At a pivotal summit in Beijing, Chinese President Xi Jinping urged European Union leaders to “make the right strategic choice” by deepening cooperation with China to ensure global stability, even as tensions simmer between the two sides over trade imbalances, geopolitical alignments, and critical supply chains.
Xi met Thursday with European Council President António Costa and European Commission President Ursula von der Leyen at the Great Hall of the People, marking what was intended to be a celebratory occasion commemorating 50 years of diplomatic relations between China and the EU. Instead, the single-day summit exposed widening fractures in the relationship.
Europe arrived in Beijing with a list of grievances: a ballooning trade deficit — €300 billion in China’s favor in 2024 — alleged market flooding by cheap Chinese goods, Beijing’s chokehold on rare earth minerals, and its continued support for Russia amid the ongoing war in Ukraine.
“The EU’s economic relationship with China has reached an inflection point,” von der Leyen told Xi during the talks. “As our cooperation has deepened, so have imbalances.
Rebalancing our bilateral relation is essential… It is vital for China and Europe to acknowledge our respective concerns and come forward with real solutions.”
Xi, however, pushed back on the EU’s concerns, asserting that Europe’s challenges “do not come from China” and emphasizing the need for strategic partnership amid global uncertainty.
“In the face of accelerating changes not seen in a century and a turbulent international landscape, China and EU leaders must once again demonstrate strategic vision and responsibility,” Xi said, according to Chinese state broadcaster CCTV.
The summit comes amid a fraught geopolitical backdrop. The EU has accused China of dumping subsidized products like electric vehicles into European markets, prompting tariff increases.
China, in retaliation, has launched trade investigations and imposed procurement curbs on European goods, escalating the dispute.
Beijing also criticized the EU’s recent move to sanction Chinese entities linked to Russia’s war effort. China’s Ministry of Commerce warned such sanctions would have a “severely negative impact” on bilateral economic ties.
Commerce Minister Wang Wentao formally protested the sanctions in a video call with EU trade chief Maros Sefcovic earlier this week.
Xi urged the EU to refrain from protectionist policies, saying both sides should maintain open markets and offer a level playing field for businesses.
“The more severe and complex the international situation becomes, the more China and the EU need to strengthen communication, enhance mutual trust, and deepen cooperation,” Xi said.
While Beijing once hoped shared tensions with Washington — particularly under former U.S. President Donald Trump’s tariff regime — could serve as a unifying factor with Europe, those hopes appear dimmed.
Von der Leyen and other EU leaders have recently signaled a hardened stance against China’s economic practices.
“China is using this quasi-monopoly (on rare earths) not only as a bargaining chip, but also weaponizing it to undermine competitors in key industries,” von der Leyen said in a speech to G7 leaders in June.
Despite mutual calls for cooperation, Thursday’s summit made clear that Europe and China remain deeply divided, with little immediate prospect for the kind of strategic reset both sides publicly desire.
The question now is whether they can manage their differences without sliding into further economic confrontation.
