Tag Archives: France

Europe Needs Common Long-Term Strategy for China

Addressing the challenges posed by Beijing requires European unity, as no member state alone has the resources and negotiating power necessary to deal with China on an equal footing.

[Lucrezia Poggetti | East Asia Forum]


China’s rise and its geopolitical ambitions have started to manifest more clearly inside Europe, making the need for a China strategy ever more compelling. European unity is key to effectively addressing the challenges posed by Beijing. After years of closer trade and investment ties, the European Union is realising that close economic relations with China have brought about political and security challenges it was not prepared for.

This newfound awareness is visible in the EU’s latest attempts to protect its strategic sectors and critical infrastructure. This includes the adoption of an EU framework for foreign investment screening and the issuing of guidelines for the security of Europe’s 5G networks.

The European Union has come to appreciate that it needs a strategy for China as, far from being solely an economic player, China is a rising political and security actor with geopolitical ambitions. This was evident in the European Commission’s ‘strategic outlook’ of March 2019, which informed EU leaders’ more assertive tone at the subsequent EU–China Summit in April 2019. Many observers have noticed Brussels’ unprecedented labelling of China as a ‘systemic rival’ and ‘economic competitor’. Less emphasis has been put on the European Union’s acknowledgment that China’s geopolitical goals ‘present security issues for the EU, already in a short- to mid-term perspective’. According to the strategic document, these are visible in China’s increasing military and technological advances and cross-sectoral hybrid threats such as information operations and large military exercises.

Addressing the challenges posed by Beijing requires European unity, as no member state alone has the resources and negotiating power necessary to deal with China on an equal footing. Paris and Berlin have demonstrated support for Brussels’ call for a ‘whole-of-EU’ approach vis-a-vis China, at least symbolically.

During Chinese President Xi Jinping’s state visit to France in March 2019, French President Emmanuel Macron invited European Commission President Jean-Claude Juncker and German Chancellor Angela Merkel to join his meeting with the Chinese leader. The German government also announced its intention to invite all member states to a 2020 EU–China Summit under its EU Presidency. This move raised eyebrows in Brussels, but Berlin hopes to encourage other members to pursue a common approach to China and refrain from Beijing-led ‘multi-bilateral’ talks.

However, governing elites in some European Union member states look at China through the prism of economic opportunity, downplaying the risks. They believe that close political ties with Beijing are key to unlocking greater economic opportunities, which cripples the EU’s efforts to devise a common strategy.

This approach is based on the naive assumption that politically cosying up to the Chinese leadership fosters a special relationship that translates into privileged economic treatment. Such an approach also assumes that a bilateral partnership on equal terms with China is possible. It disregards the fact that the Chinese government can retaliate any time, should it consider it necessary for its own agenda, regardless of whether memoranda, ‘strategic partnerships’ or any other agreements have been signed.

Lately, attempts to devise a coherent EU approach to China have not only hit a wall in Europe’s eastern flank — with the Chinese-led 16+1 grouping of Central and Eastern European countries expanding to 17+1 after welcoming Greece — but also at its core. In March 2019 Xi spent four days in Italy, where the country became the first EU founder and G7 state to officially endorse the Belt and Road Initiative (BRI). This is telling of a broader trend in which Europe criticises the growth of China’s global infrastructure scheme, and demands that the Initiative meet transparency and sustainability standards, while at the same time various European governments endorse the BRI.

Against this backdrop, how can the European Union ensure that its members look to China from a more long-term strategic perspective and act cohesively? An essential step is to close the knowledge and perception gaps across the continent. While it is up to national governments to increase their own countries’ expertise on China, the European Union can lead in driving debates about China’s rise and the implications for Europe. This would benefit those states where information about China is currently largely funded or driven by Beijing.

Democracies in China’s wider neighbourhood — like Australia, New Zealand and Taiwan — have been at the forefront of dealing with China’s systemic challenge. Exchanging notes with these partners would provide European countries with useful information on Chinese activities and response measures to adopt.

The recent 5G recommendations and the new investment screening mechanism show that a few concerted steps have been taken since 2016, when it became more visible that China’s influence was impacting European cohesion vis-a-vis Beijing. Allegedly, members of the China-led 16+1 grouping of Central and Eastern European countries also better coordinated their positions with Brussels in preparation for the latest Summit in Croatia.

