Recent weeks have seen significant diplomatic activity between the European Union and China, unfolding against a backdrop of heightened global trade tensions, particularly stemming from new US tariff policies. High-level conversations and specific negotiations have addressed pressing economic issues and reaffirmed areas of ongoing dialogue.
Navigating Trade Tensions and US Tariffs
A dominant theme in recent interactions has been the response to sweeping tariffs introduced by the United States, affecting both Chinese and European economies. European Commission President Ursula von der Leyen held discussions with Chinese Premier Li Qiang around April 7th. They touched upon the need for stability in the global economy and the shared responsibility of the EU and China, as major markets, to support a fair, rules-based international trading system. The conversation included the possibility of establishing mechanisms to monitor potential trade diversions caused by tariffs, particularly in sectors already experiencing global overcapacity.
Shortly after, around April 11th, Spanish Prime Minister Pedro Sánchez met with Chinese President Xi Jinping in Beijing. This meeting saw calls for strengthened EU-China cooperation. President Xi suggested that Beijing and the EU could work together to resist US trade pressure and safeguard economic globalization. Prime Minister Sánchez emphasized cooperation over confrontation, advocating for dialogue to manage differences and pursue shared interests, highlighting Spain’s willingness to foster a more balanced EU-China relationship.
Focus on Electric Vehicle Trade
A specific point of negotiation involves the trade in electric vehicles (EVs). Following the EU’s imposition of tariffs on Chinese-made EVs in late 2024, citing concerns over subsidies, discussions have now shifted. Around April 10th, EU and Chinese officials, including EU Trade Commissioner Maroš Šefčovič and Chinese Commerce Minister Wang Wentao, agreed to explore setting minimum prices for Chinese EVs entering the European market as an alternative to the existing tariffs.
These talks represent an attempt to find a mutually acceptable solution to the trade friction in this key sector (view analysis). While the outcome is uncertain, the willingness to negotiate signals a preference for dialogue over escalating tariff measures, a development welcomed by some industry groups, particularly in Germany. This follows earlier talks between Commissioner Šefčovič and Minister Wang where they established a government-to-government dialogue specifically on EV trade and investment (context on talks).
Broader Bilateral Agenda
Beyond the immediate trade pressures, discussions covered other aspects of the complex EU-China relationship. President von der Leyen reiterated the EU’s desire for structural solutions to rebalance bilateral trade and secure better access for European companies to the Chinese market. Concerns regarding the role of state-owned enterprises and the transparency of subsidies persist on the EU side.
Cooperation on climate change and the transition to cleaner industries was also mentioned as an area for continued engagement (related climate briefing). On the geopolitical front, the EU reaffirmed its stance on the conflict in Ukraine, stressing the need for a just peace determined by Ukraine itself and encouraging China to play a constructive role in the peace process.
Cultural exchanges were also highlighted, with events like the European Culture Street opening in Chengdu on April 12th. These initiatives are seen as ways to foster mutual understanding between European and Chinese people, particularly as the EU and China prepare to mark 50 years of diplomatic relations with a potential summit later this year.
Summary
In the past two weeks, EU-China discussions have centered on navigating complex global trade dynamics, heavily influenced by US tariff actions (see market impact). High-level dialogues involving President von der Leyen, Premier Li Qiang, President Xi Jinping, and Prime Minister Sánchez underscored shared interests in economic stability while also exposing ongoing differences regarding market access and trade balance. A notable development is the agreement to negotiate potential minimum pricing for Chinese EVs as an alternative to EU tariffs. While addressing immediate trade frictions, both sides also maintained dialogue on climate cooperation, the war in Ukraine, and people-to-people exchanges, setting the stage for continued engagement ahead of a planned EU-China summit.
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