ISLAMABAD : Monitoring Desk – In the early months of America’s trade war against the world, speculation mounted. Could the two other major trading powers, China and the European Union, collaborate to intensify their bilateral trade links so as to compensate for America’s isolationism?
The Economist has reported that the upcoming EU-China summit next week in Beijing, which is scheduled to mark the 50th anniversary of diplomatic relations, is now being complicated by worsening trade and security tensions.
Frustrated by a growing trade deficit and an influx of cheap, subsidized Chinese electric cars, the EU has introduced customs, but Chinese companies like BYD are thriving anyway.
China’s restrictions on rare land exports are hurting key European industries, leading to economic blackmail accusations.
Security concerns also grow as Beijing supplies technology to the Russian army and blames cyber attacks across Europe.
Although China wants to pull the EU away from the United States, it is not making special efforts to appease European fears, but is instead focusing on disintegrating the bloc by playing with individual countries such as Germany and France.
China’s recent gestures, such as lifting sanctions against EU lawmakers and easing alcoholic beverages tariffs, have not improved the mood.
With both sides cancelling key summit events and treating each other more suspicious about the details, the Beijing meeting looks not like a celebration but rather a symptom of a rapid deteriorating relationship.
DW adds that the odds of a breakthrough to resolve trade frictions at next week’s EU-China summit in Beijing appear slim after China cut the planned two-day talks to a single day.
The summit was moved from Brussels to Beijing after Chinese President Xi Jinping declined an invitation to attend. European Commission President Ursula von der Leyen and European Council President Antonio Costa will now meet Xi, or Premier Li Qiang, in the Chinese capital.
“This is another sign of Beijing’s limited willingness and ambition to engage with the Europeans,” Alicja Bachulska, policy fellow of the Asia program at the European Council on Foreign Relations (ECFR), told DW. Bachulska said China’s elites often view the EU as a midlevel power with limited leverage in trade negotiations.
Insight EU Monitoring reported, earlier in the beginning of this month, the European Union and China held the 13th Strategic Dialogue in Brussels, co-chaired by High Representative and Vice-President Kaja Kallas and Chinese Foreign Minister Wang Yi, on 2 July. Laying the groundwork for a leaders’ summit in July, they discussed bilateral issues as well as the broader geopolitical situation.
The HR/VP reaffirmed the EU’s commitment to engage constructively with China to address global challenges. Regarding trade, the HR/VP emphasised the importance to find concrete solutions to rebalance the economic relationship, level the playing field and improve reciprocity in market access.
On Ukraine, she urged China to immediately cease all material support that sustains Russia’s military industrial complex and called on China to back a full and unconditional ceasefire and a just and lasting peace in Ukraine grounded in full respect for the United Nations Charter.
Wang Yi said that China regards Europe as an important pole in a multipolar world, and China has always supported European integration and is glad to see the EU enhance its strategic autonomy and play a greater role in the international arena.
China is willing to strengthen communication and coordination with the EU and prepare for the China-EU leaders’ meeting, Wang said.
The more serious and complex the international situation becomes, the more China and the EU need to strengthen solidarity and coordination, and act firmly as stabilizing forces in a turbulent world, Wang said, adding that the two sides should earnestly respect each other’s core interests, enhance understanding and mutual trust, and contribute to each other’s success.
