The EU–China Geo-Economic Equilibrium in a World of Uncertainty

Abstract

AbstractThe COVID-19 pandemic has accelerated several geopolitical trends leading to the consolidation of a new multipolar world where great power rivalry is slowly replacing the so-called liberal economic order. In this new scenario, China is trying to play a much more assertive role, deploying its influence in East and Central Asia and other emerging economies through the Belt and Road Initiative. In the meantime, the European Union, traditionally the main defendant of the increasingly weak rules-based multilateral system, is upgrading its foreign economic policy toolkit to be able to use the language of power now that being a normative power is not enough to be influential. This chapter offers a novel view of the EU–China bilateral relationship from the lens of geo-economics and from the European perspective. Drawing on official documents, it deconstructs the concept of European open strategic autonomy vis-á-vis China, explores areas for collaboration and conflict in the realm of economics and global economic governance, and argues that the 2020 Comprehensive Agreement on Investment represents an appropriate way to avoid economic decoupling and foster cooperation.KeywordsEuropean UnionChinaStrategic autonomyGeopoliticsTrade policy