Recently, according to informed officials, NATO is discussing the possibility of taking over or selling the infrastructure owned by China (Communist Party) in Europe to mitigate risks in case of escalating conflicts with Russia. These facilities include industries in high-tech sectors.
The Cable News Network (CNN) cited messages from three NATO officials involved in the discussions, stating that the United States is leading discussions with NATO officials on preemptive actions to reclaim some of the infrastructure projects owned by China in Europe in response to the potential wider conflict with Russia in Eastern Europe. The plan is for the European Union to take over the management of these assets.
It was reported that discussions on the scope of these infrastructures have shifted from ordinary technological fields to advanced high-tech areas such as quantum computing, semiconductors, and telecommunications, according to a senior U.S. official.
NATO officials expressed that if a war erupts, these infrastructures would “almost certainly be nationalized (by European countries) or temporarily taken over and operated under emergency security measures by various countries. China (Communist Party) could sue after the fact.”
The NATO summit took place in Washington from July 9 to 11 this year, focusing on supporting Ukraine against Russia. Due to China’s support for Russia in the conflict in Ukraine, the joint statement of the 32 leaders during the 75th anniversary of NATO conveyed the strongest condemnation of China to date, labeling China as the “decisive enabler” of Russia’s aggression in Ukraine and as a continued systemic challenge to European-Atlantic security.
The statement highlights that through an “unlimited partnership” with Russia and massive support to Russia’s defense industrial base, China has become a “driver of conflict”.
According to CNN citing a U.S. official, there are concerns that if the conflict escalates, Beijing could use its infrastructure assets in Europe to provide material assistance to Russia. The officials stated that their goal is to find a way to resolve potential conflicts in advance.
Three NATO officials involved in the discussions told CNN that the discussions on infrastructure actions are still in the early stages, with varying levels of participation from NATO member countries. A NATO diplomat mentioned that as the leader in the discussions, the U.S. needs to continue bilateral discussions to ensure necessary support.
A decade ago, when Europe was still striving to recover from the economic challenges of the global financial crisis, the Chinese authorities took advantage of the situation and introduced the “Belt and Road” initiative to European nations.
Since 2013, China has invested billions of dollars in the infrastructure sector in Europe through the Belt and Road initiative. These investments include railway lines connecting Eastern Europe and China, as well as ports in the North and Baltic seas.
Of particular controversy was Italy’s agreement to join China’s flagship Belt and Road infrastructure initiative during President Xi Jinping’s visit in 2019. Italy became the only G7 member to participate in this infrastructure initiative.
However, Italy’s new government officially withdrew from the Belt and Road initiative in March this year.
In June this year, NATO Secretary-General Jens Stoltenberg warned China that if it continues to support Russia, there would be consequences.
Furthermore, there are precedents for taking over or selling assets of sanctioned countries. According to CNN, U.S. officials believe that European countries forcing Russia to sell assets following the invasion of Ukraine provides a precedent for such strategic moves. For instance, Finland repeatedly blocked commercial activities of a Helsinki shipyard which produced icebreakers and was previously owned by a Russian entity until it was sold to a Canadian entity at the end of 2023.