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Since then, the EU executive and Germany have drafted legislation that should make it difficult for Chinese actors to invest in support of the US face-to-face sanctions against Beijing. The Italian government has become a blocker of planned takeovers of Chinese companies by enthusiastic supporters of President Xi Jinping’s “One Lane, One Road” initiative. And in France, the Chinese ambassador, who was invited to the meeting in March, did not even show up, stating the “reasons for the agenda.”
All these actions show that Europe’s position on Beijing is tightening. The biggest change is yet to come, as polls suggest that the German Green Party is expected to take a significant role in government after the September elections, increasing the likelihood that Europe’s largest economy will become more skeptical of China.
Chancellor Angela Merkel spoke with Chinese Prime Minister Li Keqiang a few weeks ago. Both politicians have pledged to work more closely on Covid-19 vaccines and combat climate change. In Berlin, however, optimism about bilateral relations is said to have faded, with a Chinese official describing relations with Europe as in decline.
Whether the Greens come to power in Germany or not, relations between the EU and China are in a critical state, said the official, who requested anonymity.
Many signs of tension show that Europe’s major players are gradually taking over the administration of President Joe Biden of China.
While Secretary of State Antony Blinken was in talks with his G7 counterparts in London, increased European unity with Washington would show that the damage done by the Trump administration to transatlantic relations is gradually being repaired, in response to trade, customs and access to technology.
Li Keqiangas and Angela Merkel
© Imago / Scanpix
“There is a remarkable change in the mood,” said Joerg Wuttke, president of the Beijing-based European Chamber of Commerce in China and a board member of the Mercator Institute for Chinese Studies in Berlin. The Mercator Institute is one of the entities sanctioned by China in March.
He called China’s moves against Taiwan (“perfect storm”), its decision to impose political control in Hong Kong and international sanctions for alleged human rights abuses in the Xinjiang region, reinforced by China’s failure to deliver on its opening promises. economical.
Of course, European countries do not have the same approach and EU members, such as Hungary, still seek cooperation with China. Biden has emphasized that China can expect “extreme competition” from the United States (while the United States will try to work with its rival on global issues such as climate change), but Europe faces a dilemma trying to find its way.
Economic ties remain important as China is the EU’s largest trading partner: total transactions (approximately $ 686 billion) in 2020. exceeded 572 billion. dollars in trade between the United States and China. But now even the Netherlands, one of China’s top 10 trading partners, is becoming increasingly cautious about protecting its high-tech companies from takeovers and implementing a special Chinese strategy.
According to a Chinese official, the United States has forced the EU to join its side.
Just four months ago, when Merkel helped the bloc pass a comprehensive investment agreement between the EU and China, the mood was different and Commission President Ursula von der Leyen said it was a “major achievement in our relations with China “.
The deal, which has yet to be ratified by the European Parliament, would give European investors greater access to the Chinese market, while forcing China to adhere to “ambitious principles”, including through forced labor.
However, in late March, the EU joined the United States, Canada and the United Kingdom in imposing sanctions on China for the ill-treatment of Uighur Muslims in Xinjiang, including forced labor. Beijing responded with its sanctions, and Swedish fashion retailer Hennes & Mauritz AB was unofficially boycotted by public outrage.
“The EU has recently put more issues on the agenda in the areas of human rights, ideology, democracy,” said Zhang Monan, senior researcher at the China International Economic Exchange Center at the US-Europe Institute in Beijing. “Such opposition and friction is expected to continue.” He added that the EU is likely to pursue an independent policy because it does not want to be subordinate to the United States.
The European Commission is now proposing rules to impose fines and block transactions by foreign-owned companies, and Merkel’s cabinet recently approved additional mandates for foreign investment in high-tech sectors, including artificial intelligence and quantum computing. Both measures would prevent China from implementing its plans.
Antony blinkenas
China had hoped to separate economic problems from political ones and link Europe to its huge consumer market, but now that seems impossible, said an academic at a Chinese government-owned research center. Ratification of the CAI has become more difficult, said one person who is not authorized to comment on the situation in public.
Signs of tension were seen during the virtual talks led by Merkel and Li Keqiang. Contrary to usual practice, the introductory statements were not broadcast live and there was no closing press conference. A transcript of the talks, released by Germany a few hours later, showed that Merkel was talking about human rights and noted that countries differed, especially in Hong Kong.
“The fact that China and Germany have different views on some issues,” Li Keqiang replied to the interlocutor, urging Germany not to interfere in the country’s internal affairs, China’s Foreign Ministry said in a statement. Li Keqiang said he hopes they will be able to “eliminate unnecessary interruptions” and maintain “healthy and stable” bilateral relations.
For Washington, European change has not escaped its eyes. The Biden administration official said Europeans were changing their minds and beginning to align themselves with the US stance on China. There is a real evolution in Germany, the official noted.
This shift could become even more pronounced if the Greens turn their support in opinion polls into a strong position or even a victory in September when Merkel leaves the scene. Although there are political compromises in all coalitions, the Greens are taking a tougher line on China than the current administration, calling for an end to Beijing’s “blatant human rights abuses” and closer European and transatlantic coordination in China.
A coalition with the conservatives seen in the polls would mean continuity in German foreign policy, but with “different nuances” towards China, said Jana Puglierin, head of the Berlin office of the European Council on Foreign Affairs. “The Greens would certainly oppose the mercantilist policies that we have seen with Merkel,” he said.
So far, Europe is determined to avoid completely distancing itself from China. French President Emmanuel Macron and Merkel held a joint call with Xi Jinping in April and April 28. China’s Global Times mentioned “optimism and confidence in Sino-German cooperation”, despite the risk of “some consequences” after the elections. Merkel’s future successors and business leaders are aware of Europe’s “great potential” in working with China, “so they must ensure that no third country or internal conservative forces break healthy ties.”
However, Wuttke of the European Chamber of Commerce says China underestimates German concerns for human rights. Especially after Merkel’s resignation, which fostered cooperation with China, the mood is likely to “turn into a possibly stronger Berlin policy,” he added.
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