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EU-China trade tension on display ahead of Beijing summit

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The odds of a breakthrough to resolve trade frictions at next 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, or Premier Li Qiang, in the Chinese capital.

"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 (ECFR), told DW. Bachulska said China's elites often view the EU as a midlevel 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 say 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........

© Deutsche Welle