EU-China summit highlights deepening trade frictions, calls for "rebalancing" ties

European Commission President Ursula von der Leyen urged a fundamental "rebalancing" of trade relations with China during a tense one-day summit with President Xi Jinping in Beijing, as both sides marked 50 years of diplomatic ties amid escalating tensions and mounting economic friction.

Describing the relationship as being at an “inflection point,” von der Leyen pointed to the European Union’s record €305.8 billion ($360 billion) trade deficit with China in 2023. "Rebalancing of our bilateral relation is essential," she told Xi during talks at the Great Hall of the People. "It is vital for China and Europe to acknowledge our respective concerns and come forward with real solutions," Caliber.Az quotes her as saying.

European Council President Antonio Costa also participated in the meeting, which follows weeks of diplomatic wrangling that saw the summit format curtailed to a single day at Beijing's request, a move seen by analysts as indicative of strained ties.

Chinese President Xi Jinping, in turn, called on Brussels to make “correct strategic choices,” in what appeared to be a subtle rebuke of the EU's more confrontational stance. "The more severe and complex the international situation, the more China and the EU must strengthen communication, enhance mutual trust and deepen cooperation," Xi said, according to state broadcaster CCTV.

The run-up to the summit was dominated by EU-China disputes over industrial overcapacity, green technology exports, and Beijing's support for Moscow amid the Ukraine war. Earlier this month, von der Leyen accused China of “flooding global markets” and “enabling Russia’s war economy”—sharp comments that stoked Chinese ire.

Yet, just hours before the summit, von der Leyen adopted a more conciliatory tone in a social media post, calling the meeting an opportunity “to both advance and rebalance our relationship.”

"I'm convinced there can be a mutually beneficial cooperation," she added.

Trade imbalances and China's export dominance in critical sectors like electric vehicles and green tech were key items on the agenda. EU leaders also expressed concern over China’s rare earth export controls, introduced in April, which disrupted supply chains and temporarily halted European car production. While rare earth magnet exports from China to the EU surged 245% in June compared to May, they remained 35% below last year’s levels.

The two EU leaders are also expected to meet Chinese Premier Li Qiang later in the day, with hopes of finalising a modest joint statement on climate change—a rare area of alignment in an increasingly contentious relationship.

China’s state news agency Xinhua appeared to strike a conciliatory note, calling the EU a “critical partner” rather than a “systemic rival” and urging both sides to focus on common ground in trade, climate, and global governance.

By Vugar Khalilov