On Sunday, May 5th, Chinese Communist Party leader Xi Jinping arrived in France with the aim of easing the tensions between China and Europe that could potentially lead to a trade war. However, analysts believe that compared to five years ago when Xi visited Europe, this time he is facing a completely different political environment, with the list of disagreements between China and Europe having grown significantly, making it difficult to resolve.
French President Macron has invited the President of the European Commission Ursula von der Leyen to attend a trilateral summit with Xi. This will put the Chinese Communist Party leader in front of a European…
When Xi Jinping arrived in Italy in 2019 for a state visit, he was warmly welcomed, with the highlight being Italy’s decision to join his flagship “Belt and Road” infrastructure initiative.
According to CNN, five years later, when Xi returns to Europe, he will encounter a vastly different climate. While there may still be diplomatic courtesies during his visit to Europe, the overall perception of China (the CCP) in the continent has changed dramatically.
In March of this year, Italy officially withdrew from the “Belt and Road” initiative. Italy was originally the only G7 member to join this infrastructure initiative. Italy’s decision undoubtedly dealt a significant blow to the CCP and its leadership.
The friction between China and Europe has been intensifying not only due to the Russia-Ukraine conflict but also because of the EU’s protests against Chinese dumping of goods and unfair trade practices. In just the past few weeks, the EU has launched trade investigations into Chinese wind turbine and medical equipment procurement; as part of an anti-subsidy investigation, the EU also raided the offices of Chinese security equipment maker Hikvision; and Germany and the UK have recently arrested or charged at least six individuals for alleged espionage and related crimes related to China.
Behind these developments is the EU’s increasingly growing discontent towards the CCP. This has led the EU to prepare for a possible major trade confrontation with China. Additionally, the EU is deeply concerned about China’s support for Russia’s defense industry base, which enables Putin to sustain the Ukraine conflict.
As reported by Voice of America, Nicholas Bequelin, a researcher at the Yale Law School’s China Centre, pointed out that there are currently no signs showing that the longstanding contradictions between China and France can be resolved, whether it’s China’s support for Russia, trade disputes, intellectual property rights, or human rights – it’s a long list.
Xi Jinping is set to meet with Ursula von der Leyen, President of the European Commission, and French President Macron on Monday. Von der Leyen was the first EU official to propose “risk reduction” in relations with China, and she attributes the massive EU-China bilateral trade deficit to Chinese restrictions on market access for EU companies.
The EU is also pushing for an anti-subsidy investigation, with the support of France, regarding the influx of Chinese electric vehicles (EVs) into Europe.
According to Chinese officials, during this visit to Europe, the CCP leader will raise objections to a series of trade investigations initiated by the EU against Chinese enterprises.
Xi may also reiterate the propaganda from the Chinese high command, suggesting that “risk reduction” towards China is perilous for the EU, and counter Europe’s concerns about overcapacity and subsidies in China, instead emphasizing the role that Chinese EVs can play in reducing fossil fuel use in Europe and globally.
However, observers believe that for von der Leyen, without any concrete trade or reciprocal market access commitments, such rhetoric is unlikely to be effective in driving progress, as she aims to find solutions to China’s trade distortions before the EU parliamentary elections in June.
China wants to restrain Europe from addressing trade distortions, as this is not an opportune time for China’s weakened economy; China also hopes to ensure that Europe does not draw closer to the United States. But, unless Xi is prepared to make unexpected concessions…
According to the Financial Times, the EU officials have indicated that preliminary tariffs on Chinese electric vehicles may be imposed in May, with permanent tariffs requiring the support of most member states possibly to be levied in November. Researchers from Rhodium Group have suggested that the tariffs on imported EVs from China could range between 15% and 30%.
Abigael Vasselier from the Mercator Institute for China Studies (Merics) in Berlin has stated that China cannot afford the closing off of the European market to Chinese companies. The main issue is the extent to which Xi can alter the current trajectory of EU-China relations.
During an interview with La Tribune over the weekend, Macron mentioned issues related to China’s overcapacity and excessive exports to Europe.
CNN, citing Noah Barkin, a resident senior fellow at the American-German Marshall Fund in Berlin, says that in many European countries, China is increasingly seen as a multifaceted threat. However, within Europe, there…
Following his visit to France, Xi will also visit non-EU member Serbia and EU member Hungary. In recent years, China has made significant investment commitments…