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.

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.

China, Russia, and Iran, following trilateral talks in Beijing on Friday, called for an end to “illegal and unilateral sanctions” against Tehran, as well as “threats of force.”

In a joint statement released by Chinese state television CCTV, the three countries said that diplomatic engagement and dialogue based on “mutual respect” were the “only effective and viable option” to address the issue of Iran’s nuclear program.

“The three countries emphasized that relevant parties should be determined to eliminate the root causes of the current situation and abandon sanctions and pressure, as well as military threats,” the statement continued.

The statement did not explicitly mention the US, but the meeting followed Iran’s rejection of Donald Trump’s proposal to restart nuclear negotiations. Tehran said it was not fair to negotiate under conditions where Washington was implementing a policy of maximum pressure.

The meeting, chaired by Chinese Vice Foreign Minister Ma Zhaoxu, was attended by Russian Deputy Foreign Minister Sergey Ryabkov and Iranian Deputy Foreign Minister Kazem Gharibabadi.

During his first term as president, Trump withdrew the US from the international agreement under which Iran agreed to limit its nuclear program in exchange for the lifting of sanctions.

Last week, Trump proposed restarting negotiations in a letter to Iran’s Supreme Leader Ayatollah Ali Khamenei, which was delivered by the United Arab Emirates. In an interview a day after the letter was delivered, he said that if Tehran did not want to negotiate, the US would have to “intervene militarily.”

Iranian President Masoud Pezeshkian said that he would not negotiate under “threat” and would not submit to the “orders” of the US.

Friday’s meeting took place before a conference at the United Nations Security Council on the same day to discuss Iran’s growing uranium stockpile. Earlier this month, the International Atomic Energy Agency expressed new concerns about Iran’s uranium enrichment activities, stating that these activities were approaching weapons-grade levels.

In a joint press conference with his Russian and Iranian counterparts, Sergei Ryabkov and Kazem Gharibabadi, Chinese Vice Foreign Minister Ma Zhaoxu said: “We emphasized the importance of UN Security Council Resolution 2231 and its timeframe, and called on relevant parties to avoid actions that would escalate the situation and to jointly create a favorable atmosphere and conditions for diplomatic efforts.”

The resolution Ma referred to endorsed the nuclear agreement, known as the Joint Comprehensive Plan of Action, which was also signed by China, Russia, Britain, France, Germany, and the European Union.

On Friday, both China and Russia welcomed Iran’s commitment to the Non-Proliferation Treaty and Tehran’s pledge not to pursue nuclear weapons. “They emphasized that Iran’s right to use nuclear energy for peaceful purposes as a party to the treaty should be fully respected,” the statement said.

The trio also held joint naval exercises in the Gulf of Oman last week to deepen military cooperation.

It was also noteworthy that the meeting was not held in Beijing. China, which aims to mediate in disputes in the Middle East, has previously mediated between Iran and Saudi Arabia, long-time adversaries, and brought together Palestinian organizations in Beijing at the beginning of the Gaza War.

Analysts say that China’s growing interest in the Middle East also reflects Beijing’s desire to diversify relations beyond economic partnerships. According to Jonathan Fulton of the Atlantic Council, some Middle Eastern countries see relations with China as a tool and even leverage to attract the attention of the US.

“Iran, of course, sees the West as an enemy and China’s support as crucial to navigating a challenging regional and international environment,” Fulton said in his recent report for the Washington-based think tank.