Beijing has called on the European Union to increase diplomatic dialogue and improve trade relations after the bloc sanctioned two rural banks in northern China, accusing them of facilitating trade between China and Russia.
Chinese President Xi Jinping met with European Commission President Ursula von der Leyen and European Council President Antonio Costa in Beijing on Thursday.
“The challenges facing Europe today do not come from China,” Xi told the two European leaders during their visit to China for the China-EU Summit. “There are no fundamental conflicts of interest or geopolitical contradictions between China and Europe.”
Xi said that China has always viewed and developed its relations with the EU from a strategic and long-term perspective, regarding Europe as an essential pole in a multipolar world, and has consistently supported European integration and the EU’s strategic autonomy.
He said that China and the European Union should uphold openness and cooperation, and properly manage their differences.
“History and reality have proven that mutual dependence is not a risk, and the integration of interests is not a threat,” he said. “Improving competitiveness cannot rely on ‘building walls and fortifications,’ while ‘decoupling’ will only isolate oneself.”
Xi also stated that the EU should practice multilateralism, help safeguard the international order of rules, and collaborate with China to address global challenges such as climate change.
The Chinese leader made the conciliatory remarks amid rising political tensions between the EU and China over trade issues and the Ukraine war.
In April, the EU imposed anti-subsidy tariffs on Chinese-imported aerial work platforms, ranging from 20.6% to 66.7%. Investigations found that Chinese manufacturers enjoyed an advantage in European markets, as they could lower prices after receiving government subsidies, low-interest financing, and support for raw materials.
On June 20, it announced the exclusion of Chinese companies from the EU government’s procurement of medical devices exceeding €5 million (approximately US$5.84 million). It said the measure aims to incentivize China to cease discriminating against EU firms and EU-made medical devices, and to treat EU companies with the same openness as the EU treats Chinese companies and products.
China retaliated against the EU by restricting the purchase of European medical equipment and imposing tariffs on Brandy. However, China still wants to maintain a good relationship with the EU, which was also hit by the Trump administration’s reciprocal tariffs in April.
US President Donald Trump said the US would impose a 30% tariff on imports from Europe on August 1 if the two sides could not reach a trade deal. Media reports indicate that the US may agree to impose only a 15% tariff on European products, but a final agreement has not been reached.
On July 16, China removed entry restrictions on Reinhard Buetikofer, the former EU lawmaker who was sanctioned by China in 2021 due to his comments on human rights issues of Uighurs in Xinjiang. Chinese commentators said China wanted to show a friendly gesture to Brussels ahead of the EU-China Summit, but the EU replied with sanctions on two Chinese banks.
“China removed entry restrictions on Buetikofer to pave the way for the 50th anniversary of the establishment of diplomatic relations between China and the EU,” a Fujian-based writer says in an article. “The outside world described it as China’s ‘strategic gift package’ for the EU.”
“However, the EU did not respond to this gift for three days and suddenly announced the 18th round of sanctions against Russia on July 19 and added over 10 Chinese companies to its Entity list,” he says. “The sanctioned entities include two small Chinese banks, Heilongjiang Suifenhe Rural Commercial Bank and Heihe Rural Commercial Bank, which were accused of ‘helping Russia circumvent sanctions’.”
The writer notes that the annual transactions settled by the two banks were relatively small compared to Gazprom’s daily exports. He says people in Heilongjiang use cash to trade Chinese electric heaters and Russian flour, but the EU was upset and blamed China for these legal activities.
He says the EU wants a tough stance against China to please Washington and gain bargaining chips in the US-EU trade negotiations.
A Yunnan-based columnist says it’s unfair that the EU, which imported 18% more liquefied natural gas (LNG) from Russia last year, accused Chinese firms of having legal cooperation with Russian counterparts.
“The EU exposed the nature of its ‘de-risking’ strategy towards China in this incident,” he says. “China has long been the EU’s second-largest trading partner. However, with the rise of China in new energy, semiconductors, and other sectors, the EU’s positioning of China has shifted from ‘partner’ to ‘systemic rival’, trying to use sanctions to slow China’s growth.”
He says the EU is like committing suicide as it sanctions Chinese firms, and at the same time asks China for rare earth elements.
‘The China Track’
Reuters reported on April 22 that major Russian banks have set up a netting payments system called “The China Track” to settle Russia’s trade with China.
