A high-level summit held in Beijing to mark 50 years of diplomatic relations between the European Union and China ended with little progress, revealing deep rifts between the two global powers. European Commission President Ursula von der Leyen described the relationship as having reached a “clear inflection point,” citing rising tensions over trade, geopolitical alignment, and strategic interests.
Trade Imbalance and Economic Friction
Central to the EU’s concerns is its growing trade deficit with China, which hit a record €305.8 billion in 2024. President von der Leyen called for urgent action to resolve market access barriers, address Chinese industrial overcapacity, and lift export restrictions on critical raw materials. The EU has repeatedly accused Beijing of distorting competition through state subsidies and protectionist policies.
China’s Response: Warning Against Protectionism
Chinese President Xi Jinping pushed back against European criticism, urging EU leaders to “properly handle differences and frictions.” He warned that protectionist measures would damage mutual interests and asserted that Europe’s economic challenges were not caused by China. Xi cautioned that any effort to decouple would only lead to economic isolation.
Summit Cut Short and Deliverables Limited
Originally scheduled as a two-day meeting, the summit was unexpectedly shortened to one day at China’s request—an indication of the strained atmosphere. The only tangible outcome was a joint statement on climate cooperation, reaffirming both sides’ commitments to the Paris Agreement and pledging action ahead of COP30 in Brazil. However, key disagreements over trade, technology, and foreign policy remained unresolved.
Ongoing Disputes Over Sanctions and Raw Materials
Several contentious issues, including EU sanctions on Chinese financial institutions, proposed tariffs on Chinese electric vehicles, and Beijing’s export controls on rare earth elements, continue to weigh heavily on the relationship. The lack of meaningful progress during the summit underscores how these disputes have become entrenched.
Ukraine: A Diplomatic Flashpoint
The war in Ukraine further complicated discussions. EU leaders called on China to leverage its influence with Russia to help end the conflict. In response, China criticized the EU’s punitive measures linked to Russian sanctions, portraying them as unilateral and unconstructive. The exchange highlighted the growing geopolitical divide between Brussels and Beijing.
A Relationship Under Strain
The summit concluded without breakthroughs, reinforcing the view that EU–China ties are entering a more confrontational phase. While cooperation on climate remains a shared priority, the broader political and economic relationship is facing significant headwinds.
As von der Leyen put it, the EU and China now stand at a crossroads—where strategic decisions made today may define the trajectory of their engagement for decades to come.
