Von der Leyen: The relationship with China needs to be balanced

On Thursday, European Commission President Ursula von der Leyen gave a speech at a discussion organized by two think tanks, the Center for European Policy Studies and the Mercator Institute for China Studies, in which she laid out her views on the future of EU-China relations.

“It is clear that our relationship has become more distant and more difficult over the last few years,” she said. But, she added: “I don’t think decoupling from China is feasible or in Europe’s interest.” She stressed that “we do not want to sever economic, social, political and scientific ties,” but instead focus on securing trade and investment ties that promote prosperity in both China and the EU.

Von der Leyen said the relationship with China is “one of the most complex and important in the world,” and how it is managed is critical to our future economic prosperity and national security.

She argued that the EU-China relationship is currently very unbalanced and “increasingly affected by the distortions created by the Chinese state capitalist system,” so there is a need for economic de-risking and a “need to rebalance these relationships on a transparent, predictable and reciprocal basis.”

To achieve this, Ms von der Leyen argues that the EU must make its economy more solid and competitive, particularly in the areas of health and clean technology; Stricter rules on investment in China must be passed to prevent European companies’ capital and expertise from helping to “improve the military and intelligence capabilities of systemic competitors”.

In addition, the EU should consult more closely with non-EU partners within the framework of the G7 and G20 to promote economic security and stability. She also pointed to climate protection and nature conservation as positive examples of the current cooperation between Brussels and Beijing.

Von der Leyen praised China’s success in lifting hundreds of millions of people out of poverty in 50 years. She said China plays an important role on the world political stage and has ambitions to become a world power. She also noted that China is now imposing its will on other countries from a more assertive stance, with its human rights record showing “increased repression at home and increased assertiveness abroad.”

Tensions between the EU and Beijing have worsened markedly recently over a range of issues, including Taiwan, China’s crackdown on Uighurs in Xinjiang province, and a WTO ruling over EU trade restrictions on member Lithuania.

Beijing’s performance in the Ukraine conflict is crucial to its relations with Europe
Von der Leyen called on China to work for a “just peace” in Ukraine. She said Beijing’s conduct in the conflict would be decisive for its relationship with the EU.

As a permanent member of the UN Security Council, China has the responsibility to play a constructive role in promoting peace, she said. Russian armed forces must be withdrawn, Ukraine’s territorial integrity must be preserved, and “any peace plan that would effectively consolidate Russia’s annexation [of Ukrainian territory] is not a viable path.” Here, she alluded to China’s statement of “China’s position on the political settlement of the crisis in Ukraine,” which included a call for “a ceasefire, an end to fighting and the start of peace talks.” The United States has made clear that a cease-fire now would allow Russia to hold onto the territory it has seized in Ukraine and give its forces time to regroup.