The EU-China summit in Beijing laid bare the underlying frictions in that relationship, which present both challenges and opportunities for Southeast Asia, says Daniel Balazs of the S Rajaratnam School of International Studies.

Chinese leader Xi Jinping urged the European Union to make “the right strategic choice” and enhance cooperation with China, while EU leaders called for a rebalancing of trade ties, as the two sides tackle deep-seated grievances at a tense summit in Beijing.

A joint statement promised new efforts to cut emissions at a time when China is positioning itself as the world’s one-stop shop for clean energy technologies.

Russia’s gas output declined in the first half of the year as higher exports to China and increased domestic demand failed to make up for lost flows to Europe via Ukraine.

European leaders are meeting with top Chinese officials in Beijing to discuss trade, climate change and global conflicts.

Deckers Outdoor topped estimates for first-quarter results on Thursday, fueled by robust demand in international markets such as Europe and China for its Hoka and UGG brands, sending shares of the footwear maker up about 9% in extended trading.

Beijing is betting that economic pressure and diplomatic defiance will force concessions, but its stance could put more strain on its ties with Europe at a crucial time.

After Trump’s election, China and Europe sought warmer ties, but rifts over Russia and trade sparked conflict.

China is a "critical partner" to Europe with a range of shared interests, state news agency Xinhua said in a commentary piece, downplaying Beijing's rivalry with the European Union bloc hours before a key summit between leaders of both sides on Thursday.

European metals traders are engaged in an increasingly frantic scramble to secure rare-earth metal supplies after it became all but impossible to directly source them from China.