FX.co ★ China and EU to Hold Summit This Week Amid Trade Tensions

China is set to host a significant summit with the European Union in Beijing this week, commemorating 50 years of diplomatic relations at a time of mounting global trade tensions. On Thursday, European Commission President Ursula von der Leyen and European Council President Antonio Costa will convene with Chinese President Xi Jinping, while Premier Li Qiang will jointly preside over the 25th China-EU summit. The primary objectives of this gathering are to alleviate trade tensions and fortify economic and political connections, particularly as China seeks alternatives amidst uncertainties in its relationship with the United States. Since 2021, EU-China relations have been challenged by the European Union's sanctions on Chinese officials due to alleged human rights violations in Xinjiang, which led to reciprocal sanctions from China. Additional strain has arisen from trade conflicts concerning Chinese electric vehicles, European brandy and pork, public procurement of medical equipment, and the export of rare earth elements. This summit provides both parties an opportunity to reassess their relationship in light of evolving geopolitical and economic landscapes.