The reshuffling of EU institutions that will result from the European Parliament elections raises questions over how Brussels will reshape current efforts into a more coherent and strategic approach towards China going forward. Beijing will likely try to use the opportunity offered by the upcoming changes in the EU administration to advance its interests. Securing European interests vis-a-vis China through a long-term common strategy is increasingly a necessity.

This article was originally published on East Asia Forum.


Lucrezia Poggetti is a Research Analyst at the Mercator Institute for China Studies (MERICS), Berlin.


EU Election Thoughts: Immigrants must be Seen as Potential Allies and the Future

Considering EU’s labour shortage and economic condition, it is important for the European left, right and center to see immigrants for what they are: potential allies and the future.

[Conn M. Hallinan | Oped Column Magazine]


As the campaigns for the European Parliament get underway, some of the traditional lines that formerly divided left, right and center are shifting, making it harder to easily categorize political parties.

In Italy, a right wing coalition calls for a guaranteed income, larger pensions and resistance to the heavy-handed austerity programs enforced by the European Union (EU). In France, some right wing groups champion the fight against climate change, decry exploitation of foreign workers and growing economic inequality.

In contrast, Europe’s political center seems paralyzed in the face of growing disillusionment with the economic policies of the EU. Even the social democratic center-left defends the doctrines that have alienated its former base among unions and working people, pushing such parties to the political margins.

If voters seem confused, one can hardly blame them — something that is not good news for the left and the center-left going into the May 23-26 elections. Polls show center-right and center-left parties — which have dominated the EU Parliament since it first convened in 1979 — will lose their majority. Parties that are increasingly skeptical of the EU may win as many as a third of the seats in the 705-seat body.

However, “Euro-skeptic,” like “populist,” is a term that obscures more than it reveals. In the polls, the two are lumped together in spite of profound differences. The Spanish left party, Podemos, is not likely to break bread with Italy’s right-wing League/ Five Star alliance, but both are considered “Euro-skeptic.” Podemos, along with Greece’s Syriza, Portugal’s three party center-left alliance, and La France Insoumise (“Unbowed”) are critical of the EU’s economic policies, but they do not share an agenda with xenophobic and racist parties like the League, France’s National Rally — formally, National Front — and the Alternative for Germany (AfG).

This doesn’t mean that the upcoming election doesn’t pose a serious threat, in part because the Right has adopted some of the Left’s longstanding issues.

In Italy, Mario Salvini, leader of the League, says the EU elections will be fought between a Europe “of the elites, of banks, of finance and immigration and precarious work,” and a “Europe of people and labour.” Take out “immigrants,” and the demagogy of the Right sounds a lot like something Karl Marx might write.

In France, young right-wingers put out a lively environmental magazine, Limite, which wars against climate change. Marion Marechal Le Pen — granddaughter of Jean Marie Le Pen, the rightwing, anti-Semitic founder of the old National Front — rails against individualism and the global economy that “enslaves” foreign labour and casts French workers on the scrap heap.

Of course, she also trashes immigrants and Islam, while advocating for a “traditional Christian community” that sounds like Dark Ages Europe.

During the 1990s, the center-left — the French, Spanish and Greek socialists, the German Social Democrats, and British Labour — adopted the “market friendly” economic philosophy of neo-liberalism: free trade and globalization, tax cuts for the wealthy, privatization of public resources, and “reforming” the labour market by making it easier to hire and fire employees. The result has been the weakening of trade unions and a shift from long-term stable contracts to short-term “gigs.” The latter tend to pay less and rarely include benefits.

Spain is a case in point.

On the one hand, Spain’s economy is recovering from the 2008 crash brought on by an enormous real estate bubble. Unemployment has dropped from over 27 percent to 14.5 percent, and the country’s growth rate is the highest in the EU. On the other hand, 90 percent of the jobs created in 2017 were temporary jobs, some lasting only a few days. Wages and benefits have not caught up to pre-crash levels and Spanish workers’ share of the national income fell from 63 percent in 2007 to 56 percent today, reflecting the loss in real wages.

Even in France — which still has a fairly robust network of social services — economic disparity is on the rise. From 1950 to 1982, most French workers saw their incomes increase at a rate of 4 percent a year, while the wealth of the elite went up by just 1 percent. But after 1983 — when neo-liberal economics first entered the continent — the income for most French workers rose by less than 1 percent a year, while the wealth of the elite increased 100 percent after taxes.

