The recent China-European relations are really a big drop in sight.The EU had wanted to use the opportunity to establish 50th anniversary of ties and talk about cooperation with China, and the result was a disappointment.
The EU threw three conditions: trade opening, stopping to buy oil from Russia, liberating rare earth exports, all rejected by China.
The US media have reported that this is too unexpected, and China's attitude is so tough this time, it is simply not like the style of the past. The New York Times directly wrote that although the summit had a small agreement, the core differences were not resolved, and those demands of the European Union were basically failed.
The Wall Street Journal also followed, pointing out that China refused concessions, highlighting tensions in bilateral relations.
Because they have always regarded the EU as an ally, thinking that the EU can pressure China, the result is that the EU itself is not cheap, which leads Americans to start to rethink their strategy against China.
From 23 to 24 July 2025, Beijing hosted the China-European Leaders’ Summit, which was resumed more than a year later. European Commission President Ursula Von der Leyen and European Council President Antonio Costa led a team to be welcomed by the Chinese Prime Minister.
The summit was originally prepared to celebrate the 50th anniversary of the establishment of trade, and it is logical that it is a celebration, but the background is too complex.
The European Union is under great economic pressure, with a trade deficit of 304 billion euros with China, and the manufacturing industry has been severely hit by Chinese exports. Coupled with the conflict between Russia and Ukraine that has dragged on for more than three years, the European Union urgently needs China's cooperation in energy and geopolitics.
There is also a rare earth problem, with China controlling more than 90% of the world’s supply, which the EU feels is the neck of the card.
Before the summit, EU foreign policy chief Borrell publicly called on China to lift restrictions on rare earth exports and warned China companies not to support Russian military industries.
The summit ended with the signing of the joint declaration on climate change and the simplification mechanism for rare-earth exports, with no other major leaders negotiating.
When the American media reported it, the words used were a little surprised, saying that the EU wanted to push forward strongly, but China didn't buy it, which was rare in previous diplomacy.
The first condition is that the European Union requires China to open its market and achieve trade balance.To put it bluntly, the European Union complains that China exports too much and imports less, causing the deficit to double.
Over the past decade, the EU’s trade deficit with China has risen from 150 billion euros to 400 billion euros.The EU has accused China of subsidizing electric vehicles and solar panels, causing European companies to compete.
Before the summit, the EU had imposed additional tariffs on Chinese electric vehicles in 2024, with a maximum of 37.6%.
Von der Leyen directly named at the meeting, saying that China's excess capacity is dumping Europe, and the market must be opened immediately to allow European Union companies to enter the Chinese government procurement and investment.
According to data from China's Ministry of Commerce, the EU itself has set up barriers to Chinese products, such as restricting Huawei's 5G equipment and imposing anti-dumping duties on solar panels.
China responded that the trade deficit was a result of the market, not subsidies. China's export of electric vehicles is a technological advantage, and EU tariffs are protectionism.
China rejected this condition because it felt unfair for the EU to take action first and then give in. Reuters reported that China emphasizes reciprocity and the EU must first cancel tariffs.
China opposed, restricting EU medical devices into government procurement lists. Algeria television channel analysis, which reflects the EU wants to take the cheap, China does not eat this set.
Americans watched the bullshit, saying that the European Union's demand was too naive, that China's economy was large, and why it was unilaterally open.
The second condition is that the EU wants China to stop importing oil and natural gas from Russia, saying it indirectly supports Russia's attack on Ukraine.
Since the outbreak of the Russia-Ukraine conflict in 2022, the EU has sanctioned Russian energy, but it also imported 2.3 billion euros of oil from Russia in the first half of 2025. China has become Russia's largest buyer, importing more than 100 million tons of crude oil in 2024, accounting for half of Russia's exports.
The European Union believes that China purchases oil and adds bricks to Russia’s pockets to keep the war going.
