Xi Seeks Detente With Europe as Trump’s Tariffs Alienate Bloc
President Xi Jinping is seeking to repair ties with the European Union, painting China as the more reliable partner as Donald Trump alienates the bloc over issues from tariffs to defense.
Faced with an effective trade embargo from the US, Chinese policymakers and business leaders are searching for new markets in Europe and beyond. To help smooth those ties, Xi is preparing to lift sanctions on several EU lawmakers, according to one European official — a largely symbolic gesture of good will as the measures had little impact.
“As the world’s major economies, China and Europe will jointly safeguard the multilateral trading system,” the Chinese Foreign Ministry said in a statement Thursday, adding that it would welcome more European members of parliament to visit China, without addressing reports on sanctions being lifted.
While leaders in Europe remain fiercely opposed to Beijing’s support for Russian President Vladimir Putin, they’ve indicated a willingness to move forward on some issues. EU officials are considering minimum price quotas on Chinese electric cars, in place of tariffs as high as 45.3% imposed last year over complaints of an export glut.
Such a move would help draw a line under a long-running spat that saw Beijing impose retaliatory levies on French cognac. The conclusion of that process has also been delayed for three months, easing pressure on producers.
At the Shanghai auto show this week, Chinese executives laid out their investment plans in Europe, as exporters across the nation retreat from US markets. Some European counterparts urged a more pragmatic approach to resolving disputes and called to push ahead with closer collaboration.
“Beijing would ideally like to detach Europe from the US and essentially make it a kind of natural shield for China’s ambitions,” said Rana Mitter, ST Lee chair in US-Asia relations at the Harvard Kennedy School. “But while the EU may be wary of America, it’s not going to abandon the American market or its traditional orientation in favor of China, which many regard as extremely unreliable trading partner.”
For years, Europe served as a buffer between the world’s biggest economies, but attitudes in the bloc toward Beijing soured after the coronavirus outbreak fueled a range of diplomatic disputes. That saw European leaders forge a largely unified voice with Washington on “derisking” its economy from China and opposing a flood of cheap exports that threatened jobs.
Trump has eroded that alliance by slapping Europe with a 20% tariff — now reduced to 10% for a 90-day pause — and demanding the EU pays for its own defense while moving closer to Putin. European leaders have made little progress in trying to bridge differences with Trump, despite the EU offering that both sides remove all tariffs on industrial goods.
As the divide deepens, Treasury Secretary Scott Bessent has warned the EU against tightening ties with Beijing, likening such a strategy to “cutting your own throat” when Spanish Prime Minister Pedro Sanchez visited Xi earlier this month pledging greater cooperation.
Reflecting the EU’s desire to rebalance ties, European leaders are now set to travel to Beijing in July for a summit that was expected to be held in Brussels, given that its location rotates. Officials decided to break protocol after Xi reportedly refused to travel to Europe for the talks, which are normally attended by the premier overseas.
Source : Bloomberg
