The European Union in search of an answer to the Chinese economic expansion in Europe Cover Image

Unia Europejska w poszukiwaniu odpowiedzi na ekspansję gospodarczą Chińskiej Republiki Ludowej w Europie
The European Union in search of an answer to the Chinese economic expansion in Europe

Author(s): Tomasz Morozowski
Subject(s): Supranational / Global Economy, Economic policy
Published by: Instytut Zachodni im. Zygmunta Wojciechowskiego
Keywords: China; EU; investment; takeovers; economy; Belt and Road Initiative; BRI; 16+1

Summary/Abstract: The European Union is facing the challenge of developing a coherent reaction to the increased economic activity of China in Europe. Beijing’s policy of foreign economic expansion and its leap to digitaleconomy are affecting Europe, despite the geographical distance. China is strengthening its position as one of the main actors on the global scene as elements of the New Silk Road will be built in European cities, Chinese companies are buying European technological manufacturers and the trade exchange as well as Chinese investment level in Europe are increasing dramatically.The purpose of this article is to answer the question about the way the EU should react to such Chinesepolicy. In order to do so the research problem related to the process of shaping this reaction up tonow has been analysed. The following research questions have been formulated: what are the sore points and weaknesses which the European side needs to limit? On which fields should the EU develop its partnership with China in the first place? What are the assets on the side of the EU, of which it should makea better use in relations with Beijing? Within the process of resolving these questions the following hypotheses have been formulated: evenif not deliberately, Chinese policy contributes to a fragmentation of the European unity; intensity of EU countries’ relations with China is inversely proportional to their engagement in a common European action on contentious topics in the EU-Chinese agenda; coherent European strategy towards China isnecessary in order to limit disintegration tendencies as well as to mitigate unfavourable effects of Chineseactivity on the internal European market.Three guidelines can be defined as a conclusion drawn from the analysis conducted: introducing alevel playing field into reciprocal relations, protection of the European unity and building a strong negotiating position by the EU. An assumption could be made that shaping EU strategy based on these elements will let Europe thoroughly benefit from opportunities provided by the new Chinese economic opening and at the same time limit the possible dangers it carries.

  • Issue Year: 366/2018
  • Issue No: 01
  • Page Range: 63-80
  • Page Count: 18
  • Language: English, Polish