At a tense summit in Beijing, Chinese President Xi Jinping urged EU leaders to handle differences as trade tensions peak. EU officials, including Ursula von der Leyen, seek a balanced approach amid a record trade deficit and recent disputes over China’s overcapacity and global market influence.

The European Union and China are preparing to agree a joint declaration on tackling climate change at a summit in Beijing on Thursday, EU diplomats told Reuters.

The European leaders are in Beijing for what is expected to be a contentious summit, at a time of growing tension and mistrust between the two sides over their gaping trade imbalance, China’s ongoing...