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Relations between China and the EU have come under strain in recent weeks. Photo: Reuters

Can China keep relations with EU on course?

  • The European Parliament’s decision to suspend ratification of an investment deal was a serious blow, but avenues for cooperation remain
  • The country’s foreign minister told a conference last week that the two sides could work together on a range of topics, not just climate change

China is looking at ways to improve relations with the European Union after a series of setbacks in recent weeks, according to diplomatic observers.

The foreign ministry said China looked forward to deepening cooperation with the four and putting China-Europe ties on a “positive, comprehensive and balanced” path.

China’s hopes for better relations with the EU suffered a hit after the European Parliament overwhelmingly voted to freeze the ratification of the Comprehensive Agreement on Investment last Thursday until Beijing removes sanctions on EU officials, academics and institutions.
Beijing imposed the penalties in retaliation for similar measures imposed on officials accused of human rights abuses in Xinjiang.

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At a virtual meeting of the Munich Security Conference on Tuesday, Chinese Foreign Minister Wang Yi dismissed the suggestion that Beijing and Brussels could only work together on climate change, and listed seven other areas for potential cooperation: the fight against Covid-19, economic recovery, counterterrorism, global governance, helping the least developed countries, solving issues such as the conflict between the Israelis and Palestinians and strengthening the role of the United Nations.

Tensions with Washington during the Trump era pushed Beijing to reach out to Europe. Although Brussels said it did not wish to choose sides between its two largest trading partners – and agreed to the investment deal late last year – it has hardened its stance in recent months.

Meanwhile the US and EU are becoming closer under the new administration in Washington, and are coordinating efforts to counter China. Last week the two sides issued a joint statement that they could partner to “hold countries like China that support trade-distorting policies to account”.

Biden will make his first overseas trip as president to the EU and Britain in June, when he will attend multiple major meetings with his key allies.

“There is a big shared agenda between the EU and the US on everything from Xinjiang, Hong Kong and Taiwan, to ending Chinese unfair trade practices,” said Steven Blockmans, director of research at the Centre for European Policy Studies, a think tank in Brussels.

03:36

Beijing hits back at Western sanctions against China’s alleged treatment of Uygur Muslims

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“The Biden administration is keen to rewrite rules which it feels constrain the US while giving China a free pass. In the face of growing lawlessness in international relations, and in order to secure Europe’s future economic prosperity, Brussels is happy to rewrite many of these rules, as long as an external body is able to ensure that the writ of the law is enforced.”

But Chinese observers said the country could still strengthen its ties with the EU by stepping up cooperation in various areas.

Sun Qi, an international relations specialist at the Shanghai Academy of Social Sciences, said China and the EU had vast cooperative space in some areas, adding: “As China is further opening up in areas where both sides share common interests such as the digital economy and green economy, China will be open to a large-scale investment in new technology fields, which can be very attractive to EU investors.”

Senior US and EU officials meet in Brussels to discuss strategies on China

He also said Europe was unlikely to completely side with Washington and would seek to maximise the benefits it could get from the US and China.

Sun continued that working together to fight climate change could offer “complementary advantages in fields including renewable energy, technological innovation, industrial cooperation, green finance, digital economy integration, which will push the investment agreement to advance effectively and steadily”.

Wang Yiwei, an international relations professor at Renmin University, said the stalled investment deal reflected the concerns in Brussels about the rising influence of Beijing, and urged China to be patient.

“There is no doubt that the EU needs to cooperate with China on climate change,” Wang said. “Although Biden is now engaged in carbon emission reduction, it’s hard to ensure that the US can still stick to this agenda after Biden steps down.”

This article appeared in the South China Morning Post print edition as: Beijing looks for avenues to improve relations with EU after series of setbacks
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