A Visit to Preserve China’s Interests in Europe

Chinese President Xi Jinping’s visit to Europe, focusing on France, Serbia, and Hungary, aimed to safeguard China's strategic and economic interests amid rising geopolitical tensions and economic challenges.

World Events and Visit’s Goals:

• Geopolitical and Economic Context: The visit took place in the context of the ongoing COVID-19 pandemic, the Russia-Ukraine war, and the escalating U.S.-China trade and technology war. These factors have significantly altered global dynamics and impacted China's foreign policy.
• Goals of the Visit: President Xi aimed to prevent the EU from aligning too closely with the U.S., avoid a trade standoff with the EU, and bolster China’s standing in Europe. This is crucial against the backdrop of the EU's growing scepticism towards China's trade practices.
• Impact of Russian Invasion of Ukraine: The invasion has strained China's relations with Europe, as the EU’s negative perception of China’s trade policy has intensified due to China's perceived support for Russia.

Strategic Engagements in France:

• Bilateral Discussions: President Xi met with French President Emmanuel Macron to discuss trade interests and China's role in the Russia-Ukraine conflict. Macron urged China to stop supplying weapons components to Russia.
• Meeting with EU Leaders: In Paris, Xi also met European Commission President Ursula von der Leyen, who advocated for "de-risking" from China. Both Macron and von der Leyen emphasized the need for balanced trade relations.
• Electric Vehicle (EV) Market Competition: France and the EU expressed concerns about the competitive edge of Chinese EVs over European manufacturers, reflecting broader economic tensions.

Focus on Hungary and Serbia:

• Warm Reception in Hungary and Serbia: Xi received a warm welcome in both countries, which have significant Chinese investments. Hungary, in particular, has become China's closest ally within the EU, providing access to the European market.
• Strategic Investments: China has invested heavily in infrastructure projects in Serbia and Hungary, including the Belgrade-Budapest high-speed railway and factories for EV batteries. These investments are part of China's broader Belt and Road Initiative (BRI).
• Eastern vs. Western Europe Relations: While Hungary and Serbia are key allies, the Ukraine war has strained China's relations with other Eastern European countries, limiting the effectiveness of the 17+1 cooperation framework.

UPSC Mains Questions:

Q. Discuss the role of economic factors, such as the electric vehicle market, in shaping the geopolitical relationships between China and European countries. How do these factors influence the EU's stance on China?