Next week, Chinese President Xi Jinping will visit Europe for the first time in five years. Analysts say the visit will highlight Europe’s divide over trade with Beijing and how the continent positions itself in the US-China rivalry.
Mr. Xi will visit France, Serbia and Hungary, at a time when the European Union (EU) is threatening to impose taxes on China’s electric vehicle and green energy industries because it believes those industries enjoy subsidies. large grants from the Chinese Government to gain an unfair advantage.
With the Chinese economy facing headwinds and the US closing its doors to Chinese companies, the EU may have some bargaining power with Beijing. However, analysts say that the 27 EU members are not unified in opinion, so it is difficult to have a strong policy towards China.
Overshadowing the visit are European concerns about China’s support for Russia’s wartime economy after two years of conflict with Ukraine.
Mr. Lin Jian, spokesman for China’s Ministry of Foreign Affairs, said Mr. Xi’s visit would “bring stability to the development of China-Europe relations and make new contributions to peace and stability.” in the world”.
Reuters quoted Mr. Mathieu Duchatel, senior fellow at Institut Montaigne, as saying that Mr. Xi’s goal would be to mitigate the EU’s economic security program, including the risk of increased tariffs, by taking advantage of differences in within the EU.
Duchatel assessed China’s strategy towards Europe: “There is a very strong ‘divide and rule’ element. That is not hidden but clearly shown.”
European companies and governments have long complained about limited access to the Chinese market and unfair competition. A study by the Kiel Institute estimates that China’s subsidies to its companies are three to nine times higher than those of other major economies.
The European Commission has the power to decide trade policy for the entire bloc, but member states often clash over how to fix trade imbalances.
French President Emmanuel Macron has taken a more positive stance on subsidies, warning the EU could be left behind if it does not grant exemptions from its own competition rules against “excessive subsidies”. of China and America.
“We regulate too much, don’t invest enough, don’t protect enough,” Mr. Macron said The Economist in an interview published on May 2.
Last April, German Chancellor Olaf Scholz urged Chinese President Xi Jinping to allow German companies more access to the Chinese market. However, regarding the EU’s anti-subsidy investigations, Mr. Scholz said the bloc should not act in its protectionist interests even though competition must be fair. Speaking clearly to avoid offending Beijing,
Some French government officials worry that Berlin will sabotage the electric vehicle investigation, which targets Chinese companies such as BYD, Geely and SAIC. China is a key market for export-based economies such as Germany and its automakers such as BMW and Mercedes-Benz.
An assistant to Mr. Macron said that the French leader will tell Mr. Xi about China’s export to Russia of dual-use products and technologies that can support Russia’s military industry.
Observers say that Mr. Xi’s choice of Serbia and Hungary is aimed at bringing the two European countries closer together. These two countries are both close to Russia and receive large investments from China, including financing for a railway project connecting the two countries’ capitals.
Serbian President Aleksandar Vucic said he was honored to welcome President Xi and looked forward to the free trade agreement that the two countries signed in October last year and will take effect on July 1 this year.
Analysts say that during his visit to Belgrade, right on the occasion of the 20th anniversary of the North Atlantic Treaty Organization (NATO) bombing of the Chinese embassy there, Mr. Xi will emphasize Beijing’s position on NATO.