On July 24, the 25th EU-China Summit in Beijing, occurring on the 50th anniversary of diplomatic relations, unfolded against a backdrop of profound geopolitical tension and economic unease. As Klaus Larres, Fellow at the Wilson Center, aptly described, it was a summit marked by "blushing sentiments," revealing both the deep interdependence and the significant fractures defining this critical relationship.
As President of the European Council Antonio Costa and President of the European Commission Ursula von der Leyen met with the Chinese side, the EU side affirmed its commitment to deepening EU-China relations, managing differences in a constructive manner, and achieving more positive outcomes in bilateral cooperation that is balanced, reciprocal, and mutually beneficial.
Amidst the discord, climate change emerged as a rare area of tangible progress. The issuance of a dedicated Joint Statement on climate action underscored a shared recognition of the crisis's severity. Both sides committed to strengthening cooperation on energy transition and accelerating global renewable energy deployment, aiming to set a global standard. This outcome, championed by European Commission President Ursula von der Leyen, represents a vital, albeit narrow, channel for constructive engagement and a "forward step," highlighting the potential for collaboration on truly global challenges.
Trade tension under close scrutiny
The most palpable friction emanates from trade. The EU's massive and growing trade deficit with China, coupled with anxieties over perceived Chinese industrial "overcapacity," dominated discussions. Electric vehicles (EVs) crystallize this conflict. China's undisputed leadership in the EV sector—built on early strategic foresight that European giants, particularly German automakers, were initially "too late to recognize"—has resulted in competitively priced Chinese EVs entering the world's largest single market.
The EU perceives this surge, allegedly facilitated by state subsidies, as an existential threat to its automotive industry, the cornerstone of its manufacturing base. Consequently, as Larres noted, the EU "is not prepared to tolerate" this situation, leading to imminent investigations and tariffs. While European manufacturers are now accelerating their EV transition, Larres predicts "more intensive" competition lies ahead.
Shadow from Washington?
However, the summit's constrained outcomes reflect deeper, persistent obstacles. The looming specter of U.S. trade policy is inescapable. With President Trump threatening 30% tariffs on EU goods effective August 1, the EU faces immense pressure. Larres acknowledged the inherent EU desire to maintain "very good terms with both China and the United States," but this balancing act grows increasingly untenable. The EU's pre-summit actions, including banning Chinese medical device firms from major public contracts, starkly illustrate how alignment with U.S. geopolitical priorities often undermines its stated goal of stable EU-China relations. These moves, occurring before the summit, poisoned the well, demonstrating that "the primary obstacle to improving EU-China relations lies in the United States."
Furthermore, fundamental structural issues persist: divergent views on market access, reciprocity, state intervention in the economy, and geopolitical alignment. The EU's internal divisions also hinder a coherent strategy, with member states like Germany prioritizing economic ties while others push for a harder line.
To navigate the way ahead
The summit's key achievement, as Larres observed, was to "table the disagreements," ensuring mutual awareness of divergent positions. While necessary, this is insufficient. Von der Leyen's post-summit emphasis on "frank, respectful, and open dialogue" underscores Europe's continued, albeit strained, commitment to engagement.
The future trajectory hinges on the EU's ability to navigate treacherous waters. Can it forge a genuinely autonomous strategy that defends its economic interests against perceived unfair practices without becoming a pawn in the U.S.-China strategic competition? Can it leverage climate cooperation as a foundation for broader trust-building? And can it reconcile its internal divisions to present a united front?
As Larres revealed, the EU-China relationship stands at a pivotal crossroads. The choices made in the coming months, particularly regarding EV tariffs and navigating U.S. pressure, will profoundly shape not only the next 50 years of this bilateral relationship but also the contours of the global economic and geopolitical order. The "blushing sentiments" must evolve into a clearer, more sustainable framework for coexistence and cooperation, lest the current tensions harden into a damaging, long-term estrangement.
Reporter: Guo Zedong
Text: Guo Zedong
Video Script: Guo Zedong
Video editor: Deng Yingheng
Video Cover: Lai Meiya
Editor: Yuan Zixiang, James, Shen He
