China’s leader, Xi Jinping, met with Council of Europe President Antonio Costa and European Commission President Ursula von der Leyen in Beijing on Thursday. During their discussion, he urged the European Union to halt its efforts to shift supply chains away from China’s influence.
Xi delivered a strong message through the Chinese state news agency, New Flower, emphasizing that Europe should not “build walls and barriers” to shield itself from Chinese authority. This warning underscores a fear that leaders might reject agreements that could harm China’s fragile economy as they negotiate a new trade deal with the US. Currently, President Donald Trump is in talks to renegotiate trade agreements, seeking better terms for US exporters and sometimes directly for the federal government.
“Interdependencies reveal that such connections are not risks, and shared benefits aren’t threats,” Xinhua relayed to Costa and von der Leyen. “[B]Competitiveness should avoid walls and barriers; cutting connections just leads to isolation.”
The term “decoupling” is often used among economists to describe efforts urging local businesses to sever ties with China. Amid a severely weakened economy due to prolonged lockdowns related to the pandemic, China faces allegations of state-sponsored labor exploitation while the Communist Party purges business leaders who don’t comply. Recently, the Chinese government even barred American Wells Fargo executives from leaving the country, citing an undisclosed “criminal” issue.
China’s business activities in Europe raise important national security concerns for involved companies. A 2022 report by a consortium of nongovernmental organizations highlighted China’s operation of illegal police stations targeting dissidents within Europe. Numerous reports have emerged detailing the extensive spying efforts conducted by the Chinese Communist Party in European capitals.
Xi conveyed to the European leaders that their partnership should focus on “openness and cooperation” while properly managing differences, insisting that trade relations with China are fundamentally beneficial. He specifically mentioned enhanced cooperation in areas like “Green and Digital Partnerships.”
“It is hoped that the EU will keep its markets open for trade and investment, without resorting to restrictive economic measures,” Xinhua further noted.
Reuters described the encounter between Xi and the European leaders as “tense,” with no significant advancements in the strained relationship expected. Reports suggested that China had requested to limit visits just a day after disputing engagement terms.
The relationship between China and Russia has caused friction in the political sphere for some months, yet Xinhua did not touch on this during discussions. During a regular press briefing, Guo Zi-Kung, a spokesperson for China’s Ministry of Foreign Affairs, dismissed European concerns regarding China-Russia relations as irrelevant.
“I must stress that the interactions between China and Russia are not aimed at third parties and should remain uninfluenced by external entities,” Guo stated.
Instead, he highlighted the “50th anniversary of China-EU diplomatic relations and the 80th anniversary of the United Nations” as reasons to strengthen Europe’s reliance on China.
“The essential lessons from these experiences include mutual respect. We seek areas of cooperation while respecting our differences,” Guo asserted. “Both China and the EU uphold multilateralism, openness, and cooperation. In light of the increasingly complicated international landscape, it’s crucial for China and the EU to enhance communication, build trust, and deepen collaboration.”
Since 2020, China has been the largest trading partner of the European Union, surpassing the United States shortly after the onset of the pandemic. Beijing has actively sought to benefit from strong economic ties with nations led by leaders who are favorable to China, such as Spanish Prime Minister Pedro Sanchez. However, some conservative leaders, like Italian Prime Minister Giorgia Meloni, have started distancing themselves from China’s Belt and Road Initiative (BRI). China’s close relationship with Russia, coupled with reports of its active support for the Russian economy amidst European sanctions related to Ukraine, poses challenges to its influence in the region.
As the EU tries to strike a balance between its relationship with China and ongoing trade negotiations with the US, President Donald Trump has expressed frustration with the EU’s pace, criticizing leaders for “slow walking” negotiations in May and pushing for a better business environment for American interests. Just before these comments, von der Leyen mentioned to reporters the EU’s commitment to offering a “zero-zero tariff” deal on industrial goods, emphasizing the EU’s aim to diversify its supply chains.
