Xi's European tour: A strategic move to counter US influence
Europe's pivot towards the United States spells trouble for Beijing, prompting Xi Jinping to embark on a significant diplomatic mission to the continent. His five-day tour will include stops in France, Serbia, and Hungary, aiming to sow division between the European Union and the USA, according to experts.
The European Union's approach to China has hardened, moving away from the previously welcoming "open arms" policy. Coordination with Washington has increased, leading to the introduction of measures designed to shield the internal market from potential Chinese dominance.
Beijing views Europe's growing alignment with the USA as a significant setback in the global power dynamics. China prefers neutrality if outright support is unattainable. Xi Jinping's journey to Europe seeks to drive a wedge between transatlantic allies, proposing alternatives to the growing American influence.
"The visit marks Xi's first to Europe since geopolitical tensions escalated. He aims to mitigate growing fears within the EU about China's intentions, especially given China's support for Russia during recent conflicts," notes Jan Strzelecki of the World Economy Team at PIE.
The Chinese leader aims to rehabilitate China's image in Europe, highlighting the mutual benefits of enhanced cooperation.
China aims to demonstrate the economic advantages of collaboration with European nations, a strategy evident during the German Chancellor’s recent Beijing visit. According to a PIE expert, these efforts are partly to dilute European policies against China, attempting to counter the EU's alignment with the U.S.
Just a week before, Chinese Foreign Minister Chin Wang Yi expressed hopes for France to guide a more pragmatic EU policy towards Beijing.
The EU's Awakening
Europe's stance on Chinese investments has significantly evolved. In 2021, a report by the European Parliament pinpointed China as both an "economic competitor" and a "systemic rival." Beijing's support for the ongoing Russian-Ukraine conflict further estranged the EU from China.
Even Germany, previously known for its welcoming economic policies towards China, has shifted its approach. Berlin's strategy, aimed at mitigating "Chinese risk" in July 2023, prompted immediate diplomatic backlash from China.
Consequently, Brussels has toughened its scrutiny of Chinese investments and corporations, implementing safeguards against potential market disruptions and threats to its economic sovereignty.
Energy security has also become a focal point, especially concerning the dominance of Chinese companies in renewable energy technologies, potentially compromising Europe's ambitious energy transformation goals.
The European Commission has taken steps against Chinese wind turbine manufacturers, highlighting the broader concern over unfair competition practices and the security threats posed by over-reliance on Chinese technology.
"China's competitive stance would not be problematic if it weren't for instances of unfair competition, which include accusations of WTO rule violations, intellectual property theft, and protectionism. France, among other countries, has shown strong support for the EU's stance against such practices, especially in emerging sectors like electric vehicle production," Strzelecki points out.
China Values Europe
For China, maintaining robust trade and investment ties with Europe is crucial. Recent discussions have emphasised the importance of free trade and a cooperative stance towards the European Union.
According to a PIE expert, these initiatives reflect China's strategic interest in softening EU policies in the face of global competition, especially from the USA. Xi's visit to France and Hungary underscores China's nuanced approach towards engaging with EU member states based on their individual political and economic orientations.
To Distance or to Engage?
The upcoming meetings between Macron, European Commission President Ursula von der Leyen, and Xi Jinping will be pivotal, with the US closely monitoring the situation. The EU is navigating its own path amidst global tensions.
- The EU's stance towards China involves protecting its economic security while addressing challenges like unfair competition and economic coercion. Cooperation with China is deemed necessary but must not compromise the EU's strategic goal of reducing reliance on risky partners, concludes Strzelecki.
