At a one-day summit in Beijing, European Commission President Ursula von der Leyen expressed concerns about the EU's trade deficit with China and its implications on bilateral relations, further complicated by China's ties to Russia.**
EU-China Relations Face Crucial Turning Point Amid Trade and Trust Issues**
EU-China Relations Face Crucial Turning Point Amid Trade and Trust Issues**
EU chief Ursula von der Leyen highlights deepening challenges in EU-China ties during a summit in Beijing, with trade imbalances and geopolitical tensions at the forefront.**
The European Union's relationship with China has reached a "critical inflection point," according to European Commission President Ursula von der Leyen during a summit held in Beijing. She emphasized that as cooperation has intensified between the EU and China, so have the imbalances, particularly regarding the significant trade deficit the EU faces, which has escalated to €305.8 billion ($360 billion) last year.
In response to these tensions, Chinese President Xi Jinping urged EU nations to handle their differences properly, asserting that the challenges Europe faces do not originate from China. The atmosphere leading up to the summit was marked by low expectations, as the meeting was cut to just one day at China’s request, suggesting a strained dialogue.
There is growing concern within the EU regarding China's alignment with Russia, which has become a pivotal factor in EU-China relations. Von der Leyen stressed this connection during the summit, underscoring that how China engages with Russia amid the ongoing conflict in Ukraine will critically influence future relations.
Both leaders called for "real solutions" to address mutual concerns, with Xi asserting that competitiveness should not be pursued through isolationist practices such as decoupling or severing supply chains. This sentiment reflects a desire for cooperation, amidst growing tariffs and restrictions that have characterized the trade landscape.
Previous interactions have soured trust, demonstrated by Xi's rejection of an invitation to Brussels and his participation in a notably pro-Russian event in Moscow. Experts, including Engin Eroglu from the European Parliament, have noted that a fragile trust has deteriorated, creating a "tense - if not frosty - atmosphere" as both sides grapple with escalating geopolitical realities.
Trade issues, including EU tariffs on Chinese electric vehicles and China's countermeasures, illustrate the complexities of both economies intertwined in a nuanced interdependency. Additionally, Beijing's restrictions on the purchase of EU medical devices and its increased export controls on precious materials have raised alarms within Europe about the potential use of economic leverage by China.
As the EU navigates these challenges, its officials have reiterated calls for China to leverage its influence on Russia regarding the Ukraine conflict, aiming to reshape the dire trajectory of their bilateral relations. The summit serves as a critical juncture for both powers, raising questions about the direction of their partnership in the face of growing mistrust and competition.
