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China seeks Austria's help in easing China-EU tensions

Published by Global Banking & Finance Review

Posted on June 25, 2026

3 min read

· Last updated: June 25, 2026

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China Calls on Austria to Help Ease China-EU Trade and Market Strains

China and Austria Discuss Trade, Market Access, and Diplomatic Relations

Background on China-EU Relations

BEIJING, June 25 (Reuters) - China and Austria should respect each other's "core interests" and work to improve China-EU ties, Beijing's top diplomat told his Austrian counterpart on Thursday, as disputes over trade, market access and Russia strain relations with Brussels.

"The correct positioning of China-Europe relations is as partners, not rivals," Chinese Foreign Minister Wang Yi said during a meeting with Austria's Beate Meinl-Reisinger in Beijing, an official Chinese readout showed.

Austria's Diplomatic Engagement with China

Details of the Austrian Foreign Minister's Visit

The Austrian foreign minister is on a five-day visit to China — and for her third meeting in a year with Wang — at a time when Beijing is seeking direct channels with individual European capitals amid wobbly China-EU relations.

EU Perspectives on Trade with China

Last week, EU officials said views were gradually converging among the bloc's 27 members on the need to curb its widening trade deficit with China and reduce its reliance on Beijing for rare earths and other critical supplies.

China's goods trade ​surplus with the EU hit €360.6 billion ($410.29 billion) in 2025, up 15% from 2024. But EU members have differing views on how to respond.

Varied Approaches Among EU Member States

Countries including France favour a firmer approach, while Germany, the bloc's largest exporter, and Spain, which has drawn growing Chinese investment, have taken a more cautious stance.

Austria appears to lean toward the cautious side, as some Chinese automakers including Xpeng look to Austrian contract manufacturers as a foothold for European production.

Around 650 Austrian firms also operate in China.

Austria's Position on China Relations

Statements from Austrian Officials

In a social media post on Tuesday, Meinl-Reisinger said Austria's approach to China is "consistent, pragmatic, and European."

"Our aim is to strengthen European sovereignty, free ourselves from dependencies, and at the same time maintain stable trade relations with China based on fair, reliable, and rules-based conditions," she wrote.

China's Response to Austria's Policy

During Thursday's meeting, Wang said Beijing "appreciates Austria's rational and pragmatic policy toward China".

The country "hopes Austria can continue to play a constructive role for the development of China-Europe relations," he added.

Additional Information

($1 = 0.8789 euros)

(Reporting by Xiuhao Chen, Shi Bu and Liz Lee, Editing by William Maclean and Andrew Heavens)

Key Takeaways

  • China appeals to individual EU capitals like Austria to ease China‑EU tensions, promoting a partnership rather than rivalry framework.
  • China’s goods trade surplus with the EU reached around €360 billion in 2025, fuelling European concerns over industrial overcapacity and dependencies.
  • Austria maintains a cautious, pragmatic stance, with Chinese EV maker Xpeng partnering with Austria’s Magna for local production, reflecting mutual economic interest.

Frequently Asked Questions

Why is China seeking Austria's help regarding EU relations?
China hopes Austria's pragmatic stance will support improved China-EU ties amid trade and political tensions.
What key issues are straining China-EU relations?
Disputes over trade deficits, market access, and Russia are currently straining China-EU relations.
How does Austria approach its relationship with China?
Austria adopts a consistent, pragmatic, and European approach, supporting both strong EU sovereignty and stable trade with China.
What economic ties exist between China and Austria?
About 650 Austrian firms operate in China, and Chinese automakers partner with Austrian manufacturers for European market entry.
What is the magnitude of the EU’s trade deficit with China?
The EU's goods trade surplus with China reached €360.6 billion ($410.29 billion) in 2025, up 15% from 2024.

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