The odds of a breakthrough to resolve trade frictions at this week’s EU-China summit in Beijing appear slim after China cut the planned two-day talks to a single day.

The summit, set to mark the 50th anniversary of EU-China diplomatic ties, was moved from Brussels to Beijing after Chinese President Xi Jinping declined an invitation to attend. European Commission President Ursula von der Leyen and European Council President Antonio Costa will now meet Xi in the Chinese capital on Thursday.

"This is another sign of Beijing’s limited willingness and ambition to engage with the Europeans," Alicja Bachulska, policy fellow of the Asia program at the European Council on Foreign Relations, told DW. Bachulska said China's elites often view the EU as a mid-level power with limited leverage in trade negotiations.

The European Union's €400-billion ($467-billion) trade deficit with China is driving the dispute, fueled by restricted access to the Chinese market for EU producers. China's industrial policies favor domestic suppliers, who benefit from huge subsidies, access to government contracts and favorable regulations.

EU officials have said these policies have caused significant overproduction, leading to the "dumping" of cheap Chinese electric vehicles (EVs) onto the EU market, harming the domestic auto sector.

"The scale of China's economy — the scale of subsidies, overcapacity and government intervention — is immense," Bachulska said, adding that, without "serious action" to protect Europe's auto industry, the EU risks "partial deindustrialization" within a few years.

The European Union has imposed tariffs of up to 45% on Chinese EVs and demanded an end to overcapacity and reciprocal market access to ensure a level playing field for EU exporters.

China, meanwhile, wants to replace EV tariffs with........

© Deutsche Welle