Europe Left on the Sidelines as Trump and Xi Meet in Washington

Donald Trump is meeting Chinese President Xi Jinping at the White House on Thursday. Xi is in the United States for a three-day state visit, from September 23 to 25. The two leaders are expected to talk about trade, artificial intelligence, Rare Earth Minerals and the war with Iran. However, Europe is being reminded of its bystander status, according to a Bloomberg. In addition, if the US and China get along better on trade, the EU may have to deal with China by itself, according to the ICDS.

Since last year Trump is saying that the Europe region has done less than it could in defense and technology for years. For example, Europe relies on US military equipment, such as the F-35 fighter jet. In addition, it has few big tech companies and often argues within its own ranks. As a result, the EU has little voice in the Middle East and was left out of Ukraine-Russia peace talks.

Why Europe’s Dependence on Both the US and China Is a Growing Risk

Europe depends on both the US and China, and the risks are becoming clearer. European Commission President Ursula von der Leyen says the EU’s trade deficit with China has hit a tipping point. That deficit means the EU buys about €1 billion more from China every day than it sells. She has also called the relationship unsustainable and warned about dangerous dependencies. In 2024, the EU bought €519bn of goods from China, which is Europe’s main supplier. Europe also makes only 9 percent of the world’s semiconductors, according to Cyprus Mail.

Critical minerals add to the pressure. China now dominates the global supply chains for these materials, according to CNBC. Rare earths are one key group of them, and China has paused its export controls on them. That pause ends on November 10. Last week, EU Trade Commissioner Maroš Šefčovič raised the issue in a video call with China’s Wang Wentao. However, analyst García Herrero told Euronews that Washington has more bargaining power than Brussels. She said, “the US will negotiate on Europe’s behalf, and Europe will pay a price.”

Brussels Weighs Talks With Beijing as Sánchez and Macron Push to Cut Dependence

Brussels does not plan to wait for the outcome. The EU began crucial negotiations with Beijing in June to reduce its trade deficit and set an October deadline for tangible progress. Analyst Mujtaba Rahman expects managed confrontation rather than a full-scale trade war. He also says the EU will widen targeted restrictions, while China may respond with selective tariffs and tighter mineral controls. However, Europe has leverage too, because China depends heavily on the EU single market.

Spanish Prime Minister Pedro Sánchez said on September 23 that the EU needs to reduce its dependency on China. Sánchez made the remarks in an interview with Bloomberg’s Francine Lacqua. In addition, he said one of the EU’s strengths is its willingness to open its economies to other regions. Canada is among the countries being discussed as a source of critical minerals and energy. The broader goal is to diversify supply chains rather than rely heavily on one market. European leaders are now sending a similar message. French President Emmanuel Macron has long argued for European strategic autonomy, including less reliance on semiconductors and critical raw materials. Macron and Chancellor Friedrich Merz have also agreed to coordinate on China, trade and economic security.

Web Resources on Europe dependence on US and China

1. Euro News : The Trump-Xi summit: Why Europe has so much at stake.
2. Bloomberg : Spanish PM Sanchez on Morocco, China and Next ECB President.
3. ICDS.ee : The Trump–Xi Second Summit: What Europe Stands to Lose.
4. Briefs.co : China’s top diplomat urges Europe to steer clear of a trade fight as clock ticks.
5. AcademicBlock : Trump and Xi to Meet for High-Stakes Bilateral Summit in US.