Already, expectations were low on the eve of the China-EU summit. However, the conclusion of the summit, which was held in Beijing for the first time in four years, did not bring any major changes or developments. The agenda that European Council President Charles Michel and European Commission President Ursula von der Leyen (accompanied by foreign policy representative Josep Borrell) presented to their host Chinese President Xi Jinping was extremely broad: geopolitical issues, the war in Ukraine and the Middle East, the Taiwan issue and such as respect for human rights. But most of all, there is great interest in the economic file, where Brussels is trying to recalibrate the unbalanced changes in Beijing’s favor.
Trade deficit of 400 billion euros
Certainly the latter was a hot topic for the European delegation: Europe’s trade deficit with China had reached 400 billion euros, while 20 years ago it was ten times lower, equal to 40 billion euros, Von del Leyen noted in her conference press conversation with Charles Michel. At the end of the 24th summit between the Asian giant and the European Union. “If you just look at the last two years, the trade deficit has doubled and this is of great concern to many Europeans,” the Commission President said. And then the statement: “This imbalance is unsustainable.” The statements come to an environment of tense relations, which the Chinese leader definitely wants to reshape with an advantageous perspective for Beijing, after the Asian giant’s partial rapprochement with the USA.
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Beijing launched a diplomatic offensive from mid-2023 to try to repair ties with its main trading partners, especially Washington and Brussels, after foreign investors began diversifying their portfolios with capital outflows and capital flows out of China, to the detriment of China. The collapse of foreign direct investment. Exports helped support China’s economy during the three-year pandemic when it was closed off to the world, but have struggled to stay positive due to high global inflation and a rise in interest rates after anti-Covid restrictions were lifted. hence international demand has slowed down.
But in the background of the summit is Brussels’ investigation into Chinese electric cars reaching European markets after benefiting from generous state subsidies from Beijing. On the eve of the summit, the European Union announced three billion euros in subsidies to encourage the production of batteries for electric vehicles in order to reduce dependence on China.
Frankly, all actions that the Chinese leader does not like. Beijing accused Brussels of “blatant protectionist action” and criticized European efforts to reduce its dependence on some Chinese goods. However, EU member states do not have the same and common stance against Beijing, so much so that Brussels wants to reach a compromise on trade disputes with China rather than resorting to unilateral measures. Therefore, the face-to-face meeting with China’s number one confirmed the necessity of balanced trade between Brussels and Beijing. Von der Leyen added at the press conference: “There is a list of elements that we will work on to solve the problem of imbalance in the context of excess production capacity in China, which creates problems in the markets.” to manage “.
China cannot move away from the EU
Beijing appears to want to abandon its much-needed tough stance against Brussels. The Asian giant has an economy struggling to recover after the housing crisis and the end of its zero-Covid strategy, and is therefore unable to alienate the bloc of 27 European countries. At the beginning of the meeting, Xi called on China and the EU to “face global challenges together”, “promote the stability and prosperity of the world” and “exclude any interference” in their relations. The Chinese president emphasized how China and Europe are linked by a common past and future. Reminding that this year marks the 20th anniversary of the China-EU comprehensive strategic partnership, the Chinese leader said that he was convinced that Beijing and Brussels “should not regard each other as enemies.” He insisted on “win-win outcomes” and “shared development.” Speaking to von der Leyen and Michel, Xi reiterated that Beijing and Brussels should “establish an accurate perception of each other” and “strengthen mutual understanding and trust” in order to “improve their relations”.
According to the Chinese leader, the Asian giant and the EU should “complement each other in terms of markets, capital and technologies, promote the development of traditional and emerging industries, explore new cooperation models, create new growth areas.” China “promotes high-quality development and a high level of openness, and wishes to see the EU as a key partner in economic and trade cooperation, a priority partner in science and technology cooperation, and a reliable partner in cooperation in industrial and supply chains”. Reference to China It goes to the USA, where, according to Brussels, it is losing its strategic autonomy.
In his talks with EU leaders in Beijing, Xi made sure to mention the Belt and Road initiative, or the Silk Road, which was launched exactly a decade ago. Xi reiterated and asserted that the Belt and Road Initiative (BRI) is “an inclusive platform that brings tangible benefits to more than 15 countries and their people,” according to statements released by Beijing’s Ministry of Foreign Affairs and the official Xinhua agency. The Chinese leader also spoke of the “synergies between the BRI and the Global Gateway,” the EU’s “response” to the New Silk Road, and the declared aim to “help developing countries accelerate growth.” Following Italy’s farewell, China, through its Ministry of Foreign Affairs, trumpeted the success of the Belt and Road Initiative, a ‘global’ project that has had ramifications across a range of sectors and has seen China invest in infrastructure and provide loans around the world, with a spotlight mostly turned to itself . Global South.
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Bad moods persist
Both the Commission leader and the Chinese president know that the relationship between the two blocs is complex. Von der Leyen stated that the imbalances should be corrected and stated that “risk reduction”, that is, reducing the risk regarding China, is a common goal to strengthen both economies. On the other hand, Chinese customs data released today shows that in the first 11 months of this year, China exported goods worth $458.5 billion to the EU and imported $257.8 billion.
Predictions made on the eve of the summit were not very optimistic. In fact, China did not back down on domestic and trade policies and worsened its trade surplus to compensate for capital outflows. However, the EU did not compromise on electric vehicles, despite Beijing’s displeasure.
Source: Today IT
Karen Clayton is a seasoned journalist and author at The Nation Update, with a focus on world news and current events. She has a background in international relations, which gives her a deep understanding of the political, economic and social factors that shape the global landscape. She writes about a wide range of topics, including conflicts, political upheavals, and economic trends, as well as humanitarian crisis and human rights issues.
