"Inflection Point" in EU-China Ties
Von der Leyen described the relationship as standing at an "inflection point," citing the EU's record €305.8 billion ($360 billion) trade deficit with China last year. "Rebalancing of our bilateral relation is essential," she told Xi during talks held in the Great Hall of the People. "It is vital for China and Europe to acknowledge our respective concerns and come forward with real solutions."

European Council President Antonio Costa joined von der Leyen in the high-level talks, which were reduced to a single day at China's request.
Despite recent EU criticism—especially von der Leyen's remarks in July accusing China of flooding global markets and supporting Russia's war economy—the European leader expressed a willingness to restore balance in cooperation.

Just ahead of the summit, she posted that it was an opportunity to "both advance and rebalance our relationship," adding that she believed in the potential for "mutually beneficial cooperation."

Xi Calls for "Correct Strategic Choices"
President Xi responded by urging the EU to make what he described as "correct strategic choices," suggesting that Brussels should move away from its increasingly firm stance. "The more severe and complex the international situation, the more China and the EU must strengthen communication, enhance mutual trust and deepen cooperation," Xi said.

According to Chinese state media, Xi emphasized that China and Europe should remain partners, not rivals. Meanwhile, Chinese news outlets also downplayed rising tensions, stressing shared interests in trade, climate policy, and global governance.

Trade Frictions Persist Amid Dialogue
The backdrop to the summit has been weeks of trade-related disputes. European leaders are concerned about China's industrial overcapacity and recent export controls. In April, China restricted exports of rare earths, disrupting global supply chains and causing temporary production stoppages in Europe. However, by June, exports of rare earth magnets to the EU had jumped 245% from the previous month, reaching 1,364 metric tons, though still down 35% compared to the previous year.

European leaders are also expected to discuss electric vehicle competition and industrial subsidies during continued meetings with Chinese Premier Li Qiang.

In parallel, the EU is finalizing a trade agreement with the United States to secure a 15% export tariff—avoiding a harsher 30% rate previously proposed by former President Donald Trump.

Despite the tense atmosphere, both sides aim to produce at least a modest joint statement on climate, one of the few areas where China and the EU continue to see consistent cooperation.