EU-China Summit Cut Short Amid Soaring Trade Tensions

By Staff, Agencies

A high-stakes EU-China summit in Beijing was abruptly shortened on Thursday, as tensions over trade, geopolitics, and rare earth supplies overshadowed efforts to mark 50 years of diplomatic ties.

A tense atmosphere dominated the event in Beijing, which was unexpectedly cut to just one day at China’s request.

The meeting, intended to celebrate half a century of diplomatic engagement, instead laid bare widening rifts on trade, industrial policy, and geopolitics.

European Commission President Ursula von der Leyen said that bilateral relations “have reached an inflection point,” urging China to “come forward with real solutions”.

She also criticized a swelling trade deficit that hit €305.8 billion ($360 billion) last year. “As our cooperation has deepened, so have imbalances,” von der Leyen said.

She claimed that Europe’s openness “isn’t matched” by China. Beijing, she implied, benefits disproportionately from the current system.

The Chinese leadership pushed back. President Xi Jinping called on the EU to “properly manage differences,” insisting that “the current challenges facing Europe do not come from China.”

He urged Brussels to keep its markets open and refrain from “using restrictive economic and trade tools.”

EU trade actions in the past year have targeted Chinese exports of electric vehicles among other goods, and its officials have repeatedly complained about Chinese industrial overcapacity.

The summit’s shortened format highlighted how far ties have deteriorated. While both sides tried to frame the gathering as constructive — announcing a new climate action plan and pledging cooperation in green technologies — the sharp tone of their exchanges told a different story.

European leaders also voiced frustration over Beijing’s rare earth export controls. In May, new Chinese regulations caused production delays in European automotive factories.

Though exports of rare earth magnets to the EU rebounded by 245% in June, the volume still lagged behind last year’s figures by 35%.

“We need reliable and secure supplies of critical raw materials from China,” von der Leyen said.

She acknowledged China’s efforts to accelerate licensing but stressed the need for a more robust supply mechanism.

Premier Li Qiang defended the controls, calling them consistent with international norms. China’s foreign ministry echoed this, while promising further dialogue with affected countries.

Von der Leyen linked China’s relationship with Russia to future ties with Europe. She warned that Beijing’s stance on the Ukraine war had become “the determining factor” in EU-China relations.

Tensions have also been fueled by shifting global alliances. The EU is edging closer to a trade deal with the United States, aiming to reduce tariffs on its exports from 30% to 15%. This rapprochement has not gone unnoticed in Beijing.