Keynote speech at the Conference on EU-China relations “Navigating beyond the inflection point”, Beijing, 12 May
Dear Excellencies,
Dear Director General Li Jian,distinguished guests,
May this spring day here be a bit of a spring also in our relations. I would really wish for that. I am honoured and also very happy to stand here before you today in Beijing It is a real pleasure to be here for the first time in my current capacity as the Manging Director for Asia and Pacific of the EEAS!
I would like to thank all of you for being here to exchange on EU-China relations. Special thanks to Ambassador Toledo, his warm greetings and his team at the EU Delegation in Beijing for organising this event, as well as to our Chinese colleagues and partners for joining us for this important discussion.
Let me share some thoughts on the prospects for the relations between the EU and China. When the President of the European Commission Ursula von der Leyen spoke here in Beijing last year in July on the occasion of the EU-China Summit about the “inflection point” in our relations, she captured the essence of the moment we are living in. An inflection point is not just a turning point—it is a moment of reckoning, where the choices we make will determine whether our two great regions drift apart or move forward together.
We are no longer in a world where cooperation is optional. The challenges we face— geopolitical tensions and uncertainty, economic instability, climate disruption, demand that we find a way to work together, even when we do not always see eye to eye. The question is not whether we can afford to cooperate, but whether we can afford not to.
The European Union and China are two of the world’s three largest economies, Director General Li Jian just gave the figures. Our relationship is defined by deep economic interdependence and shared global challenges. We must therefore, not learn how to avoid complexity, but how to navigate it together, so that our engagement ensures that we remain constructive, balanced, and forward-looking.
The starting point of our cooperation is to share our respective analysis of the problems we are facing, and today is a good opportunity to do this, but also the talks that I have been having and will have in the next days with many Chinese interlocutors and the government, and thank you for the Chinese colleagues for your readiness to receive me in great number and with lot of time dedicated to our discussions. Thank you for that.
The foundation of EU-China relations remains our economic ties. Yet, our economic interdependence is not without its challenges as we all know. The EU faces persistent concerns over market access asymmetries, trade deficit, and the spillover effects of China’s industrial policies—issues that have moved to the centre of our policy debates in Europe.
Today, I want to focus on two fundamental objectives which in my view must guide our bilateral relationship, before I move on to global issues:
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Rebalancing our economic ties to ensure they are fair, sustainable, and mutually beneficial.
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Accelerating our cooperation on climate and the environment, where China’s leadership and the EU’s ambition can drive global progress.
These are not just diplomatic priorities—they are actually the foundation of a stable and prosperous future for both the EU and China, but also beyond our two regions.
1. Firstly, we need to level the playing field. For too long, European businesses have faced barriers in China that their Chinese counterparts do not encounter in Europe. Addressing these asymmetries is a necessary step to ensure that our economic relationship is fair, sustainable, and mutual.
We also need to urgently address the rapidly growing unbalance in our trade relationship, which is in large part the result of continuing and significant distortions in China's own economy due to massive state subsidies. The current situation, both in terms of trade flows as well as investment, is unsustainable and seriously puts at risk several key industrial sectors in Europe. We must react to this in Europe, and we take note of the recent efforts by the Chinese government to address these issues, but we need to go even further.
Just to remind everybody, that in 2025, the EU export to China amounted EUR 200 billion while the import reached EUR 560 billion, resulting in a significant trade deficit of EUR 360 billion, which is roughly EUR 1 billion per day of trade deficit. Compared to 2024, EU exports to China declined by 6.5%, whereas EU imports from China rose by 6.4%, there is a widening imbalance in trade, undeniably, we need to work about it for our common future
All in all, the EU needs to make sure that China’s drive towards self-reliant, investment and export driven industrial policy, all of which, of course entirely legitimate, does not come to the expense of EU competitiveness, industrial growth and economic stability.
Some observers have suggested that the EU’s focus on economic security represents a turn inward, a retreat from globalization, or even a form of protectionism targeted against China. Let me be clear: nothing could be further from the truth.
The EU’s economic security strategy is not about closing doors. It is about ensuring that our openness is sustainable, our interdependence is balanced, and our critical infrastructure is resilient. This is a natural and necessary evolution, much like the strategies pursued by China and other major economies over the past decades. The EU’s approach is not to decouple, but to de-risk—to mitigate vulnerabilities while maintaining open channels for collaboration.
China has also long prioritized economic security and strategic autonomy. From the Made in China 2025 initiative to the Dual Circulation Strategy and China Standards 2035 Strategy, China has systematically worked to reduce dependencies in critical sectors, secure supply chains, foster domestic innovation, set technical standards on emerging technologies, all of which is understandable, in the interest of China and the right of China to do. It has thus been reducing reliance on third countries’ innovations. China has also recently adopted on April 7 new regulations on Industrial and Supply Chain Security. The EU’s approach is in principle no different from that. We, too, seek to ensure that our economies are resilient, that our industries competitive, and our supply chains secure.
To sum it up, the EU’s concept of open strategic autonomy is designed to strike a balance: to reduce vulnerabilities in critical areas while maintaining our commitment to open markets, fair competition, and international cooperation. This is not a rejection of globalization; it is a recognition that globalization must be rules-based, reciprocal, and resilient.
Coming to the second point, constructive engagement on global public goods.
