Focus on the BIG picture.
Saturday, Jan 03, 2026
Outside the box.
European Commission President Ursula von der Leyen Engages in Trade Dialogue with China's Premier Li Qiang Amid Tariff Tensions
In a discussion marking 50 years of diplomatic ties, von der Leyen emphasizes the need for stability and a restructured trade system to tackle the impacts of U.S. tariffs.
Brussels – In light of the economic disruptions caused by recent U.S. tariffs, European Commission President Ursula von der Leyen convened a discussion with Chinese Premier Li Qiang on April 8, 2023, to address the state of EU-China relations.
This dialogue coincided with the 50th anniversary of diplomatic relations between Europe and China and highlighted the importance of maintaining stability in the global economy.
The European Commission reported that von der Leyen emphasized the responsibilities that both regions, as major global markets, hold in supporting a robust and reformed trading system characterized by fairness and equality.
She called for a negotiated resolution to the current trade tensions, underscoring the necessity to prevent further escalation and noting China’s significant role in mitigating potential trade diversion resulting from the tariffs.
During their discussions, von der Leyen and Li explored the establishment of a mechanism to monitor trade diversion and ensure appropriate responses to any market changes.
While tariffs have the potential to strengthen ties between the EU and China, multiple unresolved issues remain that may hinder their relationship.
Von der Leyen stressed the urgency of enhancing collaboration on climate initiatives and the transition to green industries.
She reiterated the need for structural solutions to rebalance the bilateral trade relationship, advocating for improved access for European goods and services within the Chinese market.
Additionally, amidst ongoing geopolitical concerns, von der Leyen asserted that Ukraine should dictate the terms of its peace process and encouraged China to play a more proactive role in facilitating this process.
The changing dynamics of U.S. foreign policy, particularly under former President Donald Trump, have influenced European strategies regarding China.
Trump's dismissal of Europe’s proposed “Zero for Zero” initiative, concerning machinery and industrial goods, has shifted the European perception of China from a potential threat to a viable trading partner.
This evolution positions the upcoming EU-China summit in July as a critical moment for the future of their bilateral relationship, shedding light on how both economies navigate their intricate ties in an increasingly complex global landscape.
This dialogue coincided with the 50th anniversary of diplomatic relations between Europe and China and highlighted the importance of maintaining stability in the global economy.
The European Commission reported that von der Leyen emphasized the responsibilities that both regions, as major global markets, hold in supporting a robust and reformed trading system characterized by fairness and equality.
She called for a negotiated resolution to the current trade tensions, underscoring the necessity to prevent further escalation and noting China’s significant role in mitigating potential trade diversion resulting from the tariffs.
During their discussions, von der Leyen and Li explored the establishment of a mechanism to monitor trade diversion and ensure appropriate responses to any market changes.
While tariffs have the potential to strengthen ties between the EU and China, multiple unresolved issues remain that may hinder their relationship.
Von der Leyen stressed the urgency of enhancing collaboration on climate initiatives and the transition to green industries.
She reiterated the need for structural solutions to rebalance the bilateral trade relationship, advocating for improved access for European goods and services within the Chinese market.
Additionally, amidst ongoing geopolitical concerns, von der Leyen asserted that Ukraine should dictate the terms of its peace process and encouraged China to play a more proactive role in facilitating this process.
The changing dynamics of U.S. foreign policy, particularly under former President Donald Trump, have influenced European strategies regarding China.
Trump's dismissal of Europe’s proposed “Zero for Zero” initiative, concerning machinery and industrial goods, has shifted the European perception of China from a potential threat to a viable trading partner.
This evolution positions the upcoming EU-China summit in July as a critical moment for the future of their bilateral relationship, shedding light on how both economies navigate their intricate ties in an increasingly complex global landscape.
