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EU–China—Failed Prospects of Win–Win Partnership

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China and the Belt and Road Initiative

Part of the book series: Understanding China ((UNCHI))

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Abstract

The aim of this chapter is to analyse the unique, complex and globally important relationship between the EU and the People’s Republic of China (PRC) that just marked forty-five years of diplomatic ties.During that period, the relationship between the two biggest global traders underwent different phases, changed contents, aspirations of the two, as well as views of each other, as both sides had gone through substantial internal changes. Chinese initiatives ‘16 + 1’and the Belt and Road Initiative, strategic in nature, boldly stepped into EU soil challenging Brussels economically, politically and geopolitically. ‘Wolf diplomacy’ and ‘mask diplomacy’, together with human rights issues in Xinjiang and Hong Kong that led to mutual sanctions, further eroded relations. How and why EU and PRC arrived at their current position and whether it is realistic to expect a new mutually acceptable cooperation platform to be founded between them. Or, on the contrary, we should be prepared for even harsher misunderstandings and a further distancing of the two to take place. Our reasoning leans towards a hypothesis springs from their substantially different values, history and strategic goals, as well as perceptions of themselves, of each other, and of the global economic and political order. Their mutual misconceptions and misunderstandings, and consequently, disappointments, originate from the same source, as fruitful trade and investment cooperation could not fill that gap.

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Notes

  1. 1.

    Mitrovic (2019), p. 157.

  2. 2.

    European Commission and HR/VP contribution to the European Council (2019). Available at: https://ec.europa.eu/commission/sites/beta-political/files/communication-eu-china-a-strategic-outlook.pdf.

  3. 3.

    DEUC (2020). Available at: https://eeas.europa.eu/delegations/china/78510/marking-45-years-eu-china-diplomatic-relations-time-global-crisis_en.

  4. 4.

    EU-China Summit: Defending EU interest and values in a complex and vital partnership—Press release by President Michel and President von der Leyen.

  5. 5.

    While political dialogue between the EU and PRC started in 1975, formal relations were established under the 1985 EC-China Trade and Economic Cooperation Agreement.

  6. 6.

    Sources from the PRC’s MOFA claimed, though, that ten of the seventeen members have never enforced sanctions in practice.

  7. 7.

    China’s policy paper on EU (2003). Available at: http://www.chinamission.be/eng/zywj/zywd/t1227623.htm.

  8. 8.

    Linchu and Yixiang (2005).

  9. 9.

    Maher (2016).

  10. 10.

    Maher (2016).

  11. 11.

    EU-China: Strategic Action Service (2013). Available at: http://eeas.europa.eu/china/docs/20131123_agenda_2020_en.pdf.

  12. 12.

    After the latest EU-PRC (virtual) summit (June 22 2020), European Commission President Ursula von der Leyen and European Council President Charles Michel criticized China and threatened with “very negative” consequences if it pressed on with the security law in Hong Kong and actions against Uyghurs in Xinjiang, but no sanctions or other actions have occurred. In fact, it was only Sweden among the 27 member states that proposed sanctions over deteriorating developments regarding Hong Kong.

  13. 13.

    Zayul (1959 to 2004), pp. 8–84. Available at: http://tibet.net/1959/01/international-resolutions-and-recognitions-on-tibet-1959-2004/ (Accessed on December 5, 2020); Dutoit (2016), pp. 189–191. European Parliament. Resolution on the human rights situation in Eastern Turkestan (Region of Xinjiang) (1997). Available at: http://www.radicalparty.org/en/content/100497-resolution-human-rights-situation-eastern-turkestan-region-xinjiang

  14. 14.

    Sorroza (2011). Available at: https://www.eurasiareview.com/04122011-is-the-eurozone-crisis-changing-eu-china-relations-analysis/

  15. 15.

    The sixteen countries, listed in alphabetic order were: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Montenegro, Poland, Romania, Serbia, Slovakia and Slovenia.

  16. 16.

    “Go Global” Investment Strategy Needed for Chinese Enterprises (2001).

  17. 17.

    According to the OECD data, Chinese investments have had the biggest impact in Africa where its direct investment amounted to nearly US $51 billion a year since 2007. In proportion to the size of the economy, Chinese direct investments in Africa have been five times larger than in the rest of the world.

  18. 18.

    Gurría (2014). Available at: https://www.oecd.org/china/china-go-global.htm.

  19. 19.

    When visiting Greece in 2010 Chinese Prime Minister Wen Jiabao asked for “undisturbed access for Chinese companies” while announcing and making new business deals. Mitrovic, Dragana. Politics and Economics of the China Plus Sixteen Cooperation Framework, Serbian Political Thought, 2/2014, IPS, Belgrade, p. 20.

