As Europe’s top trade chief headed to Beijing this month shortly after announcing a probe into China’s electric vehicle subsidies, some in the bloc braced for fiery criticism and any hint of retaliation.
Instead, the Europeans found President Xi Jinping’s government ready to talk, make promises and avoid aggressive rhetoric that could inflame an economic relationship worth $900 billion. While Vice Premier He Lifeng expressed "concern and dissatisfaction” over the probe, he agreed to set up several working groups including on financial services and trade curbs.
Beijing’s careful managing of its ties with a top trading partner comes amid a broader push to stabilize geopolitical relationships, as an economic slowdown at home deflates expectations it will ever overtake the U.S. as No. 1. China has hosted four cabinet-level White House officials in Beijing in recent months, and reestablished working groups with the U.S. ahead of a potential Xi meeting with U.S. President Joe Biden in November.
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