Analysis: Sino-EU relations & economic Summit

by LUKE ZUNGA
JOHANNESBURG – THE European Union (EU) and China have a strong economic relationship, but soured by Russia – Ukraine war and allegations of unhealthy trade competition.

However, the overriding factor is the unpredictability of the United States (US) in terms of EU defence and desire for sustainable partners in the trajectory.

China plays into the picture for its stability, growing market, superpower status, if she can be made to toe the line and away from Russia.

This is the paradox which the EU-China summit faced.

Last Thursday on 24 July 2025 the EU leaders held a diplomatic and economic summit in the Chinese capital – Beijing in a subdued gathering to forge 50 years of their diplomatic ties.

The backdrop was that the Chinese leader, Xi Jinping had declined an invitation on 16th March 2025 to attend the EU leg of the celebrations in Brussels, but attended the Russian annual World War II victory parade in Moscow in May.

It had been a tradition for the Chinese President to attend. Instead, the Chinese foreign minister, Wang Yi attended in Brussels on 30th June 2025 where he met Belgian Prime Minister Bart De Wever and Foreign Minister Maxime Prévot.

He also visited France and Germany for bilateral talks.

The EU delegation was headed by the President of the European Council, António Costa, and President of the European Commission, Ursula von der Leyen.

The Chinese delegation consisted of President Jinping and Premier Li Qiang for the two separate sessions.

The High Representative of the EU for Foreign Affairs and Security Policy, Kaja Kallas, was in attendance.

The EU President von der Leyen said the EU-China relations have reached an ‘inflection point’, redefining the relations by properly managing their differences within the hawkish attention of the US and the threat of US tariffs.

The EU was opening up to a new chapter. The EU cannot ignore China as a new world power which can help to plug the potential market lost to US tariffs.

The Beijing summit reflected the importance of EU and China trade and economic ties.

The EU is the second biggest economic block with US$19 trillion gross domestic product (GDP), behind the US at U$29 trillion, while China is at US$18 trillion.

The issues which damped the atmosphere were the war in Ukraine. The EU wants China to be on its side, and for China to consider the Russian war of aggression as a threat to Ukraine and global security.

They want China, as a permanent member of the UN Security Council, to uphold the “rules-based international order and the UN Charter’s core principles”, by not supporting Russia through supply of war and other materials which strengthen Russia’s military.

The EU hoped to nudge Russia. The EU wants China to support the EU version of a “just and lasting peace’.

The EU wants China to show a plan to reduce emissions by 2035, increase international finance contributions and contribute towards the Kunming-Montreal biodiversity framework, 23 action-oriented biodiversity targets adopted at COP15.

The EU accuses China of controlling rare minerals around the world to stifle EU competition.

China wants the EU to review tariffs on Chinese goods including Electric vehicles.

China wants the EU to use diplomacy to solve the Russia – Ukraine war, not the idea of a military victory or stalemate and imposition of sanctions on two Chinese banks for assisting Russia.

China wants the EU to realize that the North Atlantic Treaty Organization (NATO) membership of the EU is not part of the deal.

The atmosphere was damped by Ukraine’s recent claims in June 2025 that it captured two Chinese soldiers fighting on the Russian side, an allegation which China did not challenge.

It was a bull’s eye meeting. Both sides committed to further engagements.

The EU looks to China to stabilize the globe in the face of unpredictable US politicians.

China lauded that it is not a threat to Europe and the problems of Europe are not caused by China, but wants Europe to adopt diplomatic mechanisms to solve issues early enough.

The Russian issues had been on the table for a long time, before exploding into war.

In the face of EU and US tactics in the South China Sea, China cannot be on the political side of the EU.

The world is realigning. The meeting did not table BRICS (Brazil, Russia, India, China, and South Africa), but China’s leadership of BRICS was in their minds.

BRICS is an intergovernmental organization comprising Brazil, Russia, India, China, and South Africa, but recently it included Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates (UAE), which is aimed at greater economic and geopolitical integration among member states.

The EU was in South Africa to strengthen ties with the hub of Africa on recognition that South Africa chose BRICS.

The leadership of world politics is shifting, and the final results are still in the making, hopefully through the morphosis of BRICS and African economies.

– CAJ News

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