China’s President Xi Jinping has called on European Union leaders to stand with it against unilateralism, in a veiled rebuke to US President Donald Trump’s efforts to upend the global world order.
In a message to European Commission President Ursula von der Leyen and European Council President Antonio Costa on the 50th anniversary of the establishment of EU-China ties, Xi said the two sides need to “properly manage” differences and deepen strategic communication.
“China and the EU should uphold multilateralism, defend fairness and justice, oppose unilateral bullying,”
— State media Xinhua cited Xi as saying on Tuesday.
The two sides “should work together to address global challenges, and jointly promote an equitable and orderly multipolar world and an inclusive economic globalization,” he added.
Xi’s outreach is the latest sign of Beijing’s willingness to improve relations with Brussels, coming on the same day that China publicly confirmed for the first time it was suspending sanctions against European lawmakers that had hampered mutual exchanges.
Chinese Foreign Ministry spokesman Lin Jian told reporters at a daily press briefing on Tuesday that while ties between Beijing and Brussels had experienced “twists and turns,” the time has come to turn a new page.
“Under the current circumstances, both sides believe that it is very important for China and the EU to strengthen dialogue and cooperation,”
— Lin was cited as saying by state broadcaster China Central Television.
“We believe and expect that with the full resumption of exchanges between China and the EU, exchanges and understanding between the two sides will be deepened.”
China is seeking to repair ties with the EU, positioning itself as a more reliable partner at a time when Trump alienates the bloc. Its decision to drop sanctions had previously been confirmed only by the European Parliament’s president, Roberta Metsola, last week.
Imposed in 2021, the measures had targeted five members of the European Parliament and the legislature’s subcommittee on human rights. They were imposed in response to measures taken earlier by the EU over China’s human rights practices in the far western region of Xinjiang.
The official Xinhua News Agency separately cited the Chinese Foreign Ministry spokesperson as saying Beijing welcomes Costa and von der Leyen to visit the country for a new round of bilateral talks at “a proper time.”
Still, differences remain. At an event in Beijing to mark the anniversary and the upcoming Europe Day on May 9, the EU’s ambassador to China, Jorge Toledo, raised a range of issues that have long been divisive.
Toledo reiterated calls for Beijing to address trade imbalances, create a fair market environment for European companies in China, collaborate on global challenges, and reciprocate the bloc’s commitment to improving bilateral relations.
“The European Union is ready to put in the necessary effort,” Toledo said.
“We hope China will do the same.”
US Stock Futures Drop on Signs of Trade War Damage: Markets Wrap
Global stocks fell as a slew of corporate statements reinforced concerns about the trade war’s damaging impact on companies and the world economy.
Contracts on the S&P 500 slipped 0.7%, while those on the Nasdaq 100 dropped 0.9%. Palantir Technologies Inc. fell about 8% in premarket trading after the software firm’s results failed to meet investors’ expectations, and analysts noted weakness in its international sales division. Ford Motor Co. dropped 2.3% after the carmaker pulled its financial guidance and flagged a total tariff impact of about $2.5 billion on 2025 earnings.
In Europe, the Stoxx 600 benchmark snapped a 10-day run of gains to drop 0.5%, as companies such as Royal Philips NV and Vestas Wind Systems A/S warned of uncertainty fueled by trade tariffs.
The moves suggest that a recent burst of optimism fueled by some US trade concessions may already be fading. On Monday, the S&P 500 halted a nine-day rally that was its longest in about 20 years. While Ford’s warning served as a reminder that damage from the tariff war will become evident over the coming months, a run of firm economic data in recent days has caused traders to dial back bets on Federal Reserve interest-rate cuts.
“Markets have already priced any short-term positives on this front and are bracing for the economic slowdown,”
— said Mohit Kumar, chief economist and strategist at Jefferies International.“Our view is to use the recent rally to reduce exposure to the US,” Kumar said in a client note.
“We do see some slowdown in the economic data as we head toward June and the tariffs start to have an effect.”
Meanwhile, investors are also coming around to the view that the Fed won’t cut interest rates as early or as deeply as earlier anticipated. While it’s expected to leave interest rates on hold this week, money markets have pushed back the timing of the first reduction to July and see three cuts by year-end, rather than the four they had expected a week ago.
Bloomberg’s dollar index traded little changed, ceding an earlier modest gain. The gauge is down nearly 7% this year and data shows traders have been adding to bearish bets. The fallout is being felt worldwide, with wild swings in recent days across Asian currencies, while Hong Kong has ramped up sales of its local currency to protect its foreign-exchange peg.
Meanwhile, the Bank of England is set to cut rates this week and may even pave the way for a series of back-to-back reductions in response to the trade war. The European Central Bank will also cut rates further, Governing Council member Yannis Stournaras said.
Some of the main moves in markets:
Stocks
- The Stoxx Europe 600 fell 0.5% as of 10:01 a.m. London time
- S&P 500 futures fell 0.7%
- Nasdaq 100 futures fell 0.9%
- Futures on the Dow Jones Industrial Average fell 0.6%
- The MSCI Asia Pacific Index rose 0.1%
- The MSCI Emerging Markets Index was little changed
Currencies
- The Bloomberg Dollar Spot Index was little changed
- The euro rose 0.1% to $1.1327
- The Japanese yen rose 0.4% to 143.13 per dollar
- The offshore yuan fell 0.2% to 7.2159 per dollar
- The British pound rose 0.1% to $1.3315
Cryptocurrencies
- Bitcoin rose 0.1% to $94,348.26
- Ether fell 0.4% to $1,800.97
Bonds
- The yield on 10-year Treasuries advanced two basis points to 4.36%
- Germany’s 10-year yield advanced two basis points to 2.54%
- Britain’s 10-year yield advanced five basis points to 4.55%
Commodities
- Brent crude rose 2.4% to $61.65 a barrel
- Spot gold rose 1.3% to $3,375.96 an ounce
Source: Bloomberg
