Latest news with #EU-China
South China Morning Post
13 hours ago
- Business
- South China Morning Post
Is EU's global clout fading amid gruelling stand-offs with China and the US?
After tense talks in Beijing and a bruising trade blow from Washington, EU bureaucrats are heading into their August break weary and short of wins, as doubts deepen over the bloc's global leverage. Last week's summit in Beijing went off without too much drama, seen as an achievement in itself, given how fraught EU-China ties had become in the run-up to the long-awaited event. But on some of their longest-standing complaints, the Europeans found that Beijing would not budge and was keen to display the confidence and swagger that European officials say has been on show since it forced a climbdown on US tariffs three months ago, according to sources familiar with proceedings. Talks on Ukraine , however, were said to have been open, frank and more meaningful than previous summits, during which European Union officials felt their concerns were dismissed out of hand. Over more than three hours of talks with Chinese President Xi Jinping, the Europeans pushed him again to rein in his Russian counterpart Vladimir Putin, only for Xi to point to US President Donald Trump's failure to deliver on a pre-election pledge to end the war in Ukraine in 24 hours as evidence of how little leverage anyone has over the conflict. A repeated motif of the Europeans' face-to-face engagement with Xi is the Chinese leader telling them that he has less leverage over Putin – whom he often describes as a 'good friend' – than they think. But whereas in previous years the EU complained that Xi had batted their assertions about China's support for Russia away, this time there was an in-depth debate.
Euractiv
a day ago
- Business
- Euractiv
Europe can't pivot from its rare earth dependency on China
This article is part of our special report 50 Years of EU-China Relations: the future of the strategic partnership . Breaking free from China's dominance of rare earths will not be a simple feat for the European Union, even though both sides reached a tentative deal to ease Beijing's limitations on their exports. Considered one of the few breakthroughs of the 24 July summit in Beijing, Commission President Ursula von der Leyen announced an 'upgraded export supply mechanism' that will 'immediately check and solve problems or issues if there are bottlenecks'. Beijing's ironclad restrictions, introduced in early April against the backdrop of escalating tensions with the United States, triggered alarm across Europe, as rare earths are essential components in advanced technologies and defence. Highlighting the 'significant' strain on European companies caused by these export controls, von der Leyen underscored the need for 'reliable and secure supplies' of critical raw materials from China to maintain trust in 'our trade relationship'. Overwhelming dominance China's grip on the sector is astounding from a European risk perspective; it controls 85 per cent of global rare-earth processing and more than 90 per cent of magnet production. The export restrictions exposed the EU's vulnerability to Beijing's supremacy over the elements. Although June saw a 245 per cent surge in China's exports of rare-earth magnets to the EU compared to May, the figure remained 35 per cent lower than the level reported a year earlier. The one-day summit in Beijing, marking half a century of diplomatic relations between China and the EU, placed the issue high on the agenda. But despite the newly agreed mechanism, experts see little room for optimism. Europe's 'I want to break free' moment Writing for Foreign Policy, Christina Lu argues that Europe will have a hard time escaping China's grip on these elements. Decades of Chinese investment has created an industry with unmatched expertise, infrastructure and pricing power. According to Lu, an energy and environment reporter, replacing this system demands more than just new mines – it requires end-to-end supply chains with technical know-how and capital. Unlike the US, the EU must also overcome internal divisions among its member states. Current trade tensions do not help the bloc's case. On the one hand, Trump's