Date Posted: 2022-11-04
Examining the Fault Lines: Key Challenges in the EU-China Relationship
The relationship between the European Union and China, while characterized by significant economic interdependence, faces several critical challenges that can be described as fractures. The Istituto Affari Internazionali (IAI) has published an analysis identifying three key fractures in the Sino-European relationship, exploring their implications for trade, geopolitics, and security. This analysis offers insights into the underlying tensions and potential pathways for addressing these challenges to foster a more stable and productive partnership.
The first fracture lies in the economic realm. While the EU and China are major trading partners, significant imbalances and trade disputes persist. European companies often face barriers to accessing the Chinese market, including regulatory hurdles, intellectual property theft, and discriminatory practices. China’s state-led economic model and its use of industrial subsidies also create tensions with the EU’s market-based approach. These economic frictions have led to increased calls for greater reciprocity and a level playing field in EU-China trade relations.
The second fracture relates to geopolitics. China’s growing assertiveness in the South China Sea, its human rights record in Xinjiang and Hong Kong, and its close ties with Russia have raised concerns in Europe. The EU is committed to upholding international law and defending its values, which sometimes puts it at odds with China’s foreign policy objectives. These geopolitical tensions have led to increased scrutiny of Chinese investments in Europe and greater caution about cooperating with China on security matters.
The third fracture concerns security. The EU and China have different perspectives on issues such as cybersecurity, counterterrorism, and arms control. China’s growing military capabilities and its increasing assertiveness in the Indo-Pacific region have raised concerns in Europe about the potential for conflict. The EU is also concerned about the potential for Chinese companies to use their technology to conduct espionage or to undermine European security.
Addressing these three fractures will require a concerted effort from both the EU and China. The EU needs to develop a coherent and consistent strategy for dealing with China, one that balances the need for engagement with the need to protect its interests and values. This strategy should include the following elements:
Promoting reciprocity: The EU should press for greater reciprocity in its trade relations with China, demanding that European companies be given the same access to the Chinese market as Chinese companies have to the European market.
Defending human rights: The EU should continue to voice its concerns about human rights abuses in China, and it should be prepared to impose sanctions on Chinese officials who are responsible for these abuses.
Strengthening security cooperation: The EU should strengthen its security cooperation with like-minded countries, such as the United States, Japan, and Australia, to counter China’s growing military power.
Engaging in dialogue: The EU should continue to engage in dialogue with China, seeking to address its concerns and to promote greater understanding and cooperation.
The three fractures in the Sino-European relationship pose significant challenges for both sides. Addressing these challenges will require a commitment to dialogue, reciprocity, and respect for international law and human rights. By working together, the EU and China can overcome these fractures and build a more stable and productive partnership. This will be crucial for addressing global challenges such as climate change, pandemics, and economic instability, which require cooperation between major global actors. The ability to bridge these divides will define the future of EU-China relations and its impact on the international order.
– Davide Pena –
