EU says China's links with Russia now 'determining factor' in ties
China's leadership has sought to draw the European Union closer as it positions itself as a more reliable partner than the United States and a bedrock of stability in a troubled world.
Though nominally intended to celebrate 50 years of diplomatic ties, the long list of grievances set the stage for a contentious summit.
The EU has made clear there are deep divisions over trade, fears that cheap, subsidised Chinese goods could overwhelm European markets, and Beijing's tacit support for Russia's war against Ukraine.
Brussels says China's deepening political and economic relations with Russia since the 2022 invasion represent backing for Moscow that have helped its economy weather sweeping Western sanctions.
Wrapping up that summit, von der Leyen told a news conference in Beijing that the bloc had made clear that the issue was now the "determining" factor in its relations with China.
"We expressed... our expectations that China would follow up on our concerns and the expectation that it would use its influence to bring Russia to accept a cease fire, to come to the negotiation table, enter peace talks and put an end to the bloodshed," she said.
She also said the bloc had agreed with Beijing to an "upgraded" mechanism for Chinese exports of rare earth minerals — another key sticking point in ties.
And European Council President Antonio Costa, also in Beijing, said the officials had raised human rights concerns with Chinese officials.
China, in contrast, framed Thursday's summit as a way for the bloc and Beijing to deepen trust in a turbulent world — pitching itself as a reliable partner in contrast with the United States.
Welcoming von der Leyen and Costa at Beijing's ornate Great Hall of the People, President Xi Jinping said "the more severe and complex the international situation is, the more important it is for China and the EU to strengthen communication, increase mutual trust and deepen cooperation."
In the context of that turmoil, Xi said, Chinese and European leaders must "make correct strategic choices."
"The challenges facing Europe at present do not come from China," he added.
"There are no fundamental conflicts of interest or geopolitical contradictions between China and the EU," the Chinese leader said.
In response, von der Leyen said "it is vital for China and Europe to acknowledge our respective concerns and come forward with real solutions."
Ties had reached an "inflection point", she warned.
Costa also stressed to the Chinese leader that the bloc wanted to see "concrete progress on issues related to trade and the economy, and we both want our relationship to be... mutually beneficial."
In a separate meeting on Thursday, Chinese Premier Li Qiang told the two EU leaders that "close cooperation" was a "natural choice" for the two major economies.
"As long as both China and the EU earnestly uphold free trade, the international economy and trade will stay dynamic", he said.
Brussels had acknowledged the talks between its top bosses and Chinese leaders would be tense.
"We know that we don't see eye to eye with China on many issues," a senior EU official told AFP last week.
"But we believe that it is essential to have this kind of very direct and open and constructive conversation sitting at the table at the highest level."
China and the EU also vowed to "step up" efforts to address climate change.
The warming planet has historically been an area of convergence between Brussels and Beijing, with both sides signalling a willingness to cooperate on combating climate change.
Chinese and European leaders agreed on enhancing bilateral cooperation in areas such as the energy transition and committed to accelerating global renewable energy deployment, a joint statement said.
Also on the agenda for the EU is the yawning trade deficit with China that stood at around $360 billion last year and which von der Leyen has described as "unsustainable."
Beijing has dismissed those concerns, insisting that Brussels must "rebalance its mentality", not its economic ties with China.
If EU concerns were not addressed, "our industry and citizens will demand that we defend our interests", von der Leyen said in Thursday's talks with Li.
The EU has imposed hefty tariffs on electric vehicles imported from China, arguing that Beijing's subsidies unfairly undercut European competitors.