trade policies loom; on the other, China is demanding recalibrated ties. China, not the problem? In Beijing, the issue is viewed differently. President Xi Jinping boldly stated that Europe's problems do not stem from China, urging the bloc to uphold 'openness and cooperation, properly managing differences'. Reporting for the South China Morning Post, Finbarr Bermingham notes that this assertion only underscores the stark divide in how each side perceives the state of their relationship. The summit was, however, presented as a necessary exercise in high-level dialogue. Xi described China and Europe as 'big guys' in the international system, with a responsibility to strengthen communication and mutual trust. No united front Beyond sugar-coated descriptions or wishful thinking of what the summit should have been, the high-level dialogue did little to genuinely bring the EU and China into a united front against Trump's tariff war. For its part, the EU is focused on achieving a negotiated solution to avoid the 30 per cent levy Trump has threatened to impose on products imported from the 27-nation bloc from 1 August. Meanwhile, Chinese officials are preparing for a meeting in Stockholm to discuss a deadline extension for negotiating a trade deal with the US. Treasury Secretary Scott Bessent stated that these talks would focus on rebalancing US-China trade relations. Missed chance Deep-seated mistrust, a refusal to walk in each other's shoes, hawkish stances followed by efforts to soften rhetoric – none of it helps either side. Another shot at meaningful reconciliation may now be harder to come by. The tentative rare-earth agreement reached during the summit may not suffice this time. Vulnerabilities and insecurities are running high, and the consequences of inaction will become increasingly difficult to ignore. There is a saying that when two fight, a third one wins. But when three fight… Well, may the best one win! [Edited By Brian Maguire | Euractiv's Advocacy Lab ]
Indian Express
2 days ago
- Business
- Indian Express
No escort, no dignitaries: EU leaders made to travel by bus in Beijing for meeting with Xi Jinping
Top European Union officials were made to travel by bus without a police escort and received no official welcome upon arriving in Beijing for a high-level summit with Chinese President Xi Jinping — a diplomatic snub that set the tone for a tense meeting between the two sides. A video of the July 24 visit shows EU Commission President Ursula von der Leyen and her delegation disembarking at the summit venue without any high-ranking Chinese officials present to greet them. There was no red carpet, no limousine, and no formal reception — a break from standard diplomatic protocol, especially at this level of engagement. I completely agree with China govt's decision to arrange a bus to welcome the delegation led by EU Commission President Ursula von der Leyen, as it's an environmentally friendly move. You know, Europeans like to be environmentally friendly. — ShanghaiPanda (@thinking_panda) July 26, 2025 The meeting, held in Beijing, made little progress on major geopolitical tensions. European leaders raised alarm over China's growing trade surplus, which they say is distorting global markets with underpriced goods, and over Beijing's alleged support for Russia's war in Ukraine. 'As our cooperation has deepened, so have imbalances,' von der Leyen told Xi during their meeting. She said EU-China trade relations had reached 'an inflection point' and called on Beijing to 'come forward with real solutions.' Xi, in remarks published by China's Foreign Ministry, pushed back: 'It is hoped that the European side will keep the trade and investment market open and refrain from using restrictive economic and trade tools.' Despite their differences, both sides did manage to agree on limited cooperation in two areas: climate change and critical raw materials. A joint statement reaffirmed mutual support for the green transition. They also agreed to set up what von der Leyen described as an 'upgraded export supply mechanism' to fast-track licenses for rare earth minerals — an area where China controls the global supply and has recently increased export restrictions.
