EU says China's links with Russia now 'determining factor' in ties

EU says China's links with Russia now 'determining factor' in ties

EU chief Ursula von der Leyen (L) warns that China's ties with Russia were now the 'determining' factor in its relations with the European Union

EU chief Ursula von der Leyen warned on Thursday that China's ties with Russia were now the "determining" factor in its relations with the European Union, as she wrapped up a tense summit in Beijing that also saw China agree to speed up exports of rare earth minerals to the bloc.

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.

But while nominally intended to celebrate 50 years of diplomatic ties, 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 Moscow since the 2022 invasion have helped Russia's economy weather sweeping Western sanctions. Beijing denies that claim.

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.

She and European Council President Antonio Costa 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 ceasefire, to come to the negotiation table, enter peace talks and put an end to the bloodshed", von der Leyen said.

She also said the bloc agreed with Beijing to an "upgraded" mechanism for Chinese exports of rare earth minerals -- another key sticking point in ties.

China dominates the global industry for extracting and refining rare earths.

Since April, it has required licences to export some of the strategic materials, triggering anxiety among businesses worldwide.

"If there is a delay... we have now established a mechanism where the companies can immediately ask us to mediate and to find out why there's a delay on the delivery of the critical raw materials," von der Leyen said.

And Costa said the officials had raised human rights concerns with Chinese counterparts.

- 'Deepen cooperation' -

China, in contrast, framed Thursday's summit as a way for the bloc and Beijing to deepen trust in a turbulent world.

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". 

"The challenges facing Europe at present do not come from China," he said, calling on both sides to "make correct strategic choices".

Costa also stressed to the Chinese leader that the EU wanted to see "concrete progress on issues related to trade and the economy, and we both want our relationship to be... mutually beneficial".

Chinese Premier Li Qiang told the EU leaders in a separate meeting 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.

- Climate agreement -

In rare agreement, China and the EU vowed to "step up" efforts to address climate change.

The warming planet is historically an area of convergence between Brussels and Beijing, with both willing to cooperate on combating climate change.

Chinese and European leaders agreed on enhancing bilateral cooperation in energy transition and committed to accelerating global renewable energy deployment, a joint statement said.

The EU also flagged its yawning trade deficit with China that stood at around $360 billion last year and which von der Leyen described as "unsustainable".

Beijing 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 told Premier 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.

bur-oho/dhw

Originally published as EU says China's links with Russia now 'determining factor' in ties