Brussels to Beijing: Xi gets his way in shifting China-EU summit, can he dictate terms too?

Chinese President Xi Jinping succeeded in moving the China-EU Summit from Brussels to Beijing, but he may not get his entire wish list fulfilled as the two sides remain divided on some fundamental issues.

As Chinese and European Union (EU) leaders met in Beijing on Thursday, Xi called for the deepening of the relationship but EU chief Ursula von der Leyen said “real solution” are needed to move past an inflect point, reflecting the issues that the bloc has with China.

The EU has made it clear that it will not tolerate China’s dumping of Chinese goods, such as cars, which it says have been made artificially cheaper with subsidies. The EU and Russia are also poles apart on the war in Ukraine — while the EU has supported Ukraine, China has puts its entire weight behind Russia.

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EU-China Summit goes off rails

The summit was initially supposed to take place in April in Brussels, but China reportedly refused to attend it. The summit was therefore moved to Beijing.

While the EU agreed to relocate the venue, it cancelled an economic and trade dialogue, which was intended to lay the groundwork for the summit, signalling mounting strains in diplomatic relations.

The summit was also downgraded from a two-day meeting to a one-day affair.

China & EU seek middle ground — but gaps remain

Despite such confrontational behaviour, there are signs that the EU and China are seeking middle ground.

In the EU-China relationship, trade tensions have taken centre stage as both sides have escalated rhetoric and protective measures.

However, lately, China has dropped sanctions on EU policymakers and has offered major carveouts exempting French cognac makers from tariffs. Earlier this month, the two sides showed friendly sides during climate talks.

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However, trade tensions are far from over between the two and have rather been worsened by China’s tricks to keep trade surplus and global tariff war.

China has been pushing the EU to back off on tariffs, especially for electric vehicles, and the EU, on the other hand, has been firm on protecting its industrial base, particularly against the backdrop of its relationship with Trump.

The sides are also divided on the Russian war on Ukraine and Vladimir Putin’s aggression on Europe. While the EU has supported Ukraine and has sought a way to end the war that is respectable to Ukraine, China has supported Putin’s war on Ukraine to the hilt.

With such differences, major breakthroughs are not expected in the summit.

China and EU may still reach a trade deal or some other agreement or commitment to improve relations, with a statement targeting Trump’s disruptive policies. They may agree to fast-track critical minerals export licenses to the EU. A joint statement could be issued with the two sides agreeing to target their respective rivals, new and old.