EU-China summit exposes trade and geopolitical rift

A tense one-day summit in Beijing has exposed widening divisions between the European Union and China on trade, Russia and rare earth supplies.

European Commission President Ursula von der Leyen described relations with China as being at a “clear inflection point” following a shortened summit in Beijing on Thursday, where she and European Council President Antonio Costa met with President Xi Jinping and Premier Li Qiang.

The meeting, cut to a single day at China’s request, marked 50 years of EU-China ties but was overshadowed by disagreements on trade policy, geopolitical alignment, and supply chain disruptions.

Von der Leyen said the bloc had raised concerns over Chinese industrial overcapacity, limited market access, and export controls on rare earths, which had affected European automotive production in May. Xi, in turn, warned the EU to avoid “restrictive economic and trade tools” and maintained that China is not a source of Europe’s challenges.

Both sides agreed to deepen cooperation on climate change, issuing a joint statement pledging efforts on carbon markets, energy transition and green technology.

The EU also called on China to use its influence to encourage Russia to end its war in Ukraine, with von der Leyen stating the need for a ceasefire and genuine negotiations.

China’s exports of rare earth magnets to the EU surged 245% in June from May, reaching 1,364 tonnes, though still 35% lower than the same month last year. Von der Leyen said Brussels welcomed China's efforts to streamline export licences.

The EU’s trade deficit with China reached €305.8 billion (about $360 billion) in 2024, prompting investigations into subsidised imports, including electric vehicles.

Von der Leyen emphasised that any future deal with the U.S. would not affect the EU’s independent stance towards China.

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