At a tense summit in Beijing, Xi Jinping urged the EU to manage tensions without resorting to trade barriers, while European leaders sought solutions for the growing trade imbalance and China’s industrial overcapacity.
Chinese President Xi Jinping met European Commission President Ursula von der Leyen and European Council President António Costa in Beijing on July 24 to mark the 50th anniversary of EU–China diplomatic relations.
Amid growing friction, Xi called on the EU to “properly handle differences and frictions,” emphasizing the need for openness over restrictive trade policies, and warning that “decoupling and breaking chains” would lead to “only isolation."
Von der Leyen opened the summit by describing the relationship as having reached an “inflection point,” pointing to the EU’s record €305.8 billion trade deficit with China in 2024. She urged China to provide “real solutions” to rebalance the partnership.
Costa echoed her concerns, raising issues of overcapacity in China's manufacturing and urging Beijing to influence Moscow amid the Ukraine conflict.
The summit was notably shortened from two days to one, a move seen as emblematic of underlying unease. It covered critical topics including electric vehicles, rare‑earth magnet export restrictions, and China’s industrial overcapacity—major sources of EU complaints.
Xi defended China’s position by urging the EU against erecting “walls and fortresses” around its economy.
Despite tensions, both leaders expressed cautious optimism toward cooperation in areas like climate action, where they aim to issue a joint statement.
Chinese media framed the trip as a reaffirmation of China being a “critical partner” to Europe, not a systemic rival.
Experts describe the leaders’ message as pragmatic: the EU seeks concrete economic adjustments and greater market access, while China emphasizes strategic partnership and warns against economic fragmentation.
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