Leaders of China and the European Union meet as tensions rise
European Union leaders met in Beijing on Thursday with China’s top leader, Xi Jinping, in an effort to stabilize a relationship that has deteriorated in recent years over security, a huge trade imbalance and China’s tacit support for Russia war in Ukraine.
Mr Xi’s meeting with Charles Michel, the president of the European Council, and Ursula von der Leyen, the president of the European Commission, was the first in-person summit of the leaders of China and the European Union in more than four years.
The summit was not expected to lead to major breakthroughs. Trust between China and the European Union has been eroded by failed promises to open the Chinese market more broadly to European companies, and Beijing’s crackdown on freedoms in Hong Kong and Xinjiang. China also sees Europe as heavily influenced by Beijing’s main competitor, the United States.
Beijing has tried to woo Europe to drive a wedge between the region and Washington. However, the war in Ukraine has only strengthened the transatlantic alliance as Europe has become increasingly dependent on Washington for military aid.
The 27-member European bloc has labeled Beijing a “strategic rival” and agreed in June to work to “de-risk” its supply chains by limiting their dependence on Chinese companies. The European Union has also joined the United States in imposing restrictions on trade in high-tech products with China.
The moves underscore the widening rift between the West and China as Mr. Xi has adopted a more assertive foreign policy aimed at reshaping the world order to serve Chinese interests. According to an official summary from China of Mr. Xi’s meeting with European leaders, Mr. Xi urged them to strengthen cooperation with China to enhance “political mutual trust” and “eliminate all forms of interference ban,” an implied reference to Washington.
Chinese officials have sought to push back on the European Union’s efforts to limit its economic dependence on China, saying the two sides are not rivals and that their common interests far outweigh their differences. It remains to be seen how far China will go to appease European officials at the summit.
No issue has frustrated European officials more than Beijing’s refusal to curb its support for Moscow. China has supported Russia’s war effort by buying Russian oil and supplying the Kremlin’s military with microchips, drones and other equipment believed to fall just short of weapons and ammunition.
Despite the backlash, China is highly unlikely to abandon Russia because it assumes it needs Moscow as a long-term partner in countering the global dominance of the United States.
“On the European side, one of the most important tasks of the Beijing summit is to clearly convey the message that China-Russia cooperation and its impact on the war in Ukraine remains the fundamental element that will shape the future of EU relations and shapes China,” said Alicja. Bachulska, policy officer at the European Council on Foreign Relations, said in an email.
Tensions are also rising over cheaper Chinese electric vehicles, solar panels and wind turbines that have flooded the European market.
The region posted a $426 billion trade deficit with China last year, the largest ever. And as China’s economy struggles amid a widening housing crisis, the country could look to boost exports as a growth engine.
The European Union was formally established in September started an investigation in or electric car manufacturers in China have received government subsidies, a move that could lead to tariffs. Electric vehicles are a particularly sensitive issue because car production plays an outsized role in the European economy.
“Europe is open to competition, not to a race to the bottom,” Ms von der Leyen said earlier this year. “We must defend ourselves against unfair practices.”
China has rejected many of the European complaints about the trade imbalance, saying it does not reflect the true nature of economic ties. A significant portion of Chinese exports to Europe come from European-owned companies based in China.
“Although China appears to be running a trade surplus, the European Union has actually made significant gains,” Wang Wenbin, a spokesman for China’s Foreign Ministry, said on Wednesday.
The success of China’s industry is the result of early investment and innovation, not subsidies, said Tu Xinquan, dean of the China Institute for WTO Studies at the University of International Business and Economics.
“There is a sense of crisis in the EU because the car industry is crucial for them,” he said.
European companies also complain about declining market access in China due to laws requiring foreign companies to use Chinese suppliers. Other national security laws have also made China a more fraught environment for European companies.
Keith Bradsher reporting contributed.