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European Union leaders met with Chinese President Xi Jinping in Beijing on July 24, 2025, for the 25th EU-China summit, marking the 50th anniversary of diplomatic relations between the two powers.

However, instead of celebration, the tone was tense, with leaders clashing over trade imbalances, global supply chains, and the war in Ukraine, even as they sought common ground on climate change and multilateralism.

The European delegation, led by European Commission President Ursula von der Leyen and European Council President Antonio Costa, met with Chinese President Xi Jinping and Premier Li Qiang. The summit, originally planned for a longer duration, was compressed into a single day, reflecting the strained atmosphere surrounding the talks.

Chinese President Xi Jinping underscored the need for China and the EU to strengthen communication, enhance trust and deepen cooperation in a more challenging and complex international situation to provide more stability and certainty for the world through steady and sound China-EU relations.

Xi urges cooperation, warns against protectionism

Chinese President Xi Jinping emphasized the need for constructive dialogue and mutual openness, pushing back strongly against what Beijing views as rising European protectionism.

“The current challenges facing Europe do not come from China,” Xi declared. He urged the EU to “adhere to open cooperation and properly handle differences and frictions,” adding that “improving competitiveness cannot rely on ‘building walls and fortresses.’ ‘Decoupling and breaking chains will only result in isolation.”

He further warned Brussels against the increasing use of restrictive trade tools and called for Europe to maintain an open trade and investment market, stating: “It is hoped that the European side will keep the trade and investment market open and refrain from using restrictive economic and trade tools.”

In Beijing, with @vonderleyen and @eucopresident for frank and constructive talks with President Xi and Premier Li.

We raised concerns on China’s economic imbalances and its backing of Moscow.

We are indeed at an inflection point and need China to act on our concerns. pic.twitter.com/8eOoyPSS1g

— Kaja Kallas (@kajakallas) July 24, 2025

His remarks came in response to ongoing EU actions against Chinese exports, especially electric vehicles, as well as concerns over China’s industrial overcapacity and trade practices, which the EU claims distort global markets.

Xi highlighted during the meeting with the EU leaders, “China and the EU, both ‘big guys’ in the international community, should keep their bilateral relationship growing in the right direction, and work together to usher it into an even brighter next 50 years.”

The inflection point

European Commission President Ursula von der Leyen did not mince words in her assessment of the bilateral relationship, which she said had become unbalanced over time.

“As our cooperation has deepened, so have imbalances,” she told Xi during their meeting in the Great Hall of the People. “We have reached an inflection point.”

Von der Leyen highlighted the EU’s record trade deficit with China, which reached €305.8 billion in 2024. She called on Beijing to increase market access for European companies and to reduce export restrictions that disrupt global supply chains.

“We think increasing market access for European companies in China, limiting the external impact of involution, and reducing export controls are important steps forward,” she later told Premier Li Qiang.

Despite the tough tone, von der Leyen described her meeting with Xi as “excellent” and noted that the summit provided an opportunity to “both advance and rebalance our relationship.”

Trade relationship under strain

Trade remains a central pillar of the EU-China relationship, with 2024 figures showing over €845 billion in total goods and services exchanged. However, European leaders raised repeated concerns about what they called “systemic distortions” in China’s economy, such as subsidies, overproduction, and limited market access, which they argue create an uneven playing field.

The EU specifically demanded progress in key sectors, including cosmetics, pharmaceuticals, and meat, and called on China to end retaliatory measures affecting EU brandy, pork, and dairy exports.

The rare earth supply chain was another major sticking point. China’s recent export controls on critical materials had caused stoppages in European automotive production in May. Although exports of rare earth magnets from China to the EU rebounded sharply in June, up 245% from the previous month, they were still 35% lower than a year earlier. China defended these restrictions as “in line with international practice,” while pledging stronger dialogue on the matter.

Separately, Chinese Commerce Minister Wang Wentao held video call with European Commissioner for Trade and Economic Security Maros Sefcovic to discuss economic and trade cooperation. China also lodged concerns over EU’s pursuit of a ‘de-risking’ strategy toward China, coupled with its expanding trade remedy toolbox, tightened foreign investment screening.

According to the Chinese Commerce Ministry statement, “By moving closer together and staking out common ground, China and the EU could serve as a bulwark against rising unilateralism and protectionism that threaten to fracture the international community.”

Climate cooperation

Despite the trade friction, both sides struck a cooperative tone on climate change, releasing a joint statement committing to further coordination in emissions reductions, green technology development, and carbon market integration.

The EU-China cooperation on climate can set a global benchmark.

So our joint press statement is an important step forward.

We will work together to make COP30 a success.

— Ursula von der Leyen (@vonderleyen) July 24, 2025

They agreed to strengthen action on the energy transition, methane emissions management, and climate adaptation. The EU encouraged China to present a more ambitious emissions reduction plan through 2035 and to increase its international climate financing commitments.

The two sides also discussed expanding bilateral cooperation on emissions trading systems, advancing the circular economy roadmap, and negotiating an international treaty on plastic pollution.

Divided stance on Ukraine war, human rights, Taiwan, and Xinjiang

EU leaders pressed China to take a clearer stance on Russia’s invasion of Ukraine, urging Beijing to leverage its influence with Moscow. “We call on China to use its influence on Russia to respect the United Nations charter and to bring an end to its war of aggression,” President Costa said in remarks to Xi.

The EU reiterated that China, as a permanent member of the UN Security Council, bears “special responsibility” to uphold international law. The bloc also warned against China providing any material support to Russia’s military-industrial base or enabling third-party support, such as North Korean arms transfers, that could prolong the conflict.

The EU statement at the end of the meeting also addressed a range of sensitive issues. It voiced concern over China’s human rights record in Xinjiang and Tibet, the erosion of freedoms in Hong Kong, and the treatment of human rights defenders and minorities.

The EU reaffirmed its One China policy but stressed concerns over rising tensions in the Taiwan Strait. It opposed any unilateral attempt to change the status quo through force, urging peaceful dispute resolution by international law, particularly the UN Convention on the Law of the Sea (UNCLOS).

On digital policy, European leaders raised alarm over limited access for European firms in China’s tech and data sectors, as well as concerns over cross-border data transfers and alleged cyberattacks originating from Chinese actors.

Dialogue with caution

While both sides reaffirmed their commitment to multilateralism and the rules-based international order, the summit revealed how far apart the EU and China remain on many issues.

There were some signs of progress, including recent technical cooperation on climate, financial regulation, geographical indications, and drug precursor tracking. However, fundamental disagreements on trade, human rights, and global security persist.

The EU made clear that while it remains open to dialogue and engagement, it will continue to defend its interests through “proportionate, legally compliant action” if needed.

With the EU also concluding a significant trade arrangement with the United States that would lower broad tariffs to 15%, the summit illustrated the EU’s strategic pivot toward reinforcing transatlantic ties amid a more cautious and transactional relationship with Beijing.