Chinese President Xi Jinping urged the European Union to “properly handle differences and frictions” during a tense one-day summit in Beijing, calling on Brussels to resist what he described as protectionist policies and strategic missteps that could damage relations.

The summit, originally planned as a longer diplomatic engagement marking 50 years of EU-China ties, was abruptly shortened at Beijing’s request following weeks of rising tension over trade disputes and the Ukraine war.

Xi criticised recent EU trade actions, including restrictions on Chinese exports and complaints over industrial overcapacity. “The current challenges facing Europe do not come from China,” Xi said, urging European leaders to “refrain from using restrictive economic and trade tools.”

beijing summit

Chinese President Xi Jinping listens to President of the European Council, Antonio Costa, in presence of President of the European Commission, Ursula von der Leyen, and High Representative for Foreign Affairs and Security Policy and Vice-President of the European Commission Kaja Kallas during the opening remarks of the 25th European Union – China Summit at the Great Hall of the People in Beijing, China, 24 July 2025. ANDRES MARTINEZ CASARES/Pool via REUTERS

EU Seeks Trade Rebalancing

European Commission President Ursula von der Leyen and European Council President Antonio Costa met Xi at the Great Hall of the People, where von der Leyen warned that EU-China relations were at an “inflection point.”

“As our cooperation has deepened, so have imbalances,” she said, citing the EU’s record trade deficit with China, which reached €305.8 billion ($360 billion) last year. She called on Beijing to present “real solutions” to address growing unease over unfair competition and market access.

beijing summit

Chinese President Xi Jinping and Chinese Minister of Foreign Affairs Wang Yi listen during the opening remarks of the 25th European Union – China Summit at the Great Hall of the People in Beijing, China, 24 July 2025. ANDRES MARTINEZ CASARES/Pool via REUTERS

Despite his criticism, Xi expressed hope that Europe would keep markets open. “Improving competitiveness cannot rely on building walls and fortresses,” he said, adding that “decoupling and breaking chains” would lead only to isolation.

Rare Earths and Geopolitical Tensions

Among the key issues raised were China’s export controls on rare earth materials, which have disrupted European supply chains. Although China’s exports of rare earth magnets to the EU surged in June by 245% compared to May, levels remained 35% below the same month last year.

The EU is also expected to secure a trade agreement with the United States that would impose a 15% tariff on its exports—an outcome viewed as a concession compared to the harsher 30% rate once threatened by President Donald Trump.

beijing summit

President of the European Commission, Ursula von der Leyen, President of the European Council, Antonio Costa, and High Representative for Foreign Affairs and Security Policy and Vice-President of the European Commission, Kaja Kallas, walk at the Great Hall of the People during the 25th European Union – China Summit in Beijing, China, 24 July 2025. ANDRES MARTINEZ CASARES/Pool via REUTERS

Von der Leyen has previously accused China of “enabling Russia’s war economy,” but in a post on X on Thursday, she struck a more conciliatory tone, describing the summit as an opportunity to “advance and rebalance our relationship.”

Little Optimism for Breakthrough

Talks between the EU officials and Chinese Premier Li Qiang were expected to continue later in the day, with climate cooperation cited as one of the few areas of alignment between the two sides.

Observers say EU-China relations have cooled significantly compared to five years ago, when both sides coordinated more closely on trade policy in response to U.S. protectionism. That alignment has weakened, said Cui Hongjian, a foreign policy professor in Beijing, as the EU has “continued to compromise with the United States,” leaving little momentum for a stronger EU-China partnership.