EU-CHINA MAPPINGS Interactions between the EU and China on key issues - Lucrezia Poggetti - MERICS
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EU-CHINA MAPPINGS Interactions between the EU and China on key issues Lucrezia Poggetti
Overview
2020 was a decisive year for Huawei in Europe Many Eastern and Southern European countries have endorsed the BRI
In 2020, most European governments restricted
2020 was a decisive year for Huawei in Europe
Between 2015 and 2019, many European govern-
Many Eastern and Southern European countries have endorsed the BRI
Huawei’s participation in the rollout of their coun- ments signed onto the Belt and Road Initiative
More and more countries have excluded the supplier from their 5G build up or restricted its participation A total of 17 EU members have signed cooperation agreements
2015 June Signed BRI MoU or other cooperation agreement
No restrictions in place or expected Hungary, Romania (MoU) Did not sign any cooperation agreement on BRI
Partial restrictions due to carriers' choice November
tries’ 5G networks. Approaches vary from blanket (BRI) in hopes of expanding trade and invest-
Partial restrictions in place or expected Bulgaria, Czech Republic,
Huawei being de-facto excluded Poland, Slovakia (MoU)
Undecided
2016 November
Latvia (MoU)
Estonia
Eston
July 2020: The UK and France order a phase-out of
bans in the UK and Sweden, to tighter regulatory ment ties with China. All members of the 17+1
Huawei equipment from their countries’ 5G networks 2017 May
Latvia
respectively by 2027 and 2028. Croatia (MoU)
November Lithuaniia
September 2020: Handelsblatt reports that a new Estonia, Lithuania, Slovenia (MoU)
draft IT security law would almost completely exclude
Huawei from Germany’s 5G build up. 2018 April Poland
Austria (joint statement)
frameworks which de facto discourage operators framework in eastern Europe are part of the BRI.
Czech
h
August Luxembourg Republic
October 2020: Sweden bans Huawei and ZTE from its
Greece (MoU) Slovakia
5G networks, giving telecom operators until 2025 to
November Austria
a
remove their equipment in existing infrastructure. Hungary
Malta (MoU)
Slovenia
December tia
Croatia Romania
October 2020: Italy vetoes a 5G supply deal between Portugal (MoU)
from using Huawei technology, like in Italy. A num- In 2019, Italy became the first G7 state as well as
Fastweb and Huawei, asking the Italian operator to
Portugal Italy
diversify its suppliers. In July, Telecom Italia had excluded 2019 March Bulgaria
Huawei from a 5G core equipment tender. Italy, Luxembourg (MoU)
October 2020: Slovakia and Bulgaria sign a joint state- Greece
ment on 5G cooperation and security with the US.
ber of European countries have also signed onto EU and NATO founder to join the Initiative. Howev-
Romania, Poland, Estonia, Latvia, the Czech Republic,
Slovenia and Lithuania have all signed similar declarations. Malta
© MERICS
© MERICS
Source: MERICS Note: Timeline includes selected events, UK still considered EU member state (transition period still ongoing) Source: Belt and Road Portal of the Chinese government Note: UK still considered EU member state (transition period still ongoing)
the US’ Clean Network Initiative, affirming their er, while European countries remain interested in
MERICS | Mercator Institute for China Studies EU-China mappings |4 MERICS | Mercator Institute for China Studies EU-China mappings |6
commitment to only allow trusted vendors in their economic cooperation with China, the overall atti-
fifth-generation infrastructure. This is the case for Poland, Romania, and other countries tude towards the BRI has grown more skeptical throughout the years. Critics say it lacks
in eastern Europe. Meanwhile, debates about security risks involved in working with or- transparency and does not meet free trade, environmental and other standards. Economic
ganizations linked to the Chinese party-state have extended to other areas of EU-China opportunities have largely failed to materialize, and in some countries the trade imbalance
relations, such as cooperation in research and innovation. in bilateral relations has further widened in China’s favor after the signing of BRI MoUs.