  20. 20.

    According to PriceWaterhouseCoopers, in 2012, for the first time, OFDI from China outweighed FDI coming in from EU corporations to the Chinese market, for the first time. However, the cumulative value of these FDI made up approximately 1% of the recipient EU member-states’ GDP, as well as of the unified EU’s GDP.

  21. 21.

    “Chinese president calls for better co-op with Romania” (2011). Available at: http://english.peopledaily.com.cn/102839/7568348.html.

  22. 22.

    Mitrovic (2014), pp. 31–32.

  23. 23.

    Hu: China to Further Ties with SE Europe (2009). Available at: http://www.chinadaily.com.cn/china/2009-06-20/content_9305867.htm.

  24. 24.

    Echo (2010).

  25. 25.

    Michaletos (2010), Available at: http://serbianna.com/analysis/?p=440.

  26. 26.

    The DredgingToday.Com (2013). Available at: http://www.dredgingtoday.com/2013/01/15/piraeus-container-terminal-on-modernization-path-greece/

  27. 27.

    The deal included mandatory investments up to 300 million Euros that the Chinese company would pay HRADF an additional 88 million Euros and increase its stake by 16–67% in the following five years. Please consult: Georgiopoulos (2016).

  28. 28.

    It was marked by formal protests of a Polish company, which had lost a bid with an offer 50% more expensive than the Chinese one, and finally by a broken contract by China Overseas Engineering Group (COVEC), as COVEC proved to be incapable of delivering its US $447 million contracted project for a 50 km highway from Warsaw to the German border. Mitrovic (2016).

  29. 29.

    European Commission (2020).

  30. 30.

    China’s Twelve Measures for Promoting Friendly Cooperation with Central and Eastern European Countries (2012). Available at: https://www.fmprc.gov.cn/mfa_eng/topics_665678/wjbispg_665714/t928567.shtml.

  31. 31.

    Pencea (2017).

  32. 32.

    Mitrovic (2019), p. 141–165.

  33. 33.

    Rail section through Serbia is totalling over 200 and 166 km through Hungary. According to earlier estimations, the modernization would cost between EUR 1.5 to 2 billion. Mitrovic, Dragana, “16 + 1 in 2015/2016 - upgrading, framing and stepping up cooperation”. Asian Issues, Vol. 2, No 1. 2017, p. 8.

  34. 34.

    Ibid. p. 8.

  35. 35.

    For more about Belgrade-Budapest Railways upgrade, please consult Mitrovic (2019), p. 141–165.

  36. 36.

    For more, please consult: Mitrovic, Dragana: Political Economy of the Chinese Investments in Eastern, Central and South-East Europe. Asian Studies, Budapest: Vol 2, 2013, pp. 167–185.

  37. 37.

    Mitrovic (2018), pp. 26–46.

  38. 38.

    China-CEEC Ties Make Remarkable Progress, Enhance China-EU Cooperation (2017).

  39. 39.

    Mitrovic, Dragana, “Six Years of ‘16 + 1ʼ Framework of Cooperation—in Between EU, Expectations and Limitations”, in: Challenges of Adjusting to a Changing Global Economy in the 21st Century. Bucharest: Romanian Academy; Chinese Academy of Social Sciences, (CASS); Beijing: The Institute of International and Public Affairs; Tongji University, Shanghai, 2019.

  40. 40.

    “Connecting Europe and Asia—Building Blocks for and EU Strategy” (2018).

  41. 41.

    Small (2020).

  42. 42.

    Thomas (2020). Available at: https://macropolo.org/china-great-power-foreign-policy-covid19/.

  43. 43.

    EU to evaluate Chinese offer for European investors, European Commission. Brussels, 19 December 2019. Available at: https://trade.ec.europa.eu/doclib/press/index.cfm?id=2096

  44. 44.

    Erlanger, Steven. Will the Sudden E.U.-China Deal Damage Relations With Biden? The New York Times. January 6, 2021. Available at: https://www.nytimes.com/2021/01/06/world/europe/eu-china-deal-biden.html.

  45. 45.

    Germany opens the door to Huawei, with conditions (2020).

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Authors and Affiliations

  1. Head, Centre for Asian Studies, Faculty of Political Science, University of Belgrade, Belgrade, Serbia

    Dragana Mitrović

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  1. Dragana Mitrović
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Correspondence to Dragana Mitrović .

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  1. University of Greenwich, London, UK

    Young-Chan Kim

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Mitrović, D. (2022). EU–China—Failed Prospects of Win–Win Partnership. In: Kim, YC. (eds) China and the Belt and Road Initiative. Understanding China. Springer, Cham. https://doi.org/10.1007/978-3-030-86122-3_9

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