Trade and geopolitics: China’s head of state Xi starts a trip to Europe

Trade and geopolitics: China’s head of state Xi starts a trip to Europe

China’s President Xi’s trip to Europe comes at a time of crises and growing geopolitical tensions. The discussions in Paris are about peace in Ukraine and fair trading conditions.

It’s about geopolitics, power and markets when China’s head of state and party leader Xi Jinping visits France again after almost five years on a trip to Europe. After his arrival this Sunday afternoon, talks will take place on Monday with President Emmanuel Macron and EU Commission chief Ursula von der Leyen.

On the agenda at the Élysée Palace in Paris is, on the one hand, the Russian war of aggression against Ukraine. Here the Europeans and France want to ensure that China at least has a moderating influence on the Kremlin. China, for its part, wants to break the Europeans out of their close alliance with the USA. Another point: The EU insists on fair trading conditions with China and opposes the import of subsidized products – at the same time, Macron is hoping for new trade agreements with the giant empire.

Germany is not sitting at the Paris consultation table, unlike during Xi’s last visit to France in 2019. Chancellor Olaf Scholz (SPD) was recently in China himself and also discussed with Macron in advance at a private dinner in Paris on Thursday. Should he still be persuaded to take part? In Berlin on Friday there was reference to a long-planned trip by the Chancellor to Lithuania and Latvia this week.

From Beijing’s point of view, it is about strengthening relations with Europe. Before Xi’s departure, Chinese state media painted a picture according to which the Europeans allowed themselves to be pushed into dependence on Washington, especially after the outbreak of the Ukraine war. If the Europeans stuck to this course, they would no longer be able to escape the fate of becoming a vassal of the USA, according to the state-run Global Times. Macron, who preaches more European sovereignty, recently used the same vocabulary when he advocated the construction of a Europe that would never be a vassal of the USA and could talk to all regions of the world.

Relationships in a downward spiral

Since Xi’s last visit to Europe five years ago, relations have clearly entered a downward spiral. While Brussels and Beijing grew closer, especially during the Trump years in the White House, the ratification of an investment agreement was put on hold at the end of 2020 due to increasing geopolitical tensions and concerns about human rights violations in China. Since the start of the Ukraine war, Beijing has also been confronted with accusations from the EU of supporting Russia in its invasion.

Brussels has also taken a tougher tone on economic issues recently. Work is underway to impose higher tariffs on electric cars from China. A project that is being pushed forward primarily by the French and which Germany views rather skeptically. The EU accuses Chinese electric car manufacturers such as BYD, Geely and SAIC of massive government subsidies that give them an unfair advantage on the global market.

China is reacting to the allegations with carrot and stick: On the one hand, Beijing has initiated an anti-dumping investigation against EU brandy, which primarily affects French companies. On the other hand, France is being courted with new collaborations.

During the state visit, Macron wants to focus on China’s influence in global security issues. As a European, it is the interest “to ensure that China is committed to the stability of the international order,” said Macron in an interview with the magazine “Economist.” Russia as a destabilizer of this order, a Middle East plunging into chaos or an Iran that could possibly equip itself with nuclear weapons – none of this is in the interests of today’s China. “We therefore have to work with China to create peace.”

Protect your own interests

In the talks with Xi, Macron is also concerned with economic relations. He blamed Europe for not wanting to see the reality of the US and China’s trade behavior. “This is a huge mistake. When you have the number one, the number two, who consciously decide to subsidize critical sectors that are essential to them, who are willing to use public money to attract capacity, you can’t do that as if it didn’t exist.” You need to behave respectfully towards China, but one that protects your own interests.

China praises “iron friendship” with Serbia

Critics of China accuse Beijing of wanting to enforce its will in Brussels not only through negotiations on equal terms, but also through targeted influence on smaller EU states or even EU accession candidates. Following his visit to France, Xi Jinping will travel to Serbia and Hungary.

In fact, Beijing has underlined the upcoming visits to the two Eastern European states with particularly friendly words. China looks forward to expanding “iron friendship” with Serbia, said Lin Jian, a spokesman for the Beijing Foreign Ministry.

A “milestone visit” is coming to Hungary that will give new impetus to China-EU relations, said Lin, who also pointed out that Hungary will take over the EU Council Presidency in July. This will help both sides “better overcome their differences.” China has been investing heavily in Serbia and Hungary for years as part of its Belt and Road initiative aimed at strengthening trade links between Asia and Europe.

China Daily Report Global Times Report

Source: Stern

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