Hostname: page-component-cd9895bd7-dk4vv Total loading time: 0 Render date: 2024-12-17T13:25:29.176Z Has data issue: false hasContentIssue false

Preserving a Liberal International Order: The EU’s Unity and Economic Strength as a Means of Limiting the Corrosive Effects of China’s Sharp Power

Published online by Cambridge University Press:  27 April 2022

Luís Leal de Faria*
Affiliation:
Universidade Católica Portuguesa – Research Centre of the Institute for Political Studies (CIEP) – Palma de Cima, 1649-023 Lisboa, Portugal. Email: [email protected]

Abstract

This article studies the mechanics through which the EU’s relations with China may harm its values and institutions, providing specific examples that precisely illustrate the Chinese Communist Party’s malign influence in Europe. It also intends to reflect on the extent to which the two distinct political and economic models are compatible with the preservation of a liberal international order. Accordingly, we aim to assess whether the EU has the capacity to counteract China’s sharp power, highlighting concrete policy actions that help strengthen the EU’s position while also identifying persisting shortcomings. It is argued that the EU has considerable economic deterrence to push China into respecting global defined rules and arrangements. Indeed, recent reforms, such as the investment screening mechanism and the global sanctions regime, were an important step towards the affirmation of an EU committed to its values. However, the unanimity requirement in the Common Foreign and Security Policy’s decision-making will likely remain a relevant obstacle for a coherent and efficient EU’s external action.

Type
Review Essay
Copyright
© The Author(s), 2022. Published by Cambridge University Press on behalf of Academia Europaea

