China seeks peace in Europe
China seeks peace in Europe. The Chinese president concluded his European tour between France, Serbia, and Hungary on Friday, May 10. During this trip, various topics were discussed, from trade exchanges and relations with Moscow in the Ukraine war to strategic friendship with Belgrade and Budapest.
Xi Jinping, the leader of China, leaves Europe at ease. The five-day heterogeneous tour of the ancient continent did not seem easy from the first day. Compared to his last visit in March 2019, Xi faced a transformed Europe, a continent much more exhausted by emergencies than before, from the health emergency that spread from China in 2020 to being on the brink of an electoral test that could question its identity.
The Chinese president met with his French counterpart Emmanuel Macron and Ursula von der Leyen, the President of the European Commission, in Paris.
Xi Jinping said, ‘We discussed trade issues with them, but more importantly, security issues and the alleged military support of Beijing for Russia in the attack on Ukraine.’ Although Xi claims China’s neutrality, it is also true that Europe has feared the strengthening of the Moscow-Beijing axis over the past two years.
A delegation of 400 people led by senior leaders of the Chinese Communist Party then went to Belgrade, where they were welcomed with red carpets and collective applause. Xi Jinping met with Aleksandar Vučić, the President of Serbia, to strengthen what they called ‘steel friendship.’
The final stop of this tour was Budapest, at the court of Viktor Orbán, the Prime Minister of Hungary, where Xi Jinping paid homage to his independence in foreign policy. A trip in which Xi Jinping tried to combine dialogue with that part of Europe that was more fearful of China with courting countries that, in turn, consider the Asian giant a brotherly friend.
The trip to Paris to save face
The entry into Paris last Sunday had one primary goal: to commemorate sixty years of diplomatic relations between the People’s Republic of China and France, the first Western country to recognize the regime change in Beijing.
After exchanging gifts—French cognac for Xi and a Chinese copy of Madame Bovary for Macron—the two leaders discussed the war in Ukraine, with the French president positively welcoming the commitment of Beijing officials not to sell weapons and to closely control the sale of products and technologies that could be used for military purposes.
The Chinese president also emphasized the principle guiding China’s foreign policy of non-interference in the internal affairs of other countries. Although Macron’s real hope is that Xi can pressure Russia to end the war in Ukraine, the Élysée leader said in an interview with The Economist on the eve of Xi Jinping’s arrival, ‘We must work with China to create peace.’
We hope Beijing invites the parties to resume contacts and dialogue, recalling how all conflicts have been resolved through negotiation. Of course, it must be emphasized that in these two years, no diplomatic action by China aimed at restoring peace in Europe has taken place.
An opportunity emerged at the end of the month with the announced visit of Russian President Vladimir Putin to China.
During his two-day trip to France, where the two presidents and their wives also visited the Pyrenees, a mountain range in southwestern Europe and a natural border between France and Spain, Xi Jinping also met with Ursula von der Leyen, the President of the European Commission.
Last year, Brussels launched an investigation into China’s electric vehicle industry and may impose tariffs on cars exported to the European market. In this regard, von der Leyen said, ‘Europe’s doors remain open to investment and fair competition, but if this undermines our security or makes us vulnerable, it is not good for Europe.’
Iron friend
Xi moved from Paris to Belgrade. The timing of his arrival in the country was not accidental. On May 7, it marked the 25th anniversary of the bombing of the Chinese embassy during NATO’s campaign against Slobodan Milošević’s Serbia. In this Balkan country, the Chinese delegation was received with the highest respect.
Since 2020, China has risen to the top of Serbia’s trading partners, coming close to the first position previously held by Germany. With so-called vaccine diplomacy, Beijing has increased its presence in Serbia, consisting of substantial credits for infrastructure and strategic factories for the local economy.
The two countries have signed 28 bilateral agreements and memorandums of understanding at the ministerial level to enhance cooperation.
The trade relations that Xi and Vučić define as ‘steel friendship’ between their countries are a typical example of China’s favored win-win game. On one hand, Beijing expands the Belt and Road Initiative (BRI) in Europe, while on the other, Belgrade receives funding for highways, bridges, and railways without needing to provide many guarantees for sustainability in project implementation.
The main consequence is that many Chinese investments do not seem to comply with European standards, which Serbia, as an EU candidate, must follow. However, Beijing is very interested in continuing Belgrade’s path to Brussels and sees this Balkan country as a Trojan horse essential for continuing to penetrate the European market.
Shared future
The last stop of Xi’s European tour was Budapest, but he did not reach Budapest from Belgrade by the high-speed train financed by a nearly two-billion-euro Chinese loan for the railway modernization connecting the two capitals, as the project is currently blocked for investigation by the European Commission.
In the Hungarian capital, the Chinese leader spoke of a shared future, mutual political trust, and common positions and perspectives, urging Budapest to lead regional relations with Beijing and praised Prime Minister Orbán’s independence in foreign policy.
The two countries have signed 18 new agreements to increase economic and cultural cooperation.
Orbán said, ‘I want to assure President Xi Jinping that Hungary will continue to ensure fair conditions for Chinese companies investing in our country, and we will create an opportunity to bring together the most modern Western and Eastern technologies in Hungary and foster growth and development.’
Beijing has already made significant investments in Hungary, which has become its stronghold of influence in the European Union.
This is confirmed by the imminent opening of the first European electric vehicle factory by BYD, a Tesla competitor, in Szeged, southern Hungary.
This country already hosts several lithium battery manufacturers for electric vehicles and will be strategically emerging in this sector. Ultimately, Budapest could soon become another hub of the infrastructure network starting from the port of Piraeus in Athens and penetrating Central Europe.
Here too, in summary, Xi was praised for the win-win game: local economic growth with respect for Western competitors and the expansion of China’s Belt and Road Initiative.
Xi Jinping came to Europe to resume relations with the European Union amid increasing competition.
The chosen countries—France, Hungary, and Serbia—are all, in various ways, supporters of relations with Beijing, which have not been mediated by the United States.
In particular, Macron intended to present himself as the main European interlocutor with China, thanks to his close personal ties with Xi and by attending the meeting with Ursula von der Leyen, thus following the pattern of the 2019 meetings, although Germany also participated in those meetings with Angela Merkel.
However, the good relations between Macron and Xi did not help facilitate dialogue, given that the most important issue for Europe, namely the Asian giant’s excess production capacity, was clearly dismissed by the Chinese leader.