The president of the European Commission Ursula von der Leyen, meeting Chinese President Xi Jinping in Paris, placed herself in perfect continuity with the assertive line towards China that she inaugurated after the end of the pandemic of Covid-19. While still at the end of 2020 her political ‘godmother’, the then Chancellor Angela Merkel, had strongly wanted the signing of an EU-China investment treaty before the inauguration of US President Joe Biden, which never entered into force because shortly after Beijing would have sanctioned some important MEPs in response to the sanctions imposed by the EU against Xinjiang officials for the persecution of the Uighurs, von der Leyen, despite being German, has adopted a much less supine line towards Beijing.
Standard bearer of a Europe that wants to be ‘geopolitical’and re-nominated to lead the Commission for the EPP, a party which is now in opposition in Berlin and therefore has freer hands, von der Leyen in Paris expressed positions in line with the speech she delivered on 30 March 2023 at Mercator Institute, before a visit to Beijing alongside French president Emmanuel Macron, who once again invited her to the Elysée so that the president could meet with Xi.
The secretary of the Communist Party of China and president of the People’s Republic chose to make only three stops in Europe, in his first post-pandemic visit: France, Serbia and Hungary. The Chinese leader’s selection of destinations speaks for itself. Macron, who is the ‘champion’ of the federalist line among heads of state and government, immediately understood where Beijing wanted to go and therefore invited von der Leyen, who represents the EU, and, according to rumors, also attempted, unsuccessfully, to involve German Chancellor Olaf Scholz.
Von der Leyen he said that he first addressed the issue of the war in Ukraine with Xi. Beijing, even if it does not officially supply armaments to Russia, remains a major supplier of microchips, which allow Moscow to produce armaments and drones (also thanks to Iranian help) and other dual-use products, civil and military. The president was rather direct: on Beijing’s part “a greater effort is needed – she said – to reduce deliveries of dual-use goods to Russia, which end up on the battlefield” in Ukraine and, “given the existential nature of the threat resulting from this war, both for Ukraine and for Europe, this affects EU-China relations.”
The president however, she acknowledged that Xi has “played an important role in reducing Russia’s irresponsible nuclear threats and I am confident – she added – that he will continue to do so”. In reality, Xi, as the American historian Stephen Kotkin recalled in Foreign Affairs, was publicly humiliated by his ‘friend’ Vladimir Putin: immediately after China had reassured the world that Russia would not use nuclear weapons in Ukraine , Moscow announced the movement of tactical nuclear weapons to Belarus, blatantly contradicting Chinese assurances. But the president pretended not to know it, publicly granting her interlocutor the role of great power that Beijing aspires to.
Von der Leyen also hoped that China could play a moderating role in the Middle East, hoping that “China can play an important role in limiting the irresponsible proliferation of Iranian ballistic missiles and drones.” Here too, without naming them, she seemed to allude to the microprocessors, which Iran imports in large quantities and without which its drones, used against Israel and supplied to Russia so that it can launch them against Ukraine, would not be able to fly.
But it is on the level of economic relations between the EU and China that von der Leyen has been more than explicit. At the Elysée, said von der Leyen, “we also discussed the imbalances” in trade relations between the EU and China, “which remain significant, and this is a cause for great concern. We will defend our companies, we will defend our economies. We will never hesitate to do so if necessary,” he promised.
AND he indicated very specific areas of concern: “Products subsidized from China, such as electric vehicles or for example steel, are flooding the European market,” he said. The European automotive industry is seriously behind in the transition to electric: the Commission intends to manage the transition by giving the European industry the opportunity to make the transition, considered essential for decarbonisation, with the necessary time. We want to avoid, in short, what happened to the European solar panel industry, swept away by Chinese competition, heavily subsidized by the state.
It is a strategy that requires careful calibration, because it could have undesirable effects: some large European car manufacturers have already announced a postponement of the electrification of their price lists, which could raise suspicions that they are betting on ‘political’ protection from Chinese competition . There are those who, like the British weekly The Economist, recently argued that the EU should simply take advantage of low-cost Chinese electric cars to accelerate decarbonisation.
“At the same time – he continues – China continues to massively support its manufacturing sector. And this, combined with domestic demand that is not increasing. The world cannot absorb China’s overproduction.” In this passage, von der Leyen showed a singular consonance with the positions of former ECB president Mario Draghi, who has repeatedly recalled how Beijing dumps its production overcapacity on the rest of the world. EU sources do not confirm particular meetings between Draghi and von der Leyen, but report that contacts between the two are very “frequent”given that the former Italian prime minister is preparing a report on EU competitiveness on behalf of the Commission.
Therefore, von der Leyen continued, “I encouraged the Chinese government to address these structural overcapacities.” PFor Chinese President Xi Jinping, the problem of Chinese overcapacity simply “does not exist”. Europe “cannot accept market distorting practices that could lead to deindustrialization here at home”, continued the president. “For trade to be fair, access to the respective markets must also be reciprocal – she continued – we have discussed how to make real progress on market access. I remain confident that further progress can be achieved and, at the same time, we are ready to make full use of our trade defense instruments if necessary.”
Von der Leyen recalled that the Commission recently launched an investigation into the public procurement market for medical devices in China, the first to be launched using the international procurement tool. The president was frank with Xi: “The relationship between the EU and China – he said – is a complex relationship. Let’s address this issue clearly, constructively and responsibly, because a China that acts correctly is good for all of us. At the same time, Europe will not hesitate to make difficult decisions necessary to protect its economy and its security”. Because, as she herself said, “mutual respect” is needed in the relationship between the EU and China.
While in the trade field the EU has exclusive competence and can therefore be resolute and credible, in foreign policy it can only coordinate and attempt to summarize the positions of the 27 member states. And so, struggling to find a common line in the face of the invitation sent by the Kremlin to the ambassadors of the EU and the 27 member countries to participate in the inauguration ceremony of Russian President Vladimir Putin tomorrowfor his fifth presidential term.
EPP MEPs have written to High Representative Josep Borrell asking him to take a clear position, inviting the ambassadors of the 27 not to participate. At noon yesterday, less than 24 hours after the ceremony, member states were still “discussing” what to do, explained spokesperson Peter Stano, adding however that Borrell is “against” the EU taking part in the ceremony. It is not at all certain that all 27 countries are on the same line as Borrell. If today the 27 ambassadors at Putin’s invitation were to move in no particular order, it would be yet another confirmation, despite von der Leyen’s efforts, that there is still a very long way to go for a true ‘geopolitical’ Union.
