Tensions boiled over between China and the European Union (EU) at the 25th European Union-China Summit. This highly ceremonial event was held at the Great Hall of the People in Beijing on July 24, 2025. The hugely successful summit attracted other global leaders, from Chinese President Xi Jinping to European Commission President Ursula von der Leyen, European Council President Antonio Costa and High Representative for Foreign Affairs Kaja Kallas. Their intent was to address the intensifying wear and tear across international diplomatic channels.
President Xi Jinping made a point of highlighting his desire to deepen relations with the EU. He touted the bilateral relationship as “mutually beneficial.” He called on both sides to increase funding and confidence-building measures, especially considering the intricacies of the current global involvement.
“The more severe and complex the international situation is, the more China and the EU should strengthen communication, enhance mutual trust, and deepen cooperation,” – Xi Jinping.
Von der Leyen had previously sounded the alarm over a burgeoning trade deficit. This seemingly minor issue has become a hot button topic in recent economic exchanges between the two entities. Chinese official customs data indicates that China reached a goods-trade surplus of almost $143 billion with the EU for the first half of the year. This is a whopping 21% more than last year. This significant surplus has raised concerns in Brussels, prompting von der Leyen to state, “We have reached an inflection point. Rebalancing our bilateral relation is essential.”
Over the course of the summit, advocates on both sides doubled down on their approach to major contentious issues. Daniel Balazs, a research fellow at the S. Rajaratnam School of International Studies, noted that both China and the EU articulated their respective concerns without reaching a consensus.
The current Sino-American trade war has further negative impacts on China’s relationship with the EU. Last year, the EU slapped tariffs on Chinese EVs. In retaliation, China initiated anti-dumping probes on a variety of European goods including French brandy, European dairy products, and European pork. These retaliatory measures have led to a deeper cycle of retaliatory disputes, showing that even with high-level diplomatic agreements, deeper tensions still lie below the surface.
Von der Leyen pointed to China’s growing assistance for Russia as it wages war in Ukraine and attacks democratic values. Earlier this month, she blamed China for propping up Russia’s war economy. Her comments brush against the deep, complex geopolitical fears that shade the outcome of U.S.-China economic relations.
These challenges all appeared formidable, but both leaders seemed committed to seeking common ground. Von der Leyen urged both parties to “acknowledge respective concerns and come forward with real solutions,” indicating a willingness to engage in dialogue aimed at resolving tensions.
Unsurprisingly, China is still the EU’s second-largest trading partner. Yet the summit underscored the clear lack of strategic cooperation needed from all sides to address new, complicated international realities.