EU-China Relations at 'Inflection Point' as Xi Jinping Skips 50th Anniversary Summit Amid €305.8 Billion Trade Deficit

Brussels/Beijing – Relations between the European Union and China have reached a critical juncture, described by EU officials as an "inflection point," marked by significant trade imbalances and deepening geopolitical divides. This complex dynamic was underscored by Chinese President Xi Jinping's notable absence from a commemorative EU-China summit in Brussels, intended to mark 50 years of diplomatic ties. The perceived slight has led observers like Melissa Chen to suggest that China "simply does not respect the EU," viewing such public actions through the lens of "face" (mianzi), a central concept in Chinese culture emphasizing honor and dignity.

"If you understand the centrality of 'face' (面子 or miànzi) in Chinese culture - an obsession with honor and dignity in matters of social standing - you will see this and rightly glean: China simply does not respect the EU," stated Melissa Chen in a recent tweet. "This is a highly symbolic, honor culture. Nothing happens so publicly without any premeditation."

The economic relationship remains "critically unbalanced," with the EU facing a substantial trade deficit that reached €305.8 billion in 2024. European concerns stem from China's industrial policies, market access asymmetries, and assertive trade practices, including economic coercion, boycotts of European goods, and restrictions on critical raw material exports like rare earths. The EU is actively pursuing a "de-risking" strategy to reduce critical dependencies on China, rather than a full "decoupling."

Geopolitical issues further strain the relationship, particularly China's stance on the Russia-Ukraine war. European leaders, including European Commission President Ursula von der Leyen, have called on Beijing to pressure Russia to end the conflict, describing China's role as a "key enabler of Russia's war economy." This has contributed to a climate of "strategic mistrust" between the two powers, despite ongoing efforts for dialogue.

Despite the tensions, both sides acknowledge the importance of their bilateral relationship, with discussions continuing on managing competitive dynamics and addressing global challenges. The recent summit, held in Beijing, saw EU leaders engaging directly with Chinese officials to address a series of disputes. However, the deep divisions suggest that long-term tensions are likely to persist as the EU seeks to rebalance its ties with an increasingly assertive China.