Friday, July 25, 2025

EU-China Relations at ‘Inflection Point’ Amid Trade and Geopolitical Tensions

Relations between the European Union and China have reached a critical “inflection point,” European Commission President Ursula von der Leyen declared during a one-day summit in Beijing with Chinese President Xi Jinping. Speaking at the Great Hall of the People, von der Leyen highlighted the EU’s €305.8 billion ($360bn; £265bn) trade deficit with China, which has doubled over the past nine years, and warned that China’s ties with Russia are now a “determining factor” in EU-China relations.  

Von der Leyen, alongside European Council President António Costa, called for “real solutions” to address trade imbalances and urged China to use its influence to end Russia’s war in Ukraine. “How China continues to interact with Putin’s war will be a determining factor for our relations going forward,” she said at a news conference. The EU recently imposed sanctions on two Chinese banks for supporting Russia, a move that has strained ties further.  

Xi Jinping, however, maintained that Europe’s challenges “do not come from China” and urged the EU to “properly manage differences” while fostering “mutual trust.” He warned against “decoupling and severing supply chains,” arguing that such actions lead to “self-isolation,” according to China’s state news agency Xinhua.  

The summit, shortened to one day at Beijing’s request, underscored a tense atmosphere described by Engin Eroglu, chair of the European Parliament’s China delegation, as “tense—if not frosty.” Hopes for significant progress were low, with relations further complicated by China’s rejection of an invitation to Brussels earlier this year and Xi’s attendance at Russia’s World War II victory parade in Moscow. Reports that Chinese Foreign Minister Wang Yi told EU foreign policy chief Kaja Kallas that Beijing did not want Russia to lose in Ukraine—contradicting China’s stated neutrality—have also fuelled mistrust.  

Trade disputes remain central. The EU has imposed tariffs on Chinese electric vehicles, citing industrial overcapacity, while China retaliated with duties on European liquor and restricted government purchases of EU medical devices. Von der Leyen accused China of using its “quasi-monopoly” on rare earths and critical minerals to undermine competitors, a charge Beijing denies. 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 showing “green, amber, and red” simultaneously.  

Despite calls for dialogue, both sides acknowledged the need for frank discussions. China’s foreign ministry expressed readiness to enhance dialogue on export controls, but the summit highlighted deep strategic mistrust, with little expectation of immediate breakthroughs.


Share This Post

শেয়ার করুন

Author:

Note For Readers: The CEO handles all legal and staff issues. Claiming human help before the first hearing isn't part of our rules. Our system uses humans and AI, including freelance journalists, editors, and reporters. The CEO can confirm if your issue involves a person or AI.