The first meeting of China’s leaders with their new European Union counterparts was unusual in every respect. With the Covid-19 pandemic preventing in-person discussions, President Xi Jinping and Premier Li Keqiang spoke separately by video link to presidents Ursula von der Leyen of the European Commission and Charles Michel of the European Council. The talks had been postponed since March and the health and economic crisis coupled with challenging relations ensured that expectations were low and the pundits proved correct; the encounter on Monday ended with no joint statement or news conference and both sides producing markedly different narratives of what occurred. In fraught times, competition between big powers is bound to intensify, but for all the rivalry, in this particular case there is also the reality that given the pressures, each needs the other, particularly now. Relations between China and the EU have been tense since March last year, when the commission determined that Beijing was a “systemic rival”, even though it also referred to it as an economic partner. United States President Donald Trump’s “America first” policy and his feuding with China had already put the EU in a difficult situation and that has been mounting, particularly over the use of equipment by the Chinese technology firm Huawei in 5G telecommunications networks. On top of that, trade, investment, supply chains and travel have been severely disrupted by the coronavirus crisis and uncertainty about a recovery has deepened positions, plunging ties to new lows. The EU is China’s biggest trading partner and China is the bloc’s second largest. Beijing’s statement after the meeting was therefore bound to be conciliatory, Xi saying that China was a partner, and would continue deepening reform and expand opening up. EU leaders talk tough to Beijing over long list of unmet promises The EU, frustrated over perceived slow progress on an investment agreement, has a host of concerns about issues including state subsidies, technology transfers, equal opportunities for European firms and climate change. The European leaders had an expectedly tough message on human rights at their media briefing, von der Leyden contending that China faced “very negative” consequences if it went ahead with a national security law for Hong Kong. What that may be was not specified and there is little likelihood that it will be anything other than rhetoric. The reason is that while China and the EU have differences, they respect one another and have common interests. Whether it is finding a vaccine to protect against Covid-19, strengthening multilateralism or shoring up economic growth and development, they know they need to cooperate and work together.