Josep Borrell, the High Representative of the European Union for Foreign Affairs and Security Policy, will be in China from Thursday to Saturday for a series of meetings.
He took part in a written interview with the South China Morning Post to discuss his objectives and the major issues in EU-China relations.
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You are travelling to China. What kind of message are you bringing to Beijing?
My visit to China has three main objectives.
My first objective is to reaffirm to my Chinese interlocutors that Europe takes China seriously and has no hidden agenda aiming at derailing its rise. At the same time, we expect from China to take us more seriously and stop looking at us through the lens of its relations with others. Our assessment and conduct is driven by our own interests.
My message to my Chinese colleagues will be that the war in Ukraine has transformed us. It helped us move from the position of an economic power to a geopolitical one, taking its strategic responsibilities very seriously, as Russia represents a huge threat for our security. Just look at the figures. Our commitment with Ukraine is huge: more than €80 billion (US$85 billion). No one in Europe questions seriously the necessity of such a support.
My second objective is related to our economic bilateral relations. We are concerned by our trade imbalances, which are rapidly growing. Our massive trade deficit with China cannot be the mere product of a competitive disadvantage between the EU and China. It has to do with persistent market access problems encountered by European firms in China. If those obstacles are not lifted, European firms will disengage from China. This has nothing to do with any political strategy aiming at decoupling from China.
The crux of the matter is that China is becoming less attractive. European firms can no longer send as many expatriates to China. We also care about the reaction of our public’s opinion, considering the potential losses of jobs in critical sectors such as automotives, where Chinese imports are growing particularly fast. The European elections will take place in less than a year and one of the questions raised by our constituents will be: why is our trade deficit with China putting at risk vital sectors – is the competition fair? In a democratic system such as the European one, you cannot ignore what voters think.
My third objective is to say that in a conflictual interdependent world there is still space for cooperation on issues in which decoupling is impossible such as climate change. There are also regional issues on which we can try to work together, including the Middle East, where the current violence in the Israel-Palestine conflict threatens the stability of the whole region.
You have said since the beginning of the war in Ukraine that China has the biggest influence on Russia. How do you now assess China’s position, 19 months after the invasion?
The war in Ukraine is of the utmost importance for Europe. To be frank, in Europe we are not totally convinced by China’s argument that China is neutral in this conflict. How to remain neutral between an aggressor and the country it has invaded? Being neutral in such a case is just like watching on the sidelines as the fox enters the henhouse and waiting for the outcome.
We are not expecting China to take the European line. We know the Chinese calculations and constraints behind this conflict and their tendency to look at it through the lens of its competition with the US. I also know the complex nature of Sino-Russian relations and the deep historical mistrust that exists between both countries. After all, Russia took a significant part of Chinese territory in the 19th century.
Moreover, China has no interest in endorsing the Russian view. Russia is telling China that they are fighting the same enemy, which is the Western world. In doing so, they are themselves developing a new cold war narrative and trying to pull China on their side because they feel isolated and weakened. However, is it not in the interest of China to endorse the Russian position because this will not only increase mistrust between China and Europe but also solidify the transatlantic alliance.
So yes, China can certainly do more, including in its engagement on the peace formula put forward by Ukraine. China’s participation at the Jeddah conference was a good step. However, a lot remains to be done to convince Ukraine that China is not on Russia’s side.
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You have referred to a cacophony of voices in the EU on China. Is it possible to ever have the EU speak in a single voice on China?
The EU has 27 member states and it is only normal that they do not use the exact same words, since they do not have the exact same specific interests or positions. However, do remember what happened with Russia. Everybody, including Putin, claimed that the EU nations were too divided to adopt a common position. Indeed, views were sometimes different. However, in the face of a common challenge we succeeded in finding common grounds.
More than ever, our well-known triptych of China being our partner, competitor and systemic rival is at the heart of our policy. We want to collaborate with China as much as possible, to face global challenges together. At the same time, we want to compete economically and technologically, because we think [competition is good for] the resilience of our own economy, for our markets and consumers, but this must be done with fair conditions and in a level-playing field: Europe wants to be a player, not a playground.
But, let’s be honest, in matters related to values, principles and human rights, there are differences between our two systems and some of them are truly important: that is why we speak about a systemic rivalry. Anyway, rest assured: rivals do not need to be enemies.
On de-risking: how far do you think member states are willing to go on this front, and do you think it is possible to see material progress before European elections next year?
All member states have agreed on the need to reduce critical dependencies and vulnerabilities, and therefore de-risk and diversify suppliers. Both Covid-19 and Russia’s war of aggression against Ukraine have been wake-up calls for this to happen. In fact, China has been having this approach for some time already and President Xi Jinping himself said in 2020 that “China must build a domestic supply system that is independently controllable, secure and reliable so that self-circulation can be accomplished at critical moments”.
On average, the EU and China trade goods worth €2.3 billion a day. Nobody is putting into question the importance of that economic relationship which has brought huge benefits. However, the level of dependence is extremely high in a few – but crucially important – materials, including in elements needed for the green transition. In this case, diversification of supply should be considered a matter of basic economic reasoning. China has followed this same logic in the last decade.
Now, when you move from diversification of supply and you start discussing investment, it becomes more complex. And it is complex for a good reason: you must strike the right balance between openness and the need to protect, especially if your overall goal is to remain as open as possible.
The EU approach will be surgical, precise and proportional. Same as with all our measures, what we will do will be fully compliant with our international obligations, including [the World Trade Organization]. Of course, all this takes time. You cannot decree diversification or de-risking. We need to assess it carefully, discuss with the industry, with the EU member states, and with partners. We will be transparent. That is how sound policy is made.
Let’s be clear: we all have an interest in maintaining an open system. Europe will remain the most open major market in the world, but we will not hesitate to take measures to protect ourselves against practices that we consider unfair. Neither will we permit harmful activities that could place at risk the national security of our member states.
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Taiwan is a bigger EU talking point than ever. Is Europe preparing for all scenarios in the Taiwan Strait?
The EU remains fully committed to its one-China policy which is based on six principles: no recognition of Taiwan as an independent state; no to intimidation, coercion and provocation from any side; no to use of force; yes to bilateral ties with Taiwan, which do not imply any kind of political recognition as an independent country; yes to resolving tensions through meaningful and open dialogue; yes to keeping channels of communication open to prevent misunderstandings and to de-escalate tensions.
Any weakening of regional stability in Asia affects global security, the free flow of trade and therefore our own interests. Indeed, peace and stability in the Taiwan Strait is a global good. We do our utmost to reduce tensions and preserve the status quo to avoid any escalation.
With the disappearance of ministers Qin Gang and Li Shangfu, how much of a black box is Chinese elite politics to its EU counterpart?
China is a sovereign state. We may hold, of course, different views on different issues. But that does not exclude mutual respect. It is not my role to comment on changes taking place within the Chinese government. Moreover, my main interlocutor was and remains Director/Foreign Minister Wang Yi.
More from South China Morning Post:
- Europe or bust? A wary EU braces for a wave of made-in-China electric cars
- EU’s China ‘de-risking’ plan puts AI, semiconductors, quantum tech and biotech in cross hairs
- EU chamber tells China to walk the talk on liberalising markets to boost FDI, cement Shanghai as global financial hub
- In China-EU trade ‘rebalancing’, dialogue marks critical step as European firms face ‘more political, less predictable’ business environment
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