EU-China Relations at ‘Inflection Point,’ Says EU Chief**

Relations between the European Union and China have reached a critical "inflection point," European Commission President Ursula von der Leyen told Chinese President Xi Jinping during a one-day summit in Beijing on 24 July 2025. Speaking at the Great Hall of the People, von der Leyen highlighted the growing trade imbalance, with the EU’s trade deficit with China reaching €305.8bn ($360bn; £265bn) last year, doubling over the past nine years. She also noted that China’s ties with Russia are now a "determining factor" in EU-China relations.

Xi Jinping urged EU leaders to "properly manage differences," asserting that Europe’s challenges "do not come from China" and warning against decoupling and supply chain disruptions, which he said would lead to "self-isolation." Despite hopes for collaboration, the summit, shortened to one day at Beijing’s request, yielded low expectations for significant breakthroughs.

Von der Leyen and European Council President António Costa pressed for solutions to rebalance trade, including better market access for European firms, fewer export controls, and addressing China’s industrial overcapacity. The EU has imposed tariffs on Chinese electric vehicles, prompting retaliatory duties from Beijing on European liquor and restrictions on EU medical device purchases. China’s tightened controls on rare earths and critical minerals have also drawn criticism, with von der Leyen accusing Beijing of using its market dominance to undermine competitors.

Tensions were further strained by China’s stance on the Russia-Ukraine war. The EU recently sanctioned two Chinese banks for supporting Russia, prompting Beijing to lodge formal complaints. Reports that Chinese Foreign Minister Wang Yi suggested Beijing prefers Russia not lose the war—contradicting China’s stated neutrality—have added to the friction. Von der Leyen reiterated that China’s actions regarding Russia’s war in Ukraine will shape future EU relations.

Engin Eroglu, chair of the European Parliament’s China delegation, described the summit’s atmosphere as "tense, if not frosty," citing eroded trust. Despite both sides projecting optimism—von der Leyen called for "mutually beneficial co-operation" and China’s foreign ministry framed the summit as a chance to "open a new chapter"—Xi’s rejection of a Brussels visit earlier this year and his attendance at Moscow’s World War Two victory parade in May have deepened mistrust.

China’s ambassador to the EU, Cai Run, criticised the EU’s view of China as a "partner, competitor, and systemic rival," likening it to a confusing traffic light. As both sides navigate trade disputes and geopolitical tensions, the summit underscored the challenges of finding common ground.