China, EU Must ‘Jointly Resist Unilateral Bullying’, Says Xi Jinping

Context:

• Chinese President Xi Jinping urged the European Union (EU) to cooperate with China in resisting what he termed “unilateral bullying”, referring primarily to the U.S. tariff regime on Chinese goods.

• The statement comes amid intensifying U.S.–China trade tensions and China’s efforts to strengthen partnerships with Europe.

Key Highlights:

Xi Jinping’s Stand on U.S. Tariffs

• Xi criticized the United States, especially policies associated with President Donald Trump, for imposing heavy tariffs on Chinese exports.

• He described such actions as:

  • Unilateral coercion

  • Disruptive to global trade fairness

  • Harmful to multilateral economic stability

• Xi called on the EU to “jointly resist” these practices to safeguard shared interests.

China–EU Trade Importance

• China and the EU remain deeply interconnected economically through:

  • Manufacturing supply chains

  • Technology trade

  • Green energy markets

• Example: Spain imports nearly €45 billion worth of goods from China annually, reflecting strong bilateral dependence.

• Xi emphasized the need to preserve cooperation despite geopolitical pressures.

Pedro Sanchez’s Remarks and Spain’s Position

• Spanish Prime Minister Pedro Sánchez supported continued engagement with China.

• During his September 2024 visit, he diverged from the EU’s tougher stance by:

  • Calling for a review of EU’s punitive tariffs on Chinese electric vehicles (EVs)

  • Advocating dialogue over confrontation

• This reflects internal differences within the EU on how to manage China relations.

Message of Multilateralism and Global Justice

• Xi framed the China–EU partnership as essential to protect:

  • National sovereignty

  • Fair trade principles

  • Global justice

• He warned against allowing U.S. policies to dictate the future of international commerce.

Strategic Implications for Global Trade

• China’s outreach indicates a strategic pivot to reduce isolation and counter U.S. pressure by:

  • Deepening EU ties

  • Exploiting divisions within European policymaking

• Spain’s softer approach may offer China an opportunity to negotiate bilaterally within a larger bloc.

Relevant Prelims Points:

• Issue: Rising trade protectionism and tariff wars

• Causes: Strategic rivalry, supply chain control, economic nationalism

• Key Stakeholders: China, EU, U.S., WTO

• Benefits of cooperation: Stable trade flows, reduced economic uncertainty

• Challenges: EU fragmentation, strategic distrust, geopolitical alignments

Relevant Mains Points:

• Concepts: Multilateralism, trade diplomacy, economic coercion

• Implications:

  • Weakening of global trade norms

  • Fragmentation of blocs like the EU

  • Shift toward bilateralism over collective bargaining

• Way Forward:

  • Strengthen WTO-based dispute resolution

  • Promote rules-based trade order

  • EU must balance economic engagement with strategic autonomy

  • India can leverage such fragmentation for diversified partnerships

UPSC Relevance (GS-wise):

• GS 2: India’s foreign policy, global power blocs, multilateral diplomacy

• GS 3: International trade tensions, tariffs, global economic stability