China has rebuffed that claim and announced what were widely seen as retaliatory probes into imported European pork, brandy and dairy products. — REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BusinessToday
2 hours ago
- BusinessToday
Hong Kong's First Six Months Tourist Arrivals Up 12%
Hong Kong recorded about 24 million tourist arrivals between January and June, up 12 percent year-on-year, the Hong Kong Tourism Board announced on Saturday. In June alone, around 3.48 million arrivals were recorded, up 11 percent, with about 2.61 million visitors coming from the Chinese mainland. The data showed steady growth in visitor numbers during the first half of the year. Arrivals from the mainland totaled about 17.8 million, up 10 percent compared to the same period last year, while non-mainland visitors amounted to around 5.84 million, representing a 17 percent year-on-year increase. Among short-haul markets, Japan, South Korea, and the Philippines recorded growth of 25 percent or more. For long-haul markets, visitor arrivals from Australia saw the sharpest growth, rising by 33 percent compared to the same period last year. To boost summer tourism and spending, the tourism board recently launched a summer-themed campaign, offering over 150 summer rewards and consumption perks to both locals and tourists. Related
New Straits Times
3 hours ago
- New Straits Times
ICJ advisory gives legal firepower to climate activists
THE world's top court may not be able to compel polluting states to halt planet-warming emissions, but experts say its momentous climate decision gives potent legal and political firepower to countries and campaigners on the frontlines. An advisory opinion like the one issued by the International Court of Justice (ICJ) last week is not binding and so is not directly enforceable, but that does not mean it has no weight. By saying that all countries are firmly bound to a swathe of legal obligations under existing laws and treaties, experts say the ruling will influence courts, climate negotiations and policy decisions across the world. The ICJ "couldn't have been clearer" on the binding nature of a range of climate duties, said Cesar Rodriguez-Garavito, professor of law and director of the Climate Law Accelerator at New York University. He said the ruling, which was responding to questions on countries' climate responsibilities from the UN General Assembly, was "as strong as we could have imagined". "The consensus among the judges is fully behind the conclusion that international law establishes clear and binding obligations for states not to cause massive harm to the environment in general and not to harm the climate system in particular," he said. These included ensuring national climate plans reflect the highest possible ambition to stay within the Paris agreement's safer global warming cap of 1.5°C above pre-industrial times — a level that the world could reach this decade. If those obligations are not met, the court said states may be obliged to repair damaged infrastructure or ecosystems — and if that is not possible, they could face compensation claims. This will ripple into future litigation, said Markus Gehring, professor of European and international law at the University of Cambridge. "We are a far cry from a contentious case between two countries, where someone is demanding liability for past and present climate change damage, but in theory, the court lays out an avenue towards such claims," he said. Major petrostates like the United States may take little heed of the court's warning that expanding production of oil, gas and coal could constitute an "internationally wrongful act". But Gehring said countries could choose to ignore ICJ advisory opinions "at their peril". He cited the court's 2019 advice that the United Kingdom should end its occupation of the Chagos islands. After Britain initially rejected the ruling, a UN General Assembly resolution demanded it cede the islands to Mauritius, which it eventually did last year. Gehring said that while the court's climate decision is not directly binding on individual states, it would be indirectly binding through subsequent domestic or international court action and through UN institutions. The move by US President Donald Trump to withdraw from the Paris deal also would be unlikely to absolve the country from its duties, Gehring added, because the obligation to address climate change is now "crystal clear in international law". "So, even leaving the Paris Agreement and the climate treaty regime does not eliminate those obligations," he said. ICJ judge Sarah Cleveland said countries' "significant responsibilities" to protect the climate system may also affect interpretation of international investment law. The ruling was "a decisive legal vindication" for Vanuatu — which spearheaded the push for an ICJ opinion — the country said in a legal analysis of the decision. The Pacific island nation, which is at risk from rising seas, said the court's conclusions would strengthen its hand in global climate negotiations, helping it demand greater climate ambition and attract financial support for countries suffering climate loss and damage. It could also open the way for legal action against countries and possibly companies that have by their actions and omissions caused climate harm, the statement said. "For Vanuatu, the opinion is both shield and sword: a shield affirming its right to survival and a sword compelling the world's major emitters to act in line with science and justice," it added. Manuel Pulgar-Vidal, former president of the UN COP20 climate conference in Peru and now WWF Global Climate and Energy lead, said he expects the ICJ ruling to "move the needle strongly". "The timing is so fantastic because we are in difficult times in the climate debate, so to have that opinion in the current time, it is showing that we should never lose our hope," he said.
