EU attempts tough balancing act on China

Bid to agree joint strategy towards Beijing that is wary but constructive

The European Union has moved to forge a common foreign policy position towards China, adapted in response to heightened geopolitical risks while acknowledging its importance as an economic and strategic partner.

A new strategy paper prepared by the EU’s diplomatic service was considered by foreign ministers as they met in Stockholm on Friday. It said “co-operation, competition and rivalry” would be at the heart of the relationship.

“It is obvious that in recent years the rivalry aspect has become more important. However, we must continue to engage with China,” leaked excerpts of the paper read. “First, because of its influence in the world. Second, because China is here to stay.”

It follows a period of rising tensions between the United States and China as Beijing conducted military drills in the Taiwan strait, and as the emerging Asian superpower seeks to position itself as a potential peace broker between Russia and Ukraine.

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However Beijing’s “firmly pro-Russian stance” is revealed by the absence of any mention of the need for Russian troops to leave Ukraine in its proposed peace plan, according to the paper.

The EU’s chief diplomat Josep Borrell told reporters that it would be impossible to solve the most significant issues facing the world, such as climate change, without China.

But he added that it was clearly a rival and that it was important to reduce the EU’s economic “dependencies” – a reference to supply-chain vulnerabilities for essential goods that are a sore point following the Russian energy crisis and Covid-19.

“We exchange with China €2.7 billion a day, so forget about decoupling,” Mr Borrell told reporters.

But he insisted that the 27 member states needed to forge a common position and speak with one voice on the issue.

“We need more unity,” he said. “Europe has to be more united if we want to be relevant on the emergence of China as a great power.”

Discordant approaches have emerged at times between EU countries, with France suggesting that the EU should avoid following Washington’s lead in a dispute between the US and China, while others argue for a more hawkish stance.

“We have done some great mistakes with Russia. Let’s not repeat the same mistakes,” Lithuanian foreign minister Gabrielius Landsbergis warned.

The proposed new strategy is an attempt to find a compromise between such diverging views, and to forge an autonomous EU approach towards China that is wary but constructive, while keeping ties with Washington strong.

The EU is considering the next steps in its sanctions regime, aimed to cut off Russia’s economic means to continue its invasion of Ukraine.

After the 10th round of sanctions was agreed in February, the EU is now shifting its emphasis to focus on closing loopholes and tackling sanctions evasion, including through non-EU countries.

On social media, Chinese diplomat Wang Lutong warned that if the EU used Ukraine “as an excuse to impose sanctions on Chinese companies” it would be a “gross violation” of the companies’ rights, and “a stab in the back ... bullying China on economic issues”.

Naomi O’Leary

Naomi O’Leary

Naomi O’Leary is Europe Correspondent of The Irish Times