Chinese President Xi Jinping called on European Union leaders Thursday at a high-level summit in Beijing to make what he described as the “right strategic choice,” amid ongoing trade tensions and economic fragmentation that are straining relations between Beijing and the West.

At the opening session of the annual China-EU Strategic Dialogue, President Xi emphasized the significance of cooperation and mutual respect in an ever-evolving global landscape, marked by protectionism, supply chain disruptions, and geopolitical realignments.

“The world is currently witnessing unprecedented changes. China and the EU must act responsibly by choosing partnership over confrontation,” according to President Xi. We hope the EU will make its strategic decisions based on long-term interests rather than short-term pressure, said Xi.

His remarks were seen as a response to growing European Union scrutiny of Chinese trade practices, such as investigations into state subsidies for electric vehicles, export controls on key raw materials, and concerns over intellectual property protection. Recently, Brussels has taken an aggressive stance towards trade imbalances and industrial competition with Beijing.

Ursula von der Leyen, who co-chaired the summit alongside European Council President Charles Michel, acknowledged the necessity of continuing engagement but reiterated Europe’s stance regarding fair trade.

“Our economic relationship should be fair, equitable and rules-based,” von der Leyen stated. “We do not aim to isolate China but must address structural issues which impact industries and competitiveness.

She highlighted EU leaders’ concerns regarding China’s excessive production capacity in sectors like steel, solar panels and electric vehicles; leading figures have pointed out how such excess Chinese capacity leads to market distortions and unfair competition for domestic manufacturers.

Michel stated that the EU was committed to strengthening relations with China on global challenges such as climate change, food security and digital regulation; yet noted that strategic autonomy remains a cornerstone of European policy.

This summit comes at an auspicious time as global economic uncertainty arises from rising inflation, disrupted trade routes and shifting alliances. China has shown slow post-pandemic recovery while EU member states face pressure to protect certain industries from external shocks.

China has long seen the EU as an effective counterbalance to U.S. containment efforts, so President Xi’s appeal to it echoed previous calls for multipolar cooperation and resistance against what Beijing perceives as American containment efforts. China values EU membership and its potential counterbalancing role against Washington; hence why they wish to maintain economic and diplomatic ties despite any current disagreements.

Trade between China and the EU remains robust, totaling more than EUR850 billion in 2024, although ongoing disputes over market access and human rights continue to generate tensions.

Analysts anticipate Thursday’s summit could shape China-EU relations for years. “Beijing is looking to reshape narrative and keep Europe engaged while managing growing mistrust,” according to Lin Mei, senior researcher from the China-Europe Institute.

As negotiations continue behind closed doors, both parties appear keen to prevent further escalation — yet significant differences still remain unresolved.