CSDR-KAS Webinar 2 'China in Central and Eastern Europe: Taking Stock'

BACKGROUND

China’s rising influence in Central and Eastern Europe (CEE) has been a subject of great debate and contention in contemporary times. BRI-related Chinese investments in the region peaked around 2016, and subsequently economic and political relations soared, especially with the introduction of the 16+1 (later 17+1 with the entry of Greece) mechanism. While the ground realities of Chinese investments in the CEE region were contentious, at best, concerns about China’s ‘debt trap diplomacy’ making its way into European nations (many of them EU members) set alarm bells in Brussels. Brussels’ fiscal and monetary policy and its austerity measures on weaker economies have come under fire for pushing Southern and CEE nations to China. China’s economic aggression against Lithuania owing to the latter’s ties with Taiwan raised renewed fears about its ability and willingness to weaponize Europe’s economic dependencies on the Chinese market. Against this backdrop, this webinar sought to understand the various points of discussion over the rising concerns about China’s attempts to extend its jurisdiction over Chinese citizens.

Key questions discussed were:

1. How does China’s presence in CEE factor into Brussels’ China strategy? Does it continue to be a cause of concern?
2. In 2023, how real is the threat of China’s presence and influence operations (infrastructure projects,investments, and political engagement) in CEE nations?
3. What are the divergences, if any,between Western Europe and CEE on the EU’s China policy?
4. In light of the war in Ukraine, how is China’s close relationship with Russia viewed in CEE nations?

KEY-TAKE-AWAYS
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• China is today the EU's first trading partner. Its influence in the region remains considerable and tough to eliminate.
• China started to develop its influence in Central and Eastern European countries in 2012, with for example the 16 plus one cooperation mechanism.
• Chinese relations with European states have greatly suffered due to its stance on the Ukrainian conflict. And although China will reshape its contacts, it will struggle to improve its relations with Central and European nations.
• China’s economic aggression against Lithuania owing to the latter’s ties with Taiwan raised renewed fears about its ability and willingness to weaponise Europe’s economic dependencies on the Chinese market.
• The China-Eastern Europe Cooperation Forum was an essential subject for the webinar. Most panellists argued it was a zombie mechanism, but others mentioned how it depicted the importance of Eastern Europe for China.

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