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EU presses China to narrow €300 bn trade gap at trimmed Beijing summit

24.07.2025 13:00
European leaders urged President Xi Jinping to rebalance trade and rein in support for Russia at a one-day EU‑China summit in Beijing, saying ties must be “mutually beneficial” to last.
Chinese President Xi Jinping (C), President of the European Council Antonio Costa (L) and President of the European Commission Ursula von der Leyen (R) pose for a handshake at the 25th EU-China Summit in Beijing, China, 24 July 2025.
Chinese President Xi Jinping (C), President of the European Council Antonio Costa (L) and President of the European Commission Ursula von der Leyen (R) pose for a handshake at the 25th EU-China Summit in Beijing, China, 24 July 2025. Photo: EPA/XINHUA / Xie Huanchi

European Union chiefs pressed President Xi Jinping on Thursday to tackle a roughly €300 billion trade deficit and curb Beijing’s backing for Moscow, using a scaled-back, one-day summit to demand “mutually beneficial” relations.

“As our cooperation has deepened, so have the imbalances,” European Commission President Ursula von der Leyen said. “We have reached an inflection point. Rebalancing our bilateral relations is essential.”

Expectations were low after talks were cut from two days to one amid global financial jitters, wars in Ukraine and the Middle East, and the threat of US tariffs. Neither side was seen budging on core disputes.

European Council President António Costa again asked China to use its sway over Russia to help end the war in Ukraine. He also flagged potential climate common ground, saying he hoped for “a strong joint political message” ahead of U.N. talks in Brazil in November.

Xi, according to state broadcaster CCTV, urged deeper cooperation and trust, calling on both sides to “set aside differences and seek common ground.”

Trade tensions front and center

China is the EU’s second-largest goods partner after the United States, and about 30% of global trade flows between them. But deep rifts persist, especially over the massive imbalance. The bloc relies heavily on Chinese critical minerals; export curbs after US tariffs under Donald Trump angered European automakers.

The EU has imposed tariffs on Chinese electric vehicles to offset what it calls heavy state subsidies. Beijing wants those duties scrapped. European industry fears Chinese EVs could undercut the bloc’s green-tech ambitions and threaten 2.5 million auto jobs plus 10.3 million dependent roles.

China has launched probes into European pork and dairy, and slapped duties on French cognac and armagnac. Beijing also bristled at new EU rules on medical equipment and fears more legislation is coming. In June, Brussels barred Chinese medical device firms from government tenders above €5 million, saying China blocks EU companies from its own procurement market.

European firms report shrinking profits in China, but analyst Alicia García-Herrero noted the bloc’s leverage: “The EU remains China’s largest export market, so China has every intention to keep it this way, especially given the pressure coming from the US”

Walking a geopolitical tightrope

Brussels is also wary of provoking Washington. “Europe is being very careful not to antagonize President Trump even further by looking maybe too close to China,” said Fabian Zuleeg of the European Policy Centre. “It will be very hard to achieve something concrete.”

Analyst Noah Barkin said Beijing’s hard line is unlikely to soften: “China has come away emboldened from its trade confrontation with Trump. That has reduced its appetite for making concessions to the EU.”

Beyond trade, EU leaders planned to raise Chinese cyberattacks, espionage, rare earth export controls and human rights concerns in Tibet, Hong Kong and Xinjiang.

Ukraine pressure, limited payoff

The EU’s latest Russia sanctions list included Chinese firms—among them two major banks—accused of links to Moscow’s war industry. China’s commerce ministry vowed “necessary measures” in response. Xi and Vladimir Putin maintain close ties; China has become a key buyer of Russian energy and supplier of technology since sweeping Western sanctions.

Von der Leyen and Costa were set to urge Xi and Premier Li Qiang to cut support for Russia, but EU officials expected little movement.

Looking beyond Beijing and Washington

Seeking alternatives to a combative Washington and a hard-line Beijing, the EU is courting other partners—inking a pact with Indonesia, praising Japan and drafting deals with South America and Mexico. In Tokyo, en route to Beijing, von der Leyen said 87% of global trade involves other countries “looking for stability and opportunity.”

Japan’s 2025 defense doctrine lists promoting ties with Europe alongside bolstering U.S. links and domestic capabilities in missiles, satellites, warships and drones.

It remained unclear why the Beijing summit was shortened. But for Brussels, the message was clear: rebalancing—or relations risk fraying.

(jh)

Source: Euronews, PAP