Brussels 24.07.2025 The European Commission President Ursula von der Leyen called for more balanced trade relationship with China as tensions mounted between the two parties.

“For trade to remain mutual beneficial it must become more balanced,” she said, speaking at a press conference at the 25th EU-China summit, pointing to the EU’s growing trade deficit with China.

Today’s Summit was the opportunity to work toward concrete progress in key areas of our bilateral relationship.

While also clearly explaining our concerns.

We remain committed to frank, respectful and open dialogue with China ↓ https://t.co/YvyNqmCuN3

— Ursula von der Leyen (@vonderleyen) July 24, 2025

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“Europe welcomes competition, we like competition, but competition has to be fair,” she explained.

Von der Leyen told reporters there were three key areas the EU had drawn attention to of the Chinese officials, including overcapacity. Subsidized production does not respond to the domestic demand in China, but eventually affects the EU market, she continued.

“We need to see progress on this issue because without progress, it would be very difficult for the European Union to maintain its current level of openness,” Von der Leyen warned, underlining that Chinese officials were looking into the issue.

The EU top executive also flagged market access and export controls on rare earths and permanent magnets as issues. All three of these issues have long been points of contention between the EU and China, and have frequently played into trade tensions between them.

The European Commission President had already struck a firmer tone going into the meeting, urging the Chinese leader to address the rising trade imbalance between the two major economies.

“We have reached an inflection point. Rebalancing our bilateral relation is essential,” she said, according to the official readout, stressing that both sides needed to “acknowledge respective concerns and come forward with real solutions.”

During the press conference Von der Leyen described the talks with Chinese leaders as “very constructive and very pragmatic.”

Meanwhile, Chinese President Xi Jinping had vowed to deepen ties with the EU. The same day he described the bilateral relationship as “mutually beneficial,” saying the ties have become all the more crucial as geopolitical tensions mount globally.

“The more severe and complex the international situation is, the more China and the EU should strengthen communication, enhance mutual trust, and deepen cooperation,” Xi told the EU leaders.

Chinese state media agency Xinhua later reported that Xi also called for differences between the partners to be managed properly.

Trade tensions globally have taken centerstage this year, with the EU-China relations strained by Beijing’s export of excess industrial supply amid weakening domestic demand.

The bloc, which China counts as its second-largest trading partner, raised tariffs on Chinese electric vehicles last year in an effort to protect its domestic industry, forcing Beijing to launch anti-dumping probes into European brandy, dairy and pork.

According to the European Commission, China provides 98% of the EU’s supply of so-called rare earths, which are vital for clean technology, chipmaking and medical equipment.

European Council President Alexander Costa said the EU was also asking China to scrutinize its exports to Russia to avoid dual-use goods being exploited for warfare.

Brussels has long criticized Beijing for its tacit support of Russia’s invasion of its neighbor, support that has among other things helped cushion the effects of Western sanctions on the Russian economy.