Western Europe and Scandinavia are the main recipients of Chinese investment EU countries are not fully aligned on Beijing’s human rights violations
Between 2000 and 2019, most of Chinese For-
Western Europe and Scandinavia are the main recipients of Chinese investment
The EU has created its global human rights sanc-
EU countries are not fully aligned on Beijing’s human rights violations
eign Direct Investment (FDI) in Europe has flowed tions regime, also in response to China’s human
Chinese Foreign Direct Investment (FDI) in the EU, 2000 – 2019 Not all member states have backed UN statements on Hong Kong and Xinjiang
EU countries supporting UN statements:
Cumulative value (EUR billion) of Chinese FDI Cumulative value of Chinese FDI transactions
Country UNHRC 44* UNHRC41** UNGA 75 3rd Committee*** 0 1 2 3
transactions in the EU by country divided by country’s GDP (in percent)
Austria • • •
to Western European and Scandinavian countries. rights violations in Hong Kong and Xinjiang. More
0–5 0.0 – 0.7% (Underperforming) Belgium • • •
Bulgaria •
5 – 10 0.7 – 1.5% (Expected, normal level) Croatia •
10 – 20 Sweden 1.5 – 6.0% (Overperforming) Sweden Cyprus
7.3 1.54
20 – 40 Czech Republic
Finland EU Median: 0.70% Finland
12.0 4.99
Denmark • • •
> 40 EU Average: 1.41% Estonia • • •
China’s pursuit of technology for its industrial up-
• • •
European countries have started to pay attention
Finland
Estonia Estonia France • • •
0.1 4.27 Germany • • •
Denmark Denmark
1.2 Latvia 0.38 Greece
0.1 Latvia 0.33
Ireland Netherlands Ireland Netherlands* Hungary
3.1 10.2 Lithuania 0.87 1.26 Lithuania
U.K. Belgium U.K. Belgium Ireland • • •
0.1 0.20
50.3 2.3 1.99 0.49 Italy • •
Poland Latvia • • •
grading has led to a souring of attitudes towards to Beijing’s human rights abuses, as visible in the
Germany Poland Germany
0.66 0.26 Lithuania • • •
22.7 1.4
Luxembourg Cze
zech Repu
public Luxembourg • • •
epublic
Czech Repu Luxembouourg
2.4 0.45 Sl Malta
1.0Slovakia
Slovakia 3.78 Slovakia
ia
0.1 Austria 0.11 Netherlands • • •
France Austria France*
1.1 Hungary 0.28 Hungary* Poland •
14.4 0.59
Slovenia 2.4 enia 1.64
Slovenia Portugal •
Romania Romania*
0.3 0.62 Romania
1.2 0.54
Croatia*
Chinese investment over the years. In 2016, a surge growing number of governments that have signed
Portugal Croatia Portugal* Slovakia • •
Italy 0.4 2.81 Italy 0.74
6.0 15.9 Bulgaria Spain* 0.89
Bulgaria* Slovenia • • •
Spain 0.66
0.4 0.37 Spain • •
4.6
Sweden • • •
Greece Greece* United Kingdom • • •
1.9 1.01 Total 16 18 21
* June 30, UNHRC 44, Cross-regional statement on Hong Kong and Xinjiang
** July 11, UNHRC 41, Joint letter on Xinjiang
of state-led Chinese investment in Europe (EUR UN statements condemning China’s behaviour.
Malta Cyprus Malta Cyprus*
0.8 0.2 * GDP provisional 5.97 1.79 *** October 6, UNGA 75, Cross-regional statement on Xinjiang and Hong Kong
Note: UK still considered EU member state (transition period still ongoing)
© MERICS
© MERICS
Sources: Rhodium Group, Eurostat Note: UK still considered EU member state (transition period still ongoing) Sources: UK Foreign & Commonwealth Office, Permanent Mission of the Federal Republic of Germany to the United Nations, Human Rights Watch and The International Service for Human Rights
36 billion) led France, Germany and Italy to ask the However, not all EU members have backed these
MERICS | Mercator Institute for China Studies EU-China mappings |5 MERICS | Mercator Institute for China Studies EU-China mappings |7
European Commission to draw up a pan-European declarations. Commission President Ursula von der
FDI screening framework to protect strategic industries. This finally became operational Leyen has proposed moving to qualified majority voting for the adoption of sanctions, but
in October 2020. Eastern European countries, who have repeatedly received investment for the time being unanimity is still required. These intra-EU differences might hinder the
pledges by Chinese leaders at 17+1 summits, have yet to receive the promised financing. use of sanctions against China.