During a visit to China ahead of the summit, Mr. Borrell warned that Chinese companies would hurt China-EU relations by helping Russia circumvent sanctions. Von der Leyen reiterated at the meeting that the quality of Sino-EU relations depends on China's attitude towards Russia.
China never supplies weapons, but only buys energy to maintain its economic needs.
China promotes peace, has repeatedly called for negotiations between Russia and Ukraine, and also proposed a political settlement initiative in 2023. China rejects this condition because of its diplomatic independence and does not accept external interference. China pointed out that the EU itself also buys oil from Russia, accusing China of double standards.
The BBC reported that China emphasizes energy security, and Russian oil is cheap and reliable, making it impossible to stop.
India also buys Russian oil, the United States has just imposed a 25% tariff on India, but China is larger, American media like Fox News said that China dares to bear the pressure of the European Union, which makes the United States feel that China has more influence on the Russian-Ukrainian issue.
The third condition is that the EU requires China to fully open rare earth exports and lift all restrictions.
Rare earth is a high-tech raw material, electric vehicles, wind power, missiles are inseparable. China produces 70% of the world, 90% of processing.In October 2024, China introduced rare earth management regulations, requiring export companies to provide proof of final use.
In April 2025, seven other rare-earth elements and magnets were restricted, mainly aimed at the U.S. tariff war, but the EU was also affected.
The European Parliament passed a resolution on July 10 condemning China's restrictions, saying they threaten Europe's defense and energy transition. At the summit, von der Leyen asked the Chinese to immediately deregulate and provide unconditional supply.
China's Ministry of Mining said that rare earth is a strategic resource, export control is for environmental protection and resource protection, not trade weapons. China has opened a green channel to the EU, high ratification rate, not completely blocked.
During a visit to Germany on July 3, Chinese Foreign Minister Wang Yi said,Rare earths will not become a Sino-European issue, but the EU doesn't appreciate it and still shouts in Parliament.
China has urged the European Union to move away from double standards and take control of key minerals. China agreed to simplify the export regime but not lift controls. European Union companies complain about slow approvals and delays in projects.
According to the US media, China has the upper hand in this matter, and the EU is too dependent on it to be hard.
China has rejected this, and its conditions in the European Union are too strong to ignore China’s interests.In trade, the EU has added tariffs and wants China to unilaterally open up; in Russia, the EU wants to pull China’s side, but China is neutral; in rare areas, the EU wants unconditional supply, but does not mention technical cooperation.
China's economy is robust, with GDP growth of 5.2% in the first half of 2025 and strong exports. There is no rush to make concessions.
The EU is in chaos, the economies of France and Germany are weak, and the United States has imposed tariffs after Trump came to power, and the EU is caught in the middle. Politico analyzed that the EU wanted to use the summit to put pressure, but as a result, China did not compromise, highlighting the decline of the EU's influence.
Americans think China will soften, resulting in China being more confident.This also exposes global supply chain problems, and the EU relies on China's rare earth and manufacturing, which is difficult to disconnect in the short term.
After the summit, tensions between China and the EU increased.
On July 25, China's Ministry of Foreign Affairs said that the meeting was fruitful, but trade needed to be mutually beneficial.
The EUins tariffs on electric vehicles, China continues to counter medical devices.Rare-earth export approvals slowed, and EU enterprises cost increased.On the Ukrainian side, the EU on August 5 that Chinese oil imports helped Russia, but China did not change its strategy.
In the European Parliament debate on August 10, von der Leyen pushed "to risk" and restricted China's 5G. Costa coordinated member states to avoid division. Trump commented on August 15, saying the EU was weak.
China has refused to allow the EU to step forward, and China’s trade volume has decreased slightly, but dialogue in the green fields is still ongoing.
In the future, China and the EU will have to find a balance. If the EU continues to exert pressure, China will react more violently. When Americans look at this, they feel that the world has changed and China is no longer passive.
References:
China does not accept EU tariffs, criticism of trade protection within Europe 2024-10-31
2、China-Europe trade friction brings light on European economy or the “last grain”Daily 2024-09-23