Kathmandu: European Union President Ursula von der Leyen has announced that the EU will push for a rebalancing of economic ties with China during a high-level summit scheduled for July 24–25, coinciding with the 50th anniversary of EU-China diplomatic relations.

Speaking at the European Parliament in Strasbourg, von der Leyen said the summit will focus on gaining fair market access for European companies, easing Chinese export controls on rare earth materials, and addressing China’s support for Russia’s war efforts in Ukraine.

“Largest Trade Surplus in Human History”
Von der Leyen criticized China’s massive trade surplus with the EU — which stood at $357 billion in 2024 — calling it the “largest trade surplus in human history.” She argued that such imbalance and overcapacity driven by state subsidies were harming European businesses.

“If our partnership is to move forward, we need real rebalancing — less market distortion, less overcapacity exported from China, and fair, reciprocal access for European trade,” she told lawmakers.

Concerns Over Rare Earth Export Restrictions
The EU is also set to press Beijing to ease export restrictions on rare earth elements, which are critical for electronics and green technologies. According to the International Energy Agency, China controls two-thirds of rare earth production and 92% of global refined output.

While the EU seeks better cooperation, von der Leyen also revealed that Brussels is working to diversify rare earth supply chains, citing global concerns about China's dominant position.

Warning Over China-Russia Ties
A key diplomatic concern is China’s increasing alignment with Russia amidst the war in Ukraine.

“China is enabling Russia's war economy, and we cannot accept that,” von der Leyen stated firmly, warning that Beijing’s ongoing support for Moscow could deeply impact future EU-China relations.

EU Delegation to Visit Beijing
Von der Leyen will travel to Beijing with European Council President Antonio Costa to engage directly with Chinese President Xi Jinping during the summit. While Beijing is reportedly eager to improve ties with the EU amid growing tensions with the U.S., the EU remains cautious about China's trade practices and geopolitical alignments.

The summit is seen as a critical test of whether the EU and China can reshape their economic relationship and find common ground on global issues ranging from supply chains to security.