© MERICS
MERICS | Mercator Institute for China Studies EU-China mappings |2Overview
China’s law enforcement extends to Europe
In July 2020, EU governments agreed to a package
China‘s law enforcement extends to Europe
of measures in support of Hong Kong’s autonomy
stance
Europe cooperates with China and Hong Kong on extradition and mutual legal assistance
With mainland China:
Extradition Treaty
Finland
Mutual Legal Assistance Treaty in Criminal Matters
as a response to the National Security Law. These
Sweden
With Hong Kong:
Transfer of sentenced person agreement
Estonia
Surrender of fugitive offenders agreement
include stricter export controls for technology and
Mutual Legal Assistance in Criminal Matters Denmark Latvia
Ireland
Netherlands Lithuania
UK Belgium
Actions taken with regards to surrender
of fugitive offenders to Hong Kong
Germany Poland
Suspended
equipment that could be used for repression, a re-
Czech
Finland, Germany, the Netherlands, Ireland, urg
Luxembourg
Republic
United Kingdom Slovakia
France Austria
Not ratified Hungary
France Slovenia
a
Croatia Romania
Discussion over suspension ongoing
Portugal
ortugal
vision of law enforcement agreements with the
Czech Republic Italy
Spain
Not suspended Bulgaria
Portugal
Greece
city and a review of visa schemes for Hong Kong
Note: UK still considered EU member state (transition period still ongoing)
Malta
© MERICS
Cyprus
Sources: Ministry of Foreign Affairs of the People’s Republic of China, Department of Justice of the Hong Kong Special Administrative Region.
citizens. In December, the EU finalized a new law
MERICS | Mercator Institute for China Studies EU-China mappings |8
on export controls, which will introduce greater
due-diligence requirements for EU companies and governments. Most countries that have
surrender of fugitive offenders agreements with the Hong Kong government suspended
those treaties. However, extradition agreements between Beijing and several EU member
states remain in place.
© MERICS
MERICS | Mercator Institute for China Studies EU-China mappings |32020 was a decisive year for Huawei in Europe
More and more countries have excluded the supplier from their 5G build up or restricted its participation
No restrictions in place or expected
Partial restrictions due to carriers' choice
Partial restrictions in place or expected
Huawei being de-facto excluded
Undecided
July 2020: The UK and France order a phase-out of
Huawei equipment from their countries’ 5G networks
respectively by 2027 and 2028.
September 2020: Handelsblatt reports that a new
draft IT security law would almost completely exclude
Huawei from Germany’s 5G build up.
October 2020: Sweden bans Huawei and ZTE from its
5G networks, giving telecom operators until 2025 to
remove their equipment in existing infrastructure.
October 2020: Italy vetoes a 5G supply deal between
Fastweb and Huawei, asking the Italian operator to
diversify its suppliers. In July, Telecom Italia had excluded
Huawei from a 5G core equipment tender.
October 2020: Slovakia and Bulgaria sign a joint state-
ment on 5G cooperation and security with the US.
Romania, Poland, Estonia, Latvia, the Czech Republic,
Slovenia and Lithuania have all signed similar declarations.
© MERICS
Source: MERICS Note: Timeline includes selected events, UK still included
MERICS | Mercator Institute for China Studies EU-China mappings |4Western Europe and Scandinavia are the main recipients of Chinese investment
Chinese Foreign Direct Investment (FDI) in the EU, 2000 – 2019
Cumulative value (EUR billion) of Chinese FDI Cumulative value of Chinese FDI transactions
transactions in the EU by country divided by country’s GDP (in percent)
–5
0 0.0 – 0.7% (Underperforming)
5 – 10 0.7 – 1.5% (Average, normal level)
10 – 20 Sweden 1.5 – 6.0% (Overperforming) Sweden
7.3 1.54
20 – 40 Finland Finland
EU Median: 0.70%
> 40 12.0 4.99
EU Average: 1.41%
Estonia Estonia
0.1 4.27
Denmark Denmark
1.2 Latvia 0.38
0.1 Latvia 0.33
Ireland Netherlands Ireland Netherlands*
3.1 10.2 Lithuania 0.87 1.26 Lithuania
U.K. Belgium 0.1 U.K. Belgium 0.20
50.3 2.3 1.99 0.49
Germany Poland
