EU leaders brace for frosty China summit as trade frictions bite
European Commission President Ursula von der Leyen and European Council President Antonio Costa plan to press Chinese leaders on rare earths and the war in Ukraine, both areas of tension, during the summit in Beijing.
There is little hope for headway, at a time both sides face major challenges sustaining economic growth and Europe struggles to shore up support for Ukraine.
The summit was shortened from two days to one due to a "scheduling conflict" raised by Chinese officials, two sources familiar with the planning told Reuters. A business roundtable that was meant to happen on the second day in the city of Hefei will now take place in Beijing, one of the sources said.
Both sides may reach a modest joint statement on climate, one of the sources said, but no other tangible achievements are expected.
In multiple recent speeches, von der Leyen has revived hawkish China rhetoric, accusing China, opens new tab on July 8 of "enabling Russia's war economy" and flooding global markets with overcapacity.
"We know that we don't see eye to eye with China on many issues, but we believe that it is essential to have this kind of very direct and open and constructive conversation," said one EU official.
The official and the sources declined to be identified as they were not authorised to speak to media.
A spokesperson for the European Commission referred to a statement announcing the summit, which said leaders would discuss ways of ensuring "a more balanced, reciprocal and mutually beneficial trade relationship".
In response to Reuters' questions, the Chinese foreign ministry referred to a spokesperson's statement on Monday.
"Some people in Europe continue to ... exaggerate specific economic and trade issues and make groundless accusations against China on the Ukraine issue, causing unnecessary interference to China-EU relations," its spokesperson said.
The 27-member European Union has also been negotiating hard with Washington after U.S. President Donald Trump threatened 30% tariffs on most EU exports from Aug. 1, with prospects for a broader trade deal fading.
At the Beijing summit, China hopes to press the EU for a solution to its tariffs on China-built electric vehicles, for which Beijing claims price commitment negotiations are in the "final stages". But European officials say there has been little progress for months.
Last week, China threatened to respond to EU sanctions on two Chinese banks and five firms over the Ukraine war. Its commerce ministry said on Monday the sanctions "seriously harmed trade, economic and financial ties".
Other trade disputes are simmering in the background. China retaliated against EU restrictions on medical device procurement with its own curbs on July 6, and slapped duties on French cognac producers.
China's exports to the EU grew in May while its U.S. exports plunged 34.5% in value terms the same month, sparking fears Chinese trade overcapacity is being diverted to the bloc due to U.S. tariffs on Chinese goods.
There is also a growing sense that EU firms are collateral damage for China's rare earth export controls that primarily targeted Washington but have disrupted European defence and automotive supply chains.
In return for concessions on rare earths, China's asks could include reviving a long-stalled investment agreement after Beijing lifted sanctions on European Parliament members in May, and pushing back on U.S. export curbs on Dutch firm ASML's chipmaking equipment.
China has raised both in the weeks leading up to the summit, two sources familiar with the matter said.
"The mood is extremely pessimistic in Europe regarding the summit," said Mathieu Duchatel, a director at the Institut Montaigne think tank in Paris, adding that Washington rejected previous EU proposals for coordination on China policy.
"There is a sense that the gloves are completely off on the Chinese side ... They sense the transatlantic relationship has weakened and are trying to seize the opportunity."
Diplomats and analysts also say that China is growing increasingly frustrated behind closed doors with European officials' repeated insistence on the war in Ukraine, which Beijing views as an obstacle in the relationship.
There is little space for constructive dialogue on this, another EU official admitted, with Chinese counterparts denying evidence of Chinese firms' involvement in supplying dual-use goods to Russia.
Meanwhile, China believes Europe will cave in to U.S. tariff pressure, said a diplomat familiar with Chinese official thinking.
Beijing succeeded in getting Trump to lower crushing 145% tariffs during talks in May and scored a further win when Washington agreed to resume Nvidia H20 AI chip exports, leaving it in a relatively strong position.
"This will be the latest in a long list of EU-China summits that have delivered next to nothing," said Noah Barkin, senior advisor at Rhodium Group's China practice.
"It is a sign that the economic and security problems in the relationship have become so deep-seated as to be irreconcilable."
