The EU expressed its readiness for constructive dialogue to resolve ongoing conflicts but warned of potential protective measures if discussions do not yield favorable outcomes.

On July 24, 2025, European Commission President Ursula von der Leyen announced a new export supply mechanism between the European Union and China to address potential export issues.

This announcement comes in the wake of China's export restrictions on seven rare earth elements, which were imposed in April 2025, raising concerns among industrial companies about possible production halts.

The new mechanism is designed to enhance transparency in the licensing process for rare earth exports and ensure timely delivery of these critical materials to companies.

These export controls have led to a complex application process for global companies, exacerbating fears of production disruptions in industries reliant on these materials, such as electric motors and sensors.

Despite the establishment of the new mechanism, von der Leyen highlighted the necessity for substantial progress in rebalancing EU-China trade relations, which had a deficit exceeding €300 billion in 2024.

During the discussions, Chinese President Xi Jinping advocated for open trade relations and criticized the EU's de-risking strategy, warning that such barriers could lead to self-isolation.

The summit also touched on the implications of Russia's war on Ukraine, with the EU urging China to leverage its influence to promote a ceasefire.

Von der Leyen described the current trade situation as a crossroads, emphasizing the need for a more balanced trade relationship that maintains mutual benefits and fair competition.

The EU aims to achieve fair competition and greater access to the Chinese market while addressing issues related to industrial overcapacity stemming from Chinese subsidies.

She noted that a reliable supply of critical raw materials from China aligns with both the EU's and China's long-term economic and strategic interests.

Although a joint declaration on climate action was made ahead of COP30, no significant progress was achieved on several contentious issues.