EU-China Relations at a Crossroads: Tensions and Trade Disputes Emerge**

The relationship between the EU and China is described as reaching an "inflection point" during a recent summit, with leaders highlighting imbalances, trade deficits, and the impact of China's ties to Russia as critical issues moving forward.**

In a recently concluded summit in Beijing, European Commission President Ursula von der Leyen declared EU-China relations have reached an "inflection point." This statement came during her meeting with Chinese President Xi Jinping, who emphasized that the challenges facing Europe are not rooted in Chinese actions. Von der Leyen voiced concerns about the significant trade deficit the EU faces with China, which amounted to €305.8 billion ($360 billion) last year—essentially doubling over nine years.

The backdrop of this summit is complex, marked by each side grappling with pressures, including tariffs imposed on EU exports to the US. Despite a shortened summit, hopes were low for substantial outcomes. During their discussions, both von der Leyen and European Council President António Costa urged for "real solutions" and acknowledged the need for both sides to address their concerns. Xi stressed that mutual trust is essential, cautioning against "decoupling" and its resultant self-isolation.

The discourse included a call from the EU for China to leverage its influence with Russia to end the ongoing war in Ukraine. "How China continues to interact with Putin's war will fundamentally shape our relationship going forward," von der Leyen stated at a post-summit news conference. Although Chinese officials projected an image of cooperation, Xi's previous rejection of an invitation to Brussels and a visit to Moscow earlier this year have set a tone of tension.

The delicate nature of EU-China relations has been exacerbated by recent events, including the EU's imposition of sanctions on two Chinese banks due to their involvement in supporting Russia. Beijing responded with "solemn representations" to EU's trade chief and indicated discontent over this punitive measure. Reports have also surfaced of China's Foreign Minister Wang Yi suggesting Beijing does not desire a Russian defeat in Ukraine, conflicting with Beijing's publicly stated neutral stance.

Trade dynamics have become increasingly contentious, with the EU taking measures against Chinese electric vehicles, prompting retaliatory tariffs from China on EU products, including liquor. Additionally, recent restrictions imposed by China on the purchase of EU medical devices have intensified tensions.

China's adherence to a "quasi-monopoly" on rare earths has led the EU to voice frustration regarding competitive pressures faced by European industries in the wake of subsidized Chinese goods. In response, China's ambassador to the EU criticized the bloc's contradictory positioning of China as a partner, a competitor, and a systemic rival, warning that it creates confusion rather than clarity.