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.

Half a century after the establishment of relations between China and the EU, and against a backdrop of deteriorating transatlantic relations, the European Union and China held their 25th summit in Beijing.

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.

Alfred Schipke, Director of the East Asian Institute at the National University of Singapore, discusses the trade relationship between EU and China, saying there are low expectations heading into the two trading partners' summit in Beijing.

Yet analysts say the Chinese leader is likely holding out for concrete deliverables before agreeing to the high-profile meeting. Trump dramatically escalated the trade war with the world's second-largest economy in April, rolling out sweeping new tariffs that prompted China to respond with its own export duties and other measures.

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

Ursula von der Leyen and António Costa, the heads of the European Commission and the European Council respectively, will be in Beijing for a summit to mark the 50th anniversary of diplomatic relations between China and the European Union.

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.