ExclusiveChina’s Russia ties mean EU trade deal is off the table, Finland says

China’s close ties with Russia should be a “disqualifying factor” in Beijing’s bid to launch talks on a free-trade agreement with the European Union, Finland’s foreign minister has said. In meetings with European leaders, Beijing has been floating the prospect of a trade or investment deal, while German Chancellor Friedrich Merz last month said a pact could be possible in the future. In an exclusive interview in Helsinki on Wednesday, however, Foreign Minister Elina Valtonen poured cold water on the idea, saying that Beijing’s close ties with Moscow will block progress towards any EU-China trade deal. While there have been no formal discussions about launching talks, the suggestion has appeared in several official Chinese diplomatic readouts. Valtonen’s statement shows Finland could provide a de facto veto on any moves in that direction, given that no talks could be launched without the backing of all 27 EU member states. “I do think that is a disqualifying factor … I would say so,” Valtonen told the South China Morning Post in Finland’s Parliament House. In Brussels, meanwhile, officials are sceptical over any formal pact while there are so many problems in the trading relationship. A long-negotiated EU-China investment pact remains in the deep-freeze after it could not be ratified in 2021, following tit-for-tat sanctions over human rights violations in Xinjiang – allegations which Beijing has repeatedly denied. Beijing’s reluctance to publicly condemn Russia for its invasion of Ukraine and refusal to respond positively to Europe’s requests to rein in Russian President Vladimir Putin have further hurt Beijing’s relations with the bloc and deepened political distrust. “China is truly benefiting from the war. Russia is a junior partner to China these days – Russia has vast natural resources, not much else, but that is [good] if you get it at a discount,” Valtonen said. The EU has repeatedly warned of signs that China supplies dual-use goods to Russia, with a senior EU official claiming that around 80 per cent of the components Russia uses in weapons come via China. Researchers at the Mercator Institute of China Studies found that shipments of dual-use goods from China to Russia surged in the second half of 2025. Beijing has repeatedly stated its neutral position in the conflict and called frequently for a ceasefire. It has also denied sending weapons to either side in the war and said it has strictly controlled exports of dual-use products. Valtonen said Beijing’s support of Russia has violated principles of the UN Charter and “is something that we cannot accept”. Valtonen’s remarks underline how trade tensions between the EU and China are now inseparable from the geopolitical fallout of Russia’s war in Ukraine. However, the bloc has been unable to devote any political capacity to revamping ties with Beijing, with its attention absorbed by the US-Israel war on Iran and the chaos in the transatlantic relationship. At a business forum in the Finnish capital this week, companies said they were concerned about the EU’s lack of a coherent policy towards Beijing. Brussels has been pushing China to address industrial overcapacity and subsidies for years, but feels as though its complaints are ignored. A high-level European Commission debate designed to thrash out a path forward on all of these fronts last week was postponed, as commissioners instead discussed Europe’s response to the Iran crisis. Valtonen said “the time would be right for a genuine discussion on China on the EU level”, but admitted it was difficult for the bloc to carve out a common position since every capital has its own interests. “There are quite differing China policies throughout the member states, and fair enough, we are democracies, and it is for each and every country and their people to decide,” she said, adding that Europe would be stronger on this question if it were united. The top diplomat lent support to Belgian Prime Minister Bart de Wever’s assertion that the long-standing EU framework on China – through which it designates China simultaneously as a partner, rival and competitor – needed a “paradigm shift … more in tune with current geoeconomic realities”. At a time when officials are scouring Europe for economic chokepoints that could be weaponised against other countries in case of coercion, Valtonen offered qualified support. On one hand, she said the EU was “more ready than ever” to weaponise interdependency, saying that “I think we are now just perhaps opening a new page in European history”. But with Finland an economically liberal state, the minister was reluctant to go too far down a road that would certainly disrupt trade. “I’m not of the opinion that we should utilise any chokepoints for the fun of it, but rather to aim for a world which has less tariffs and less barriers to trade, especially among friends and allies,” said Valtonen. “I’m still a true believer, and I haven’t given up hope that we would have a free trade area, if not a single market within the North Atlantic alliance to start off with, and then deeper trade and partnerships with the rest of the world.”

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Tough talk from foreign minister shows the nation could provide a de facto veto on China’s efforts to launch a deal

Tough talk from foreign minister shows the nation could provide a de facto veto on China’s efforts to launch a deal