Also, Germany’s 10,000-job bleed, robot centres and steel
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Welcome to Red Thread, Euractiv’s weekly newsletter on the EU’s relationship with China and the wider Asia-Pacific.

I’m Christina Zhao in Oceania, joined by Anupriya Datta in Europe.

This week, we look at Beijing’s push to build an AI-literate generation...

Photo by VCG/VCG via Getty Images

A primary school student from Shanghai recently demonstrated an AI-powered racing game he designed for people with disabilities.

Speaking at a recent technology forum in Beijing, the boy explained that he had built the game almost entirely through voice prompts because he had not yet learned to type properly.

It was a remarkable snapshot of a generation learning to communicate with machines before mastering keyboards.

His project was one of many. Other children presented an AI assistant to help visually impaired women apply makeup, a robot capable of monitoring river pollution and smart rehabilitation systems. Together, they showcased one of China’s most ambitious education reforms.

Last week,
Beijing authorities said that AI education had reached 1.83 million students across 1,400 schools. State media reported that, days earlier, China’s State Council approved an education plan for 2026-2030 embedding AI across every stage of schooling, extending pilot programmes first launched in Guangzhou in 2022, Shenzhen in 2023 and Shanghai in 2024 into a nationwide strategy.

The reforms complement
China’s latest Five-Year Plan, which identifies artificial intelligence as a strategic priority spanning manufacturing, healthcare, education and public services.

While Brussels has concentrated on building the rules, funding and computing infrastructure for AI, Beijing has also begun redesigning the education system around the expectation that the technology will become a routine part of life.

Under Beijing's new curriculum, introduced last September, every primary and secondary school student must receive at least eight hours of dedicated AI education each academic year.

Students are taught how to write prompts, identify AI hallucinations and assess whether a model’s answer is reliable, while schools are encouraged to weave AI into subjects ranging from Mandarin and history to art.

The approach reflects a familiar pattern in Chinese policymaking: pilot reforms in a handful of cities, standardise them, then scale them nationally. The goal is to ensure future generations grow up as native AI users before entering the workforce.

Across Europe, governments are still debating how generative AI should fit into classrooms, how to prevent plagiarism and how to preserve critical thinking in the age of chatbots. While the EU released an
AI Literacy Framework last month, no comparable bloc-wide effort exists to make the technology a standard part of compulsory schooling.

Researchers, however, are only beginning to understand how AI changes the way people learn.

One
recent study of 26,800 Chinese students found AI helped students complete homework more efficiently, but greater reliance on the technology was associated with weaker exam performance over time.

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Another date with Beijing

Beijing will host a second round of trade talks with the EU this autumn under the new trade and investment
consultation mechanism, Chinese Commerce Minister Wang Wentao said late last week, after Trade Commissioner Maroš Šefčovič said he would visit China later this year to review progress.

The mechanism, expected to meet
once or twice a year, follows its inaugural session in Brussels last week, where both sides agreed to establish working groups to tackle trade disputes.

EU capitals have urged the Commission in recent weeks to secure tangible progress as tensions mount and the bloc’s goods trade deficit with China reaches roughly €1 billion a day.


A lunar-sized gap: The EU's annual trade deficit with China is now bigger than the entire Apollo programme cost in today's money.

Pacific missile test reinforces NATO fears

China's military test-fired a long-range ballistic missile from a nuclear-powered submarine into the South Pacific this week, prompting criticism from Australia,
New Zealand, Japan and the US over the lack of advance notice.

Beijing described the launch, which carried a dummy warhead, as a routine military exercise conducted in accordance with international law. Analysts said the rare test highlighted China's expanding nuclear capabilities.

The launch also came as NATO leaders gathered in Ankara, where China featured in the alliance's longer-term strategic thinking. EU officials have argued that security in the Indo-Pacific and Europe can no longer be viewed separately, with Beijing’s military expansion and its close partnership with Moscow reshaping defence planning.


A 45-year gap: China publicly acknowledged its first Pacific ballistic missile test in 44 years only last September. This week's launch makes two in less than a year.

