The upcoming EU-China summit in Beijing is expected to yield minimal progress on resolving key trade disputes. Diplomatic sources confirm that China has reduced the summit to a single day and rejected the European Union’s proposal to host the meeting in Brussels.
The EU's primary concern remains its widening trade deficit with China, which reached €400 billion in 2023, according to Eurostat. Imports from China totalled €626 billion, while exports to China stood at only €226 billion. The imbalance has persisted for years and is now considered politically unsustainable in Brussels.
The European Commission has repeatedly raised concerns about limited access for European firms operating in China. Major issues include forced technology transfers, joint venture requirements, licensing delays, unequal treatment in public procurement, and regulatory ambiguity. In contrast, Chinese companies enjoy comparatively free access to the EU markets.
One example is the EU's ongoing anti-subsidy investigation into Chinese electric vehicle manufacturers. The investigation, launched in 2023, is focused on whether extensive state subsidies have enabled Chinese firms to flood the European market with artificially low-priced electric vehicles, undercutting European manufacturers. Chinese EVs now account for 8% of the EU market, up from 0.9% in 2019, according to Commission data. The Commission has said it will take appropriate action if violations of fair competition are confirmed.
The EU has also introduced several regulatory tools. The Foreign Subsidies Regulation (July 2023) empowers the Commission to scrutinise takeovers or tenders where competing bidders may benefit from foreign subsidies. The Critical Raw Materials Act (late 2023) seeks to reduce dependency on Chinese imports of lithium, cobalt, rare earths and other elements of trade.
Despite Beijing’s pledges to strengthen IP enforcement, European businesses report widespread issues with patent infringement, forced technology transfers, and weak judicial recourse. The European Chamber of Commerce in China’s 2024 Business Confidence Survey found that 68% of European firms believe the Chinese market is becoming less transparent and predictable, with over 40% citing discriminatory practices against foreign firms.
China, for its part, remains keen to avoid large-scale trade disputes, especially as its post-pandemic economic recovery falters. Recent GDP figures show weak domestic consumption, youth unemployment nearing 15%, and a real estate sector still in distress. Analysts suggest Beijing may use the summit to call for stabilisation of ties, but without offering concrete concessions on structural trade issues.
In light of these scebarios, the 2025 EU-China summit is unlikely to be a turning point. Although the summit is diplomatically important, a resolve to the deeper structural tensions defining the relationship seems unlikely. Trade imbalances, unfair competition, and market access barriers persist as unresolved issues, and both sides seem unwilling to make the kind of compromises required for a reset.
Dhanishtha De is a trainee journalist at Cult Current. The views expressed in the article are
her ownand do not necessarily reflect the official stance of Cult Current.