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Who's most to blame for Newcastle's issues? The recruiter who didn't recruit
There is one morsel of good news for Newcastle United's incoming sporting director. Whoever it may be, he can't be as bad as the last bloke. Ross Wilson is the favourite for the role, ahead of Jason Ayto, formerly of Arsenal. Wilson has been the chief football officer at Nottingham Forest, so at least we know he's not scared of hard work. And he will need that restlessness. Newcastle's summer has been marked largely by frustration and tumbleweed. Not since cartoon skunk Pepé Le Pew has anyone in black and white had such trouble finding a match. If Newcastle identify a target, he goes elsewhere. Meanwhile, star turn Alexander Isak has fled to northern Spain to avoid the pre-season tour and agitate for a move to Liverpool, whose first bid of £110 million was rejected. Liverpool are briefing that they won't come back, but that hardly matters. Newcastle's preparations are already in ruins. Isak doesn't want to be there and the fans know this and are increasingly against him. It's a mess. What did former sporting director Paul Mitchell do in his year at the club? What did he bestow? What plans, what blueprints? Mitchell cannot be blamed for some recent disappointments, but he was a recruiter who didn't recruit and, by the looks of it, didn't leave much behind that was concrete as his legacy. Plenty of deals are set up in advance. We all knew that Trent Alexander-Arnold was on his way to Real Madrid many months out. Chelsea had Christian Pulisic agreed six months before he came, too. And José Mourinho would never take credit for the arrival of Petr Cech or Arjen Robben, saying those deals were in place before he was. Yet, having supposedly kept their powder dry for the great leap forward, what did Newcastle have arranged that hasn't fallen apart? Not Marc Guéhi — last summer's missed target — not João Pedro. They couldn't even keep goalkeeper James Trafford from joining Manchester City, the club that jettisoned him two years ago. Hopes of beating last season's 15th-placed team, Manchester United, to Benjamin Sesko sit in the balance. And before Liverpool came in for Isak they had already secured Hugo Ekitike, who Newcastle had fondly imagined would be his partner, or his replacement if the unthinkable happened. To see both in red would be little short of disastrous. And if all Mitchell had done was nothing — well, it wouldn't be impressive, but it wouldn't be actively harmful. Yet one of the few calls he did make is believed to have alienated Isak and may be the root of his present dissatisfaction. Having been promised an improved contract by the previous executive regime of Amanda Staveley and Mehrdad Ghodoussi, Isak was then informed that would not be happening. The logic was straightforward: Isak was a high earner with four years left on his deal and Newcastle are mindful of Profitability and Sustainability Rules. Yet the ramifications can now be seen. Isak clearly knows another club can make him happy. One whose recruitment agents are efficiency's gold standard. That's the problem with football's new executive model. Recruiters, sporting directors, call them what you will, appear to be no more reliable than the people they have replaced: the managers. Manchester United were said to have fallen behind because they were entirely reliant on the wit of Sir Alex Ferguson. Last season, Sir Jim Ratcliffe bemoaned the fact the club were still behind on data analytics and could only rely on the eyes of Jason Wilcox, the sporting director. Yet if Newcastle had a coach as ferociously proactive as Ferguson, would they have struggled to get deals done? No criticism of Eddie Howe is intended. He works in a modern club, which Ferguson's United were not. Yet it's not just about chains of command, philosophies and strategies. The best people, that is what Liverpool have. All clubs employ executives to direct football, or sport, or recruitment, whichever title is the fashion. Chelsea's probably have their own wing at the training ground. Yet some clubs buy consistently well, others do not. Newcastle recruited a man to recruit the men, but he failed. The ramifications are significant. Neither Wilson nor Ayto can be active in this transfer window. Another one is passing Newcastle by. Has Howe got too much power, it is asked? After all, Mitchell's time there may not have recovered from an early schism with Howe and with a void at the top sporting direction increasingly lands at the manager's door. Yet what option is there, in Newcastle's state? They had a man to do that job. Not only didn't he do it but some of the decisions appear to have benefited a rival. That's what you call a good recruitment strategy. Liverpool have even got the opposition working for them. And not so much as a thank you. We used to be such a polite nation too. Manners maketh man and all that. Yet no so much as a tip of the hat in the direction of the Netherlands for Sarina Wiegman. We've heard a lot about patriotism and 'proper' England since the European Championship was retained, but very little acknowledgement of the method behind it all. For that would mean conceding it really isn't all our work. It can't be, with a foreign coach. England's women were superb in this tournament. Resilient, brave, determined. The moment Spain did not get the game won in extra time, it was England all the way. Yet much of the credit for that strength of attitude goes to Wiegman and her largely Dutch backroom team, and the credit for them goes to the Koninklijke Nederlandse Voetbalbond (KNVB), the Royal Dutch Football Association. So this was an Anglo-Dutch victory, an Anglo-Dutch operation, like Unilever, Shell or The Legendary Pink Dots. Close, but England's women had never got over the line at a major international tournament until Wiegman arrived. And she didn't fluke it this time, as was churlishly implied until the moment of ultimate victory. Yes, England can play better. Yet there are very solid reasons why England defeated Spain, many of them down to the work of the central midfield, which was no accident. Wiegman has reached five straight tournament finals, winning three. That's no fluke, either. The system that produced this remarkable head coach deserves its due. Now there is concern because the proportion of English players in the WSL has halved to just 30 per cent. Baroness Campbell, instrumental in Wiegman's appointment, is worried. Ironic that champions of a national team with a foreign coach suddenly think nationality is important. We want it all ways. In victory, we wish to celebrate and promote this as the best of us, which is what successful international sport is supposed to represent. Yet the FA, and its chief executive Mark Bullingham, are too frightened of failure to take a chance on just our best. It wishes for England to comprise that, plus the best of yours too, if we're short. And it will blow the competition out of the water with its financial might to facilitate this. Just don't expect the tiniest acknowledgment if it pays off. That's why it was so amusing when Bullingham said Wiegman was 'not for sale at any price' in the build-up to the final. For a start, she is. That's why she left her position as Netherlands head coach to manage England: because she is very much the gun for hire. But that's her call. The real reason she's not for sale is because there is not another nation in Europe — and only one, the United States, across the rest of the world — that would pay what she receives for coaching England. When Wiegman won the European Championship with the Netherlands in 2017 she was made a Knight of the Order of Orange-Nassau and was awarded a statue in the garden of the KNVB; which is all well and good, but the FA gave her £400,000 a year and that rather ended discussions. 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It'll be good practice for you to get pointers from a manager's perspective. He assigned each player a match based on where he lived. Joey, a resident of north Wales but a Liverpool fanatic, was told there would be a ticket for him at Everton. 'I'm not going there,' he said. Buxton was bemused. 'I've never set foot inside Goodison Park unless I was playing,' Jones insisted. 'I'm not going to start now.' Despite Buxton's protests, he wouldn't budge. 'No way, not Everton. Anywhere but Everton.' Joey died last month. There is to be a statue of him at the home of his other great love, Wrexham. And if anyone goes near it with a blue scarf, he'll come back and haunt them. Numbers at the Women's European Championship told a story. Most goals, most assists and most chances created went to players from Spain, as did the first five berths for successful passes. Leading on most dribbles and most touches in the opposition box was Klara Buhl, of Germany. So how did England win? 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