**EU-China Relations at a Critical Crossroads: Summit Highlights Tension and Trade Imbalances**

Sat Jul 26 2025 04:49:23 GMT+0300 (Eastern European Summer Time)
**EU-China Relations at a Critical Crossroads: Summit Highlights Tension and Trade Imbalances**

European Commission President warns that EU ties with China face pivotal challenges aggravated by trade deficits.


Amid growing tensions and imbalances, EU and China's summit highlights the complexities in their relationship driven by the Ukraine conflict and economic dependencies.

In a pivotal summit held in Beijing, European Commission President Ursula von der Leyen expressed that EU-China relations have reached a critical "inflection point". The discussions, aimed at addressing deepening trade imbalances and geopolitical tensions, took place with Chinese leader Xi Jinping, who emphasized the need to manage "differences" while asserting that Europe's challenges do not stem from China.

Von der Leyen pointed to the European Union's substantial trade deficit with China, which has soared to €305.8 billion in the last year, a figure that has doubled in nine years. As the EU grapples with trade tariffs imposed on its exports to the US and the consequences of China's ties with Russia, the mood surrounding these discussions was described as tense.

During the meeting at Beijing’s Great Hall of the People, both leaders called for constructive dialogue and the identification of "real solutions" to enhance cooperation. Xi urged against isolationist policies, warning that such actions would ultimately harm economies and global supply chains. "Boosting competitiveness does not come from building walls or barriers," he stated.

With China’s foreign ministry indicating readiness to improve dialogue on export controls, Von der Leyen articulated the necessity of increasing access for European businesses in China, reducing export limitations, and addressing industrial overcapacity. However, tensions were evident; the recent imposition of EU sanctions on Chinese banks for their ties with Russia added strain. China's displeasure was notable before the summit, as it made "solemn representations" against these measures.

The summit follows a series of events that have heightened distrust between the EU and China. Xi’s prior rejection of an invitation to Brussels and his prominent visit to Moscow earlier this year showcased a growing discontent in diplomatic engagement. Concerns over China’s role in the ongoing Russia-Ukraine war have compounded the EU's apprehensions.

Engin Eroglu, leader of the European Parliament's China delegation, described the relations as increasingly fragile, stating, “the mood is clearly tense - if not frosty.” Reports have surfaced indicating that Chinese officials are reluctant to disconnect from Russia concerning the war, contradicting their proclaimed neutrality.

Economic restrictions and retaliatory tariffs have marked the trade relations; after the EU imposed tariffs on Chinese electric vehicles, China responded with duties on European liquor. Additionally, recent restrictions on government purchases of medical devices from the EU have further complicated matters, revealing how intertwined trade policies are impacting diplomatic ties.

The dynamics in EU-China relations symbolize a larger global struggle for influence and economic security, as the balance shifts amidst diverging national interests and geopolitical tensions.

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