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    Home » World politics » EU-China, von der Leyen calls for pragmatism: “Trade rebalancing to counter global tariffs”

    EU-China, von der Leyen calls for pragmatism: “Trade rebalancing to counter global tariffs”

    At the 25th summit between Brussels and Beijing, many issues remain unresolved, particularly regarding Ukraine and the growing economic imbalances. The EU obtains an agreement from Xi Jinping to secure rare earth supplies and a generic joint declaration for climate commitment

    Simone De La Feld</a> <a class="social twitter" href="https://twitter.com/@SimoneDeLaFeld1" target="_blank">@SimoneDeLaFeld1</a> by Simone De La Feld @SimoneDeLaFeld1
    24 July 2025
    in World politics
    ue cina

    Antonio Costa, Xi Jinping e Ursula von der Leyen

    Brussels – A summit convened with limited expectations, compressed from two to just one day, and concluded with the impression that the EU and China are kept tied only by the need not to make new enemies in the increasingly precarious international balance. The EU leaders departed from Beijing with a joint declaration on climate engagement and agreement on a mechanism to facilitate the export of rare earths from China. No significant breakthrough on the main dossiers, the war in Ukraine and trade frictions. 

    “Our relations are at a turning point. It is important to listen to each other and to find pragmatic solutions,” began the President of the European Commission, Ursula von der Leyen, at a press conference on the sidelines of the 25th EU-China summit, celebrating 50 years of diplomatic relations between Brussels and Beijing. The EU is standing firm on its strategy of de-risking the Asian giant: “We defend our interests while remaining committed to a frank, respectful, and open dialogue,” the president of the EU executive explained. No illusions about a convergence of views, but the awareness—as emphasised by the President of the European Council, Antonio Costa—that “the way we interact and cooperate is important for the world.”

     

    The presidents of China and Russia, Xi Jinping and Vladimir Putin, among generals during the military parade in Moscow celebrating the great victory [photo: imagoeconomica]

    Starting with its stance on Russia’s war of aggression in Ukraine. “As a permanent member of the United Nations Security Council, China has a key role,” insisted EU leaders, who have been calling on Beijing for three years to pressure Moscow to end the conflict. Or at least not to actively support it. “In times of war, dual-use technologies are often used as instruments of war; we have asked China to pay attention,” Costa said. In the face of Beijing’s negligence, which has been turning a deaf ear since the conflict began, the EU has already included several Chinese companies in the sanctions packages imposed on Russia and its allies.

    Then there is the issue of trade. In 2024, bilateral trade relations reached a value of €730 billion. However, the EU deficit vis-à-vis China has also progressively increased, now reaching €305 billion. The Brussels analysis is well known: systemic distortions, trade barriers and Beijing’s overcapacity “aggravate conditions of inequality.” Von der Leyen attacked: “Unlike other major markets, the EU keeps its market open to China. However, this openness is not reciprocated.” The other market is a reference to Trump’s United States, which is very much in the background—and in the minds—of the leaders at the summit. So much so that von der Leyen made it clear that “the need to rebalance our relationship is all the more urgent because of the global tariffs increase.”

    On the right, the EU delegation with Ursula von der Leyen, Antonio Costa, and Kaja Kallas; on the left, Chinese President Xi Jinping and his team during the EU-China summit in Beijing.

    Brussels has engaged in several  disputes with Beijing in recent years, with tariffs on electric vehicles and the exclusion of Chinese companies from public procurement for medical devices being two notable examples. On the other hand, China has imposed “unjustified and retaliatory” trade defence measures against brandy, pork and dairy products from the EU. 

    On reciprocity and access to the Chinese market for European companies, “we agreed to work on concrete solutions,” the EU leader announced. As for overcapacity in the Chinese economy—not only in electric vehicles, but also in steel, batteries and solar panels—”the Chinese leadership has expressed a willingness to support more consumption and less production.” 
    The last point, the only one where von der Leyen managed to obtain more from Xi Jinping than a generic commitment, concerns the state control of rare earth exports from China, which Brussels says is slowing down global supply chains. The two sides reached an understanding on a new “enhanced export supply mechanism,” which is expected to resolve any bottlenecks quickly. 
    No joint declaration accompanied the summit, except for a written commitment for action against climate change, in which Brussels and Beijing said they would “lead global efforts to reduce greenhouse gas emissions,” and in which the EU encouraged China to propose an ambitious plan to reduce emissions until 2035 and to increase its international financial contributions, “in line with its size and global responsibility.”

    English version by the Translation Service of Withub
    Tags: climacommerciorare earthreciprocitàue-cinaxi jinping

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