China Welcomes EU Leaders Amidst Global Economic Turmoil
Costa and von der Leyen to visit China - Costa and Leyen to visit China, as confirmed by announcement.
In the midst of ongoing trade disputes with the US, China perceives its relationships with the EU as a cherished pillar of stability in the global economy. Speaking on the matter,high-ranking Chinese official Lin Jian emphasized the visits of Ursula von der Leyen and António Costa aim to bolster dialogues and cooperation between China and the EU.
Recognizing the 50th anniversary of their diplomatic relations, Chinese President Xi Jinping extended congratulations to von der Leyen and Costa. Desire for intensified cooperation was expressed by President Xi, stating that "China and the EU should stand firm for multilateralism, uphold justice, resist unilateral aggression, and collaborate to address global challenges." These sentiments were shared by state television CCTV, reported on Tuesday.
During his tenure, US President Donald Trump instigated a trade war with China, imposing high tariffs on Chinese imports and even expanding these penalties to European goods. As tension escalates between Peking and Washington, the Chinese government has become increasingly diligent in presenting itself as a dependable ally in global trade affairs.
The EU-China Economic Connection, Unraveled
The EU and China maintain significant economic ties, with China serving as one of the EU's leading partners for both exports and imports. In the year 2024, China ranked third on the list of EU's export partners, accounting for 18.5% of EU's total exports, while China placed first in EU imports, occupying 22.7% of EU's total imports [4]. Over the past decade, the volume of imports from China to the EU increased by more than 100%, and exports grew by 47%—though, there was a 0.5% drop in imports and a significant 4.5% drop in exports from 2023 to 2024 [4].
Relations between the two trading powers, however, are marked by underlying mistrust, lingering tensions, and contrasting strategic interests. The EU remains apprehensive of China’s trade practices, such as subsidies, unfair competition, and excess exports of certain goods, which could potentially harm European industries [3][4]. Unresolved conflicts and trade sanctions continue to cloud the economic outlook for EU-China relations.
Climbing the Stairway to Cooperation
Despite these impediments, both China and the EU have signaled their intentions to resume discussions, evidenced by the recent mutual lifting of exchange restrictions on the occasion of the 50th anniversary of diplomatic relations [5]. China has demonstrated an openness to high-level EU visits, indicating a diplomatic rapprochement amidst heightened geopolitical tensions. Whether the complex and delicate equilibrium between cooperation and competition will persist remains to be seen. The ensuing months and summits, such as the July 2025 EU-China Summit, will be instrumental in shaping the future direction of EU-China trade relations.
International Positioning Amidst Chaos
The EU's strategy in the context of the US-China trade war is multifaceted. Meanwhile, the US-imposed tariffs on China have provided the EU with a strategic opportunity to negotiate with Beijing for a more balanced economic relationship. Importantly, Europe seeks Chinese commitments regarding the restrictions of certain green technology exports in exchange for investments that fulfill conditions on technology transfer, job creation, and data security [3]. Ultimately, the EU aims to avoid over-dependence on either China or the US by fostering trade partnerships beyond these two global powers. Diversification plans involve agreements with Mercosur, Mexico, Indonesia, Malaysia, and Australia, as well as joining the CPTPP [3].
To counteract perceived US bullying, China aims to unite with the EU to form a formidable trade front. China's long-term strategy hinges on exploiting Europe's internal divisions to strengthen economic ties, while simultaneously avoiding a two-front trade war [4]. As geopolitical pressures rise, the future trajectory of EU-China relations will be influenced by the success of these attempts at collaboration and diplomatic maneuvering.
The Commission has also been asked to submit a proposal for a regulation on the protection of the environment, given the importance of environmental concerns in EU-China relations. This proposal could potentially be part of the policy discussions between Ursula von der Leyen and António Costa during their visits to China.
Tariffs and trade disputes, which have been a significant part of global news lately, are not absent from EU-China relations. The ongoing US-China trade war has put a strain on the global economy, and the EU has been looking for ways to negotiate a more balanced economic relationship with China.
China's long-term strategy, in dealing with the US-China trade war and its impact on EU-China relations, includes exploiting Europe's internal divisions to strengthen economic ties. This strategy could potentially create a sense of unity between China and the EU, as they jointly navigate the challenges posed by international politics.
In the light of the 50th anniversary of diplomatic relations between China and the EU, the stability of their economic connection is of great importance. As the two powers work towards resuming discussions and fostering cooperation, they must also address lingering tensions and contrasting strategic interests to ensure a lasting and beneficial partnership.
