Chinese President Xi Jinping has reportedly declined an initial invitation to visit Brussels for a summit marking the 50th anniversary of relations with the European Union.

According to two individuals with knowledge of the matter who spoke to the Financial Times, Beijing has informed EU officials that China’s second-ranked leader, Premier Li Qiang, will meet with the presidents of the European Council and Commission in Brussels in Xi’s place for the summit.

EU-China summits traditionally alternate between Brussels and Beijing. While the premier typically attends the summit in Brussels, Xi usually hosts in Beijing. However, the EU believes that the significance of this meeting, which commemorates half a century of diplomatic relations, warrants the presence of the Chinese President.

Both parties have stated that discussions are ongoing, but Xi’s rejection of the invitation has raised questions among many in Brussels.

This year’s summit coincides with a particularly sensitive period in EU-China relations.

Tensions between Brussels and Beijing have escalated since Russia’s intervention in Ukraine in 2022, with the EU accusing China of supporting the Kremlin. The EU is also imposing tariffs on electric vehicles imported from China, citing that they are subsidized.

EU officials assert that China, which recorded a trade surplus of €304.5 billion with the bloc last year, has not made sufficient efforts to rebalance trade by reducing subsidies to its industries and lowering trade barriers for foreign companies operating in the world’s second-largest economy.

A senior EU diplomat told the Financial Times that “relations are icy.”

Lu Shaye, China’s former ambassador to France and currently Beijing’s special representative for European affairs, stated that China’s policy towards Europe has always “advocated peace, friendship, cooperation, and mutual benefit.”

“This has never changed. It is only the contrast with the US’s current policy towards Europe that makes China’s policy towards Europe appear even more visionary, fair, and reasonable. I hope this will be a wake-up call [for Europe],” he said.

The diplomat added, “China has even said that they expect Europe to have a seat at the negotiating table [in Ukraine peace talks].”

EU trade chief Maroš Šefčovič is scheduled to visit China later this month. Spanish Foreign Minister José Manuel Albares told the Financial Times last month that the EU should also see potential opportunities. Albares said, “If China can be a partner, let’s take advantage of that.”

European Commission President Ursula von der Leyen stated in February that the EU would continue to “de-risk” by protecting its industry, while adding, “we may find agreements where we can further expand our trade and investment ties.”

Trump’s imposition of 25% tariffs on steel and aluminium forced the EU to retaliate, even as industry groups warned of the damage it would cause. However, a senior EU official said that a critical focus when it comes to China is defensive measures to keep out the “wave” of Chinese products diverted from the US market due to tariffs.

On Friday, the EU initiated an anti-dumping investigation into exports of adipic acid, used in the production of nylon and numerous other products, to China. This is the 11th such case since October, including those related to sweet corn, metal screws, and waxes.

An EU official stated, “Informal discussions are ongoing, both on the timing of this year’s EU-China summit and on the level of representation.”

The Chinese Foreign Ministry stated that they had “no information to provide” on the matter.

The Donald Trump administration is reportedly planning to introduce new restrictions on entry to the US for citizens of forty-three countries, including Russia and Belarus.

According to The New York Times, citing American officials familiar with the matter, the project was prepared by American diplomats and security units and envisages dividing countries into three categories: “red,” “orange,” and “yellow.”

Travel to the US will be significantly restricted for citizens of the ten countries on the “orange” list.

Only “wealthy business travelers” from these countries will be allowed to enter the country, while tourist and immigration visas may be prohibited.

In addition to Russia and Belarus, Haiti, Laos, Myanmar, Pakistan, Sierra Leone, South Sudan, Eritrea, and Turkmenistan are also planned to be included in this list.

The “red” list includes eleven countries: Afghanistan, Bhutan, Cuba, Iran, Libya, North Korea, Somalia, Sudan, Syria, Venezuela, and Yemen, and citizens of these countries will be completely banned from entering the US.

The 22 countries on the “yellow” list will be given 60 days to address US concerns. Otherwise, these countries may also be placed in the “orange” or “red” categories. This list generally includes Caribbean and African countries.

It is not yet known whether the new regulation will affect existing visas and residence permits (green cards).

It remains unclear whether these will be canceled.

The recommendations regarding the new entry regulation were prepared by the State Department a few weeks ago, but the document may be revised before being submitted to the White House.

In addition, The New York Times recalled that in January, Donald Trump signed a decree envisaging the identification of countries whose information provided was “insufficient for verification” and the partial or complete suspension of entry for citizens of these countries.

The newspaper also noted that Trump imposed a similar ban during his first presidential term (2017-2021), but this ban was later lifted by his successor, Joe Biden.

The report noted that officials from various government agencies declined to comment on the matter.

Shares in Hong Kong-based conglomerate CK Hutchison fell 5% on Friday after China criticized the sale of its Panama Canal ports and suggested it should “think twice” about a $22.8 billion deal with US asset manager BlackRock.

A strongly worded commentary, which first appeared in Hong Kong’s Beijing-backed newspaper Ta Kung Pao and was reposted late Thursday by China’s top office in charge of the territory’s affairs, accused the US of using “despicable means” to pressure the deal.

The article stated, “[Critics] say this is a spineless, fawning, profit-seeking move that sells out integrity for personal gains and disregards national interests. [It is an act of betraying and selling out all the Chinese people].”

It emphasized that China’s maritime transport and trade would be hindered by the US and that CK Hutchison should “think twice” about “what position and side it should be on.”

Dan Baker, a senior equity analyst at Morningstar, said concerns over whether the deal would be completed after securing approval from the Trump administration were reflected in Friday’s share price decline, but that the move might be an “overreaction.”

“To the extent that the company still has assets in China, if the Chinese government is angry with them for making this sale, there is probably some potential investor concern about what might happen to their businesses that are still there,” Baker said.

Mainland China and Hong Kong accounted for about 14% of CK Hutchison’s 2023 revenues, while revenues from the UK and Europe accounted for about 50% of that.

CK Hutchison did not immediately respond to a request for comment. Its shares had risen more than 20% in Hong Kong when the deal was first announced last week.

At the time, Chinese Foreign Ministry Spokesperson Lin Jian declined to comment on the sale but denied Trump’s claims that China controlled the canal.

Under the agreement in principle, 43 ports owned by billionaire Li Ka-shing’s CK Hutchison company, located at both ends of the Panama Canal, will be sold to a consortium that includes BlackRock.

These ports include those in the UK and Germany, as well as Southeast Asia, the Middle East, Mexico, and Australia.

According to the Financial Times, BlackRock CEO Larry Fink briefed senior officials from the Trump administration, including the President and Secretary of State Marco Rubio, to secure their support for the takeover.

The deal was planned a few days after Donald Trump took office. The President said in his inaugural speech: “The Panama Canal is operated by China… and we are taking it back.”

Li, who retired as chairman of CK Hutchison in 2018 and still serves as a senior advisor, was actively involved in the negotiations.