For all the tough talk, Xi’s visit is a chance to ease trade tensions

Chinese president Xi Jinping is visiting three European countries this week, looking for opportunities to loosen the continent’s bonds with the United States and forge greater influence in the world. Over six days of his first trip to Europe in five years, he will visit France, Serbia and Hungary.

At first glance, that appears to be an eclectic, if not eccentric, choice but many EU diplomats see a great deal of method in this selection.

Chinese officials have told the media Xi’s mission is essentially about lessening growing trade tensions with Europe and trying to promote peace, with talks of ceasefires in conflicts in Ukraine and Gaza for the duration of the Olympic Games in Paris this summer.

Keener observers see the medium-term goal as lessening the cohesion between the EU and Nato, which would mean weakening US-EU links. Increasingly, the rise of China is seen in terms of a struggle for dominance with the US, so lessening American influence with key European states makes sense for Beijing.

EU leaders have become increasingly concerned about what they see as unfair trading practices involving China. On a visit to Beijing last month, German chancellor Olaf Scholz repeatedly stressed the need for fairer trade relations.

After meetings in Paris on Monday, which included French president Emmanuel Macron and Ursula von der Leyen, the European Commission president again warned China against flooding European markets with cheap consumer goods.

Trade relations became more fraught in recent times when the EU announced an investigation into state subsidies for electric vehicles and Beijing countered with probes into high-end French cognac imports.

The situation has led to fears that EU-China trade could go the same negative route of a very fraught relationship between China and the US. So, there are vital interests at stake on both sides of this equation.

The visit has an air of diplomatic pomp. But this will not mask the required tough talking.

Before this visit, Brussels diplomats were talking about EU tariffs ranging between 15pc and 30pc on electric vehicles. These could be applied provisionally at first before the necessary approval by member governments later in the year. Such a move would hit China hard and it has warned strongly against it.

Xi can be assured of a warmer welcome in Serbia, an EU membership applicant, and Hungary, the regular leader of the EU awkward squad. In both countries, substantial Chinese investment is seen as a benefit from close ties with Beijing. Unfortunately, that situation also highlights EU divisions on international policy and the crucial issue of relations with China.

For Ireland, which operates a small, open economy, effective management of these internal tensions, and the forging of a sensible and pragmatic EU-China trade framework, are vital to our continued prosperity.

For everyone’s sake, it is vital that this visit can help alter the trajectory of EU-Chinese trade relations.