What's happened
In response to U.S. tariffs, the EU is re-engaging with China, planning a summit in July 2025. This shift includes renewed negotiations on electric vehicle tariffs and investment ties, reflecting a pragmatic approach amid deteriorating relations with the U.S. The EU aims to strengthen its position while addressing economic challenges.
What's behind the headline?
Strategic Shift in EU-China Relations
- Economic Pragmatism: The EU's pivot towards China is driven by economic necessity, as both regions face challenges from U.S. tariffs. European leaders are recognizing the need to leverage their market power in negotiations with China.
- Diverse Perspectives: Within the EU, opinions vary. Leaders like Spanish Prime Minister Pedro Sanchez advocate for closer ties with China, seeking investment, while others express caution due to China's geopolitical actions, particularly regarding Russia.
- Future Implications: The upcoming summit in July 2025 will be crucial for defining the future of EU-China relations. It may set the tone for cooperation on trade, climate issues, and geopolitical stability, but also risks deepening divisions within the EU regarding its stance towards China.
- Global Context: The EU's engagement with China comes at a time when the U.S. is perceived as retreating from its traditional role in global trade leadership. This shift could redefine alliances and economic strategies in the coming years.
What the papers say
According to the South China Morning Post, the EU is planning a summit with China in July 2025, marking a significant shift in relations as leaders seek to address economic challenges exacerbated by U.S. tariffs. European Commission President Ursula von der Leyen emphasized the need for a stable trading system, while Chinese Premier Li Qiang highlighted the importance of cooperation in safeguarding free trade (South China Morning Post, April 16, 2025).
Bloomberg reports that both sides are advocating for a reformed trading system, with Li Qiang calling for enhanced communication and mutual openness. However, the EU's concerns about China's support for Russia and its industrial overcapacity remain significant points of contention (Bloomberg, April 10, 2025). This complex dynamic illustrates the balancing act the EU faces as it navigates its relationship with both China and the U.S.
How we got here
The EU's relationship with China has soured in recent years, particularly due to U.S. trade policies under President Trump. Recent calls between EU leaders and Chinese officials have signaled a desire to stabilize ties and address mutual economic concerns, particularly regarding tariffs on electric vehicles.
Go deeper
- What are the implications of the EU-China summit?
- How are U.S. tariffs affecting EU-China relations?
- What are the differing views within the EU on China?
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More on these topics
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China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.
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Ursula Gertrud von der Leyen is a German politician and the president of the European Commission since 1 December 2019. She served in the federal government of Germany from 2005 to 2019 as the longest-serving member of Angela Merkel's cabinet.
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The European Union is a political and economic union of 27 member states that are located primarily in Europe. Its members have a combined area of 4,233,255.3 km² and an estimated total population of about 447 million.
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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Li Qiang is a Chinese politician and a member of the Politburo of the Communist Party of China. He is the current Party Committee Secretary of Shanghai, and formerly served as Governor of Zhejiang and Party Secretary of Jiangsu.
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Xi Jinping is a Chinese politician serving as the general secretary of the Communist Party of China, president of the People's Republic of China, and chairman of the Central Military Commission.