Pressure Mounts on China-EU Trade Ties amid Tense Summit in Beijing

Chinese President Xi Jinping called on the European Union (EU) to “properly handle differences and frictions” in trade amid rising tensions at a one-day summit in Beijing on Thursday.

The meeting, marking 50 years of China-EU diplomatic ties, comes against a backdrop of growing disputes over trade policies and regulatory actions by Brussels targeting Chinese exports, particularly electric vehicles.

Speaking with European Commission President Ursula von der Leyen and European Council President Antonio Costa, Xi criticized recent EU measures, warned against “building walls and fortresses,” and urged Brussels to maintain open markets. He stressed that “decoupling” would lead to isolation and called for an end to restrictive trade practices.

Von der Leyen responded by describing the current state of EU-China relations as an “inflection point,” highlighting a record €305.8 billion trade deficit and calling on Beijing to provide “real solutions” to address trade imbalances. European officials have also raised concerns over Chinese industrial overcapacity and rare earth export controls, which have recently disrupted European supply chains.

Analysts say EU-China ties remain under pressure as the bloc increasingly aligns itself with the United States on trade and security matters. Meanwhile, the EU is nearing a new deal with Washington to impose a 15% tariff on European exports, sidestepping more severe 30% rates previously floated by the U.S.