EU-China Summit: A positive step for enhanced relations
This article was originally published in Italian on Class on 25th Aug 2025.
Please note that this is a courtesy translation of the Italian language article originally published on Class Issue at:https://www.classxhsilkroad.it/news/politica-economica/ue-cina-passi-avanti-nelle-relazioni-dopo-il-vertice-di-luglio-202508251155593305
EU-China Summit: A positive step for enhanced relations
On 24 July, the 25th EU-China Summit took place in Beijing, China. President of the European Council, António Costa, and President of the European Commission, Ursula von der Leyen, met with Chinese President Xi Jinping and Chinese Premier Li Qiang at the summit.
Despite initial low expectations, the Summit exceeded what was expected, delivering several positive results, such as the release of a joint statement on climate and an agreement to establish an improved export supply mechanism. This signals a positive shift in collaborative efforts, and lay the groundwork for meaningful progress. It is crucial that these agreements are effectively implemented to translate intentions into tangible results.
Views from the businesses
A business roundtable accompanied the summit, hosted by China’s Ministry of Commerce. This event featured two sessions: one for CEOs from leading European companies and another for state leaders, including von der Leyen and Premier Li Qiang. European Chamber President Jens Eskelund delivered a keynote address, outlining the importance of robust engagement between the EU and Chinese businesses.
This is the first time in eight years that both European and Chinese companies are present at this summit, demonstrating the increasing interest of the latter in the EU Single Market.
During the CEO session, European executives voiced optimism about the long-term potential of the Chinese market. However, they also highlighted several critical challenges faced by European foreign-invested enterprises (FIEs), including:
· a lack of market access and fair competition between FIEs and domestic Chinese companies;
· the lack of a transparent, predictable and efficient regulatory environment;
· challenges related to the financing of company operations and account receivables;
· overly stringent localisation requirements;
· a lack of alignment between China’s regulatory framework and global standards;
· intellectual property rights-related issues.
In a dedicated session, the European Chamber discussed the challenges faced by European SMEs' in China. The Chamber also highlighted market access barriers in specific sectors, including energy, Information and Communications Technology, banking, pharmaceuticals, and medical devices.
Additionally, several representatives of the European Chamber had a constructive conversation with Minister of Commerce Wang Wentao, emphasising the ongoing persistent issues surrounding export controls on rare earths. He acknowledged the concerns raised by European companies and expressed willingness to resolve them, an encouraging effort which would need to be followed by concrete steps.
Reflecting on the next steps
Looking ahead, the summit sets a positive precedent for ongoing discussions at all levels, especially in light of the current global trade climate. As Chinese Premier Li Qiang remarked: “both sides can fully leverage their comparative advantages for mutual benefit […] At a time when global growth momentum is waning and economic vitality is slowing, continued expansion of trade and investment between China and the EU can generate powerful synergies for development.” Interestingly enough, he also used the expression “irrational competition” for the first time to describe overcapacity, reflecting a shift in mindset compared to high officials who were until recently asserting that overcapacity does not exist.
President von der Leyen also expressed her wish to build a more meaningful and stable relationship with China, noting that the bloc’s concerns will have to be addressed for this to be possible.
Given the expressed interest from Chinese companies in investing in Europe, the EU should fully recognise its strengths, including a large consumer base, and leverage this in negotiations to adopt a bolder stance.
These summits are a good opportunity to engage in honest discussions and highlight issues European companies face. However, it needs to lead to concrete results and cover specific points stressed during the summit such as improving conditions for SMEs, aligning China’s regulatory framework with global standards or strengthening Intellectual Property protection.
Continued engagement and technical discussions will be essential to address these challenges, ultimately paving the way for a more equitable trade and investment relationship between the EU and China. The European Chamber remains committed to assisting both parties in this sense.
By: Avv. Carlo D’Andrea, National Vice President of the European Union Chamber of Commerce in China and Chairman of the Board of the Shanghai Chapter, Founder and Managing Partner of D’Andrea & Partners Legal Counsel
