EU-China Summit 'Tensions Over Electric Vehicle Subsidy Investigation'

European Union (EU) and Chinese leaders, holding their first official summit in four years, agreed on the need to "enhance mutual benefits" on the 7th (local time). However, a subtle standoff continued over key issues such as the Ukraine war and the EU's anti-subsidy investigation into Chinese electric vehicles.

Charles Michel (photo left), President of the European Council, Xi Jinping, President of China (photo center), and Ursula von der Leyen, President of the European Commission (photo right), are taking a commemorative photo on the 7th (local time) in Beijing, China.

Charles Michel, President of the European Council, and Ursula von der Leyen, President of the European Commission, met with Chinese President Xi Jinping in Beijing on the 7th (local time), followed by a meeting with Chinese Premier Li Qiang in the afternoon.

President Michel stated, "The EU hopes to build relations with China based on the principles of transparency, predictability, and reciprocity." President Xi said, "China and Europe should become partners of mutual benefit and cooperation," adding, "All forms of interference must be removed, and dialogue and cooperation strengthened to benefit the peoples of both sides."

Both sides emphasized the need for cooperation to maximize their mutual interests, but a subtle standoff emerged over key issues.

The EU leadership directly mentioned Chinese companies aiding Russia in evading Western sanctions to President Xi. The EU suspects that about ten companies headquartered in China are exporting so-called dual-use products, which could be diverted for military purposes, to Russia. President Michel emphasized, "I hope (President Xi) heard our message, and sincerely hope China will take appropriate measures thereafter." In a press release issued after the summit, the EU also stated, "The EU urged China to prevent Russia from circumventing or weakening the impact of sanctions." Political media outlet Politico interpreted this statement as implying that the EU may impose new sanctions on Chinese companies if China fails to take appropriate corrective actions.

China expressed discomfort over the strengthening anti-China stance in EU policies. According to China Central Television (CCTV), President Xi said, "Different systems should not be regarded as rivals, competition should not reduce cooperation, and differences should not lead to confrontation." Premier Li Qiang took a firm stance, saying, "China opposes politicizing and securitizing economic and trade issues, violating the basic rules of the market economy," and "hopes Europe will use trade remedy measures cautiously and maintain openness in trade and investment markets." This appears to be a reference to the EU member state Netherlands' export controls on semiconductor equipment to China and the EU's ongoing anti-subsidy investigation into Chinese electric vehicles.

No separate joint summit statement was adopted that day, and no joint press conference between the EU and China was held.