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131. The New Geo-Economic Environment and the EU’s Capacity to Act

Author:
Claudia Schmucker
Publication Date:
06-2021
Content Type:
Special Report
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
The European Union must position itself in a new geo-economic environment in which the United States and China are increasingly using their economies to shape international relations, as well as regional and global regulatory structures. Although the EU has a good grasp of the challenges that this new environment poses, it does have vulnerabilities in its bilateral and multilateral channels that require attention.
Topic:
International Relations, Economics, Environment, Bilateral Relations, European Union, Geopolitics, Regulation, and Multilateralism
Political Geography:
China and United States of America

132. Technological Competition: Can the EU Compete with China?

Author:
Francesca Ghiretti
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The debate on technological development and the unfolding fourth technological revolution tends to neglect the role of the EU, relegating it to follower status. The leadership positions are occupied by the US and China, who compete with one another for technological supremacy. Yet, despite lagging behind in some areas, the EU is better placed than is often assumed and still stands a chance of guaranteeing the delivery of a technological revolution that is not only environmentally but also socially sustainable. This is critical in proposing a model of technological development alternative to that of China, in particular, and especially in such sectors as artificial intelligence, supercomputing and digital skills. Study produced as part of the project “La geopolitica del digitale”, March 2021.
Topic:
Politics, Science and Technology, European Union, Institutions, Strategic Competition, and Digital Policy
Political Geography:
China, Europe, and Asia

133. CBDCs for Dummies: Everything You Need to Know about Central Bank Digital Currency (And Why You Shouldn’t Be Afraid of It)

Author:
Nicola Bilotta
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
“No cash accepted in this store”. What might seem to some like science fiction is on its way to becoming reality. The rise of non-cash payments is a global phenomenon, although moving at different speeds around the world. To keep up with the digitalisation of payments (and of the economy), many central banks are exploring the development of Central Bank Digital Currencies (CBDCs), a digital form of cash. Despite being confined to a technical discussion among experts, when (rather than if) launched, CBDCs concerns us all. Thus, raising awareness of what CBDCs are, and of their key economic and political dimensions, is crucial to ensure that citizens are not only passive spectators. This paper has the ambition to provide (non-expert) readers with straightforward and simple answers to some of the many questions they may have around CBDCs. It sets the ground to better understand what CBDCs are (and are not), their drivers and their possible design. It will explore the impact of CBDC systems on privacy, the geo-strategic drivers of CBDCs and the possible rivalry between public and private money. Paper prepared in the framework of a research effort on the risks and the opportunities related to Central Bank Digital Currencies (CBDCs) with the support of Intesa Sanpaolo and the Bank of Italy.
Topic:
Political Economy, Governance, European Union, Finance, Currency, and Digital Policy
Political Geography:
China, Europe, and United States of America

134. The World After the Pandemic: European Unity and the Challenge of Reviving Multilateralism

Author:
Sonia Bianconi
Publication Date:
10-2021
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
Covid-19 has dramatically re-focussed the world’s attention on the adverse implications of globalisation. Coming on the heels of the 2008 financial crisis, the global pandemic has further weakened the image and credibility of the United States, causing the West to lose appeal compared to a more authoritarian but equally efficient East.
Topic:
Globalization, Politics, European Union, Multilateralism, Institutions, and COVID-19
Political Geography:
Russia, China, Europe, and United States of America

135. EU-China Engagement in Humanitarian Aid: Different Approaches, Shared Interests?

Author:
Ina Friesen and Leon Janauschek
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Protracted crises and frequent natural disasters have generated an unprecedented number of people in need of humanitarian assistance. The international community faces a great challenge in supporting these populations, as the gap between needs and available funding is growing. To close this resource gap, the European Union (EU) aims to step up its engagement with emerging donors, particularly China, to increase their level of funding. Although China has previously been reluctant to engage in the international humanitarian system, its response to the COVID-19 pandemic indicates a change in attitude. Over the past year, China has delivered hundreds of tonnes of personal protective equipment (PPE) to over 150 countries and dispatched medical teams abroad. It has also donated $100 million to the World Health Organization (WHO) and the United Nations (UN) and pledged to establish a global humanitarian response depot and hub in China in cooperation with the UN. Amidst increasing geopolitical tensions between China and the EU, China’s growing humanitarian engagement opens an opportunity for the EU to engage with China in the humanitarian sector. However, rather than framing China’s increased engagement in solely financial terms, the EU should develop a long-term strategy as to how to engage with China on humanitarian matters. A dialogue that takes both parties’ different approaches towards humanitarian aid into account and searches for common ground could open the door towards possible cooperation. This would not only help in narrowing the funding gap but carry the potential for greater coordination and consequently more effective assistance provision. China conceptualises humanitarian aid as a subcategory of development aid and provides the majority of its assistance bilaterally. Beijing’s state-centric approach to humanitarian assistance means in practice that it engages mostly in the aftermath of natural disasters rather than conflict settings. The EU, on the other hand, has a separate humanitarian aid policy that guides the allocation of funds and provides its humanitarian assistance through non-governmental organisations (NGOs), UN agencies and the International Committee of the Red Cross (ICRC). This Briefing Paper maps out the characteristics of Chinese humanitarian aid and outlines two areas on which the EU’s tentative steps towards a dialogue with China could focus. • Food security sector: Food insecurity is a key component in existing humanitarian needs, only exacerbated by the COVID-19 pandemic. Food assistance and nutrition are already a key area of engagement for the EU and China. The EU should advocate for China to scale up its contributions to global food security through the World Food Programme (WFP), with whom China has a good working relationship. This could be combined with a political dialogue on how to foster cooperation on food security assistance. • Anticipatory humanitarian aid: Disaster risk reduction, preparedness and response play an increasingly important role in global humanitarian aid. China has built up its most significant expertise in response to natural disasters. Enhancement of disaster risk reduction is one of the strategic priorities of the Directorate-General for European Civil Protection and Humanitarian Aid Operations (DG ECHO) for 2020–2024. In light of both parties’ interest in anticipatory humanitarian aid, knowledge exchange in this area has the potential to open the door for future cooperation.
Topic:
International Relations, Humanitarian Aid, European Union, Food Security, and Engagement
Political Geography:
China, Europe, and Asia

