EU, China mark 50 years of diplomatic ties

The EU has agreed to establish an enhanced mechanism for ensuring the supply of rare earth exports from China, after Beijing introduced curbs on such exports last year, causing production stoppages for European firms.

"We agreed ... to have an upgraded export supply mechanism. In other words, if there are bottlenecks, this upgraded support supply chain support mechanism can immediately check and solve the problem or the issue that is out there," von der Leyen told a press conference in Beijing.

According to the European Commission, China provides 98% of the EU's supply of so-called rare earths, which are vital for clean technology, chipmaking and medical equipment.

The issue has been amajor point of contention between the two sides.

China's future approach to Russia's war in Ukraine will influence bilateral ties with the EU, European Commission President Ursula von der Leyen has said.

"How China continues to interact with Putin's war will be a determining factor for our relations going forward," she said on Thursday.

Speaking in Beijing after meeting with Chinese President Xi Jinping, she said the EU had voiced expectations that China would respond to the bloc's concerns and use its influence on Russia to bring about a ceasefire.

She added that it was important for a ceasefire and negotiations take place to end bloodshed.

European Council President Alexander Costa said the EU was also asking China to scrutinize its exports to Russia to avoid dual-use goods being exploited for warfare.  

Brussels has long criticized Beijing for its tacit support of Russia's invasion of its neighbor, support that has among other things helped cushion the effects of Western sanctions on the Russian economy.

European Commission President Ursula von der Leyen has suggested that the EU might be forced to be less open to Chinese imports unless Beijing improved access to its markets in return.

"Unlike other major markets, Europe keeps its market open to Chinese goods. This reflects our long-standing commitment to rules-based trade. However, this openness is not matched by China," von der Leyen told reporters after meeting with Chinese
leaders in Beijing.

However, she said Chinese leaders had begun to look into the issue and had voiced their willingness to support more consumption.

Von der Leyen said that other problematic issues were China's industrial overcapacity and subsidized production exceeding domestic demand.

"We need to see progress on this issue because without progress, it would be very difficult for the European Union to maintain its current level of openness," she added.

The European Union and China have said they intend "step up" action to address climate change, according to a joint statement released as the bloc's leaders visit Beijing for a one-day summit.

According to the statement, Chinese and European leaders "reiterate that in the fluid and turbulent international situation today, it is crucial that all countries ... step up efforts to address climate change."

In the statement, the two sides said they would cooperate more closely on "energy transition, adaptation, methane emissions management and control, carbon markets and green and low-carbon technologies."

They also pledged to accelerate global renewable energy deployment and facilitate access to green technology.

China, whose industry still relies highly on coal for energy despite its growing wind-energy sector, has the world's highest emissions of the greenhouse gas CO2.

The 27-member EU is the world's fourth-highest emitter behind China, the US and India.

At Thursday's meeting, European Council President Antonio Costa called on China to bring pressure to bear on its strategic partner, Russia, to end its full-scale invasion of Ukraine — a plea that has often been made in vain by the EU.

"As a permanent member of the United Nations Security Council, we call on China to use its influence on Russia to respect the UN Charter and to bring an end to its war of aggression against Ukraine," he said at the talks with Chinese President Xi Jinping.

In a sign of continued tensions with China over the issue, the EU last week listed two Chinese banks in its latest sanctions against Russia, drawing a rebuke from Beijing. 

China is believed by Ukraine's allies to have, among other things, provided many of the drones and drone components used by Russia in its invasion of its neighbor.

No fundamental conflicts of interest exist between China and the European Union, Chinese President Xi Jinping told the bloc's representatives, Ursula von der Leyen and Antonio Costa, at their meeting in Beijing.

In comments carried by China's official Xinhua news agency, he also said any challenges facing the EU at the moment did not emanate from China but from elsewhere.

"The more severe and complex the international situation is, the more important it is for China and the EU to strengthen communication, increase mutual trust and deepen cooperation," he said.

He said Chinese and European leaders must "make correct strategic choices that meet the expectations of the people and stand the test of history" amid the current global instabilities.

Xi also called on the EU to remain open for trade and investment and to stop using "restrictive economic and trade tools."  

China was also ready to step up cooperation with the EU in the fields of artificial intelligence and climate change, he said.

European Commission President Ursula von der Leyen said that EU-China ties had reached an "inflection point" as she met Xi Jinping in Beijing's Great Hall of the People.

"As our cooperation has deepened, so have imbalances. We have reached an inflection point," she said.

The EU's trade deficit with China rose to a historic high of €306 billion ($360 billion) last year.

"Rebalancing of our bilateral relation is essential ... It is vital for China and Europe to acknowledge our respective concerns and come forward with real solutions," she said.

Chinese President Xi Jinping met with European Commission President Ursula von der Leyen and European Council President Antonio Costa, Chinese state media reported.

Xi reportedly said China and the EU must deepen trust in a turbulent world and find "common ground," despite their differences.

He also urged the EU leaders to make "correct strategic choices," according to China Central Television (CCTV).

"The more severe and complex the international situation is, the more important it is for China and the EU to strengthen communication, increase mutual trust, and deepen cooperation," Xi told the EU leaders, CCTV reported.

Ties between the European Union and China hit rock bottom prior to the summit.

Both sides have significant disagreements over trade, with the EU complaining over uneven access to the Chinese market for EU firms, China's chokehold on rare earth minerals, as well as industrial policies and huge subsidies favoring Chinese companies.

After Chinese President Xi Jinping declined an invitation to attend, the talks were moved from Brussels to Beijing, and then reduced to one day from two.

Read the full story about the current state of ties between China and the European Union.

China is a "critical partner" to the European Union with a range of shared interests, state news agency Xinhua said in a commentary piece on Thursday.

It comes hours before a key EU-China summit to mark the 50th anniversary of the diplomatic partnership.

"As the international landscape grows increasingly fraught, the anniversary offers a timely reminder: China is a critical partner to Europe, not a systemic rival," Xinhua wrote.

"Like all major economic players, China and the EU do not agree on everything. But disagreement does not equal confrontation," Xinhua said, adding that the relationship needs more trust.

The European Union and China are celebrating the 50th anniversary of the establishment of bilateral diplomatic relations.

European Commission President Ursula von der Leyen and European Council President Antonio Costa are in Beijing Thursday for the occasion and will meet with Chinese President Xi Jinping, Premier Li Qiang and other top leaders.

China and the EU are each other's second most important trading partners, but both sides quarrel over market access, industrial policies and Russia's war in Ukraine, among other issues.

Brussels has pitched Thursday's talks as "a clear opportunity for detailed, frank, substantive actions around all aspects of our relationship."

Beijing said this week ties with the bloc were at a "pivotal juncture" as both China and the EU contend with an aggressive US trade strategy under President Donald Trump.

Welcome to DW's coverage of the EU-China summit.

The summit will mark the 50th anniversary of diplomatic relations between the EU and China.

It comes as both Beijing and Brussels grapple with heightened geopolitical and economic tensions. Relations between the two sides have also been under stress due to trade frictions.  

Stay tuned for the latest updates from the summit.