As the European Union and China prepare to celebrate the 50th anniversary of their diplomatic relations with a high-level summit in Beijing at the end of July 2025, the atmosphere behind closed doors is far from festive. The main issue at hand is the tariffs on Chinese electric vehicles (EVs), which have become a contentious point in the increasingly complex trade relationship between the EU and China.

US President Donald Trump announced a new trade agreement with Indonesia on Tuesday, establishing a 19% tariff on goods imported from the Southeast Asian nation into the United States. This rate represents a significant reduction from an earlier threat of a 32% tariff, signaling a partial de-escalation of trade tensions as the Trump administration continues to push for what it views as more favorable terms with trading partners.

The parade of power players to Lei Jun’s door tells a story. Samsung Electronics Chairman Lee Jae-yong, Qualcomm CEO Cristiano Amon, and Nvidia CEO Jensen Huang have all made the pilgrimage to meet with Xiaomi’s founder and CEO during their China visits. This isn’t a coincidence — it’s recognition of where the real gravity now lies in China’s innovation landscape.