Dear Focus Reader,

This week's 25th EU-China Summit in Beijing marked 50 years of diplomatic ties, but unfolded under the weight of escalating trade disputes, geopolitical divergences, and war-related tensions. European Commission President Ursula von der Leyen and European Council President Antonio Costa traveled to the Chinese capital for a one-day meeting with President Xi Jinping and Premier Li Qiang, shortened from an originally planned two-day event.

During the summit, Xi warned against protectionism, saying "decoupling and breaking chains will only result in isolation." The summit followed a year of EU investigations into Chinese industrial overcapacity and trade imbalances, especially in sectors like electric vehicles. The EU's trade deficit with China reached a record €305.8 billion ($360 billion) in 2024, a figure von der Leyen cited as evidence that "we have reached an inflection point."

Von der Leyen pushed for "real solutions," emphasizing the need for more balanced market access and reciprocity.

Additionally, a joint statement on climate change was issued, reaffirming commitments to the Paris Agreement and outlining plans for deeper cooperation on emissions reduction and green innovation.

Also looming over the discussions was Russia's ongoing war in Ukraine. Von der Leyen called on China to use its influence to press Moscow toward a negotiated peace, a point reiterated by Costa, who cited concerns over dual-use exports.

The timing of the summit also comes as the U.S. and EU race to finalize a separate trade agreement before an August 1 tariff deadline. Meanwhile, attention is already turning to a potential meeting between President Xi and President Trump later this year. According to officials, aides from both governments are discussing a possible face-to-face during the APEC summit in South Korea or another stop in Asia. While no date has been confirmed, such a meeting would be the first between the two leaders in Trump's second term and could signal renewed diplomatic engagement after months of tariff negotiations.

Learn more on international relations by catching up on our latest Focus content, including topics on global trade, the Middle East, and more.