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

American Enterprise Institute and The Heritage Foundation (2020) China global investment tracker. Available at https://www.aei.org/china-global-investment-tracker/ (accessed 18 July 2020).Google Scholar
Blumenthal, D (2020) The China Nightmare: The Grand Ambitions of a Decaying State. Washington DC: AEI Press.Google Scholar
Brînză, A (2021) How China’s 17+1 became a zombie mechanism. The Diplomat, 10 February 2021. Available at https://thediplomat.com/2021/02/how-chinas-171-became-a-zombie-mechanism/ (accessed 20 July 2021).Google Scholar
Churchill, W (1999) The sinews of peace. In Muller, J (ed), Churchill’s ‘Iron Curtain’ Speech Fifty Years Later. Columbia: University of Missouri Press, pp. 113.Google Scholar
Council of the EU (2020) EU adopts a global human rights sanctions regime. Council of the EU, 7 December 2020. Available at https://www.consilium.europa.eu/en/press/press-releases/2020/12/07/eu-adopts-a-global-human-rights-sanctions-regime/ (accessed 20 July 2021).Google Scholar
Cooper, Z (2019) Bridging the transatlantic divide on China. Statement before the House Foreign Affairs Committee, 9 May 2019. Available at https://docs.house.gov/meetings/FA/FA14/20190509/109430/HHRG-116-FA14-Wstate-CooperZ-20190509.pdf (accessed 10 August 2020).Google Scholar
Dan, W (2019) 30 years after Tiananmen: the meaning of June 4. Journal of Democracy 30(2), 3137.CrossRefGoogle Scholar
Duchâtel, M (2021) The new landscape of investment screening in Europe. Institut Montaigne, 21 June 2021. Available at https://www.institutmontaigne.org/en/blog/new-landscape-investment-screening-europe (accessed 16 July 2020).Google Scholar
Deudney, D and Ikenberry, J (2018) Liberal world: the resilient order. Foreign Affairs 97(4), 1624.Google Scholar
Economy, E (2021) Xi Jinping’s new world order. Foreign Affairs January/February 2022. Available at https://www.foreignaffairs.com/articles/china/2021-12-09/xi-jinpings-new-world-order (accessed 29 December 2021).Google Scholar
Eurostat (2020) EU direct investment positions, breakdown by country and economic activity (BPM6). Eurostat Dataset. Available at https://ec.europa.eu/eurostat/data/database (accessed 16 July 2020).Google Scholar
European Commission (2020a) Commission Implementing Regulation (EU) 2020/870 of 24 June 2020. Available at https://eur-lex.europa.eu/eli/reg_impl/2020/870/oj (accessed 16 July 2020).Google Scholar
European Commission (2020b) EU foreign investment screening mechanism becomes fully operational. European Commission, 9 October 2020. Available at https://trade.ec.europa.eu/doclib/press/index.cfm?id=2187 (accessed 20 July 2021).Google Scholar
European Council (2020). Special European Council, 17–21 July 2020. Available at https://www.consilium.europa.eu/en/meetings/european-council/2020/07/17-21/ (accessed 25 July 2020).Google Scholar
European Parliament (2020) Parliament approves the ‘rule of law conditionality’ for access to EU funds. European Parliament, 16 December 2020. Available at https://www.europarl.europa.eu/news/en/press-room/20201211IPR93622/parliament-approves-the-rule-of-law-conditionality-for-access-to-eu-funds (accessed 22 July 2021).Google Scholar
European Parliament (2021a) Resolution of 10 March 2021 with Recommendations to the Commission on Corporate Due Diligence and Corporate Accountability (2020/2129(INL). Available at https://www.europarl.europa.eu/doceo/document/TA-9-2021-0073_EN.html (accessed 21 July 2021).Google Scholar
European Parliament (2021b) MEPs refuse any agreement with China whilst sanctions are in place. European Parliament, 25 May 2021. Available at https://www.europarl.europa.eu/news/en/press-room/20210517IPR04123/meps-refuse-any-agreement-with-china-whilst-sanctions-are-in-place (accessed 22 July 2021).Google Scholar
Gotev, G (2021) China stops Lithuanian goods at customs, Commission ‘collects information’. EURACTIV, 3 December 2021. Available at https://www.euractiv.com/section/china/news/china-stops-lithuanian-goods-at-customs-commission-collects-information/ (accessed 29 December 2021).Google Scholar
Haciyakupoglu, G (2021) China’s social credit system: current status, role of data and surveillance, and influence outside of China. NATO Strategic Communications Centre of Excellence, 8 June 2021. Available at https://stratcomcoe.org/publications/chinas-social-credit-system-current-status-role-of-data-and-surveillance-and-influence-outside-of-china/209#_edn10 (accessed 28 June 2021).Google Scholar
Hala, M (2018) China in Xi’s ‘new era’: forging a new ‘Eastern Bloc’. Journal of Democracy 29(2), 8389.CrossRefGoogle Scholar
