China and EU to Hold Summit on 24th, but Hopes for Improved Relations Remain Low

Summit Confirmed for 50th Anniversary of Diplomatic Ties
Tariff Ping-Pong Over Electric Vehicles and Brandy
EU Imposes Sanctions on Chinese Small Banks Last Week

Chinese President Xi Jinping. Photo by AFP

China's Ministry of Foreign Affairs announced on the 21st that China and the European Union (EU) will hold a summit in China on the 24th. However, with both sides recently engaging in tariff offensives and the EU imposing successive sanctions on small Chinese banks, expectations for an improvement in bilateral relations appear to be low.

The Ministry of Foreign Affairs stated on its website, "Following an agreement between China and the EU, President of the European Council Antonio Costa and European Commission President Ursula von der Leyen will visit China on the 24th."

The ministry added, "President Xi Jinping will meet with President Costa and President von der Leyen, and Premier Li Qiang will co-chair the 25th China-EU leaders' summit with the two EU leaders."

There are hopes that this summit could serve as a significant opportunity to improve China-EU relations, which mark their 50th anniversary of diplomatic ties this year. Key agenda items are expected to include the easing of export controls on rare earth elements, overproduction of electric vehicles, and China's support for Russia.

However, ongoing trade conflicts?such as the EU's imposition of high tariffs on Chinese electric vehicles since last year and China's retaliatory anti-dumping tariffs on European brandy?have made it difficult for both sides to reach an agreement ahead of the summit, leading to lowered expectations for its outcome.

Recently, tensions have also escalated over the EU's sanctions on Chinese regional banks. According to the Hong Kong-based South China Morning Post (SCMP), on the 18th, the EU included Suifenhe Rural Commercial Bank and Heihe Rural Commercial Bank in its 18th sanctions package against Russia.

The SCMP, citing diplomatic sources, reported that China had lobbied behind the scenes to have these banks excluded from the sanctions list. In particular, Chinese Foreign Minister Wang Yi reportedly warned EU High Representative for Foreign Affairs and Security Policy Kaja Kallas three to four times during a meeting earlier this month that there would be retaliatory measures if these banks were included in the sanctions.

Although the specific reasons for the sanctions have not been disclosed, the banks are known to have violated the EU's sanctions against Russia. The UK-based Financial Times (FT) previously reported that these Chinese banks supported the import of items already under EU sanctions by using virtual asset transactions. The banks are located in regions adjacent to the Russian border.

Immediately after the EU announced the sanctions, China's Ministry of Commerce strongly protested, calling the measures "based on unfounded accusations." The ministry also stated, "China has consistently opposed unilateral sanctions that lack a basis in international law and have not been approved by the United Nations Security Council."

This content was produced with the assistance of AI translation services.