China-US dispute "on hold", China-EU cooperation "on rise"

By Xin SONG

At the same time that the trade war between China and the United States is temporarily on hold, cooperation between China and the European Union is constantly on the rise. China's Foreign Minister Wang Yi just finished official visits to three southern European countries, before going to Argentina for the G20 meeting of foreign ministers. This visit to Europe marks not only the 15th anniversary of the E.U.-China Comprehensive Strategic Partnership, but more importantly demonstrates the dedication and commitment of Beijing and its European partners to both broader and deeper cooperation. 

Chinese State Councilor and Foreign Minister Wang Yi (L) and French Foreign Minister Jean-Yves Le Drian hold a press conference after a meeting in Paris, France, May 16, 2018.[Photo: Xinhua]

The Belt and Road Initiative was discussed by Minister Wang and his European counterparts from France, Spain, and Portugal. The message that he conveyed seemed fairly clear. First of all, despite being initiated by China, the Belt and Road Initiative will and should be carried out in a reciprocal way by all the participating countries. Second, all the related projects and their management will comply with international regulations and be achieved under a rule-based framework. And last but not least, great importance will be attached to concerns like the sustainability of debts and environment protection.

It is evident that China and its partners are constantly seeking to balance Chinese philosophy, focused on flexibility and pragmatism, with the European philosophy, characterised by strict processes and stability. Since the launch of the Belt and Road Initiative five years ago, huge efforts have been made to find a compromise between the two approaches, by enlarging the scope for common ground. With more and more projects developed and implemented, we have witnessed progressive change in the attitude of European countries towards the Belt and Road Initiative.

Due to multiple destabilising factors at global level, China and the European Union should be aware of the importance of a stable alliance in order to address common challenges. As pointed out by Spanish King Felipe VI and Portuguese President Marcelo Rebelo de Sousa during Minister Wang's visit, the familiarity of European countries with French, Spanish, and Portuguese-speaking regions in Africa and Latin America may help to forge and grow a robust model of cooperation beyond the current geographical boundaries.

Meanwhile, we shouldn't ignore the fact that cooperation will be more successful if it also involves local stakeholders. When working in countries with relatively poor resources, infrastructure, international cooperation experience, and expertise, participants need to work effectively to ensure they don't leave themselves open to accusations of neo-colonialism.

Chinese investment in Europe was also a principal topic during Minister Wang's European trip. The increase of Chinese investment into the European Union has caused some concern among the European public. Countries like Germany, France, and Italy are worried that European strategic industries may be targets for acquisition by Chinese investors.

As a consequence, there was an attempt to set up an investment screening system for the European Union. However, the initiative by the European Commission encountered clear opposition at the European Council by countries like Finland, Portugal, Greece, and Hungary, who are strong supporters of investment liberalism, and who have benefited substantially from Chinese investment. There is a clear need for all the concerned parties to figure out a transparent framework that provides impartiality, transparency, and compliance with existing regulations at different levels.

The European Union needs a common voice and policy towards China. From its beginning until now, the European Union integration project has been heavily influenced by the United States through its financial system, defence arrangements, and international institutions. But with the birth of the Trump administration, the whole situation has undergone profound change.

The United States is far from being interested in maintaining a good cross-Atlantic relationship. It is high time for the European Union to identify and defend its own interests. China will play an important role. 

The structure of the European Union leads to a permanent power struggle between Brussels and its member states. And as an economic player, the European Union lacks a geopolitical vision. This is a prerequisite for robust E.U.-China cooperation in the long run. China needs to work with Brussels in a more subtle and adequate way by intensifying its exchanges with its counterparts at different levels. After all, the European Union needs time and a reliable ally.

After Minister Wang's visit to Europe, China awaits German Chancellor Angela Merkel's 11th official visit. Germany, seen as the engine of the European Union machinery, plays an increasingly important role. When it comes to China, Berlin is clearly suffering from a dilemma between Realpolitik and Idealpolitik. From one side, Germany has a clear need for China, as China is its biggest business partner for its products, and a political ally on the international stage to help safeguard peace at the global and regional level, such as dealing with the issues of the Korean Peninsula and the Iran deal. From the other side, Berlin can't deny that it shares with the United States some concerns over reciprocal market access and intellectual property regulation in China. Berlin may always have its complex, but what we can foresee is: the more President Trump stresses his "America first" approach, the more the E.U.-China relationship will be deepened and strengthened. 

(Xin SONG, Brussels-based policy analyst at the European Parliament)