Xi Jinping’s Europe Visit: Navigating Trade Tensions and Geopolitical Challenges
Chinese President Xi Jinping arrived in Europe on Sunday for a six-day visit aimed at easing escalating tensions between China and the European Union (EU). The visit, Xi’s first to the region since 2019, comes amid the threat of a trade war and strained relations over issues such as trade protectionism and Ukraine.
During his visit, Xi will face tough negotiations in France, where trade disputes and tensions over Ukraine will be on the agenda. However, the Chinese President is expected to receive a warmer reception in Serbia and Hungary, underscoring the benefits of close ties with Beijing and the divisions within the EU on international policy.
Analysts believe that China is determined to prevent its relationship with Europe from sliding further towards the direction of its ties with the United States. Yu Jie, an analyst at UK think-tank Chatham House, stated that Beijing is expected to launch a charm offensive while also warning the EU regarding trade protectionism.
The top priority for Xi during his visit is damage limitation, as Chinese officials aim to counter a series of trade investigations conducted by the EU into Chinese companies. Notably, an anti-subsidy probe into electric vehicles is expected to conclude in the coming weeks, with preliminary duties and potential tariffs being considered. Given the importance of the European market to Chinese companies, China cannot afford the closure of the European market due to imposed tariffs.
French President Emmanuel Macron has invited European Commission head Ursula von der Leyen to Paris to meet Xi. Macron has stressed the need for greater reciprocity in trade with China to reinforce France’s economic security. Macron believes that China’s excess capacity in various sectors and its massive exports to Europe necessitate an update in trade relations. He emphasizes that while Europe needs China in areas such as climate and security, it must also protect its national security and interests more realistically.
Von der Leyen has also called for “de-risking” Europe’s commercial relationship with China, as she attributes the EU’s substantial bilateral trade deficit to Beijing’s restrictions on market access for European companies. As the EU falls behind Southeast Asia to become China’s second-largest regional trade partner, tensions escalate.
Xi’s visit to Europe is expected to involve hardball negotiations, as the Chinese President warns EU leaders regarding the consequences of imposing duties on Chinese exports. Chinese analysts suggest that China might respond with restrictions on material exports needed for microchips, as well as restrictions on French exports and other items. Retaliatory tariffs and an anti-dumping investigation into French brandy imports have already caused concerns for the French cognac industry, which heavily relies on the Chinese market.
While Xi’s visit to Paris may be challenging, his visits to Serbia and Hungary are expected to strike a more positive tone. China views Hungary as a genuinely loyal friend in the EU and has promised significant investment in the