Daily News Egypt
2 days ago
- Business
- Daily News Egypt
EU, China agree on rare earths, climate but divisions remain on trade, Ukraine
The European Union and China agreed at their 25th summit in Beijing on a new mechanism to help facilitate the export of rare earth elements and issued a joint statement on combating climate change, but divisions over issues including bilateral trade and the Russia-Ukraine conflict will require further talks to be addressed. The issue of rare earth metal supply chains has become an increasingly significant topic in global discussions. During a high-level meeting with Chinese President Xi Jinping on Thursday, European Commission President Ursula von der Leyen said the EU was 'not seeking to decouple or cut supply chains with China, and welcomes Chinese companies to invest and do business in Europe'. Following the summit, von der Leyen elaborated on the new agreement at a press conference in Beijing. 'We have agreed on an enhanced export supply mechanism. In other words, if bottlenecks arise, this mechanism can immediately intervene to examine and solve the problem or issue at hand,' she said. Chinese customs data shows that China's magnet exports to the EU accounted for about half of its total shipments in June, the highest rate this year, with more licences having been granted in accordance with laws and regulations. Earlier, during a European tour on July 3, Chinese Foreign Minister Wang Yi said that 'the export of rare metals will not become a contentious issue between China and the European Union'. He added that it is the right and international responsibility of any sovereign state to impose necessary regulations on dual-use goods, which can be used for both civilian and military purposes. Wang also noted that the Chinese government had established a 'fast-track' mechanism to facilitate exports to European companies. Feng Chongping, director of the Institute of European Studies at the Chinese Academy of Social Sciences and president of the Chinese Society for European Studies, said: 'The Europeans always talk about 'de-risking', but they immediately follow it with 'no to decoupling', because decoupling is impossible.' He added that the two sides share deep economic interests. 'The European economy cannot do without China. Europe, as China's second-largest trading partner, is one of its most important export markets.' A 'crucial juncture' or a 'turning point'? The European Chamber of Commerce in China on Friday welcomed the outcomes of the EU-China summit, saying in a statement that the meeting had 'exceeded expectations'. It highlighted several positive developments, including the joint statement affirming a mutual commitment to combating climate change and the establishment of the enhanced export supply mechanism. Jens Eskelund, president of the European Chamber of Commerce in China, said the 50th anniversary of the establishment of diplomatic relations between the EU and China presented an opportunity not only to acknowledge successes but also to conduct a 'maintenance check' on the relationship. During the summit in Beijing on July 24-25, held to mark the 50th anniversary of diplomatic relations, President Xi said that China-EU relations had reached 'another crucial juncture in history', while von der Leyen described the relationship as being at a 'turning point'. On the same day, China's Ministry of Foreign Affairs announced that the two sides had reached several important agreements, particularly in the fields of climate change and export controls. Croatian Foreign Minister Gordan Grlić Radman, during a visit to China before the summit, said that competition exists, 'but cooperation is the only option to ensure the future of the next generations'. 'There may be differences between China and the European Union, but we need dialogue to keep communication channels open and achieve a balanced, equal and mutually beneficial relationship by reducing trade and investment barriers,' he added. China's ambassador to the EU, Cai Run, said that 'some frictions are inevitable, but resolving differences requires political sincerity and strategic resolve', stressing that economic and trade cooperation remains the cornerstone and main driver of China-EU relations. Division over the war in Ukraine European leaders often view their relationship with China through the prism of the Russia-Ukraine war. On July 21, China's foreign and commerce ministries condemned unilateral EU sanctions on Chinese banks and companies over Russia, vowing to take necessary measures to protect their legitimate rights. In February, Foreign Minister Wang Yi reiterated that China-Russia relations are characterised by 'not being an alliance, not a confrontation, and not targeting any third party'. When asked about European pressure on China to stop buying gas from Russia, Wang questioned: 'If China does not import oil and gas from Russia, how can it meet the needs of more than 1.4 billion people?'. Feng Chongping noted that moving forward in China-EU relations cannot ignore problems and challenges, but said that some European media and analysts focus only on the negatives. 'These challenges and problems actually show where the common interests between China and the EU are concentrated,' he said. Climate change and technology Following the summit's conclusion, von der Leyen posted on X, formerly Twitter: 'China-EU cooperation on climate can set a global benchmark, and we will work together to make COP30 a success'. On Friday, United Nations Secretary-General António Guterres welcomed the commitment by China and the EU to deepen cooperation on tackling climate change and supporting a just global transition. On the same day, Chinese foreign ministry spokesman Guo Jiakun praised the joint statement on climate, considering it an expression of a shared commitment to addressing climate issues and promoting green development. 'Although the EU sees great competition with China, China is considered an indispensable partner on the climate file,' Feng Chongping said in an interview, confirming that cooperation between the two sides in this area is proceeding well. In the joint statement, China and the EU pledged to accelerate the global deployment of renewable energy, promote the flow of high-quality green technology and products, and make them available, affordable and suitable for all countries, including developing nations. The two sides also agreed to enhance bilateral cooperation in areas such as energy transition, climate change adaptation, methane emissions control, carbon markets, and green and low-carbon technologies. Both parties committed to submitting their 2035 Nationally Determined Contributions (NDCs) before the UN Climate Change Conference, COP30. The joint statement did not mention the United States, which is set to withdraw from the Paris Agreement again in January 2026 after the re-election of President Trump and his administration's submission of a formal withdrawal request.
