China in Europe: July 2025
China-EU Summit: The one-day China-EU summit held in Beijing on July 24 marked years of diplomatic relations between the two sides. The talks were marked by tension from the start: Chinese President Xi Jinping refused to follow protocol and travel to Brussels, insisting that the EU leaders come to China. That snub particularly irked the Europeans given Xi had visited Moscow in May for Russia’s Victory Day parade. The decision to shorten the two-day meeting to one at China’s request reiterated Beijing’s obstinance. Engin Eroglu, chair of the European Parliament’s China delegation, described the status of China-EU relations: “In this atmosphere of strategic mistrust, the mood is clearly tense—if not frosty.” European Commission President Ursula von der Leyen herself described the meeting as “a clear inflection point” for China-EU ties.
Summit Trade Discussion: Trade dominated the meeting agenda. Chief among the EU’s concerns was Chinese industrial overcapacity, fueled by heavy state subsidies. The EU press statement declared, “Europe welcomes competition. But it must be fair.” “As our cooperation has deepened, so have the imbalances. Rebalancing our bilateral relation is essential,” von der Leyen told her Chinese counterpart. She further insisted that “it is vital for China and Europe to acknowledge our respective concerns and come forward with real solutions.” The European Union’s trade deficit with China hit €300 billion in 2024, which Brussels considers unsustainable. Von der Leyen noted how unless China addressed its overproduction of goods such as batteries, electric vehicles, solar panels, and steel, “it would be difficult for the EU to maintain its current level of openness.”
Xi struck a conciliatory but firm tone, denying any fundamental contradiction between the two powers and urging the bloc to “properly handle differences and frictions.” The Chinese president emphasized that “the current challenges facing Europe do not come from China,” as well as the hope that “the EU can remain open in trade and investment market, refrain from using restrictive economic and trade tools, and foster a sound business environment for Chinese enterprises investing and operating in the EU.” The Chinese-sponsored Global Times was more confrontational: “It is contradictory for the EU to complain that China buys too little while simultaneously blocking what it wants to sell,” wrote op-ed author Ou Shi, referring to European export controls on semiconductors to China.
Despite tensions, some incremental progress was made. The two sides agreed to establish what the bloc called an “upgraded export supply mechanism” to fast-track licenses for rare earths—materials overwhelmingly controlled by China and essential to European industry. “If there are bottlenecks, this upgraded supply chain mechanism can immediately check and solve the issue that is out there,” said von der Leyen in her post-summit statement.
Summit Geopolitics Discussion: In a thinly veiled jab at Washington, Xi reminded his EU counterparts that “in the face of accelerating changes not seen in a century and a turbulent international landscape, China and EU leaders must . . . make the right strategic choices that meet the expectations of the people and stand the test of history.” However, the European side was far more interested in discussing Ukraine. Von der Leyen said directly, “How China continues to interact with Putin’s war will be a determining factor for our relations going forward.” Brussels called on Beijing to use its influence over Moscow to push for a ceasefire, as “China has an influence on Russia, like the European Union has an influence on Ukraine. . . . It is our expectation that China uses this influence to make sure that Russia is coming seriously to the negotiation table.” At the summit, President of the European Council Antonio Costa described how the war in Ukraine “goes far beyond Europe—it is a conflict with global implications that undermines the rules-based international system.” Costa also stressed how as a permanent member of the UN Security Council, Beijing has a special responsibility to push for a ceasefire.
Ukraine discussions were overshadowed by a statement from Chinese Foreign Minister Wang Yi to the EU foreign policy chief Kaja Kallas in early July: to the surprise of many in Brussels, Yi declared that China cannot afford for Russia to lose the war. According to several European officials present at the Kallas-Wang meeting, the Chinese foreign minister framed the Russia-Ukraine war as strategically useful for China as its continuation would keep the United States bogged down in Europe and delay the U.S. pivot to Asia. Many commentators and officials were shocked by the bluntness of those comments. According to the South China Morning Post, some EU officials felt Wang was giving Kallas a lesson in realpolitik. Overall, the summit made minimal progress on geopolitical issues.
Summit Climate Discussion: Climate change offered a rare moment of convergence. Both sides issued a joint statement reaffirming their commitment to the Paris Agreement as “the cornerstone of international climate cooperation” and announced that “green is the defining color of China-EU cooperation.” The two sides highlighted their support for “access to quality green technologies and products, so that they can be available, affordable and beneficial for all countries, including the developing countries.” Earlier in July, EU Climate Commissioner Wopke Hoekstra had called on China to “move out of the domain of coal”; the joint statement made no mention of the fuel, however. China and the EU also promised to submit new emissions targets before the thirtieth Conference of the Parties in Brazil this November.
China-Serbia Friendship: From July 19 to 28, Serbian special forces conducted joint training exercises in China’s Hebei Province, the first such operation between the two militaries. Code-named Peace Guardian 2025, the exercises included drone-assisted practice missions in urban and rural environments. China’s Ministry of National Defense said the training would “help strengthen combat capabilities of participating troops and deepen cooperation.” The event followed a May meeting between Xi and Serbian President Aleksandar Vučić, who described China as Serbia’s “most precious friend.” Vučić’s alignment with both China and Russia has long alarmed the European Union given Serbia’s candidate status for EU membership. The recent drills, conducted despite U.S. and EU objections, will likely further strain that relationship.
AUKUS Deepens: On July 26, Australia and the United Kingdom signed a “historic” fifty-year defense treaty to deepen submarine cooperation among parties in the AUKUS trilateral security agreement (Australia, the United Kingdom, and the United States). The deal, worth up to £20 billion in UK exports over twenty-five years, ties Australia and the UK into a long-term military-industrial alliance aimed squarely at countering Chinese ambitions in the Indo-Pacific. The treaty will bring twenty thousand jobs to Australia, and is “the biggest industrial endeavor in our nation’s history,” said Australian Deputy Prime Minister Richard Marles.
