
Column / Crude World
Chinese road to riches or road to ruin?
Behind all the money coming to Europe from China's 'New Silk Road' lurks a potentially explosive cocktail.
Friday
25th Aug 2017

Behind all the money coming to Europe from China's 'New Silk Road' lurks a potentially explosive cocktail.

Half a decade after it was launched, the network of cooperation between China and 16 Central and Eastern European countries has brought uneven economical and political fruits so far.
While EU and Chinese political leaders discussed climate change and trade at the European Council in Brussels, hundreds of small and medium-sized enterprises from China and all across Europe participated in the EU-China SMEs Matchmaking Event at the Bozar.
Within 24 hours of Trump announcing that the US will pull out of the Paris climate accord, EU and Chinese leaders presented a united front on fighting climate change. But divergence on trade plagues the new alliance.
It is not enough for European officials to simply tell the press that they do not understand the Belt and Road – the vision is clear enough, the point is to decide how to engage with it.

Russia and China bond over anti-Western rhetoric and the shared interest of keeping the US at bay, but beyond that, there is little that binds Moscow and Beijing together.

EU leaders have put the brakes on a proposal by French president Macron to hand the EU more powers to screen Chinese and other foreign investments into strategic sectors in Europe.

Interconnectivity, investment, innovation: The Belt and Road Forum for International Cooperation outlines a potentially winning partnership for the EU and China.

EU states seek new way of imposing same old tariffs to penalise Chinese dumping, despite a Sino-European alliance on free trade.
Beijing special envoy on the Syrian conflict said in Brussels that "imposing" a solution from the outside would "not be workable" and that the peace process will not be "smooth sailing".
EU and Chinese officials stress support for global free trade and multilateral world order in first post-Trump election talks.
Trump signs order to roll back predecessor's climate action plan, as the EU turns towards China.
Can traditional Chinese medicine help the modern European patient? Malta thinks so, in a new agreement with China.
The EU's trade chief said the EU backs China in combating protectionism worldwide, warning that trade should not be used as a weapon.
China and the EU must be committed to deepen cultural understanding, foster mutual respect and willingness to work together.
The EU has dealt carefully with Taiwan to steer clear of trouble with Beijing, and Donald Trump's latest gaffe is likely to reaffirm that approach.
The launch of the Asian Infrastructure Investment Bank heralds a new era of cross-continental financing for future energy markets, but a push for gas and failures to abide by good governance could doom the potential for a better tomorrow.
The US president-elect is likely to push for renegotiation of TTIP or pull out completely. Either way, there will be opportunities for the EU and China.

A European Commission proposal on anti-dumping clears the way for the EU to abide by international obligations and avoid a trade war that would be dangerously counterproductive.

Trade ministers send a discussion on the level of import duties back to diplomats, also admitting that TTIP talks with the US are "in the freezer".
The European Commission presented a new system to assess dumping from countries with strong state intervention. The main target is China.
The future commission vice-president admitted in a statement that his words "have created bad feelings and may even have hurt people".

The EU executive says it has nothing to add about German commissioner Guether Oettinger's derogatory words about the Chinese.

Guenther Oettinger reportedly used a German derogatory term for members of a Chinese delegation visiting Brussels. He said the remarks were taken out of context.
While the debate has escalated about China’s steel overcapacity, it is not exactly new. The first postwar steel crisis occurred in the US and Europe. Beijing seeks to avoid a deja vu of bad policies.
The EU commission said the tariffs on steel from China and Russia are needed to counter below market prices that threaten EU industry and jobs.

China is pushing its influence through the New Silk Road project and wooing of world media.

China hopes the EU will respect China's sovereignty and territorial integrity and play a constructive role in the resolution of the South China Sea disputes through bilateral negotiations rather than arbitration, says the Chinese Ambassador to the EU.
Leaders are sitting down for the EU-China summit, but the crucial issue of China's market economy status will not be discussed officially. It still dominates industry's thinking on the relationship.
The annual China-EU summit has just become even more crucial to Europe and the world, following the Brexit referendum.