Sjoerdsma’s Beijing trade push

Dutch Foreign Trade Minister Sjoerd Sjoerdsma is in China this week on a
trade mission to Beijing and Shanghai with a delegation of 17 companies from the logistics, agriculture and technology sectors.

On Tuesday, Sjoerdsma met Commerce Minister Wang Wentao and co-chaired the first meeting of the Dutch-Chinese Joint Economic Committee in six years. He
said that despite differences between the two countries, it remained “important to continue the conversation” to safeguard Dutch interests.

The visit comes as Dutch chipmaker Nexperia, owned by China’s Wingtech, faces legal proceedings in Beijing linked to its ownership.

From sanctions to dialogue: The trip marks a notable thaw after China sanctioned Sjoerdsma six years ago over his criticism of its treatment of Uyghurs, allegations Beijing denies.

Prévot courts Southeast Asia

Belgian Foreign Minister Maxime Prévot visited Malaysia and the Philippines last week to deepen economic and strategic ties.

In Manila,
Prévot said he met the country’s foreign and defence ministers to discuss the proposed EU-Philippines free trade agreement, maritime cooperation and regional security. In Kuala Lumpur, talks focused on expanding cooperation in renewable energy and rare earths, according to Malaysian media.

A refining giant: Malaysia is home to the world's largest rare earths processing plant outside China, making it a crucial alternative for countries trying to wean off Beijing's critical minerals.

Nordics press Wang on Ukraine

China’s top diplomat Wang Yi spent the past week touring Denmark, Sweden, Norway and Finland in a diplomatic push ahead of this month’s EU-China summit.

Across the four capitals, Wang called for deeper trade, greater cooperation on green technology and fair treatment for Chinese companies.

Nordic leaders welcomed dialogue but raised Ukraine, trade distortions and security concerns. Norwegian Prime Minister Jonas Gahr Støre urged China to use its influence with Moscow to help end the war, while Sweden said it pressed Wang on Ukraine and the detention of Swedish citizen Gui Minhai.

Berlin hardens on Beijing

Germany’s Deputy Chancellor Lars Klingbeil signalled a tougher approach towards China, saying Berlin would prioritise European production in strategic sectors such as infrastructure and defence.

“We will not accept others breaking the rules and using unfair means to destroy jobs and business models here,” the SPD leader said.

His remarks came as the
Wall Street Journal reported that German industry is shedding more than 10,000 jobs a month as Chinese manufacturers undercut European rivals, piling pressure on the country’s famed Mittelstand.

Chinese counterfeit condoms seized

The EU’s anti-fraud office, OLAF,
said authorities had uncovered a network trafficking more than 200,000 counterfeit Chinese-made condoms into Europe, with seizures in Romania, Serbia and Spain.

The condoms carried the branding of a well-known manufacturer but were traced, with help from Chinese authorities, to a counterfeiting network. OLAF warned the fake products could increase the risk of unintended pregnancies and sexually transmitted infections because they may not meet safety standards.

Chips caught between superpowers

Chinese export controls, the risk of conflict over Taiwan and Europe’s dependence on US technology have left the bloc’s semiconductor industry facing a “bleak future” unless it moves quickly to strengthen domestic supply chains, according to
a report by the EU Institute for Security Studies and France's Institut Montaigne.

The authors argue Europe should build on its existing strengths, particularly chipmaking equipment, as the Commission advances plans for a Chips Act 2.0 to boost domestic manufacturing.

Rise of the Eurobots

A new robotics hub near Rotterdam has opened to help European companies adopt humanoid robots as the continent tries to narrow its technology gap with China and the US.

The Humanoid Application Center will connect companies with researchers and technicians to deploy robots in sectors such as construction.
China accounted for roughly 85% of global humanoid robot installations last year.

Chinese overcapacity is not a steel story. If the steel instrument works, the pressure to replicate it for other sectors will be enormous

Christina Zhao Senior Politics Editor
Christina Zhao
Anupriya Datta Reporter
Anupriya Datta

Editor: Orlando Whitehead

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