Europe and China Resume Trade Talks—Bigger Deals Yet Uncertain
China–EU Trade Tensions
While both sides face a range of commercial disagreements, the most significant dispute centers on the stark and uneven trade imbalance that exists between them.
EU‑China Summit in Beijing: Quiet Talks Amid Trade Tensions
Leaders Gather in Beijing
European Commission President Ursula von der Leyen and European Council President António Costa will meet with Chinese President Xi Jinping and Premier Li Qiang on Thursday. The gathering commemorates half a century of diplomatic ties between Brussels and Beijing.
Key Topics and Constraints
- Trade imbalances between the two blocks
- Climate‑change collaboration
- Global security concerns, notably the Ukraine conflict
- China’s support for Russia during the invasion of Ukraine
- Persistent cyberattacks and espionage incidents
- Access to rare‑earth minerals controlled by China
- Human‑rights issues in Xinjiang, Tibet, and Hong Kong
The summit was cut from a planned two‑day event to a single day due to economic uncertainty, ongoing wars in the Middle East and Ukraine, and the looming threat of new U.S. tariffs.
Low Expectations for Concrete Outcomes
Experts warn that a substantive breakthrough is unlikely. Fabian Zuleeg, chief economist of the European Policy Centre, noted: “Europe is very cautious about not escalating tensions with Washington while engaging China. That makes the summit challenging.” He added that China’s retreat from aggressive positions toward the U.S. after the Trump era has diminished its willingness to make concessions to the EU.
Balancing Act with Washington
The EU faces a delicate trade posture with the United States, navigating potential conflicts while maintaining the relationship with Beijing. The risk of a trade war looms, forcing European diplomats to tread carefully.
China’s Human‑Rights Row
China recently paused sanctions against European lawmakers who criticized human‑rights abuses in Xinjiang. However, the overall hardening stance on EU matters persists, signaling limited appetite for negotiations on this front.
Trade Facts
China remains the EU’s second‑largest trading partner, after the United States, with approximately 30 % of global trade flowing between the two economies. While both sides aim to use their economic relationship to stabilize the global market, deep-seated divisions remain unresolved.
