France’s Macron starts tough talks with China’s Xi Jinping as EU-Sino relations are at a crossroads

Two of Europe’s heaviest weights in politics are holding talks with China’s President Xi Jinping at a time when the EU-Sino relationship is at a serious crossroads.

On the one hand, some in Europe would like to develop closer economic ties with Beijing. On the other hand, others are growing sorely concerned about Beijing’s friendship with Russia.

“I am convinced that China has a major role to play in building peace. This is what I have come to discuss, to move forward on. With President Xi Jinping, we will also talk about our businesses, the climate and biodiversity, and food security,” French President Emmanuel Macron said on Twitter, moments before meeting the Chinese leader.

“EU-China relations are extensive and complex. How we manage them will impact EU prosperity and security,” said European Commission President Ursula von der Leyen, who is also in Beijing for talks with Xi.

China was the largest source of EU imports and the third largest buyer of EU goods in 2022, highlighting Beijing’s economic importance for Europe. This is particularly relevant when EU economic growth is vulnerable to the ongoing war in Ukraine.

The 27-member bloc consequently walks a tightrope, looking to develop economic ties with China, but also to reaffirm a close political and cultural relationship with the United States. This task has became particularly difficult as the U.S. administration ramps up its anti-Beijing rhetoric — more so, in the wake of Russia’s invasion of its neighbor Ukraine, which has left Europe even more reliant on the U.S. for energy and security.

“Europe has converged quite a lot to the position of the United States,” Niclas Poitiers, a research fellow at Bruegel, told CNBC’s “Squawk Box Europe” Monday, adding that Brussels wants to reduce dependencies on China. The EU was heavily reliant on Russia for energy, and it now wants to avoid making similar mistakes with other parts of the world.

“Overall, there is a consensus that we need to do something about our overreliance on China and ensure they don’t blackmail small member states,” Poitiers said.

Spain’s Prime Minister Pedro Sanchez met China’s President Xi Jinping last week. Europe’s top foreign affairs diplomat, Josep Borrell, is also heading to China next week.