2 August 2025
Welcome to China-EU dynamics! In this edition, we will review the outcome of the most important high-level engagement between China and the EU at the 50th anniversary of the establishment of diplomatic relations between the two sides. We will also delve into the latest high-level engagements between China and Europe, and witness the promising future for China's economy. Enjoy reading!
China-EU Summit
On July 24, 2025, President Xi Jinping met with President of the European Council António Costa and President of the European Commission Ursula von der Leyen.
Xi Jinping noted that over the past 50 years, China and the EU have achieved fruitful outcomes in exchanges and cooperation, delivering mutual success and worldwide benefits. An important understanding and insight is that the two sides should respect each other, seek commonality while reserving differences, uphold openness and cooperation, and pursue mutual benefit. Chinese and EU leaders should once again demonstrate vision and leadership, make the right strategic choices that will meet people’s expectations and stand the scrutiny of history, steer the right course for the development of China-EU relations, and work to open a brighter next 50 years for China-EU relations, contributing more stability and certainty to the world.
Xi put forward three proposals for advancing China-EU relations:
▶️ Upholding mutual respect to reinforce the China-EU partnership.
▶️ Upholding openness and cooperation to manage differences and frictions.
▶️Upholding multilateralism to safeguard international rules and order.
The EU leaders stated that President Xi Jinping's three proposals on EU-China relations are of great importance. The EU is committed to deepening relations with China, handling differences in a constructive manner, and promoting bilateral cooperation on the basis of equilibrium, reciprocity, and mutual benefit to continue achieving more positive outcomes. The EU does not seek "decoupling and severing supply chains" from China and welcomes Chinese enterprises to invest and do business in Europe. The EU looks forward to working with China to continue writing a more brilliant chapter in the next 50 years of EU-China relations.
Chinese Premier Li Qiang co-chaired the 25th China-EU Summit with President Costa and President von der Leyen. Li said that History has demonstrated time and again that when there is mutual respect, mutual understanding and mutual openness, China-EU cooperation runs smoothly and benefits both; when there is estrangement and disruption in their relations, cooperation stalls and both sides are hurt.
China hopes for upgraded economic and trade cooperation with the EU, with consolidated and deepened cooperation in traditional areas such as trade and investment, and expanded cooperation in emerging areas such as artificial intelligence, digital economy, and green development to achieve more results, Li said.
Both sides can forge an "upgraded version" of the China-EU export control dialogue mechanism to ensure the stability of industrial and supply chains between China and Europe. They should also properly handle disputes and frictions through dialogues, consultation, and deepened cooperation, Li said. He called on the EU to adhere to market principles and provide a fair, equitable and non-discriminatory environment for Chinese enterprises investing in Europe.
Both sides should jointly uphold multilateralism and free trade, resist unilateralism and protectionism, firmly support the United Nations' core status in global governance, support the reform and development of the World Trade Organization, defend international fairness and justice as well as the global economic and trade order, and jointly promote world peace, stability and prosperity, Li added.
Leaders of China and the EU issued a joint statement on climate change, in which they recognized that strengthening China-EU cooperation on the issue will impact the well-being of people on both sides, and is of great and special significance to upholding multilateralism and advancing global climate governance.
Exchange between China-EU Business Leaders
Chinese Premier Li Qiang and President of the European Commission Ursula von der Leyen, as well as some 60 business leaders, attended the China-EU Business Leaders Symposium held on 24 July.
Li called on China and the EU to expand trade and investment ties to enhance their economic resilience and vitality, and to increase their ability to negotiate external uncertainties. China and the EU can play pivotal roles in economic globalization, and in the stability of international industrial and supply chains, by working together to uphold free trade and multilateralism, and through closer economic and trade cooperation. China will continue expanding its high-level opening-up, shorten its negative list for foreign investment, strengthen intellectual property protection and safeguard fair competition. Welcome more European businesses to invest and pursue long-term operations in China.
Von der Leyen said that China is not only an industrial powerhouse but also a top performer in innovation. The EU stands ready to use the 50th anniversary of diplomatic relations as an opportunity to deepen its long-term, stable and mutually beneficial partnership with China. The EU has no intention to decouple from China and welcomes Chinese enterprises to invest in Europe.