The report, citing banking sources, stated that the new system, which has been in place for some time, was established by several sanctioned Russian banks and some intermediaries registered in countries that Russia considers friendly.
It said each bank operates several verified payment agents, some of whom handle payments for exports, while others handle payments for imports.
The minimum cost of the “China Track” service, including commissions and exchange rate differences, is approximately 0.5% for exports and 1% for imports, compared to 2-4% outside the system and up to 12% at the height of the issue last year. The involved banks can complete the payment within two days.
The service is now available in 11 Chinese provinces that have strong manufacturing sectors.
According to an article published by the Heilongjiang-based Tianfusheng International Logistics Co on May 6, “The China Track”, a secret trade settlement channel between China and Russia, is now online.
Tianfusheng said top Russian banks have jointly established this highly encrypted payment system to facilitate bilateral trade between Russia and China. It said this system can effectively bypass the SWIFT system and the West’s monitoring, helping involved parties reduce sanction risks.
In another article, Tianfusheng promoted its “golden route” service, which guarantees that it can transport goods from China to “anywhere in Russia” within eight days. The company said it has 150 trucks and an innovative tracking system.
It claimed that its trucks can reach their final destinations directly without transit and complete customs clearance smoothly under the Transports Internationaux Routiers (TIR), a global customs transit system overseen by the United Nations Economic Commission for Europe (UNECE).
Read: China’s patience wears thin with EU over medical device row
Either China (Winnie Xi Pooh) thinks the EU is full of wind bags and not worth more than 1 day, or Winnie is under internal pressure to keep a lid on things and not get distracted.
Probably abit of both.
Who wrote this for you?
More purges of the Puny Little Army’s Strawberry Generals.
Is Winnie Xi Pooh facing rumblings, or did the dog he ate disagree with him?
Would this be the same army that kicked India’s posterior in 1962 and fought the Americans to a standstill in Korea. You can troll all you want but you cannot reverse the past let alone Sindoor 2025. And if you want to debate Sindoor, answer why Trump ditched Modi before he showed up in Alberta to have lunch with the Pakistani General. We know Trump loves hanging out with strong winners.
Or got it’s b-hind kicked in Vietnam when it couldn’t rely on canon-fodder human waves.
The Viets are cool. They whipped America’s behind. The only Asians to do so. Hats off to them. Don’t try to use them to feel big, my little Capon.
I shudder to think what the EASTASIAN Viets could do to your tight but tiny posterior.
Never ceases to amaze me at how close Russia and China have become owing to Western pressure. Absent a security pact, they’re practically one superpower now, joined at the hip, one with the unrivaled military heft and the other with complimentary economic clout. The stuff of nightmares for the West, to be sure.
Hardly joined at the hip, more like Xi’s hand up Putin’s Khyber
I know you are jealous.
Putin is lucky, Chinese have small fingers!
Pet Capon is even happier. ‘He’ really fantasizes about Asian fingers.
Sausage obsession: Exhibit 9568
LBFMs are not for me. Too small (!) and I never wanted weedy kids.
You will never have to worry about kids. I also regret to inform you that the Nematode confederation has rejected your application to join their ranks.
The EU is always upset. But I can’t blame them. If I was getting a Ray Ping from China, I’d be upset as well. I’m surprised the EU are taking it like a Champ
Is that Ray Ping from Nanking. When Mao ran away ?
@bigrooster,
USAID has been stopped. You can chill now.
Yup, waiting on the CCP to pick up the slack
EU poisoning business with toxic Western politics. Bad idea.
EU has about as much scooby do as Comical Ali.
You are back to your normal self
Stupid Baby Killer
hooray !
Cannot get over 1962 or 2025 can you? You have 6 days per week to troll. I very much look forward to roughing you up each time.
1962 or 2025? You really think I’m a Captain’s Log?
Inability to process the symbolism of numbers: Exhibit 76
Translated to roosterese: Donkey’s behind rim at Center
1. I (little gelded rooster) am a boasting but total loser in life.
2. I (little gelded rooster) will never ever have kids even in my driest dreams.
3. My (little gelded rooster) life really really really sucks.
4. I (little gelded rooster) suffer from imaginary gigantism as well as from multiple personality disorder.
5. Every single second of every single day, I so wish that I could come.
6. The above five statements are the only truths I have ever told..🐔