Border Adjustment Mechanism (CBAM) has entered its definitive phase in 2026, prompting East Asian manufacturers, particularly in South Korea and China, to assess significant trade impacts and adjust their carbon pricing strategies. Concurrently, the EU is deepening partnerships in Southeast Asia, notably with Vietnam, to diversify critical raw material supply chains and enhance green energy cooperation, as evidenced by recent financial commitments to Vietnam's Just Energy Transition Partnership. These developments highlight a dual EU strategy of leveraging trade policy for climate action while actively building resilient, de-risked supply chains and fostering green transitions in key Asian partners.

EU Institutional Actions

  • European Commission: On March 5, 2026, the EU climate chief ruled out suspending the Carbon Border Adjustment Mechanism (CBAM) for fertilisers, indicating the EU's firm stance on its implementation.
  • European Commission: The EU launched a new call for proposals under the EU Renewable Energy Financing Mechanism (RENEWFM) on March 3, 2026, to support solar PV projects, demonstrating ongoing internal efforts to accelerate renewable energy deployment.
  • European Commission: The first Hydrogen Regulatory Forum is scheduled for March 19-20, 2026, in Rotterdam, to discuss the development of the hydrogen market and regulation in Europe.

Key Bilateral Developments

  • EU-Vietnam: On March 6, 2026, the EU and Vietnam reiterated their commitment to cooperation in critical raw materials, energy (including safe and low-carbon energy), and technology, signaling a continued effort to diversify supply chains. This follows the EU's reinforcement of support for Vietnam's Just Energy Transition Partnership (JETP) with a €430 million package for the Bac Ai Pumped Hydro Storage Project, aimed at accelerating the shift to a greener energy future and enhancing grid stability for renewable integration.
  • EU-ASEAN: A Green Team Europe Initiative in partnership with ASEAN was launched in February 2026 with an initial €30 million grant, focusing on climate action, clean energy transition, and environmental protection across the region.
  • EU-South Korea: South Korea's government announced 15 support measures on February 11, 2026, to help its companies respond to the EU's CBAM, focusing on carbon emissions calculation, reduction, and personnel training.

Sector Analysis

Trade/Investment: The EU's CBAM entered its definitive phase on January 1, 2026, requiring importers to purchase CBAM certificates from February 2027 to cover embedded emissions from 2026 imports. This mechanism is expected to impact East Asian manufacturers, with China being the most exposed trading partner if CBAM expands to downstream products, potentially facing additional downstream exports to the EU of around EUR 18 billion per year. South Korean technology industries could face CBAM certificate costs of up to USD588 million between 2026 and 2034 if semiconductors and liquefied natural gas are included.
Defence/Security: No major developments in the last 48 hours.
Technology/Digital: A non-profit urged tech giant Nvidia on March 9, 2026, to decarbonise its supply chain, citing concerns over rising electricity consumption and emissions in East Asia, highlighting the growing pressure on technology companies regarding their carbon footprint. Artificial intelligence is projected to unlock significant cost savings (up to $67 billion) and emission reductions (386 million tons of CO2) in ASEAN's power sectors by 2035, facilitating higher variable renewable energy integration.
Climate/Energy: The EU is actively pursuing critical raw material diversification, particularly through partnerships in Southeast Asia like the one with Vietnam, to reduce reliance on single-source suppliers. Green energy cooperation is advancing, with the EU supporting Vietnam's Just Energy Transition Partnership and launching a Green Team Europe Initiative with ASEAN.

Implications for Analysts

  • For Europe: Analysts should monitor the effectiveness of CBAM in driving decarbonization among East Asian trading partners and the actual financial burden on EU importers, as well as the progress of critical raw material diversification efforts beyond initial agreements.
  • For Asia: Analysts should assess how East Asian countries, particularly South Korea and China, adapt their industrial policies and carbon pricing mechanisms in response to CBAM, and the extent to which EU green energy and critical raw material partnerships translate into tangible infrastructure development and reduced reliance on traditional supply chains.

Outlook

Deepening
The EU's engagement with East Asia, particularly Southeast Asia, is deepening through targeted partnerships in critical raw materials and green energy, while the CBAM is compelling Asian manufacturers to align with EU climate standards, fostering a more integrated, albeit complex, relationship.

Sources

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