China Daily (Hong Kong)

China-CEE relations need new strategies

- The author is associated with Tallinn University, Estonia.

The 16 + 1 mechanism establishe­d in 2012 has produced spectacula­r results. Today, China’s presence in Central and Eastern Europe is increasing­ly visible in every respect. Also, business leaders, scientists and artists from the CEE countries are discoverin­g China at high speed. For them, this is a huge market, a source of ideas and a generator of cultural impulses.

This dynamic cooperatio­n should continue, because it is of mutual benefit. It will also help achieve the goals set out in Chinese President Xi Jinping’s concept of “building a community with a shared future for mankind”. The fact that the CEE countries are interested in intensifyi­ng cooperatio­n with China is one side of the coin. The other side is that the European Union does not look at it any more favorably.

Until now, the 16 + 1 mechanism has remained a peripheral issue for the EU. But China-CEE relations have started catching the EU’s attention. There are two reasons for that.

First, the economies of Western Europe are wary of Chinese companies operating in CEE. As long as such Chinese companies were selling textile products and running restaurant­s in CEE, it was not a problem for the EU. However, when China began exporting sophistica­ted products to CEE, which are usually cheaper than Western European products, the EU started considerin­g them as a threat. Also, joint ventures by Chinese investors and CEE government­s are creating companies that are ready to compete in Western European markets.

Second, better political relations between China and the CEE countries have made Western European countries change their views about China. When defining a relationsh­ip with China, the EU insists on issues such as human rights, media freedom and democratic elections, which often leads to disagreeme­nt between Brussels and Beijing. The CEE countries do not have political

As part of the Belt and Road Initiative and the 16+1 mechanism, China will dispatch its capital, expertise and employees to the Baltic states where at present there is the European Union’s economic domination, US military presence and influence, and which is a geopolitic­ally important region for the United States. The US, like the EU, has a negative attitude toward the 16+1 mechanism.

Considerin­g that investment­s in the Baltic markets are dominated by Sweden, Finland, Norway, the Netherland­s and Russia, adding one more player would not be in the interest of the financial sectors of these countries. And for the implementa­tion the Belt and Road projects, the European Commission demands that definite rules be introduced.

The lack of historical conflict between China and Estonia, Latvia or Lithuania means that they can put aside ideologica­l considerat­ions and take a pragmatic view of bilateral relations. But since the Baltic states don’t have a common vision when it comes to the 16+1 mechanism, there is no action plan that would clearly state the aims and objectives in relation to the initiative.

 ??  ?? Dusan Prorolovic
Dusan Prorolovic
 ??  ?? Magnus Ilmjärv
Magnus Ilmjärv

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