2.Climate change is the ultimate global challenge, and here, the EU and China share a common interest. China’s leadership in renewable energy and electric vehicles is undeniable. The transition to a green economy is an opportunity for both the EU and China. By working together, we can accelerate the development and deployment of clean technologies, create new markets, and set global standards for sustainability. One thing is for certain, global fight against the climate change cannot succeed without Chinese technology and cooperation. However, the EU must also ensure that our green transition does not create new dependencies—particularly in rare earths and critical minerals, where China currently dominates global supply.
We welcome the leading role China played in securing the historic Kunming-Montreal Global Biodiversity agreement. China was also an active actor in concluding the negotiations on the BBNJ treaty, it is the biodiversity beyond national jurisdiction treaty.We welcome also the launch on the 7th of May, by the EU together with China and Brazil, of the Open Coalition on Compliance Carbon Markets. This Coalition will enhance the effectiveness, transparency and integrity of domestic carbon markets worldwide, and it will support the delivery of the Paris Agreement.
At a time of global conflict and tension, these are notable diplomatic achievements – which China and the European Union have cooperated on . We are now working together towards a Global Plastics Treaty. These are all very encouraging examples of areas of constructive cooperation. We must continue on this path and achieve more concrete progress together.
Thirdly, now, global issues. Many of them are familiar to you, I will just pick out a few examples.
3.Beyond our bilateral relationship, the EU and China share an interest in stability and prosperity across the Eurasian continent and beyond. There are areas where our interests align, and where closer cooperation could yield tangible benefits for both sides and for the wider world.
The EU’s approach to the Indo-Pacific is rooted in our commitment to multilateralism, respect for international law, and the peaceful resolution of disputes. We have deepened our engagement in the region through partnerships with ASEAN, India, Japan, South Korea, and others, all while advocating for a free and open Indo-Pacific. Our strategy is not directed against any single country; rather, it is about upholding the rules and norms that allow all nations—large and small—to benefit from shared prosperity and security. We believe that China, as a major maritime power and a signatory to UNCLOS, has both a stake and a responsibility in preserving these principles.
The Indo-Pacific region is a vital artery of global trade, connecting economies and ensuring the flow of goods, energy, and resources that sustain prosperity around the world. As global trading powers, both the EU and China have a direct interest in the stability, security, and openness of this region. Freedom of navigation and overflight, as guaranteed by the United Nations Convention on the Law of the Sea (UNCLOS), are not negotiable principles—they are the bedrock of a rules-based maritime order. Any actions that undermine these principles, whether through militarization, coercion, or unilateral claims, pose a direct threat to the stability that underpins global commerce and security.
On regional crises, the EU and China have space for cooperation:
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There is room for the EU and China to work together on the situation in the Middle East. Both sides share an interest in resolving the current conflict which is seriously disrupting global energy markets and trade routes. The EU’s diplomatic channels with Iran, combined with China’s influence as a major trading partner and investor of Iran, could be leveraged to encourage Tehran to engage in meaningful negotiations, and we are negotiating among us about that.
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In Afghanistan, the situation remains precarious, with humanitarian crises and security risks spilling over into the broader region. The EU and China both have a stake in preventing Afghanistan from becoming a haven for terrorism or a source of regional instability.
No discussion of EU-China relations in 2026 would be complete without addressing Russia’s illegal war of aggression against Ukraine. It remains the top priority of the EU’s foreign policy, because the war remains an existential threat to Europe.
This war is not just a European crisis; it is a direct challenge to the rules-based international order. The EU has been clear from the start: Russia’s aggression is a flagrant violation of the UN Charter, and it must therefore end.
The consequences of Russia’s war extend far beyond Ukraine’s borders. They affect global food and energy security, economic stability, and the credibility of international law. China’s stance on this issue will have lasting implications for its relations with the EU and the wider world.
We continue to urge China to ensure that no Chinese entities support the Russian war and to use its influence to press Russia to agree ceasefire, to withdraw its forces and to support and enter meaningful negotiations that respect Ukraine’s sovereignty and territorial integrity. The EU continues to stand ready to work with China and all responsible actors to bring a just and lasting peace to Ukraine.
Distinguished guests, let me come to the end by underlining:
The EU does not seek confrontation with China. Nor do we advocate for de-coupling. What we seek is a mature, balanced, and predictable relationship—one that recognizes our interdependence but also our distinct interests and values.
All in all, we must be honest about our differences—on human rights, on the role of the state in the economy, on our political systems and on the future of global governance.
We also urge China to engage concretely with the EU on global challenges, from climate change to regional crises, in a spirit of shared responsibility and with the aim to deliver concrete progress. The world expects no less from two of its largest economies and most influential actors.
The inflection point in our relationship is not a moment of crisis, but of opportunity. The EU is ready to engage—with openness, with pragmatism but engagement must be reciprocal and it must deliver tangible benefits for our people, our economies, and our planet.
I would like to quote Director General Li Jian, who said, our reasons are there to build good relationship and no reason to build bad one. I think that is a very true word. I would also like to repeat what you said that everything can be resolved through discussion. I would say these discussions then need to be followed up by consequential action and we should work on that, also to go beyond the speaking points. I think we are all repeating speaking points, our positions are relatively clear to each other. It is now the time when we have to pass into actions and I hope all of you here can contribute ideas to which actions that might take us steps further and bring us together again, in an effort to build the world better, to uphold and develop our bilateral relationship that has been very successful in the past and can be in the future.
Let us navigate beyond the inflection point—not by avoiding the difficult questions, but by answering them together.
That was a long speech, but I hope it will have discussions. Thank you.