Talks aim to resolve trade frictions with EU

China's commerce minister had a "candid and in-depth" video meeting with his European Union counterpart just days before the China-EU Summit in Beijing on Thursday, with analysts saying that it showcased the willingness of Beijing and Brussels to resolve lingering trade frictions through dialogue.

By moving closer together and staking out common ground, China and the EU could serve as a bulwark against rising unilateralism and protectionism that threaten to fracture the international community, they added.

Commerce Minister Wang Wentao and European Commissioner for Trade and Economic Security Maros Sefcovic held the video call on Tuesday, engaging in "candid and in-depth" discussions on China-EU economic and trade cooperation and key issues of concern, Wang's ministry said in a statement on Wednesday.

Wang also "lodged solemn representations" over the EU's decision to include two Chinese financial institutions in its 18th round of sanctions against Russia.

As Brussels increasingly views Beijing as a "strategic competitor" and "systemic rival", a troubling trend of politicizing and securitizing economic and trade issues is taking hold, said Jin Ling, a senior research fellow at the China Institute of International Studies.

"The EU's pursuit of a 'de-risking' strategy toward China, coupled with its expanding trade remedy toolbox, tightened foreign investment screening, and introduction of measures like the Foreign Subsidies Regulation and the International Procurement Instrument, are gradually eroding the win-win logic underpinning our economic partnership," Jin added.

After the EU announced last month that it was barring Chinese companies from participating in public tenders for medical devices above a certain value, Beijing responded with its own curbs on government purchases of Europe-made devices.

Despite the uncertainties cast by Brussels' "de-risking" strategy, analysts said the fundamental strength driving the China-EU economic partnership remains unshaken, and the two sides continue to maintain their status as each other's second largest trading partner.

Chinese investment in the EU and the United Kingdom surged 47 percent year-on-year to 10 billion euros ($11.7 billion) in 2024, marking its first significant rebound since 2016, according to a joint report released by the New York-based Rhodium Group and German think tank Mercator Institute for China Studies in May.

As of the end of 2024, EU enterprises had cumulatively invested more than $150 billion in China, data from the Ministry of Commerce showed.

"Any attempts to artificially sever industrial and supply chain linkages defy economic logic and are unlikely to succeed," Jin said.

Analysts said the summit, where top leaders from the two sides will meet and hold talks, would be an opportunity for Beijing and Brussels to explore mutually beneficial cooperation models and navigate the complexities of their evolving economic partnership.

As the Aug 1 deadline approaches for Washington to impose "reciprocal tariffs", Brussels is facing significant pressure, said Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation.

"The specter of US protectionism actions is looming large over Europe, adding a sense of urgency to its efforts to strengthen cooperation with China," Zhou said.

Zhou said that if the EU can reach consensus with China during the summit, it would bolster the bloc's ability to withstand challenges posed by US tariff threats.