Von der Leyen tells Xi EU-China ties are at ‘inflection point’

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European Commission President Ursula von der Leyen has warned Chinese leader Xi Jinping that relations were at “an inflection point” as the sides held a summit fraught by tensions over trade and the war in Ukraine.

Von der Leyen and European Council President António Costa opened a one-day meeting in Beijing by demanding “real solutions” to long-standing complaints including China’s wide trade surplus with the bloc and its backing of Moscow. 

“As our co-operation has deepened, so have the imbalances. We have reached an inflection point,” von der Leyen told Xi, according to prepared remarks. 

“Rebalancing our bilateral relation is no longer optional, it’s essential,” she added.

Xi said that relations were at a “critical juncture” and that the EU and China should “make the right strategic choices” amid “a changing and turbulent world”.

He called on Brussels to deepen co-operation to “provide more stability and certainty for the world through steady and sound China-EU relations”.

Von der Leyen and Costa will hold talks and a working lunch with Xi on Thursday, followed by a meeting and banquet with premier Li Qiang, China’s number two official. Von der Leyen will hold a press conference later on Thursday.

The summit, which will mark half a century of EU-China relations, comes as hopes for a reset have been overshadowed by thorny issues including trade, Beijing’s export controls on critical minerals and the Russia-Ukraine war.

Beijing on Wednesday criticised EU sanctions on two Chinese banks for facilitating trade with Russia, which were imposed just days before the top European officials arrived in the Chinese capital.

European officials are increasingly concerned about low-cost, subsidised Chinese goods flooding the continent’s markets as Beijing’s self-sufficiency drive cuts demand for European manufacturers.

Chinese trade data shows goods exports to Europe rose 7 per cent to $267bn in the first half of the year, while imports from the bloc shrank 6 per cent to $125bn.

“To be sustainable, the relations need to be mutually beneficial,” von der Leyen told Xi. “It is vital for China and Europe to acknowledge our respective concerns and come forward with real solutions.”

Costa also pressed Xi to use Beijing’s influence on Moscow “to bring an end to its war of aggression against Ukraine”. China has refused to condemn Russia’s full-scale invasion of Ukraine, and has been accused of supporting Moscow with exports of dual-use goods, allegations Beijing has denied.

“We do not always see eye to eye. Yet, we have a shared interest in pursuing constructive and stable relations,” Costa said.

Xi said that China and the EU were “big guys in the international community” and should maintain bilateral relations “in the right direction”.

Additional reporting by Nian Liu in Beijing

Financial Times

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