The “recovery” has come about through the systematic lowering of living standards, a sort of reverse globalization: rather than relying on cheap foreign labour in places where trade unions are absent or suppressed, the educated and efficient home grown labour force is forced to accept lower wages and fewer — if any — benefits.

The outcome is a growing impoverishment of what was formally considered “middle class” — a slippery term, but one that the International Labor Organization (ILO) defines as making an income of between 80 percent and 120 percent of a country’s medium income. By that definition, between 23 and 40 percent of EU households fall into it.

For young people, the “new economy” has been a catastrophe. More and more of them are forced to immigrate or live at home to make ends meet, putting off marriage and children for the indefinite future.

This income crunch is adding to a demographic crisis. In a modern industrial society, the required replacement rate of births to deaths is 2.1. The world’s replacement rate is 2.44. If economies fall under 2.1, they are in for long-term trouble. Eventually the work force will be insufficient to support health care, education, sanitation, and infrastructure repair.

The EU posts a replacement rate of only 1.57. Germany is one of the few EU countries that has shown a rise in the ratio—from 1.50 to 1.59—but that is almost completely due to the one million immigrants the country took in four years ago.

The three countries that are leading the crusade against immigrants — Hungary, Poland and Italy — are in particular trouble.

Hungary — where strongman Victor Orban has made immigration a central issue for his right-wing government — is struggling with a major labour shortage. Orban recently rammed through a law requiring Hungarians to work 400 overtime hours a year to fill the shortfall, and he has been berating Hungarian women to have more babies.

In Italy, the right-wing League/Five Star Movement rode anti-immigrant rhetoric to power in the last spring’s election, but with a replacement ratio of only 1.31 — the lowest in the EU — the country is losing the equivalent of the population of the city of Bologna every three years. All one has to do to see where this ends is to look at Japan, where an aging population has created such a crisis that the normally-xenophobic Japanese are importing health-care workers. China has similar demographic problems.

Playing on fears of a migrant “invasion” alarms people, but is it an assured vote getter? In recent German elections, the AfG ran strong anti-immigrant campaigns, but ended up losing badly to the Greens. The latter have a more welcoming posture vis-à-vis migrants than even the German Social Democrats.

If Germany does not address the problem, its population will decline from 81 million to 67 million by 2060, and the workforce will be reduced to 54 percent of the population, not nearly enough to keep the country’s current level of social spending.

Much was made of recent electoral gains by the anti-immigrant neo-fascist Vox Party in Spain’s southern province of Andalusia, but if Spain does shut down the flow of migrants it will be in serious difficulty. The country’s population has declined since 2012, and there are provinces where the ratio of deaths to births is three to one. More than 1500 small towns have been abandoned.

Polls indicate that immigration tops EU voters’ concerns. It is only a few percentage points ahead of the economy and youth unemployment.

The right — in particular Hungary’s Orban — has done a masterful job of tying “liberal” to the neo-liberal policies of the EU. Unfortunately, it is an easy argument to make. Most “liberals” in the west associate the term with freedom, democracy and open societies, but many people in the EU experience “liberal” as a philosophy of rapacious individualism that has dismantled social services, widened the gap between rich and poor and enforced a system of draconian austerity.

Of course Orban, Marine Le Pen, the League’s Matteo Salvini, and Germany’s AfG are interested in power, not the plight of the EU’s 500 million citizens. And for all its talk of resistance, the League/Five Star Movement government folded when the EU nixed an Italian budget that included a guaranteed income and higher pensions.

Global migration is on the rise as climate change drowns coastlines and river deltas and drought drives people out of arid climates in the Middle East, Africa, South Asia and Latin America. By 2060, as many as 3 billion people could be affected.

Therefore, the Left and center-left have a responsibility not only to resist the economic philosophy that currently dominates the EU, but also to see immigrants for what they are: potential allies and the future.

As for the Right, it is useful to recall some not-so-ancient history. In 1934, the Nazi Party’s German Labour Front struck a medal that read “Tag Der Arbeit” (“The Day of Labour”) and featured a Nazi eagle grasping a swastika, each wing tip embracing a hammer and a sickle — but the first victims of the Nazis were communists and trade unionists.


Conn M. Hallinan is a California-based independent journalist. He is a regular columnist for the think tank Foreign Policy In Focus and holds a PhD in Anthropology from the University of California, Berkeley.