President Xi Jinping has emphasized the need for fair market competition and free trade during a video call with German Chancellor Olaf Scholz, according to Chinese state media. The call comes as the European Union (EU) has expressed its intention to reduce reliance on trade with China in various sectors, particularly technology. The EU recently initiated an inquiry into China's subsidies for domestic electric vehicle (EV) manufacturers, following allegations that their low-cost products undercut European competitors. However, Beijing has denied these claims.

President Xi regards Europe as a comprehensive strategic partner and an important pole in a multipolar world, highlighting the importance of China-EU relations in maintaining global stability and the prosperity of the Eurasian continent. He urged Scholz to encourage the EU to uphold marketization and fairness principles, working together with China to protect fair market competition and free trade. Xi also emphasized the responsibility of both Beijing and Berlin as major powers to develop bilateral relations and serve as examples of win-win cooperation.

Scholz's visit to China holds significance as he was the first European leader to visit the country after the Communist Party congress in November, which consolidated Xi's power to rule indefinitely. The outcome of this call highlights the growing importance of China-EU relations, and the efforts required from both sides to safeguard and strengthen their partnership. The EU's desire to reduce reliance on China in technology and trade suggests an evolving dynamic in the economic relationship between the two entities.