The Star
4 hours ago
- The Star
Trump tariffs leave costly China supply question unanswered; Indonesia among countries deeply affected
JAKARTA (Bloomberg): President Donald Trump's recent flurry of trade deals have given Asian exporters some clarity on tariffs, but missing are key details on how to avoid punitive rates that target China's supply chains. Trump unveiled tariffs of 20% for Vietnam and 19% for Indonesia and the Philippines, signaling those are the levels the US will likely settle on for most of Southeast Asia, a region that ships US$352 billion worth of goods annually to the US. He's also threatened to rocket rates up to 40% for products deemed to be transshipped, or re-routed, through those countries - a move largely directed at curbing Chinese goods circumventing higher US tariffs. But still unclear to manufacturers is how the US will calculate and apply local-content requirements, key to how it will determine what constitutes transshipped goods. South-East Asian nations are highly reliant on Chinese components and raw materials, and US firms that source from the region would bear the extra tariff damage. That's left companies, investors and economists facing several unanswered questions about Trump's tariffs that appear aimed at squeezing out Chinese content, according to Deborah Elms, head of trade policy at the Hinrich Foundation in Singapore. "Is that raw materials? All raw materials? Above a certain percentage?' she said. "How about parts? What about labor or services? What about investment?' In an agreement with Indonesia last week, the White House said the two countries would negotiate "rules of origin' to ensure a third country wouldn't benefit. The deal with Vietnam earlier this month outlined a higher 40% tariff rate for transshipped goods. And Thai officials, who have yet to secure a deal, detailed that they likely need to boost local content in exports to the US. Missing Details The Trump administration isn't providing much clarity on the matter right now. US officials are still working out details with trading partners and looking at value-based local content requirements, to ensure exports are more than just assembled imported parts, according to a person familiar with the matter, who didn't want to be identified discussing private talks. A senior Trump administration official also said this week that details on the approach to transshipment are expected to be released before Aug. 1, the deadline for when higher US tariffs kick in. Some factories are already adjusting their supply chains to comply with rules that will require more locally-made components in production. Frank Deng, an executive at a Shanghai-based furniture exporter with operations in Vietnam - and which gets about 80% of business from the US - said in an interview his firm is making adjustments as authorities appear to be more strictly enforcing country-of-origin rules. Vietnam has always had specific local content requirements for manufacturers, Deng added, including that a maximum of 30% of the volume of raw materials originates from China, and the value after production in Vietnam must be 40% higher than the imported raw materials. "We've been struggling to meet all the standards so that we can still stay in the game,' Deng said. "But I guess that's the only way to survive now.' For most of Southeast Asia, reducing the amount of Chinese-made components in manufacturing will require a complete overhaul of their supply chains. Estimates from Eurasia Group show that Chinese components make up about 60% to 70% of exports from Southeast Asia - primarily industrial inputs that go into manufacturing assembly. About 15% of the region's exports now head to the US, up about four percentage points from 2018. Local Content The US has become increasingly vigilant about China's ability to bypass US trade tariffs and other restrictions through third countries since Trump's first trade war in 2017. Thailand signaled its frustration over the lack of clarity for how much local content is needed in goods exported to the US to avert transshipment rates, but noted it will likely be much higher than a traditional measure of 40%. "From what we've heard, the required percentage could be significantly higher, perhaps 60%, 70%, or even 80%,' Deputy Prime Minister Pichai Chunhavajira said July 14. "Emerging countries or new production bases are clearly at a disadvantage,' he said, as their manufacturing capabilities are still at an early stage and must rely on other countries for raw goods. Vietnam, Thailand and Malaysia have all taken steps this year to address Trump's concerns, increasing scrutiny of trade that passes through their ports including new rule-of-origin policies that centralize processing and imposing harsh penalties on transshippers. Developing nations may still struggle to enforce Trump's rules or comply with the rules if it means going up against China, their largest trading partner and geopolitical partner. "The reality is it's not enforceable at all,' said Dan Wang, China director at Eurasia Group. "Chinese companies have all kinds of ways to get around it and those other countries have no incentive to enforce those measures, or capacity to collect the data and determine local content.' -- Reports from Patpicha Tanakasempipat, Skylar Woodhouse and Nguyen Dieu Tu Uyen. -- ©2025 Bloomberg L.P.