Hala, M (2020) A New Invisible Hand: Authoritarian Corrosive Capital and the Repurposing of Democracy. Washington: National Endowment for Democracy.Google Scholar
Hoffman, S (2021) Double-edged Sword: China’s Sharp Power Exploitation of Emerging Technologies. Washington, DC: National Endowment for Democracy.Google Scholar
Ikenberry, J (2011) Liberal Leviathan. Princeton and Oxford: Princeton University Press.Google Scholar
International Monetary Fund (2020) Direction of Trade Statistics Dataset. Available at https://data.imf.org/regular.aspx?key=61013712 (accessed 24 June and 15 July 2020).Google Scholar
Kratz, A, Huotari, M, Hanemann, T and Arcesati, A (2020) China FDI in Europe: 2019 update, special topic: Research Collaborations. Rhodium Group (RHG) and the Mercator Institute for China Studies (MERICS). Available at https://merics.org/en/report/chinese-fdi-europe-2019-update (accessed 15 August 2020).Google Scholar
Lascurettes, K (2020) Orders of Exclusion: Great Powers and the Strategic Sources of Foundational Rules in International Rules, New York: Oxford University Press.CrossRefGoogle Scholar
Lau, S (2021) Lithuania pulls out of China’s ’17+1′ bloc in Eastern Europe. POLITICO, 21 May 2021. Available at https://www.politico.eu/article/lithuania-pulls-out-china-17-1-bloc-eastern-central-europe-foreign-minister-gabrielius-landsbergis/ (accessed 20 July 2021).Google Scholar
Naughton, N (2018) The Chinese Economy: Adaptation and Growth, 2nd Edn. Cambridge and London: The MIT Press.Google Scholar
Naughton, N (1993) Deng Xiaoping: the economist. The China Quarterly 135, 419514.CrossRefGoogle Scholar
Qiang, X (2019) The road to digital unfreedom: President Xi’s surveillance state. Journal of Democracy 30(2), 5367.CrossRefGoogle Scholar
Rollet, C (2018) Ecuador’s all-seeing eye is made in China. Foreign Policy, 9 August 2018. Available at https://foreignpolicy.com/2018/08/09/ecuadors-all-seeing-eye-is-made-in-china/ (accessed 28 June 2021).Google Scholar
Scissors, D (2020) China’s global investment in 2019: going out goes small. American Enterprise Institute. Available at https://www.aei.org/research-products/report/chinas-global-investment-in-2019-going-out-goes-small/ (accessed 15 August 2020).Google Scholar
Shullman, D (ed.) (2019) Chinese malign influence and the corrosion of democracy. International Republican Institute. Available at https://www.iri.org/sites/default/files/chinese_malign_influence_report.pdf (accessed 20 August 2020).Google Scholar
Small A (2021) Europe’s China deal: how not to work with the Biden administration. European Council on Foreign Relations, 21 January 2021. Available at https://ecfr.eu/article/europes-china-deal-how-not-to-work-with-the-biden-administration/ (accessed 23 July 2021).Google Scholar
United Nations Conference on Trade and Development (UNCTAD) (2020) World investment report. Available at https://unctad.org/en/ (accessed 30 June 2020).Google Scholar
Vogel, E (2011) Deng Xiaoping and the Transformation of China. Cambridge: The Belknap Press of Harvard University Press.CrossRefGoogle Scholar
Von der Leyen, U (2019) Speech by President-elect von der Leyen in the European Parliament Plenary on the occasion of the presentation of her College of Commissioners and their programme, 27 November 2019. Available at https://ec.europa.eu/commission/presscorner/detail/es/speech_19_6408 (accessed 22 July 2021).Google Scholar
Von der Leyen, U (2020) State of the Union Address by President von der Leyen at the European Parliament Plenary, 16 September 2020. Available at https://ec.europa.eu/commission/presscorner/detail/en/SPEECH_20_1655 (accessed 22 July 2021).Google Scholar
Walker, C and Ludwig, J (2017) From ‘soft power’ to ‘sharp power’: rising authoritarian influence in the democratic world. In Sharp Power. Rising Authoritarian Influence. Washington, DC: National Endowment for Democracy, pp. 8–25.Google Scholar
Walker, C (2018) What is ‘sharp power’? Journal of Democracy 29(3), 923.CrossRefGoogle Scholar
Wilson, J (2021) Australia shows the world what decoupling from China looks like. Foreign Policy, 9 November 2021. Available at https://foreignpolicy.com/2021/11/09/australia-china-decoupling-trade-sanctions-coronavirus-geopolitics/ (accessed 29 December 2021).Google Scholar
World Bank (2020) World Development Indicators. Available at http://data.worldbank.org/data-catalog/world-development-indicators (accessed 10 July 2020).Google Scholar
Xu, V, Cave, D, Leibold, J, Munro, K and Ruser, N (2020) Uyghurs for sale: ‘re-education’, forced labour and surveillance beyond Xinjiang. Australian Strategic Policy Institute Policy. Available at https://www.aspi.org.au/report/uyghurs-sale (accessed 20 August 2020).Google Scholar