The warm welcome for the Chinese president in Belgrade and Budapest cannot hide the deep differences between China and almost all EU members. It's about cars of the future, big markets and the threat of a tariff war
Chinese President Xi Jinping he ended a European tour on Friday that caused a lot of buzz. From the perspective of the European Union, the powerful guest should have pointed out the flooding of Europe with cheaper Chinese electric cars, as well as the differences in viewing the war in Ukraine, writes Mother said.
Xi's first visit since 2019 comes amid growing suspicions in the West that China is trying to exploit divisions in Europe. Analysts pointed out that Xi's choice of destinations - France, Serbia and Hungary - was by no means a coincidence.
Bertram Lang, a researcher at Goethe University in Frankfurt who specializes in Chinese foreign policy, said all three countries visited by Xi have "special bilateral relations" with Beijing.
Lang adds that the Chinese leadership gradually divided Europe into two groups, "friendly and hostile to China." The tour aimed to highlight relations with the former.
The EU closes ranks?
Xi began the tour in France, where his two-day state visit and talks with French President Emmanuel Macron focused on the war in Ukraine and the disparity in trade relations with the EU.
The Union has a massive deficit of three hundred billion euros a year in trade with China.
Macron sought to show European unity by including European Commission President Ursula von der Leyen, who also attended the meeting.
German Chancellor Olaf Scholz, who recently visited Beijing, was also invited to Paris - but did not come. Scholz and Macron met at the beginning of the month to discuss policy towards China.
In Paris, Von der Leyen's public comments directly addressed what she called "market deviation practices."
In fact, Europeans believe that China supplies Europe with cheaper vehicles with strong subsidies for the production of electric cars and steel, and thus grabs ever larger pieces of the market.
The European Commission will put it under scrutiny. The report is due in July, after which punitive tariffs could be imposed on Chinese e-cars. In the worst case, it would lead to a customs war between the two major economic players, the EU and China.
During trilateral talks in Paris, von der Leyen told Xi Jinping that Europe "will not falter in making the tough decisions needed to protect its economy and security."
In response to those statements, Xi said China is not overproducing goods to flood markets, Xinhua news agency reported.
EU members are tightening their ranks, and the European Commission is "quite determined" to trade with China under equal conditions, says Zuza Anna Ferencchi, former political adviser in the European Parliament, and now a professor at the National Taiwan University.
According to Chinese state media, however, Xi's visit to France was a success. The Global Times describes the 18 "cooperation agreements" - on aviation, agriculture, people exchange, green development and cooperation with small and medium enterprises - as a "positive signal for European entrepreneurs" and a "stabilizer of Sino-European trade ties".
According to the interpretation of the Chinese media, which is not shared in Europe, this is a step back in relation to the EU's decision to follow the policy of "decoupling" and "de-risking" towards China. In translation, this means that dependence on China should be reduced in every sense.
Xi rejects talks on Ukraine
As for Ukraine, Beijing has still not managed to convince European leaders of its "neutrality". China has also rejected calls from European and American leaders to use its influence on Moscow to play a constructive role in ending the conflict.
This despite backing Xi Macron's call for an "Olympic break" from all global conflicts during the summer games in Paris.
The United States claims that China supplies Russia with drone engines and cruise missile technology. China is certainly one of the key players because of which the Russian economy did not succumb to Western sanctions - the Chinese export everything to Russia.
Xi responded harshly to these accusations, claiming that the crisis in Ukraine "is being used to shift responsibility to a third country, tarnish its image and instigate a new cold war." He added that China is "not a participant" in the crisis.
Jean-Philippe Baya, a China expert and senior researcher at Sciences Po University in Paris, told DW that during the conversation, Xi was informed that Russia's war against Ukraine was "a matter of life and death for Europe."
"This is a very negative factor in Sino-European relations," Beja said.
Ahead of Xi's visit, Chinese state media praised the fact that Macron has long been advocating "strategic autonomy" for Europe, that is, strengthening the continent's military capabilities. China interprets it as a rejection of NATO under the leadership of the US.
After visiting China in April 2023, Macron was criticized for warning that Europe should not get involved in the conflict between the US and China over Taiwan. He said that being an ally of the US does not mean being a "vassal" of Washington.
This time, analysts say, Macron tried to suppress it and demonstrate European unity.
Construction of infrastructure in Serbia
Si's tour changed from dissonant to friendly tones as soon as he was welcomed in Serbia, and then in Hungary. Both countries are flooded with Chinese loans and investments, and similarly, like Beijing, they are looking at the war in Ukraine.
Although Serbia is not a member of the EU, Xi's visit to Belgrade projected the image of the Chinese leader "as a key figure not only in the EU, but also in the European neighborhood," Ferencchi told DW.
Serbia is the main European beneficiary of Chinese loans under the new Silk Road, with projects including a high-speed rail link to Hungary.
While praising deep economic ties, Xi's visit was also an opportunity to allude to NATO, given that he arrived exactly 25 years after the Chinese embassy in Belgrade was bombed.
Electric vehicles in Hungary
Sia's last stop was Hungary, which did not hide its support for Russia within the EU. Budapest is suspected by many to be China's "Trojan horse", as Prime Minister Viktor Orbán has so far repeatedly vetoed proposals to condemn China's actions.
And while the EU is thinking about how to deal with cheap Chinese cars, Hungary is preparing to produce those very cars.
In December, Chinese electric vehicle manufacturer BYD announced the construction of a factory in Szeged.
After meeting with Hungarian Prime Minister Orbán, Xi said that "China supports Hungary to take greater roles in the EU and promote stronger progress in Sino-European relations."
In this sense, it may not be insignificant that Hungary takes over the EU presidency from July.
Undermining unity?
Ferencchi says China's overall strategy is to "undermine the unity of the EU" while increasing influence in individual members. Countries are given access to the Chinese market individually, so they "feel that they have a privileged relationship with China," she adds.
"The future does not look better for EU-China relations after Xi Jinping's visit," adds Ferencchi. "There is a trust deficit between these two partners."
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