Vulcan Insight

Von der Leyen and Macron in Beijing to discuss EU-China trade and Ukraine

7 April 2023

European Commission President Ursula von der Leyen and French President Emmanuel Macron arrived in Beijing on Wednesday, 5 April for a visit with a view to trying to engage with China with a focus on trade and the Russian war against Ukraine. For both leaders, this marks the first visit to China since 2019. Hence, it is also von der Leyen’s first visit to Chine since being appointed Commission President.

Since 2019, the relationship between Europe and China has deteriorated due to the delayed signing of the Comprehensive Agreement on Investment (CAI) in 2021 as well as China’s reluctance to denounce Russia’s incursion into Ukraine. Just in the week before the visit to Beijing, Commission President von der Leyen marked that China’s approach towards Putin over his war against Ukraine will be a “determining factor” for the future of the relationship between China and the EU. In her speech, she expressed the EU’s need to “de-risk” rather than detach, which clarified that Europe still needs and wants to uphold business relations with China. Macron seemingly pushes the EU to be robust in trade relations with China and is broadly supportive of von der Leyen’s stance according to his political advisers. Nonetheless, he refrains from using strong anti-China narratives.

Commission officials emphasized that von der Leyen’s agenda differed from Macron’s, as the latter is visiting various regions in China and bringing a group of business leaders (e.g., Airbus) along with him as well as French Finance Minister Bruno Le Maire and Foreign Minister Catherine Colonna. Macron said that Europe must maintain its economic ties with China. Airbus agreed to construct an additional assembly line at its manufacturing facility in China and received approval from the Chinese government to proceed with the 160 plane orders that were already announced. Von der Leyen held talks with Chinese Premier Li Qiang and met with representatives from the EU Chamber of Commerce. 

Regarding the Russian war against Ukraine, a French official suggested that China is the only country that could change Russia’s approach, pointing out that Beijing’s actions could either help or harm the situation. While China published a 12-point peace plan for Ukraine earlier this year, EU member states largely disregarded it due to China’s refusal to condemn Russia and their concerns over potential military aid to Moscow. 

On Thursday, the EU chief stated that Xi Jinping had indicated openness to engage in a conversation with Zelenskiy, following French President Emmanuel Macron’s ask to China to use its influence to persuade Russia to act reasonably regarding the ongoing conflict in Ukraine. Furthermore, in her statement following the tripartite meeting, von der Leyen highlighted the need to address imbalances and risks stemming from dependencies and the export of sensitive tech. She expressed that the leaders discussed the extensive and complex relationship between the European Union and China, noting that the trade relationship becme increasingly imbalanced over the last ten years. 

The three leaders discussed how European Union companies exporting to China and those producing in China, are facing disadvantages. Von der Leyen stated that this stands in contrast to the equal footing that all businesses on the European Single Market enjoy. Consequently, the EU is increasingly attentive to safeguarding its interests and promoting a fair and level playing field. The EU is becoming more vigilant about protecting its interests and ensuring a level playing field.

Finally, von der Leyen noted on plans between the EU and China to cooperate on Climate change ahead of COP28 in November. The Chinese government positioned itself positively towards the exchange held. However, observers noted that the Chinese President did not appear motivated to change his overall position towards the war in Ukraine.