Xi Urges EU to Avoid Protectionism Amid Trade Tensions at Beijing Summit

In a high-stakes summit marked by rising geopolitical tensions and economic friction, Chinese President Xi Jinping on Thursday urged top European Union leaders to "properly handle differences and frictions," while criticizing Brussels' recent trade actions targeting Chinese exports. The meeting, held in Beijing, was convened against a backdrop of mounting unease over trade imbalances and diverging positions on the Ukraine war.

Expectations for the summit—intended to mark 50 years of EU-China diplomatic relations—were already modest, with the format reduced to a single day at Beijing’s request following weeks of tense preparatory discussions.

“The current challenges facing Europe do not originate from China,” Xi told European Commission President Ursula von der Leyen and European Council President Antonio Costa, according to China’s state-run Xinhua News Agency. He emphasized the need for “open cooperation” and warned against policies of isolationism, saying, “Building walls and fortresses, or pursuing decoupling and supply chain disruption, will only lead to isolation.”

Xi also cautioned the EU against deploying restrictive trade and economic tools, urging the bloc to keep its markets open to Chinese investment and goods.

Von der Leyen, speaking during the meeting at the Great Hall of the People, underscored that the EU-China relationship had reached a pivotal juncture. “As our cooperation has deepened, so have the imbalances,” she said, calling on Beijing to offer “real solutions” to reestablish equitable trade dynamics.

The EU’s trade deficit with China reached a record €305.8 billion ($360 billion) in 2023, prompting growing concerns in Brussels about structural disparities and Chinese industrial overcapacity. Over the past year, the European Commission has initiated probes into Chinese electric vehicle (EV) exports and scrutinized Beijing's broader industrial policy.

The talks also covered issues related to China's export controls on rare earth elements—vital components in green technology and automotive production. While Beijing's restrictions caused temporary shutdowns at European manufacturing plants earlier this year, recent customs data showed a 245% month-on-month surge in rare earth magnet exports to the EU in June, although volumes remained 35% below 2023 levels.

In a statement posted to social media following the summit, von der Leyen acknowledged the tensions but struck a more conciliatory tone, describing the meeting as a “chance to both advance and rebalance our relationship.”

Observers note that the EU is simultaneously working to recalibrate its global trade partnerships, including finalizing an agreement with the United States that would establish a broad 15% tariff framework on EU exports—averting a threatened 30% levy under U.S. President Donald Trump.

As the EU continues to navigate the complexities of strategic autonomy while maintaining critical ties with both Washington and Beijing, the summit underscored the growing challenge of balancing economic interdependence with geopolitical recalibration.