Germany Poland
0.66 0.26
22.7 1.4
Luxembourg epublic
Czech Repu Cze
zech Repu
public
Luxembouourg 0.45 Sl
2.4 1.0Slovakia 3.78 Slovakia
ia
Austria 0.1 Austria 0.11
France France* 0.28 Hungary*
14.4 1.1 Hungary 0.59
Slovenia 2.4 enia 1.64
Slovenia
Romania Romania*
0.3 0.62
1.2 0.54
Croatia Croatia*
Portugal Portugal* 0.74
Italy 0.4 2.81 Italy
6.0 Bulgaria Spain* Bulgaria*
Spain 15.9 0.89
0.4 0.37 0.66
4.6
Greece Greece*
1.9 1.01
Malta Cyprus Malta Cyprus*
0.8 0.2 * GDP provisional 5.97 1.79
© MERICS
Sources: Rhodium Group, Eurostat Note: UK still included
MERICS | Mercator Institute for China Studies EU-China mappings |5Many Eastern and Southern European countries have endorsed the BRI
A total of 17 EU members have signed cooperation agreements
2015 June Signed BRI MoU or other cooperation agreement
Hungary, Romania (MoU) Did not sign any cooperation agreement on BRI
November
Bulgaria, Czech Republic,
Poland, Slovakia (MoU)
2016 November
Latvia (MoU)
Estonia
Eston
2017 May
Latvia
Croatia (MoU)
November Lithuaniia
Estonia, Lithuania, Slovenia (MoU)
2018 April Poland
Austria (joint statement)
Czech
h
August Luxembourg Republic
Greece (MoU) Slovakia
November Austria
a
Malta (MoU) Hungary
Slovenia
December tia
Croatia Romania
Portugal (MoU)
Portugal Italy
2019 March Bulgaria
Italy, Luxembourg (MoU)
Greece
Malta
© MERICS
Source: Belt and Road Portal of the Chinese government Note: UK still included
MERICS | Mercator Institute for China Studies EU-China mappings |6EU countries are not fully aligned on Beijing’s human rights violations
Not all member states have backed UN statements on Hong Kong and Xinjiang
EU countries supporting UN statements:
Country UNHRC 44* UNHRC41** UNGA 75 3rd Committee*** 0 1 2 3
Austria • • •
Belgium • • •
Bulgaria •
Croatia •
Cyprus
Czech Republic
Denmark • • •
Estonia • • •
Finland • • •
France • • •
Germany • • •
Greece
Hungary
Ireland • • •
Italy • •
Latvia • • •
Lithuania • • •
Luxembourg • • •
Malta
Netherlands • • •
Poland •
Portugal •
Romania
Slovakia • •
Slovenia • • •
Spain • •
Sweden • • •
United Kingdom • • •
Total 16 18 21
* June 30, UNHRC 44, Cross-regional statement on Hong Kong and Xinjiang
** July 11, UNHRC 41, Joint letter on Xinjiang
*** October 6, UNGA 75, Cross-regional statement on Xinjiang and Hong Kong
Note: UK still included
© MERICS
Sources: UK Foreign & Commonwealth Office, Permanent Mission of the Federal Republic of Germany to the United Nations, Human Rights Watch and The International Service for Human Rights
MERICS | Mercator Institute for China Studies EU-China mappings |7China‘s law enforcement extends to Europe
Europe cooperates with China and Hong Kong on extradition and mutual legal assistance
stance
With mainland China:
Extradition Treaty
Finland
Mutual Legal Assistance Treaty in Criminal Matters
Sweden
With Hong Kong:
Transfer of sentenced person agreement
Estonia
Surrender of fugitive offenders agreement
Mutual Legal Assistance in Criminal Matters Denmark Latvia
Ireland
Netherlands Lithuania
UK Belgium
Actions taken with regards to surrender
of fugitive offenders to Hong Kong
Germany Poland
Suspended
Czech
Finland, Germany, the Netherlands, Ireland, urg
Luxembourg
Republic
United Kingdom Slovakia
France Austria
Not ratified Hungary
France Slovenia
a
Croatia Romania
Discussion over suspension ongoing
Portugal
ortugal
Czech Republic Italy
Spain
Not suspended Bulgaria
Portugal
Greece
Malta
Note: UK still included
© MERICS
Cyprus
Sources: Ministry of Foreign Affairs of the People’s Republic of China, Department of Justice of the Hong Kong Special Administrative Region.
MERICS | Mercator Institute for China Studies EU-China mappings |8CONTACT Lucrezia Poggetti, Analyst, MERICS lucrezia.poggetti@merics.de EDITORS Claudia Wessling, Director Publications, MERICS claudia.wessling@merics.de GRAPHICS Alexandra Hinrichs, Graphic Designer, MERICS DESIGN STOCKMAR+WALTER Kommunikationsdesign PUBLISHER MERICS | Mercator Institute for China Studies Klosterstraße 64 10179 Berlin Tel.: +49 30 3440 999 0 Mail: kommunikation@merics.de www.merics.org
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