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  • May 24, 2024
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“PRESERVING CHINA’S INTERESTS IN EUROPE: XI JINPING’S STRATEGIC VISIT”

Syllabus:

  • GS-2- Bilateral relation of India with its neighbours , Chinese hegemony and impact on balance of power in the world

Focus :

  • The article focuses on Chinese President Xi Jinping’s strategic visit to Europe, emphasizing his objectives to prevent the EU from aligning too closely with the U.S., avert a trade standoff, and bolster China’s standing amidst adverse geopolitical shifts due to the Ukraine war and increasing skepticism towards China in Europe.
Source - TH

Introduction

Careful Selection of Destinations:

Chinese President Xi Jinping’s first non-Russian European trip in five years included visits to France, Serbia, and Hungary.

Each country represents different strategic interests: France is a proponent of European strategic autonomy, Serbia is a non-NATO and non-EU outlier close to Russia, and Hungary is a pro-Russian EU member blocking many resolutions against China.

Context of the Visit:

The visit follows the COVID-19 pandemic, which closed off China to the world, necessitating a readjustment of global investment goals.

The geopolitical landscape has shifted significantly due to the Russian invasion of Ukraine, affecting China’s diplomatic strategies.

Challenges and Goals:

Xi aimed to prevent the EU from aligning too closely with the U.S., avoid a trade standoff with the EU, and bolster China’s standing in Europe.

The trip was conducted amidst the fallout from the Ukraine invasion, which has solidified the western alliance against Russia and negatively influenced EU views on China.

World Events Influencing the Visit

Pandemic Aftermath:

The COVID-19 pandemic isolated China from the world, impacting its economic and investment strategies.

Xi’s international travel was severely limited, reflecting the need to re-establish global connections post-pandemic.

Russian Invasion of Ukraine:

The invasion has created a hardened stance among Western nations against Russia, with China facing collateral damage due to its association with Russia.

The invasion has also shaped negative perceptions of China’s trade policies in Europe.

China-U.S. Trade and Technology War:

The trade war between China and the U.S. has evolved into a technology war, with intensified restrictions on Chinese technology.

This has influenced China’s approach to its European relations, seeking to avoid similar confrontations with the EU.

Accusations of Chinese Dumping:

Both the U.S. and Europe have accused China of dumping cheap goods, particularly in the electric vehicle (EV) sector.

China’s leadership in the EV market has sparked calls for protective measures in Europe.

Strategic Goals of Xi Jinping

Preventing EU-U.S. Alignment:

Xi’s primary goal was to prevent the EU from getting too close to the U.S. in strategic and economic terms.

This included addressing concerns over China’s trade practices and advocating for a balanced relationship.

Averting a Trade Standoff:

The visit aimed to avert a potential trade standoff with the EU, particularly over the EV market.

Ensuring continued access to European markets was crucial for China’s economic interests.

Bolstering China’s Standing in Europe:

Xi sought to reinforce China’s presence and influence in Europe amidst increasing skepticism.

The visit included efforts to strengthen ties with countries more sympathetic to China, such as Hungary and Serbia.

The French Connection

Macron’s Trade Interests:

French President Emmanuel Macron aimed to promote French trade interests and secure a balanced economic relationship with China.

Macron also sought to address the cost advantage of Chinese EVs over European cars, advocating for protective measures.

Political Messaging:

Macron met with the Tibetan Sikyong, Penpa Tsering, signaling France’s stance on human rights issues ahead of Xi’s visit.

This meeting was a strategic move to assert France’s values and diplomatic positions.

EU-China Relations:

France, along with the EU, is united in addressing the trade imbalances caused by China’s economic policies.

The EU’s 2019 doctrine defines China as a partner, competitor, and systemic rival, reflecting a nuanced approach to relations.

Meeting with EU Leadership:

Xi met with European Commission President Ursula von der Leyen, who advocates for “de-risking” from China by reducing dependency on Chinese imports and technology.

Discussions focused on ensuring a more balanced trade relationship and addressing strategic concerns.

Warm Reception in Serbia and Hungary

Growing Investments in Serbia:

China has invested $5.5 billion in Serbia, focusing on copper mining and steel processing.

The Belgrade-Budapest high-speed railway project is a major investment, symbolizing China’s infrastructural ambitions in the region.

Strategic Importance of Hungary:

Hungary, a close ally of China within the EU, provides China with access to the world’s largest trading bloc.

Chinese investments in Hungary include factories and battery plants to support the EV market in Europe.

Economic and Political Symbiosis:

Serbia and Hungary, though not typically major destinations for high-profile visits, offered a warm welcome to Xi.

Their political alignment with China on various issues made them strategic partners in Xi’s European tour.

Future Investments and Projects:

Plans for further infrastructure projects, such as roads, tunnels, and bridges, underscore China’s long-term economic interests in these countries.

The establishment of Chinese factories in Hungary aims to link production with markets in Western Europe.

Challenges and Future Prospects

EU’s Skepticism:

Despite warm receptions in certain countries, skepticism towards China is growing within the broader EU.

The EU’s stance is influenced by concerns over China’s economic practices and geopolitical alignments.

Impact of the Ukraine War:

The Ukraine war has strained China’s ties with Eastern European countries backing Ukraine.

The 17+1 initiative, meant to strengthen ties with Eastern Europe, has lost momentum due to the war and shifting priorities.

Balancing Economic Opportunities and Risks:

Europe seeks to balance the economic opportunities offered by China with the risks posed by its trade policies and national security concerns.

The EU’s approach involves careful navigation of these competing interests.

Long-term Strategy:

China’s Belt and Road Initiative (BRI) projects, including railways linking China to Europe, aim to facilitate trade and economic integration.

High-speed rail connections are part of China’s strategy to reduce overland distances and enhance market access.

Defensive Posture:

Xi’s visit can be seen as a defensive move to preserve Chinese interests in Europe amidst adverse geopolitical developments.

While visits to Hungary and Serbia bolstered bilateral relations, they are unlikely to significantly alter the broader European perspective on China.

Source:The Hindu

Associated Article :

Mains Practice Question :

GS-3

“Analyze the strategic significance of Chinese President Xi Jinping’s recent visit to Europe. Discuss the geopolitical and economic factors influencing the visit, the objectives of China and the European countries involved, and the broader implications for EU-China relations. (250 words)