Xi Jinping Urges EU Leaders to Address Trade Frictions Amid Tensions

Chinese President Xi Jinping called on European Union officials to “properly handle differences and frictions” between the two sides, amidst rising tensions over trade and the ongoing conflict in Ukraine. This meeting marked the 50th anniversary of diplomatic ties between China and the EU, although expectations were muted due to recent escalating conflicts that led to the summit being reduced to just one day at China’s request.

Xi criticized Brussels for its recent trade actions against China, asserting that “the current challenges facing Europe do not come from China.” He emphasized the need for open cooperation and urged EU leaders to avoid isolationist policies, stating, “Improving competitiveness cannot rely on ‘building walls and fortresses’.” He warned that “decoupling and breaking chains” would only lead to further isolation.

During the summit, European Commission President Ursula von der Leyen reiterated the EU’s desire to rebalance trade relations with China, describing the current state of affairs as an “inflection point.” She pointed out the substantial trade deficit that the EU has with China, which reached a historic €305.8 billion ($360 billion) last year. Von der Leyen emphasized the importance of increasing market access for European companies in China and reducing export controls as vital steps forward.

The discussions also included calls for China to leverage its influence over Russia to encourage peace in Ukraine. European Council President Antonio Costa highlighted the need for China to respect the United Nations charter and help end Russia’s aggression.

Despite the tensions, both sides issued a joint statement reaffirming their commitment to climate cooperation. They agreed to enhance collaboration on energy transition, methane emissions management, and the development of green technologies.

In the context of U.S.-China relations, experts noted a shift in the dynamics between the EU and China. Cui Hongjian, a foreign policy professor at Beijing Foreign Studies University, remarked that the EU has increasingly aligned itself with U.S. interests, diminishing the impetus for closer EU-China ties. Recent negotiations suggest that the EU is on the verge of sealing a trade deal with the U.S., which would lower tariffs on exports.

Prior to the summit, the relationship had been strained by tit-for-tat trade disputes and critical rhetoric from EU officials. Von der Leyen had previously accused China of flooding global markets due to overcapacity, which she argued was enabling Russia’s war economy. However, she adopted a more conciliatory tone during the summit, expressing hope for rebalancing the relationship.

Concerns over specific trade issues, such as electric vehicles and China’s rare earth export controls, were also expected to be addressed. Despite a marked increase in China’s rare earth exports to the EU in June, the foreign ministry defended these controls as consistent with international practices, while committing to enhanced dialogue on export regulations.