Suddenly Turning Hostile: A Self-Inflicted Disaster

Before we dive in today, I have to get something off my chest—because I’m genuinely furious. Let’s take a look at two underreported but deeply significant developments.

First, China just announced that it will take measures in government procurement activities targeting certain medical devices imported from the European Union. At first glance, this might seem like a routine trade action. But it’s not. I spoke with a friend who works in the medical device industry, and he was livid. According to him, European companies have been making a fortune in China for decades—selling high-end equipment like proton therapy systems, advanced MRI machines, and CT scanners at astronomical prices. We’re talking tens of millions, sometimes over a hundred million yuan per unit. And that’s just the beginning. Maintenance, repairs, parts replacements—you name it, they charge exorbitant fees.

Then there’s the so-called “full-scenario procurement” model. When China builds or renovates hospitals, European companies offer bundled packages: gas supply systems, anesthesia workstations, ventilators, monitoring equipment—you get the idea. Many of these components are actually made in China, but once they go through European middlemen, the prices skyrocket. Think about how many hospitals China has built over the past few decades. The profits European firms have made from this are staggering.

But now, things have changed. Chinese medical device companies have grown stronger and are even entering the European market. Naturally, Europeans aren’t happy. On June 20, the European Commission introduced measures to restrict Chinese firms from participating in public procurement of medical devices in Europe. That’s right—after decades of benefiting from China’s open market, they’re slamming the door shut just as Chinese companies start to compete.

So today, China struck back.

The second piece of news flew under the radar: on July 4, China’s Ministry of Commerce announced that starting July 5, it would impose final anti-dumping duties on European brandy for the next five years—some as high as 34.9%.

What do these two moves tell us?

I couldn’t help but think of a scene from Romance of the Three Kingdoms—one that makes readers want to throw the book across the room. After the Battle of Red Cliffs, the three kingdoms were roughly established. But their strengths were far from equal. Cao Wei was dominant, while Shu Han and Eastern Wu had to rely on geography and alliances to hold their ground. Logically, Shu and Wu should have stayed united to counter Wei.

But then, Sun Quan made a disastrous decision. While Guan Yu was fighting in the north and gaining ground, Sun Quan ordered a sneak attack on Guan Yu’s base. Guan Yu was killed, and Liu Bei, enraged, launched a failed campaign against Sun Quan. The consequences were severe: Shu Han was weakened, and Zhuge Liang was left with inexperienced generals for his northern campaigns. Some say that when Sun Quan betrayed Guan Yu, the fate of the Three Kingdoms was sealed.

Why bring this up? Because what’s happening now feels eerily similar.

Let’s rewind to April 2, when Donald Trump stood in the White House Rose Garden and declared a global trade war under the banner of “reciprocal tariffs.” Europe was stunned. They didn’t even know how to respond—because in Trump’s eyes, most European leaders were nothing more than remnants of the Biden era, and they had to be purged.

In the midst of this chaos, it was China that stepped up and confronted the U.S. head-on. Europe, Japan, ASEAN—they all hid behind us. At the time, European leaders, including our “old friend” Ursula von der Leyen, were all about China. She talked about the importance of EU-China relations, the need for stability, and the desire for high-level dialogue and cooperation in trade, green energy, and more. It was almost like a modern-day alliance against a common threat—just like Shu and Wu against Cao.

But then, from May to June, as China stood firm and the U.S. began to falter, Europe suddenly changed its tune. And just like Sun Quan, they made a bafflingly stupid move.

They started imposing restrictions on China, rebuilding trade barriers. For example, seeing Chinese electric vehicles gaining market share in Europe, they launched investigations into subsidies—cash incentives, export tax rebates, you name it. When that didn’t stick, they moved on to a full-blown supply chain investigation. They scrutinized every supplier: Did you get cheap land? Did you receive local government incentives? Any signs of state support? If they found even a hint of it, they slapped you with the “subsidy” label and accused you of distorting the market.

This is beyond hypocritical. Europe has done far worse. Remember Northvolt?

A few Europeans who used to work for Chinese battery companies went back home and claimed they were experts. They quickly became the darling of the EU—getting land, policies, and over €20 billion in credit lines before even breaking ground. And what happened? They never actually produced anything meaningful and went bankrupt. Is that not the definition of double standards?

And it gets worse. The EU’s current “foreign minister,” Kaja Kallas, has the audacity to demand that China lift restrictions on rare earth exports, accusing us of “supporting Russia and threatening European security.” That’s rich. Rare earths are strategic materials used in missiles, fighter jets, and other military tech. In today’s volatile world, how can we just export them freely—especially to those who clearly don’t have our best interests at heart?

And let’s not forget: Europe has been restricting tech exports to China for decades—first through the Coordinating Committee for Multilateral Export Controls (COCOM), and now under the Wassenaar Arrangement. They’ve followed the U.S. in blocking our access to critical technologies. But when we do the same, we’re the bad guys?

As for supporting Russia—that’s nonsense. If China were really backing Russia, the war in Ukraine would look very different.

So what does all this tell us?

Back in April, when the U.S. was breathing down Europe’s neck, they sang the praises of “EU-China friendship” and hid behind us. But once they saw the U.S. losing steam and no longer a direct threat, they turned on us—just like Sun Quan stabbing Guan Yu in the back.

It’s mind-boggling. Europe didn’t have to get hurt. At worst, they could’ve taken one hit. But instead, they chose the worst possible path: provoking both the U.S. and China. While others try to play both sides, Europe seems determined to alienate both. And let’s not forget—Europe is the weakest player in the China-U.S.-EU triangle.

Don’t think the U.S. won’t come after you again. You took our goodwill and threw it back in our face. So don’t be surprised when the consequences come knocking.

As the old saying goes: “Heaven’s sins may be forgiven, but self-inflicted ones are beyond redemption.”