risk reduction but not decoupling

China is for the European Union at the same time a partner, a competitor and a systemic rival. And although in recent times the regime of Xi Jinping seems to have opted for the facet of systemic rivalEuropean leaders insist on seeking with Beijing “constructive and stable relations, anchored in respect for the rules-based international order, balanced compromise and reciprocity”.

The heads of state and government of the 27 have signed this Friday their new strategy towards China in the context of the war in Ukraine and the “unlimited friendship” between Jinping and Vladimir Putin. A plan that is based on the reduction of risks and dependencies, especially in raw materials and critical technologies, but without reaching total decoupling. That is the meaning of the new economic security doctrine recently presented by the head of community diplomacy, Josep Borrell.

“The European Union will continue to reduce critical dependencies and vulnerabilities (including in its supply chains), and reduce risk and diversify where necessary and appropriate. But it does not intend to disengage or become isolationist.“, read the conclusions approved by the heads of state and government.

[La UE se dota de una estrategia de seguridad económica para mitigar los riesgos de China]

“In no case would it be in our best interest to decouple, taking into account the common global challenges we must face and our deep economic ties. So we have to reduce the risks, both economically and diplomatically. Economically, that means reducing our vulnerabilities in our economic relationship,” said the President of the Commission, Ursula von der Leyenat the end of the summit.

In commercial matters, Von der Leyen claims to correct the existing imbalances. In the last 10 years, the EU’s trade deficit has more than tripled, reaching 400 billion euros, an “unsustainable” level. In addition, European companies face obstacles and unfair practices to access the Chinese market, something that Asian companies in the EU do not.

The President of the Commission has also cited the “high dependence” that the EU has on China in critical raw materials or rare earths or “the risks linked to the possible leakage of sensitive technologies”. “All this must be taken into account when we talk about risk reduction and not decoupling,” she said.

“Diplomatic risk reduction is also important because we want to keep open lines of communication with China on the issues on which we agree but also on which we disagree, because this prevents misunderstandings. On the issues on which we do not agree, we must be very clear,” says Von der Leyen, who has cited the case of the war in Ukraine.

In which areas can the EU and China continue to work together? European leaders point out that the “global challenges” in which we must collaborate with Beijing are the fight against climate change, health and pandemic preparedness, food security, debt relief or humanitarian assistance. But they ask Jinping for “more ambitious measures” in these areas.

In the economic sphere, the Heads of State and Government demand “ensure a level playing fieldso that the commercial and economic relationship (between Brussels and Beijing) is balanced, reciprocal and mutually beneficial.”

“As a permanent member of the UN Security Council, China has a special responsibility to uphold the rules-based international order, the UN Charter and international law. Therefore, the European Council calls on China to put pressure on Russia to stop its aggressive war and to immediately, completely and unconditionally withdraw its troops from Ukraine,” the summit conclusions continued.

EU leaders have further expressed their “concern over rising tensions in the Taiwan Strait”, an area that has “strategic importance for regional and global prosperity and security.” The European Council “opposes any unilateral attempt to change the status quo by force or coercion”, but also confirms his “one China” policy.

Finally, the Heads of State and Government have expressed their “concern about forced labor, the treatment of human rights defenders and people belonging to minorities, the situation in Tibet and Xinjiang, as well as the fulfillment of the commitments reports from China related to Hong Kong”.