Since the establishment of Sino–European relations in 1975, there have been significant changes toward building a China-driven agenda in the past 15 months. These changes are intrinsically related to China’s rise, which diverted the EU-American international protagonism.
While there is no common ground among EU members on how to counterbalance the dependence on trading with the second-largest economy in the world, the G7 Summit imparted to the collective endeavors of the largest economies to ‘de-risk’ from China. The EUA, Canada, the UK, and Japan have joined the club.
The Russo-Ukrainian War Context
In March 2019, the European Union adopted a two-folded stance on its relationship with China, defining it as competition cooperation. This dualism underlines the need to understand how to play politics the Chinese way. Since then, the EU has sought to adopt a more assertive tactic, and the ‘systemic rival’ approach has thus prevailed. Besides, the recent Russia-Ukrainian war has contributed much to this decision. European Commission President Ursula von der Leyen recently stated, “How China continues to interact with Putin’s war will be a determining factor for EU-China relations going forward.”
China’s close ties with Russia have been around for a while. Their connections in the global arena intensified to counterbalance the American world leadership. Sino-Russian relations were built through symmetric ideological concepts, where the Chinese Communist Party (CCP) is still rooted in the Marxism-Lenist ideology.
China’s foreign affairs are based on non-interventionism principles, but its alignment with Putin has been questioned instead as support to the current war that possibly includes military intelligence and economic aid to Russia. China’s abstention from voting on the resolution that condemned Russia’s latest actions in Ukraine in October 2002 and the recent visit of Xi Jinping to Moscow days after the international criminal court issued an arrest warrant for President Putin contributed to the EU to build the narrative that China does support Russia’s point of view and justifications to the war.
The EU strongly condemned Xi’s trip, voicing worries about China’s role in the war and power balance in its relations with Russia, which now favors China. In late March, Von der Leyen delivered a speech on EU-China relations to the Mercator Institute for China Studies and the European Policy Centre, stating, “President Xi is maintaining his ‘no-limits friendship’ with Putin.”
As Xi voiced “peace talks” and “responsible dialogue” over the war, a joint statement with his Russian counterpart raised the flag of a possible siding with Russia. The joint statement contained criticisms of sanctions and the contributions of NATO in expanding the conflict.
China’s possible role in a peaceful negotiation is unlike the one adopted to break a deal between Saudi Arabia and Iran, which ended decades of elusive diplomatic relations. The reason is simple: its close ties with Russia.
The Economic Context
In the G7 summit in Hiroshima last week, the largest global economies voiced ‘de-risking’ China against possible economic coercion in various areas involving trade, technologies and intellectual property, and supply chain.
Apart from the Sino-American trade war and the reliance on trading in China – the EU recorded a trade deficit of more than 365 billion euros with China in 2022 – at least two other concerns have debuted on the discussion agenda: the country’s rare earth metals control and responsibility in cyberspace.
To counterbalance China’s new status quo on the global stage, the G7 announced the launch of the Partnership for Global Infrastructure Investment. The total of $600 billion in financing for quality infrastructure is a clear threat to the Belt and Road initiative, but it is unlike that it will pose any danger to China-led investment activities.
The Taiwan Context
The expansion of Chinese influence in the South China Sea has also become a prominent topic at the G7 summit. The G7 Foreign Ministers released a joint statement against China’s latest military activities near Taiwan, condemning economic coercion and urging peaceful talks.
Taiwan is perhaps China’s most irrevocable negotiation topic in foreign relations as the “One China” policy emphasizes the recognition of the island as an integral part of its territory instead of a separate sovereign state. This policy is the central pillar of bilateral diplomatic relations with China.
The complex dynamics shaping countries’ perceptions and interactions with China have shifted Europe’s future standpoint, leaning towards a more assertive approach. As Europe redefines its relationship with China, the balance between reciprocity and market access, and strategic cooperation in climate change will shape the continent’s strategy moving forward. In any event, Europe’s future relations on China promises to be more stick, less carrot.
