Chinese President's European Tour Highlights Bilateral Relations and Trade Challenges
ICARO Media Group
In a high-profile European tour, Chinese President Xi Jinping concluded his visit, which notably emphasized the importance of bilateral relationships while addressing trade imbalances and concerns over Chinese support for Russia's war in Ukraine. Xi's itinerary, which included visits to France, Serbia, and Hungary, underscored China's preference for engaging with individual countries to avoid collective opposition.
During his two-day state visit to France, Xi held talks with French President Emmanuel Macron on various issues, including the war in Ukraine and trade imbalances with the EU. Macron sought to demonstrate European unity by including European Commission President Ursula von der Leyen in the discussions. Von der Leyen highlighted concerns over China's "market distortion practices," particularly in the electric vehicle and steel industries, which has led to overcapacity and dumping of underpriced products in European and US markets. The European Commission announced anti-subsidy probes into Chinese electric vehicles and solar panels to determine the potential imposition of punitive tariffs.
However, President Xi responded strongly, dismissing the notion of China's overcapacity problem and stating that accusations of Chinese support for Russia in the Ukraine conflict were meant to incite a new Cold War. The discussions highlighted the growing convergence within the EU member states on the need to address trade imbalances with China.
Xi's visit to Serbia projected him as a key figure not only within the EU but also in its neighborhood. Serbia, a major recipient of Chinese loans under the Belt and Road Initiative, has witnessed extensive Chinese investment in projects such as high-speed rail links, sewer and wastewater plants, and a massive steelworks. Xi's visit also served as an opportunity to elegantly take a jab at NATO, as it coincided with the anniversary of the brazen NATO bombing of the Chinese Embassy in Yugoslavia during the Kosovo War.
The final stop on Xi's tour was Hungary, where the country's alignment with China's position within the EU has been evident with the government's vetoing of numerous EU proposals against Chinese actions. Hungary has positioned itself as a production center for Chinese electric vehicle companies, responding to the EU's struggle with an influx of cheap Chinese electric vehicles into its market. Chinese EV maker BYD announced the construction of a passenger car factory in Hungary, further solidifying China's status as Hungary's top source of foreign direct investment.
Throughout his European tour, Xi aimed to establish and enhance bilateral relationships with countries supportive of China's interests and influence. China's strategy of reaching out to individual member states, bypassing collective approaches, seeks to undermine EU unity while offering privileged access to its markets. However, experts point to a trust deficit between the EU and China, indicating that the future of EU-China relations remains challenging.
As the European Union continues to push back against China's trade practices, China will likely persist in reaching out to member states bilaterally, aiming to slow down their efforts to mitigate risks associated with their economic relationships with China.