China-EU Summit 2025 Salvaged by Climate Accord Amid Trade and Ukraine Rifts
As part of the series of events to mark the 50th anniversary of the establishment of diplomatic relations between the European Union (EU) and the People’s Republic of China (PRC), a China-EU Summit took place in Beijing on the 24th of July 2025. European Council President Antonio Costa and European Commission President Ursula von der Leyen led a delegation to China and had meetings with Chinese President XI Jinping and Premier LI Qiang.
In 2024, the trade between EU and PRC amounted to EUR 730 billion ($786B) , with China having a trade surplus of EUR 305 billion. Therefore, the EU is urging China to redress the trade imbalance which arises from ‘manufacturing overcapacity and systemic distortions.’
In that regard, it is worth noting that the EU has curbed imports of Chinese Electric Vehicles (#EV) and telecom equipment through higher tariffs, pointing to ‘unfair trade practices due to state subsidies.’ On the other hand, China has initiated investigations into European agricultural products such as dairy, brandy and pork.
Chinese President Xi stated that each party should ‘properly handle differences’. In the same vein, China wishes to ’emphasize commonalities rather than differences’ and thus views calls for decoupling as being unpragmatic and counterproductive.
Chines President Xi highlighted that the China-EU trade accounted for about one-third of global GDP and one-third of global trade. As such, cooperation between the two has great potential and impact to boost the world economy.
One week prior to the Summit, the EU sanctioned two Chinese banks due to their role in facilitating financial transactions with Russia. The two banks are Suifenhe Rural Commercial Bank and Heife Rural Commercial Bank and are located in northeastern China near the border with Russia. China was not too happy with the move and the EU delegation received the cold shoulder upon their arrival at the airport.
Volkswagen and BMW stepped up their investments in China while CATL and BYD set up new plants in EU. Siemens started the construction of a medical hub in Shenzhen while Tencent acquired a Polish gaming company. Due to intensifying rivalry between US and China, China is also buying more Airbus planes as opposed to Boeing ones, while stepping efforts to make its own domestic passenger jets.
EU impressed upon China the urgent need to exert its influence over Russia to end the Ukraine-Russia conflict. However, China underscored that the issue has many ramifications: ‘China does not want Russia to lose the war’ and have NATO at its doorstep.
On the climate front, both China and EU reaffirmed its commitment to #NetZero, whereas the USA has withdrawn from the climate accord. The EU’s share of global emissions has dropped to 6% and the EU is aiming for 4% by 2030, while China has kicked off the construction of the world’s largest hydropower complex along the Yalu Zanbu river.
The EU invited China to join the Global Methane Pledge and to contribute further to the implementation of the Kunming-Montreal Biodiversity Framework. Both sides agreed to push for an International Treaty on Plastic Pollution. The common points on #ClimateChange was published in a joint communique.