Volkswacht Bodensee - Xi says China, EU must deepen trust but bloc chief urges 'real solutions'

China's leadership has sought to draw the European Union closer as it positions itself as a more reliable partner than the United States and a bedrock of stability in a troubled world.

But the EU has made clear it will confront deep divisions over trade, fears that cheap, subsidised Chinese goods could overwhelm European markets and Beijing's tacit support for Russia's war against Ukraine.

Though nominally intended to celebrate 50 years of diplomatic ties, the long list of grievances set the stage for a contentious summit.

Welcoming EU Commission head Ursula von der Leyen and European Council chief Antonio Costa at Beijing's ornate Great Hall of the People, Xi said "the more severe and complex the international situation is, the more important it is for China and the EU to strengthen communication, increase mutual trust and deepen cooperation".

In that context of that turmoil, Xi said, Chinese and European leaders must "make correct strategic choices that meet the expectations of the people and stand the test of history".

In response, von der Leyen said "it is vital for China and Europe to acknowledge our respective concerns and come forward with real solutions".

Ties had reached an "inflection point", she warned.

Costa also stressed to the Chinese leader that the bloc wanted to see "concrete progress on issues related to trade and the economy, and we both want our relationship to be... mutually beneficial".

Brussels has acknowledged the talks between its top bosses and Chinese President Xi and Premier Li Qiang later Thursday may be tense.

"We know that we don't see eye to eye with China on many issues," a senior EU official told AFP last week.

"But we believe that it is essential to have this kind of very direct and open and constructive conversation sitting at the table at the highest level."

- 'Not naive' -

Top of the agenda for the EU is the yawning trade deficit with China that stood at around $360 billion last year and which von der Leyen has described as "unsustainable".

Beijing has dismissed those concerns, insisting that Brussels must "rebalance its mentality", not its economic ties with China.

Von der Leyen has also said Brussels will demand that China eases market access for European companies and loosens export controls on strategically crucial rare earths.

The EU has imposed hefty tariffs on electric vehicles imported from China, arguing that Beijing's industrial subsidies unfairly undercut European competitors.

China has rebuffed that claim and announced what were widely seen as retaliatory probes into imported European pork, brandy and dairy products.

A second key source of friction is Russia's war in Ukraine -- Brussels says China's deepening political and economic relations with Russia since the 2022 invasion represent tacit support for Moscow that have helped its economy weather sweeping Western sanctions.

Meeting Xi on Thursday, Costa urged China to "use its influence" on Russia to help end Moscow's "war of aggression".

Last week, the bloc adopted a new package of sanctions on Russia over the war -- including on two Chinese banks, leading Beijing's commerce minister to issue "solemn representations" to his EU counterpart.

"This is a core issue for Europe," the senior EU official said.

"We know that Chinese companies supply around 80 percent of the dual-use goods to the war," they said, referring to goods with nominally civilian uses but which can also have military applications.

"We're not naive. We're not asking China to cut relations, but to step up the customs and financial controls."

B.Wyler--VB