Global Economy News
LAST UPDATE: July 25, 2025
EU‑China ties at ‘inflection point’, von der Leyen says after tense Beijing summit
At a summit marking 50 years of relations, Ursula von der Leyen declared EU‑China ties had reached an “inflection point,” citing a €305.8 billion trade deficit. EU also secured a new mechanism to address rare‑earth export constraints.
Insight
The summit underscores a shifting EU strategy: demanding reciprocity and supply chain resilience while cautiously renewing cooperation on climate and trade issues.
EU chief says agreed ‘upgraded’ rare earths export mechanism with China
Von der Leyen announced an upgraded export mechanism to ease bottlenecks in China’s supply of rare earth minerals and magnets to Europe, aiming to address licensing delays.
Insight
This targeted agreement helps alleviate critical material access issues, signifying pragmatic cooperation amid broader strategic tensions.
EU chief says China’s links with Russia a ‘determining factor’ in ties
Von der Leyen warned that China’s alignment with Russia—especially regarding Ukraine—has become a “determining factor” shaping the EU’s relationship with Beijing.
Insight
Geopolitics are increasingly driving trade policy. Trust now hinges not only on economic rules but on China’s strategic posture—especially its support for Russia.
