BEIJING – At the 25th EU–China Business Leaders Symposium, top representatives of the European Union and China met in Beijing. Originally scheduled for two days, the meeting was condensed into a single day — widely interpreted as a sign of rising tensions and diverging expectations between the two sides.
Trade Imbalance and Fair Market Access
European Commission President Ursula von der Leyen stressed the urgent need to reverse the growing trade imbalance with China, which reached a deficit of approximately €305 billion in 2024. She pointed to issues such as overcapacity, subsidies in China’s electric vehicle sector, and limited market access for European companies. The EU expects China to take concrete steps — including granting fairer access to sectors like meat, cosmetics, and pharmaceuticals — and to end unjustified trade defense measures against EU exports such as cognac and dairy products.
China’s Position: Dialogue Over Confrontation
President Xi Jinping urged European partners to avoid tensions and focus on cooperation. He described the bilateral relationship as “mutually beneficial” and warned against economic isolation and protectionist EU measures. China also pledged cooperation in areas such as climate, science, and technology, though it offered no specific actions to reduce the trade deficit.
Cooperation on Raw Materials and Climate
On the sidelines of the summit, both parties signed a joint climate declaration, committing to pursue ambitious emissions targets ahead of COP30 in November. A new mechanism was also agreed upon to accelerate export controls on strategically critical raw materials — such as rare earths — to prevent supply bottlenecks in European industries.
Reasons for the Shortened Schedule
The originally planned two-day event was reduced to one due to mounting friction and a lack of alignment on key topics. Observers suggest that fundamental disagreements — especially on trade and geopolitical positions regarding Russia — made further dialogue appear unproductive.
EU Media Reaction: Critical Voices
European media outlets were largely critical of the meeting’s outcome. Commentators summarized: “Many issues, no results.” While discussions were reportedly intense, no substantial progress was made on trade conflicts or China’s excess production capacities. The Financial Times described the outcome as a short-term consensus, while the underlying trade deficit issue remains unresolved — a signal that the relationship is at a “turning point.” The Associated Press also noted that aside from the climate declaration, few tangible results were achieved, underlining the escalation of long-term disputes.
EU Strategy to Address the Trade Gap
To reduce the significant trade deficit, the EU outlined the following measures:
- Trade facilitation for European businesses in China (e.g., in the food and pharmaceutical sectors)
- Protective tariffs against dumping and overproduction by Chinese manufacturers
- Diversification of supply chains, particularly for critical raw materials
- Use of the EU’s Anti-Coercion Instrument and legal mechanisms to safeguard fair competition
In addition, the EU plans to increase investment in strategic industries and intensify efforts to open Chinese markets.
A Deep Divide Remains
The shortened symposium in Beijing revealed a deep and growing divide: the EU is pressing for trade fairness, reciprocal market access, and regulatory transparency, while China emphasizes pragmatism, cooperation, and economic stability. With little movement on the central issue of the EU–China trade imbalance, the meeting stands as a symbolic — yet cautious — starting point for what may be a long and difficult process of recalibration. (zai)