Image credits - Reuters
In a landmark in-person summit, Chinese and European Union (EU) leaders discussed on the necessity of achieving a more balanced trade relationship marking their first face-to-face meeting in four years on Thursday, December 7. Despite the consensus on the need for balance, the summit provided no clear indication of resolving long-standing differences on various fronts.
EU leaders took a firm stance on their significant trade deficit with China, emphasizing Europe’s intolerance for what they termed as “unfair competition.” Beijing, in turn, cautioned the EU against implementing what it deemed as “restrictive” trade policies, emphasizing the expectation of prudence from Brussels.
A key point of contention was the EU’s push for China to exert its influence on Russia to bring an end to the conflict in Ukraine. Geopolitics analyst Sebastian Contin highlighted the urgency for China’s involvement in resolving the crisis and maintaining stability in the region, pointing to the growing relationship between Chinese President Xi Jinping and Russian counterpart Vladimir Putin.
European Council President Charles Michel stressed the imperative for a reciprocal and balanced trade relationship. The EU leaders underscored their concerns about the nearly €400 billion trade deficit with China, attributing it to restrictions faced by EU businesses operating in China.
While there were discussions on addressing the root causes of trade imbalances, such as limited access to the Chinese market and preferential treatment to Chinese firms, there was limited progress on technical issues. EU Commission President Ursula von der Leyen mentioned advancements in clarifying restrictions on cross-border data flows impacting EU firms operating in China.
However, in a setback for EU-China relations, Italy formally communicated its decision to exit the Belt and Road Initiative championed by Xi Jinping. The summit was characterized by efforts to manage differences and prevent a descent into confrontation, with the EU conveying its concerns about trade imbalances and China’s support for Russia. The leaders emphasized the shared interest in a stable relationship based on respect for international rules while acknowledging the challenges that both sides must address collaboratively.