On April 24th, US Secretary of State Blinken visited China, while the European Union initiated an investigation into China’s procurement of medical equipment. The day before, the EU passed legislation banning products produced through forced labor from being imported from the Chinese Communist Party (CCP). Experts believe that before Blinken’s visit to China, he lobbied European countries, sharing US intelligence evidence to help them understand the nature of the CCP, urging joint pressure on the CCP. The future cooperation between the US and the EU in countering the CCP appears to be strengthened.
The European Commission announced on Wednesday (24th) that it would investigate China’s public procurement practices for medical equipment. The aim is to determine whether European suppliers have fair market access in China, marking the EU’s first investigation under the EU International Procurement Instrument. The investigation is set to conclude within nine months, with the possibility of extension for an additional five months if needed.
In addition to the investigation, the EU has intensified its scrutiny on overseas subsidies and conducted surprise inspections at two offices of China’s state-owned Hikvision in Europe.
Moreover, the European Parliament overwhelmingly passed legislation the day before to prohibit the use of products manufactured through forced labor, specifically targeting the CCP.
Assistant Professor and Head of the European Studies Department at Tamkang University, Zheng Qinmo, pointed out that the CCP has been disrupting international trade for years, especially concerning products made through forced labor. He noted that some EU countries have been overly reliant on the Chinese market and investments in China. It is only recently that the EU has truly started to address these issues.
After the outbreak of the COVID-19 pandemic, European countries have become aware of the unreliability of China’s red supply chains, leading to shortages of medical resources domestically. The conflict in Ukraine further highlighted the dangers of authoritarian regimes to Europeans.
According to Zheng, the EU’s economic recovery post-pandemic has been insufficient, coupled with market access barriers and unfair trade practices from China. He stressed that China’s excess manufacturing capacity, supported by state subsidies, has flooded the European market with cheap products, greatly impacting European industries.
Professor Ding Shufan, Honorary Professor of the College of International Affairs at National Chengchi University in Taiwan, also emphasized the detrimental effects of China’s recent export practices on the European economy. Many European economic entities are increasingly recognizing China’s unfair trade policies that harm European businesses. This realization has led to demands for actions from the European Parliament to address these issues.
In light of rising protectionism, a trade tension escalation between China and Europe could potentially evolve into a full-scale trade war. The European People’s Party recently designated the CCP as a trade enemy of the EU during its annual congress in Bucharest, Romania.
In parallel to the EU’s actions, US Secretary of State Blinken embarked on his visit to China. Before his departure, Blinken made it clear after the G7 ministerial summit that the CCP plays a significant role in supporting Russia’s military-industrial complex and supplying weapons and components to Russia, urging European countries to pressure the CCP.
Zheng Qinmo stated that part of Blinken’s strategy to counter the CCP involved uniting European partners, enhancing their understanding of the CCP’s nature. The US shared collected evidence with European countries, including trade dumping, global spy networks, fentanyl poisoning, and threats to Taiwan.
The US aimed to unify European countries, forming a united front against the CCP. The EU has heightened its vigilance towards the CCP, conducting various investigations, including counter-spying efforts and trade protections, suggesting a growing alignment and collaborative efforts between Europe and the US.
Ding Shufan highlighted a specific cooperative initiative between the US and the EU, the establishment of a Joint Investment and Trade Committee. This committee meets regularly to address trade and investment issues concerning China, exchanging experiences and strategies to address unfair treatment.
The alliance between the CCP, Russia, etc., and the US, EU, and other Western democratic countries is shaping a new international landscape. Zheng noted that the global power structure is undergoing adjustments, leaning towards a new Cold War scenario where authoritarian regimes like the CCP, North Korea, Iran, and Russia challenge the values and order of the Western world. The conflicts like the Russia-Ukraine war and Hamas’ terror attacks on Israel in the Middle East all have shadows cast by the CCP.
In response to the CCP’s support to Russia, the US may impose new financial sanctions on Chinese banks. On the other hand, China and Russia, for self-preservation, may reduce their reliance on the US dollar in trade transactions and use their own currencies instead. These developments are worth monitoring in the future.