China on Monday, July 21, warned the European Union (EU) to reverse its decision imposing sanctions on two Chinese banks, or it will take actions to protect China’s interests ahead of Chinese President Xi Jinping’s meeting with EU head von der Leyen later this week.
The two leaders are set to meet on Thursday, July 24, for the 25th China-EU Summit in Beijing, where both parties will discuss trade relations, including access to China’s rare earth minerals.
European Commission President Ursula von der Leyen and European Council President Antonio Costa will meet President Xi and Chinese Premier Li Qiang during the summit.
China’s latest warning came from the Ministry of Commerce in response to the EU sanctioning two regional Chinese banks — Suifenhe Rural Commercial and Heihe Rural Commercial — and five companies in its package of sanctions against Russia.
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It is also the first time that Chinese banks have been added to the European sanctions list since the Russian invasion of Ukraine in 2022.
“China expresses strong dissatisfaction and resolute opposition to this move,” the ministry said in a statement asking the economic bloc to “immediately cease its wrong practice.”
China’s foreign affairs ministry also expressed firm opposition to “unilateral sanctions that have no basis in international law or authorisation of the UN Security Council” minutes after the sanctions were imposed.
“We call on the EU to stop hurting the lawful interests of Chinese companies in the absence of any evidence supporting its claims. China will do what is necessary to firmly defend the legitimate and lawful rights and interests of Chinese companies,” Spokesperson Lin Jian said during a press conference.
The upcoming summit takes place on the heels of several tit-for-tat tariffs and remedial diplomatic efforts between the two since October 2024, when EU voted to impose tariffs on Chinese-built battery-electric vehicles (BEVs) on October 4, 2024.
Despite their differences, the meeting is a significant platform for each party to find common ground in countering US tariffs. China is looking at an August 12 deadline to reach a tariff agreement with the US, while Trump has set August 1 for the EU.