Chairman of the Standing Committee of Chinese NPC in town
Chairman of the Standing Committee of the NPC Zhao Leji paid an official goodwill visit to Hungary from July 24 to 28. He met with Hungarian President Tamás Sulyok and Prime Minister Viktor Orbán, and said that China is ready to work with Hungary to be good friends with mutual respect and mutual trust, good partners with mutual benefits and win-win results, and good brothers who understand and care for each other. China appreciates Hungary's firm commitment to the one-China principle and is ready to continue firm mutual support with Hungary. The China-Hungary mutually beneficial cooperation has a solid foundation and yields fruitful results. China hopes and believes that Hungary will continue to play a positive role in the sound and stable development of China-EU relations. Hungary has always firmly supported and actively participated in the cooperation between China and the Central and Eastern European Countries, and China is ready to work with Hungary to continue promoting practical results in the cooperation.
Zhao also paid an official goodwill visit to Switzerland, where he called for jointly advancing the high-level development of the China-Switzerland innovative strategic partnership. China is willing to maintain the positive momentum of high-level exchanges with Switzerland and welcomes more Swiss leaders and parliamentarians to visit China to understand a real, multidimensional and comprehensive China. China appreciates Switzerland's commitment to expanding cooperation with China and hopes to strengthen exchanges and interactions to pool more positive energy for the development of bilateral relations. China and Switzerland, both important forces loving peace and advocating multilateralism, should continue to enhance multilateral coordination, jointly combat unilateralism and protectionism, and safeguard international trade rules and world economic order, so as to promote a more just and equitable global governance.
Trade Talk Between China and the US
China and the U.S. held a new round of economic and trade talks in Stockholm from July 28 to 29. Based on the meeting consensus, both sides will continue pushing for the continued extension by 90 days of the pause on 24 percent of reciprocal tariffs of the U.S. side, as well as counter measures of the Chinese side.
Chinese Vice Premier He Lifeng said that the U.S. should work with China to continue to enhance consensus, reduce misunderstandings, strengthen cooperation, further deepen dialogue and consultations, and strive for more win-win outcomes. A stable, healthy and sustainable China-U.S. economic and trade relationship serves not only the two countries' respective development goals but also contributes to global economic growth and stability. The essence of China-U.S. economic and trade relations lies in mutual benefit and win-win cooperation. Both sides should continue adhering to the important consensus reached by the two heads of state during their phone talks, and make full use of the role of the China-U.S. economic and trade consultation mechanism.
The U.S. side said that a stable U.S.-China economic and trade relationship is of great significance to the economies of both countries and the world at large. The U.S. stands ready to work with the Chinese side to continue to resolve differences in the economic and trade field through the consultation mechanism, promote more outcomes from the talks, and further stabilize bilateral economic and trade relations.
He Lifeng also met with Swedish Prime Minister Ulf Kristersson in Stockholm. Noted that this year marks the 75th anniversary of the establishment of diplomatic relations between China and Sweden, He stated that China is ready to work with Sweden to enhance communication and deepen cooperation on the basis of mutual respect, mutual trust, equality and mutual benefit. Both sides should jointly uphold multilateralism and free trade, and promote the sound and steady development of bilateral relations.
China's Economy Embrace Bright Future
China registers 5.3% GDP growth in H1 2025, showing strong momentum. Some other important numbers:
▶️ China's industrial output increased by 6.4% year-on-year;
▶️ Retail sales of consumer goods expanding 5% year-on-year;
▶️ Fixed-asset investment expanding 2.8% year-on-year;
▶️ Per capita disposable income reached ¥21840, marking a 5.3% year-on-year increase.
These data clearly show that China's economy signals resilience amid global uncertainties and domestic pressures, which will inject more momentum into global economic growth.
European Companies Eye on Green Cooperation with China
European businesses expressed enthusiasm to further tap into potential cooperation in greenfield cooperation with their Chinese partners, following the release of a joint statement on climate change by Chinese and EU leaders that injects new impetus into collaboration in the booming green sector. Well-known European companies, such as Maersk, Grundfos and BMW also reaffirmed their commitment to the Chinese market, with a strong focus on the green sector.
Disclaimer: The views and opinions expressed in the newsletter are those of the authors and do not necessarily reflect the official policy or position of China or our Mission, except those from the official website of the Chinese Foreign Ministry, our Mission and other Chinese governmental websites.
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