Chinese President Xi Jinping urged Europe to pursue closer cooperation in the face of a "turbulent international situation", during his first discussion with Antonio Costa since the former Portuguese prime minister became president of the European Council.

During a telephone call on Tuesday, the sides discussed hot-button issues, according to their respective readouts, from Russia's invasion of Ukraine and China's provision of dual-use goods to Moscow's industrial-military complex to a dispute over EU electric vehicle tariffs.

According to Beijing's account, Xi told Costa that "China has always believed that Europe is an important pole in a multipolar world and supports European integration and the strategic autonomy of the European Union".

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He called for Europe and China to "respect each other's core interests and major concerns". The statement said that the sides "exchanged views on issues such as Ukraine" where Xi "elaborated on China's principled position of advocating peace and promoting talks".

On trade, Xi said that China and the EU were "defenders of the multilateral trading system and have formed a strong economic symbiotic relationship", but did not refer to the many grievances in the trading relationship, which have become a source of severe bilateral tension in recent years.

Costa took the reins of the European Council, a body made up of the leaders of the EU's 27 member states that sets the direction for the bloc's policies, in December, succeeding Charles Michel of Belgium.

During the call, he "stressed the need to ensure a level playing field and to rebalance the existing trade and economic imbalances", according to a summarising statement provided by an EU official, who said that invitations were extended "in both directions and preparations for the EU-China Summit proceeding".

European Council President Antonio Costa "stressed the need to ensure a level playing field" with China. 

There was no such summit last year, mainly due to EU elections. According to precedent, Xi should travel to Brussels for this year's edition, since 2023's event took place in Beijing.

"On Ukraine, President Costa underlined that Russian aggression against Ukraine is a threat to global peace and stability. He called on China to contribute to a just, comprehensive and lasting peace in Ukraine and to ensure that no dual [use] goods are provided to Russia," the EU statement said.

It said that "Xi recalled that China has long-standing ties with Russia. He nevertheless agreed on the need for a just and lasting peace".

Beijing's account quoted Costa as saying that "the two sides should cooperate rather than compete".

"Today's era is full of challenges. The world needs closer cooperation between Europe and China to jointly respond to global challenges such as climate change and make positive contributions to world peace, stability and development," the readout quoted Costa as saying.

The call breaks months of silence between Beijing and the EU's top leadership. It also comes less than a week before Donald Trump returns as US president, which is expected to add fresh wrinkles to already-fraught EU-China ties.

Through 2024, the relationship deteriorated over a series of trade disputes and serious geopolitical differences, the most significant of which is China's close relationship with Russia since its invasion of Ukraine in February 2022.

The EU's investigation into China's subsidies in its electric vehicle sector, and subsequent anti-subsidy duties slapped on the import of Chinese EVs, have threatened to bubble over into a broader trade war.

Brussels is also concerned about industrial spillovers in China, with officials eyeing with caution Chinese customs data, released on Monday, which showed a near-US$1 trillion trade surplus with the rest of the world in 2024.

The EU and its member states grew increasingly uncomfortable, meanwhile, with the nature of Beijing's support for Moscow, contending, for example, that a drone factory in Xinjiang was producing military craft to be used by Russia forces in Ukraine.

Chinese firms were added to EU sanctions and export controls lists for their role in the war over the course of last year, while Scandinavian and Baltic countries have become anxious at Chinese-linked ships' involvement in several instances of undersea cable sabotage in the region.

Chinese President Xi Jinping delivering a New Year message on December 31, 2024 in Beijing. 

China maintains it has not provided arms to any side in the war in Ukraine and proclaims to be a neutral party.

During the call with Costa, according to Beijing's readout, Xi said that "China and Europe have no fundamental conflicts of interest or geopolitical contradictions, and are partners of mutual achievement".

"The more severe and complex the international situation is, the more China and Europe should uphold the original intention of establishing diplomatic relations, strengthen strategic communication, enhance strategic mutual trust, and adhere to the positioning of partnership," Xi said.

"China has confidence in the EU and hopes that the EU can also become a partner that China can trust," he added.

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