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In her speech at the European Parliament in Strasbourg, Ursula von der Leyen highlighted that Beijing is currently experiencing "the largest trade surplus in human history," with a substantial influx of goods heading to Europe while simultaneously complicating operations for European businesses in China. She stated that for the partnership to move forward, there must be a true rebalancing that reduces market distortions, curtails China's overcapacity in exports, and provides fair access for European enterprises.

In 2024, China's trade surplus with the EU is projected to reach $357 billion. Brussels is concerned that the extensive subsidies from the Chinese government are inducing excess manufacturing capacity, which could exacerbate trade imbalances and overwhelm European markets with cheap goods.

Trade friction is escalating. The Chinese government recently announced restrictions on imports of EU medical devices as a reciprocal measure against the EU's similar actions. China has also imposed anti-dumping duties on EU brandy. Moreover, disputes over electric vehicles and solar panels remain unresolved between China and the EU.

The leaders from both sides are set to meet in Beijing at the end of the month to commemorate the 50th anniversary of diplomatic relations. However, trade tensions and significant disagreements concerning the Russia-Ukraine war have cast a shadow over the summit. Reports suggest that China may reduce the originally planned two-day summit to just one day.

Von der Leyen, along with European Council President Antonio Costa, will attend the summit in Beijing, highlighting the need for China to ease restrictions on rare earth exports while the EU is committed to developing alternative resource supplies. According to the International Energy Agency, China accounts for two-thirds of global rare earth mining and 92% of refined rare earth products.

In addition to economic disputes, China's subtle role in the Russia-Ukraine war has also intensified tensions. Von der Leyen remarked that China's ongoing support for Russia's wartime economy is something Europe cannot accept, and how China continues to interact with Putin will be a decisive factor in future EU-China relations.