Strategy “Need Not Be a Defensive One”
Well aware of the future role of China as a shaper of a world order based on different values from the Western vision, Brussels will adopt a ‘de-risking approach’ with Beijing, by strengthening industry and autonomy, avoiding economic distortions, protecting dual-use technologies and improving strategic alignment with partners, EU Commission President’s Ursula von der Leyen said on 30 March.
The President was part of an event organised by the European Policy Centre (EOC), and the Chinese MERICS think tanks a few days prior to her visit to China, which will take place on 5-7 April. Meanwhile, French President Emmanuel Macron and Spanish Prime Minister Pedro Sanchez will also pay state visits to China to discuss trade and other issues.
Von der Leyen’s speech was more in the spirit of realpolitik than diplomacy. The King/Dragon is naked, and aims to be the new world leader in “composite national strength and international influence,” while becoming “less dependent on the world” as the world becomes more dependent on China, she said, referring to Chinese leader Xi Jinping’s words in recent weeks.
Ukraine, concern number one for Europeans so far, was hardly mentioned; the same is true for Russia, destined in the future to be more and more subject to leverage from China, regardless of the outcome of the conflict, she said.
Confronted with a China “more repressive at home and more assertive abroad,” Europeans should try to preserve their interests, strengthen their industry and achieve greater independence, especially on raw materials. China supplies 98% of the rare earths, 93% of the magnesium and 97% of the lithium that constitute key materials for the EU Green transition.
On trade, VDL said, Europe needs to rebalance relationship “on the basis of transparency,” keeping in mind that some areas of trade and investment pose a risk to European and national security. Europe should also find a definitive agreement on new regulations on subsidies, currently under discussion at the EU level, after the US implemented the protectionist IRA measure.
Finally, VDL called for improved cooperation with like-minded countries, not just those of the G7, but also the G20. She said the EU needs to renew existing trade agreements and create new ones with Mercosur, ASEAN, and South Pacific nations such as New Zealand, Australia and India – possibly also as counterweights to the PRC’s Silk Road initiatives. Indeed, she almost disclosed a strategy for the future of Europe. China, said the Commission’s president, “will define this century. But our story about how we relate to China is not yet fully written – and it need not be a defensive one”.
Caterina Tani reporting from Brussels for MON
