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Ningrong Liu

On the day the European Union announced its decision to raise tariffs on Chinese electric vehicles, I arrived in the United Kingdom for the first time in more than five years. Sitting in Oxford’s Saïd Business School with Chinese senior executives, we were all shocked to hear about Europe’s deepening suspicion of China.
Today, Europeans are increasingly disappointed with China’s position on the Russia-Ukraine war and have gradually adopted the view that the continent should not be as open to China as before.
While walking around Oxford, I noticed an influx of young Chinese students to this historical college town, joining their peers from around the world for summer education programmes. The Chinese parents of the younger generation have benefited tremendously from opportunities that the reform and opening up policy has provided them; they understand the importance of global engagement for their own children.
However, the West’s perspective on China seems vastly different from the pre-Covid era. It may not be easy for Europe to decouple from China, but significant doubts about embracing or rebuilding economic relations have rapidly risen in Europe. The emotions surrounding Europe’s relationship with China run deep, as evidenced by lectures given by academics and business executives during my first week in Oxford.
In addition to the EU’s decision to raise tariffs on electric vehicles from China, Berlin has announced it will phase out components made by Chinese companies Huawei and ZTE from its 5G wireless network over the next five years. The North Atlantic Treaty Organisation (Nato) has recently cast China as the “decisive enabler” of Russia’s war in Ukraine. Nato is also considering the reclamation of China’s Belt and Road Initiative infrastructure projects in Europe. All of these point to a deteriorating relationship between Europe and China.
Scholars in Oxford are concerned about the growing trend in the West of increased reluctance to engage with China. How can China find common ground with European countries, including the UK, and collaborate to address political and industrial conflicts? China must take urgent steps to establish a more equitable power balance that benefits its interests in the current geopolitical climate.


First, China must address the deep-seated suspicions of the West arising from China’s position on the Russian invasion of Ukraine and do a better job of rationalising its response and explaining its position. China needs to clarify that the international order established after World War II should be kept intact and that it does not support Russia’s annexation of Ukrainian land.
At the same time, China should point out that Nato violated the territorial integrity of Serbia by supporting Kosovo’s separatist movement, setting a bad precedent for Russia’s military actions in Ukraine.
Furthermore, Nato’s intention to extend its influence in the Asia-Pacific will only harden China’s position towards Europe. China and India have pursued similar bilateral approaches towards Russia during the Ukraine war. Both have continued to trade with Russia and distance themselves from the West’s sanctions. China should question why Europe has double standards towards India when it comes to its relationship with Russia.
Secondly, China must continue to open its economy and launch a charm offensive. China also needs to address concerns that economic cooperation has only benefited itself, at Europe’s expense.
It is important to note that China has embraced globalisation as a strategic policy. While China needs to showcase its commitment to being open to the West, it is equally important for Europeans to understand that China’s investment in Europe will benefit both sides. They must remain committed to free trade and opposed to protectionism. Dialogue and consultation are crucial in resolving trade issues and safeguarding economic cooperation.

China still hopes to win Europeans over and peel them away from the United States. To this end, China is inviting large numbers of European academics and members of think tanks for dialogue. In December, top EU leaders were hosted in Beijing for their first in-person bilateral summit with China since 2019. This year, Chinese President Xi Jinping hosted German Chancellor Olaf Scholz and visited France to meet his counterpart, Emmanuel Macron.
Thirdly, to win back trust from foreign companies, China must adopt a consistent and clear strategy that treats state-owned enterprises, small- and medium-sized businesses and foreign companies equally. As long as China can maintain a profitable and attractive market, Western corporations will continue to invest and pursue a similar approach.
This is evident when it comes to the issue of EU tariffs on China’s electric vehicles. German carmakers have strongly opposed the move, showing the importance of China’s market to foreign companies. By ensuring fair treatment for all companies in its market, China can build trust and foster stronger relationships with foreign partners. This will not only benefit China’s economy but also promote mutual benefits and cooperation on a global scale.
However, China should not underestimate Europe’s strong intention to de-risk from China. Even Germany, which has one of the strongest economic relationships with China within the EU, has adapted its China strategy and urged companies to reduce their reliance on the country. As a result, the US has overtaken China as Germany’s biggest trading partner in the first quarter of 2024.
As pointed out by an Oxford professor, mistrust between the West and China is prevalent. This growing mistrust and suspicion may lead to decoupling, which would have far-reaching implications for trade, diplomacy and global power dynamics between Europe and China.
Ningrong Liu is associate vice-president at the University of Hong Kong, and the founding director of HKU Institute for China Business


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Amid deteriorating relations with European governments, Beijing must clarify its positions and help set up an equitable power balance


Amid deteriorating relations with European governments, Beijing must clarify its positions and help set up an equitable power balance.


European Union

Nato

China trade

China tariffs

Ukraine war

Russia

Germany

China-Germany relations

China economy

China-Russia relations

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Emmanuel Macron

Xi Jinping

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Olaf Scholz

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The University of Hong Kong

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China wants to engage with Europe. Are Brussels and London listening?

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;}Amid deteriorating relations with European governments, Beijing must clarify its positions and help set up an equitable power balance

Amid deteriorating relations with European governments, Beijing must clarify its positions and help set up an equitable power balance