The Star
3 days ago
- Business
- The Star
China, EU need to make the right choice as ‘two big guys' on world stage, says Xi Jinping
At a meeting in Beijing recently, President Xi Jinping urged European leaders to 'make the right strategic choice' as the world grapples with profound changes. He made the remarks to European Commission President Ursula von der Leyen and European Council President Antonio Costa, who are in Beijing for a summit that some Chinese analysts expect to be tone-setting for China-EU relations. 'Amid the accelerating transformation unseen in a century and an international landscape fraught with turbulence and transformation, China and Europe must once again demonstrate vision and responsibility by making the right strategic choices that meet people's expectations and stand the test of history,' Xi said. The first face-to-face EU-China summit since December 2023 convenes as the two sides mark 50 years of diplomatic relations, though celebrations are tempered by escalating trade disputes. Beijing is seeking to present itself as a stable alternative partner for Europe, particularly as US President Donald Trump has slapped steep tariffs on the 27-nation bloc. He added that the two sides should reinforce their partnership as a cornerstone in bilateral ties, saying that the West should judge China in a correct way, according to a Chinese statement released after his meeting with senior EU officials. 'If China is measured by the paths taken by the West, perceptions of China will inevitably be skewed,' Xi said, adding that the challenges Europe was facing 'were not from China'. 'It is our hope that Europe will likewise respect China's chosen development path and political system, duly acknowledge China's core interests and major concerns, and support China's pursuit of development and prosperity.' Xi also stressed the autonomy of China-EU relations, which he said were 'not targeted at, dependent on, nor subject to any third party'. 'The two sides should enhance strategic communication, strengthen mutual understanding and trust, and foster a correct perception of each other,' the Chinese leader said. Xi described China and the European Union as 'two big guys' in the world, adding that they should combine their efforts to 'firmly grasp the right direction of China-Europe relations and work together to usher in an even brighter next 50 years'. 'China and the EU must once again demonstrate foresight and responsibility, making strategic choices that meet the expectations of their peoples and stand the test of history.' In his opening remarks, Costa reaffirmed that the EU was committed to 'deepening our bilateral partnership, making concrete progress in addressing concerns with respect, goodwill and honesty and working together to uphold multilateralism'. However, he added that the two sides needed 'concrete progress' to address challenges in trade and the economy, according to an official transcript. 'We need concrete progress on issues related to trade and economy. We both want our relationship to be balanced, reciprocal and mutually beneficial,' he said. Costa also raised the hope of reaching a deal with China on climate change after Thursday's meeting. 'Our cooperation on climate change is an important example, and I look forward, as a result of today's summit, to a strong joint political message ahead of Cop30 in Brazil,' he said. In her remarks, von der Leyen referred to the growing imbalances and declared that the relationship was at an 'inflection point'. 'Rebalancing our bilateral relationship is essential. Because to be sustainable, relations need to be mutually beneficial,' von der Leyen said, adding that it was 'vital' for both China and Europe to acknowledge respective concerns so as to come forward with real solutions. She also reaffirmed the EU's strong commitment to the Paris Agreement, the climate change treaty Trump ordered the US to quit when he returned to the White House in January. After a meeting with Premier Li Qiang in the afternoon, the two sides released a joint statement on climate change, which is widely seen as one of the few areas where the two sides might make progress. While China and the EU agreed that they would lead global efforts to reduce greenhouse gas emissions with pledges of cooperation in green technologies, the seven-point document offered no concrete actions or goals. Still, it could offer a much-needed confidence boost in Beijing and Brussels' ability to cut their emissions further before the Cop30 UN climate change summit in Brazil in November. 