Europe is being urged to adopt a bolder stance against China’s increased repression at home and assertive behavior abroad. Ursula von der Leyen, the president of the European Commission, said the EU needs to reassess its relations with China and adopt a more robust position against its repressive actions and aggressive conduct.
Von der Leyen Criticizes Close Ties between Xi Jinping and Vladimir Putin
Von der Leyen expressed concern about the relationship between Chinese leader Xi Jinping and Russian President Vladimir Putin, who met last week in Moscow. She said Europe needs to address China’s increasing influence over Russia as it seeks to reshape the global order.
The EU’s Landmark Trade Deal with China Could Be Scrapped
Von der Leyen warned that Europe could terminate its landmark trade deal with China, which was clinched in 2020 but subsequently stalled by the European Parliament after some of its members were sanctioned by Beijing. She called on EU countries to make bolder and faster use of new economic tools against China, including screening of foreign subsidies and a new policy against economic coercion.
China’s Increased Repression at Home
The situation in Taiwan, human rights violations in Xinjiang, and economic retaliations against Lithuania point to a China that is becoming more repressive at home. Von der Leyen expressed her concerns about this trend among the Chinese leadership towards authoritarianism.
The CCP’s Clear Goal is Systemic Change of International Order with China at Its Center
The Chinese Communist Party (CCP) has a clear goal of changing the international order systemically, with China at its center. CCP’s ratcheting up of increasingly assertive actions matches this systemic change.
New Economic Tools Against China
Von der Leyen called on EU countries to make bolder and faster use of new economic tools against China. This includes screening of foreign subsidies and a new policy against economic coercion. The EU will introduce a new Economic Security Strategy later this year, as well as a targeted instrument on outbound investment, to ensure that companies’ capital, expertise, and knowledge are not used to enhance the military and intelligence capabilities of those who are also systemic rivals.
EU’s Future Relationship with China in Sensitive Tech Areas
The EU needs to define its future relationship with China in sensitive high-tech areas such as microelectronics, quantum computing, robotics, artificial intelligence, and biotech. This definition is to avoid any further Chinese abuse of sensitive technologies and intellectual property.
Conclusion:
Europe’s need to reassess its relations with China is crucial for both economic prosperity and security. As China becomes more repressive at home and more assertive abroad, replacing an era of reform and opening with one of security and control, it is important for the EU to focus on reducing the risks posed to Europe. Diplomatically, Europe needs to work with partners to reinforce the existing international order and institutions rather than rival Chinese ones. Economically, the EU needs to “rebalance” the relationship and reduce its reliance on China for key inputs such as lithium and other critical minerals. The European Commission will present ideas later this year on measures to control outbound investments in certain sensitive technologies to ensure they do not enhance the military or intelligence capabilities of a systemic rival.
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