Xi Jinping Urges EU to Make ‘Correct Strategic Choices’ Amid Rising Trade Tensions

Chinese President Xi Jinping called on European Union leaders to “make correct strategic choices” during a high-stakes summit in Beijing on Thursday, as both sides grapple with escalating trade disputes and geopolitical tensions over Ukraine. The one-day meeting, marking 50 years of diplomatic relations, was shortened from its original schedule amid strained ties.

Xi, alongside Premier Li Qiang, met with European Commission President Ursula von der Leyen and European Council President Antonio Costa. He stressed the need for stronger communication, mutual trust, and deeper cooperation despite the “severe and complex” international environment, according to state broadcaster CCTV.

The summit’s agenda focused on trade imbalances, market access, and critical raw materials, particularly rare earths. China’s export controls on rare earths, introduced in April, disrupted European supply chains and temporarily halted auto production. However, June shipments of rare earth magnets to the EU surged 245% from May, though still 35% below last year’s levels.

In recent weeks, tensions have risen as the EU continues to view China as a “partner, competitor, and systemic rival.” However, von der Leyen struck a conciliatory tone, calling the summit a chance to “rebalance” relations and pursue “mutually beneficial cooperation.”

The meeting comes as the EU nears a trade agreement with the U.S. imposing a 15% tariff on European exports, averting a harsher 30% rate threatened by President Donald Trump. European officials are also expected to raise concerns about Chinese industrial overcapacity and the electric vehicle sector, underscoring the summit’s role in shaping future China-EU trade dynamics.