'Joining forces here will send a powerful message to the world,' von der Leyen said about climate change cooperation during the meeting with Li. In the meeting at the Great Hall of the People, Xi also tried to ease concerns on the trade imbalance but said that the European Union's push to 'reduce dependence' on China should not undermine bilateral cooperation. 'The essence of China-EU economic and trade relations is complementary advantages and mutual benefit and it should be, and is entirely possible to achieve, a dynamic balance in the course of development.' Despite their shared concerns over Trump's unpredictable and aggressive tariff and security policies, tensions have been mounting between China and the EU on areas from trade to security. The EU, which has long complained about China's lack of progress to ensure a level playing field for a balanced economic and trade relationship, has increased tariffs on Chinese electric vehicles (EVs) to as much as 45 per cent for state-subsidised Chinese manufacturers. Meanwhile, China's recent restrictions on rare earth exports – introduced during the trade war with the US – have added to the frustration in Europe as industries have faced an 'alarming situation' due to a shortage of the minerals, which are essential to making everything from EVs to military tanks and aircraft. China's deep ties with Russia also cast a shadow, with senior officials in Brussels, including von der Leyen, openly accusing Beijing of supporting Moscow in its prolonged war in Ukraine. In a move that touched a nerve in Europe, Foreign Minister Wang Yi told EU officials earlier this month that Beijing did not want to see Moscow lose the war because it feared the US could then shift more attention to China. While expectations for a breakthrough in Thursday's meeting have been low, there is hope that the talks could be a tone-setting moment for China-EU relations. Earlier on Thursday, von der Leyen said on social media that Thursday's summit was 'the opportunity to both advance and rebalance our relationship'. 'I'm convinced there can be a mutually beneficial cooperation. One that can define the next 50 years of our relations,' she wrote. Cui Hongjian, head of European Union studies at Beijing Foreign Studies University, said Beijing and Brussels should use the occasion to establish a shared understanding of their 50-year relationship and outline guiding principles to drive the relationship forward. 'It is hoped that Beijing and Brussels can come up with better and pragmatic ways to manage the interplay of competition and cooperation alongside the bilateral relationship – whether in trade or geopolitical differences – and turn competition into new opportunities for collaboration,' he said. 'I believe this highest level engagement will mark the start of a new phase in bilateral ties, where they must work to find a mutually acceptable way to engage meaningfully.' The meeting offers both China and the European Union a valuable opportunity to understand the concerns and priorities of each side, according to Feng Zhongping, director of the Institute of European Studies at the Chinese Academy of Social Sciences. 'China-EU relations are still undergoing changes, and we should view them objectively. They have cooperation and competition at the same time, but both sides have the willingness to engage in dialogue and negotiate,' Feng said. Cui, a former Chinese diplomat, said the two sides should 'adjust their previous approaches to communication and cooperation'. Noting the cancellation of a high-level EU-China economic and trade dialogue earlier this year, Cui said there had been a gap in terms of each side's goal for the talks, with Brussels seeking tangible outcomes and Beijing viewing the dialogue as a platform for talks, cooperation and management of competition. 'If high-level dialogues are no longer Europe's preferred approach, the critical question is whether China and the EU can identify a mutually acceptable framework to address their persistent challenges.' Observers in Europe said they were less optimistic about the future of bilateral relations. Abigael Vasselier, director of policy and European affairs at the Mercator Institute for China Studies, said on Monday that Europe was entering the summit 'with no illusion that it is going to be a deal-making moment', given that there was a mismatch over various disputes. She said she expected the summit would not change the long-term course of EU-China ties, which were deeply troubled by structural issues. - SOUTH CHINA MORNING POST
