China’s stance has hardened on the EU, despite a few olive branches, like the suspension of sanctions on European lawmakers who criticized Beijing’s human rights record in Xinjiang province, where it is accused of a widespread campaign of repression against the Uyghurs.

The summit ended with almost no movement on the major issues of trade, electric vehicles, or Russia, said Noah Barkin, an analyst at the Rhodium Group think tank. Rather, frustration from the EU was glaringly obvious “after years in which its concerns have been largely ignored by Beijing.”

He said the Europeans will likely use more “trade defense tools in the months ahead, including a debate over expanding safeguards and new cases under the bloc’s foreign subsidies regulation.”

Trade disputes range from rare earths to EVs

Like the U.S., the 27-nation EU bloc runs a massive trade deficit with China — around 300 billion euros ($350 billion) last year. It relies heavily on China for critical minerals and the magnets made from them for cars and appliances. When China curtailed the export of those products in response to Trump’s tariffs, European automakers cried foul.

China agreed during the summit to to start “an upgraded export supply mechanism” to fast-track exports of critical minerals, von der Leyen said. Details of the arrangement were not immediately made public. Barkin said he doubted the mechanism would be “a miracle solution for what may become a go-to coercion tool for Beijing in the years ahead.”

The EU has imposed tariffs on Chinese electric vehicles to support its carmakers by balancing out Beijing’s heavy auto subsidies. China would like those tariffs revoked.

The rapid growth in China’s market share in Europe has sparked concern that Chinese cars will eventually threaten the EU’s ability to produce its own green technology to combat climate change. Business groups and unions also fear that the jobs of 2.5 million auto industry workers could be put in jeopardy, as well those of 10.3 million more people whose employment depends indirectly on EV production.

China has launched investigations into European pork and dairy products, and placed tariffs on French cognac and armagnac. It has criticized new EU regulations of medical equipment sales and fears upcoming legislation that could further target Chinese industries, said Alicia García-Herrero, a China analyst at the Bruegel think tank.

The EU has leverage because China needs to sell goods to the bloc, García-Herrero said. “The EU remains China’s largest export market, so China has every intention to keep it this way, especially given the pressure coming from the U.S.,” she said.

China bristles at EU sanctions over Russia’s war against Ukraine. The latest package included two Chinese banks that the EU accused of links to Russia’s war industry.

China’s Commerce Ministry protested the listing and vowed to respond with “necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises and financial institutions.”

The EU looks beyond Beijing and Washington

Buffeted between a combative Washington and a hardline Beijing, the EU has more publicly sought new alliances elsewhere, inking a trade pact with Indonesia and drafting trade deals with South America and Mexico.

Costa and von der Leyen visited Tokyo the day before their meetings in Beijing, launching an alliance with Japan to boost economic cooperation, defend free trade and counter unfair trade practices.

“Both Europe and Japan see a world around us where protectionist instincts grow, weaknesses get weaponized, and every dependency exploited,” von der Leyen said. So it is normal that two like-minded partners come together to make each other stronger.”

McNeil reported from Brussels. Mark Carlson in Brussels and Olivia Zhang in Beijing contributed to this report.

Originally Published: July 24, 2025 at 1:55 PM EDT