At the informal meeting of Foreign Ministers (Gymnich) in Stockholm on Friday 12 May, the EU strengthened its commitment to “recalibrate” its relationship with China. The challenge for the Union is to redefine an economic and strategic security policy towards this influential economic, political and financial partner and competitor (see EUROPE 13180/21).
The High Representative for Foreign Affairs and Security Policy, Josep Borrell, has shared a working document with an explanatory letter drafted by the European External Action Service (EEAS) to the 27 Foreign Ministers, in which he recognises China’s ambition “to build a new world order” and invites EU Member States to reflect on how to interact with this actor in a unified manner.
The document, a copy of which was given to EUROPE, was welcomed by all the Ministers and will now be fine-tuned in preparation for the discussion by European leaders at the next European Council on 29 and 30 June, Mr Borrell told the press.
Interacting with China
The High Representative recalled the ‘triptych’ that characterises EU-China relations, namely two economic powers that are “partners, rivals and competitors”.
“We are global rivals because we present our models to the rest of the world, but we have to interact with China. I think the key words are ‘interact’ and ‘reduce dependencies’. Engage and compete”, he said.
He added that it was impossible to solve the most important global challenges without strong engagement with China. “China burns more coal than the rest of the world combined. So forget about solving the climate change problem without strong engagement with China”.
Some EU Ministers nevertheless sought to issue a warning. On arrival, Lithuanian Foreign Minister Gabrielius Landsbergis urged his colleagues “not to repeat the same mistakes” that Europe made in managing its relationship with Russia.
“Problem of values”
Mr Borrell’s approach is based on three pillars: values, economic security and strategic security.
He recalls that “with China we have a values problem (...) with different systems and different approaches to human rights” and that this persistent values gap between the EU and China is one of the reasons that calls for active management of the relationship.
Ensuring economic security
The European External Action Service document aims to understand and manage this complex relationship with the EU’s second largest trading partner of goods in 2022 (€856.3 billion).
In terms of economic security and recalibrating trade dependencies, “the EU needs to engage China on trade and economic issues to rebalance the relationship, improve market access so that companies can compete in the Chinese market, by addressing specific trade barriers”, the document says.
Mr Borrell stressed the concept of “de-risking”, which consists of recognising the risks and using tools to reduce dependencies on China (especially in the development of digital technologies), “which are even more important than the one we had with Russia”, regarding gas imports.
A joint European Commission/High Representative proposal on economic security vis-à-vis China is expected by the summer.
The EU also needs to do more to engage partners around the world, according to the text, which states that “the precondition for this engagement is an honest acknowledgement that the Chinese offer is often seen as attractive by partners. It is essential to provide an attractive alternative”.
In this regard, an EU official adds that “we are now in a bidding war. People listen to each other and are not looking for theoretical lessons, but for offers”.
Ensuring strategic security
On strategic security, the EEAS document questions the EU’s approach to engaging China in Russia’s war of aggression against Ukraine.
“Relations between China and the European Union will be seriously affected if China does not push Russia to withdraw from Ukraine”, the document says (see other news).
On the tensions in the Taiwan Strait, the EU remains committed to its ‘One-China Policy’, but also believes that “any unilateral change to the status quo and any use of force could have far-reaching global economic, political and security consequences, especially considering Taiwan’s key role as a supplier of the most advanced semiconductors”.
When asked about this, the Polish Undersecretary of State for Development Cooperation and Africa and the Middle East Policy, Paweł Jabłoński, said that it was very important “to state that any attempt at destabilisation will inevitably meet with a European and transatlantic response”.
Visiting Oslo the same day, Chinese Foreign Minister Quin Gang called on China and Europe to “reject the Cold War mentality”.
Next steps
The discussions at this informal meeting will continue the following day, Saturday 13 May, at the EU-Indo-Pacific Forum (see EUROPE 13180/22). (Original version in French by Pauline Denys and Camille-Cerise Gessant)