“In May, when the scent of flowers and grass fills the Hungarian plains, I will make an official visit to Hungary at the invitation of President Tamás Sülök and Prime Minister Viktor Orbán.'' , he waxed lyrical in an official statement about his landmark visit to Budapest on May 9, which also included Serbia.
As other member states of the European Union celebrate Europe Day, honoring the Schumann Declaration of 1950, which sparked the project of European integration, Orbán called Xi's China “one of the pillars of the new world order”. praised.
President Xi Jinping's visit to Hungary saw the announcement of a 2 billion euro ($2.1 billion) railway project, adding to a growing number of large-scale industrial projects being financed by China. In December, top Chinese carmaker BYD announced it would build a factory for electric vehicle (EV) production, and another Chinese company, CATL, announced a 7.3 billion euro ($7.86 billion) battery factory. Started the project.
China is Hungary's biggest foreign investor, pumping around 16 billion euros ($17 billion) into various projects.
This is the second visit by a Chinese leader to the country, which many in the EU see as a Chinese Trojan horse. Mr. Orbán has done little to dispel such perceptions. He basked in the glory of his special relationship with Beijing.
Although the Hungarian government is pandering to Beijing, Europeans generally recognize that China poses a major strategic challenge. Whether it's the war in Ukraine, the nuclear arms race, international efforts to combat climate change or concerns about unfair trade practices, policymakers and strategic thinkers in Brussels and key member states are concerned about global developments. We are wary of China's role in this.
“We have to behave respectfully towards China on trade,” French President Emmanuel Macron said in a recent interview with The Economist, “but only if we protect our interests and ensure mutual and in a manner that promotes national security.”
Although Europe wants China to be a partner, it also recognizes the risks of over-economic dependence, especially in emerging areas such as green technology, where China has an advantage. Last October, the European Commission launched an investigation into Chinese-made EVs sold on the EU market that have unfairly benefited from Chinese government subsidies.
The shift to a more defensive posture reflects a change in mood in some parts of the EU. Even those who are skeptical of Macron's support for “strategic autonomy” recognize that the EU must be protected from external threats and risks, including China.
In the good old days, when the EU was riding the wave of globalization and pioneering open markets and free capital flows, it was easy to think of its relationship with China as a win-win. It was all a question of economic efficiency.
But the tone changed in the 2010s, as Western countries reeled from the global financial crisis and China became more assertive in many parts of the world, including Europe. The EU's trade deficit with China more than tripled between 2013 and 2022, reaching nearly 400 billion euros (about $430 billion). The COVID-19 pandemic and global supply chain disruptions, as well as Russia's full-scale invasion of Ukraine, have cemented the historic closeness between the two countries. And Beijing has dealt the final, fatal blow to its bullish vision for China-EU relations. The EU currently regards the Chinese government as a “partner for cooperation, an economic competitor, and a systemic rival.”
Last year, European Commission President Ursula von der Leyen called for “de-risking” from China. Reflecting the new mood, the first leg of Xi's European tour included talks with Macron and von der Leyen about the ongoing trade dispute and China's policy toward Ukraine. However, little progress was made.
The problem is that risk aversion is not widely accepted across the EU. Hungary is perhaps the most prominent example, but it is not the only one. It is also clear that Germany does not fully agree with the new, tougher approach. To be fair, during his visit to Beijing in mid-April, German Chancellor Olaf Scholz sang from the same hymn sheet as President Macron. In relation to Ukraine, Scholz appealed to China to “make clear that this senseless imperialist war must end.”
The prime minister has also spoken out harshly about China's destructive trade practices. However, extensive trade ties and the presence of major German companies in the Chinese market, especially car manufacturers such as Volkswagen, are pushing government policy towards engagement. Furthermore, Scholz may have come to Paris to show solidarity with Macron and von der Leyen. But he didn't.
The tough stance of the United States, the EU's closest ally, is also a factor. There is bipartisan consensus in Washington that China is our number one geopolitical enemy. Most of her EU countries (France and Germany, of course) would rather remain neutral in this fight. During a visit to China last year, Macron warned of the danger of “getting caught up in a crisis that is not ours.”
Many in the EU are concerned about the impact of economic and technological competition between the United States and China, with both countries providing billions of dollars in subsidies to support their economies, thereby making Europe The industry's global standing is being undermined. However, achieving strategic autonomy remains a difficult challenge, especially given the reliance on US military power to protect Europe. There is no easy recipe for how to navigate the conflict between China and the United States.
President Xi's trip to Europe not only highlights tensions, but also the desire of major EU states to maintain productive relations with China. However, China appears to have more cards than Europe at the moment.
The views expressed in this article are the author's own and do not necessarily reflect the editorial stance of Al Jazeera.