136. The Impact of the Repression in Xinjiang on China’s Relations with Other Countries

Author:
Marcin Przychodniak
Publication Date:
04-2021
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
The policy of repression of Uyghurs in Xinjiang has become a significant element of criticism of China in the world. In March this year, the EU, U.S., Canada, and the United Kingdom imposed sanctions on China over the matter. Moreover, the Netherlands, the U.S. and Canada described China’s actions as genocide. For China, however, its actions involving Uyghurs are a key element of domestic politics, which is why it presents accusations as disinformation. It has imposed counter sanctions, including on the EU, and their wide scope indicates that for China, Xinjiang is more important than, for example, the ratification of the Comprehensive Investment Agreement (CAI) with the EU.
Topic:
International Relations, Genocide, Human Rights, European Union, and Uyghurs
Political Geography:
China, United Kingdom, Europe, Canada, Asia, Netherlands, United States of America, and Xinjiang

137. A Crash Test: EU Strategic Autonomy in the Foreign Policy of France

Author:
Łukasz Maślanka
Publication Date:
03-2021
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
France uses the idea of EU strategic autonomy as a tool in its own foreign policy. France’s aim is to redefine the Union’s partnership with the U.S. and NATO. Hence, the activity of President Emmanuel Macron in emphasising the differences between the positions of the U.S. and the EU, especially in relations with China and Russia. Macron’s rhetoric worries other European countries and hides the real problems in EU security policy, such as insufficient financing of the Common Security and Defence Policy as well as the lack of a clear definition of strategic autonomy.
Topic:
Security, Foreign Policy, European Union, and Strategic Autonomy
Political Geography:
Russia, China, Europe, France, and United States of America

138. Paper Fairy Tales VS Steel Brotherhood – Media Portrayals of Serbia’s Alliances in the Age of Pandemic

Author:
Luka Steric and Maja Bjelos
Publication Date:
12-2021
Content Type:
Commentary and Analysis
Institution:
Belgrade Centre for Security Policy (BCSP)
Abstract:
BCSP researchers Maja Bjeloš and Luka Šterić analyzed how media in Serbia reported about Chinese, Russian and EU help during the pandemics. Because the pandemic was used as a framework for an excessive pro-Chinese campaign, the research examines how pro-Chinese narratives in mainstream media during the pandemic were used to position China, displacing Russia as Serbia’s main non-Western partner, while simultaneously propelling the anti-EU narrative of incompetence and hypocrisy. The analysis was carried out for the period between 1 March 2020 and 31 March 2021 and focused on two key events – media coverage of the first shipments of medical supplies to Serbia and media reporting of the supply of vaccines. Media monitoring included data collection using social listening software from the online portals of most-watched televisions (TV Happy, TV Prva), the most visited news portals (Blic, Kurir, Politika, B92 and Nova.rs), and the most circulated online portals of tabloids (Informer and Alo). Chinese medical aid to Serbia during the COVID-19 pandemic attracted unprecedented foreign media attention and much speculation about a shift in Serbia’s foreign policy. Many foreign and domestic policy experts have interpreted the enthusiastic acceptance of Chinese aid by Serbian politicians as a departure from Serbia’s proclaimed accession to the European Union. Since Serbia did not greet Russian assistance with the same enthusiasm, this sparked speculation that Serbia is replacing Russia with China as its preferred eastern partner. In Serbian media, the narrative of a ‘brotherhood’ has long been reserved for describing relations between Serbia and Russia. Serbia’s ruling political elite voluntarily promoted President Putin and Russia in the mainstream media to increase political support among pro-Russian votes and at the same time exaggerating Russia’s influence in Serbia as a bargaining chip with the West over its political goals. Due to the silent crisis of relations with Moscow, Belgrade officials saw the partnership with China as a stronger card to play ahead of the 2020 elections to convince voters that the government was capable of dealing with the COVID-19 crisis, as well as acquiring a new ally in the East to leverage in the West. Consequently, China emerged as a ‘savior of Serbs in trouble’ during the pandemic overshadowing roles of both Russia and the EU.
Topic:
Diplomacy, International Cooperation, European Union, Media, Pandemic, and COVID-19
Political Geography:
Russia, China, Europe, Asia, and Serbia

139. The EU–China Comprehensive Agreement on Investment: Lessons Learnt for Indonesia

Author:
Yan Lili Ing and Junianto James Losarili
Publication Date:
08-2021
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The European Union (EU) and China have recently reached an agreement: the EU–China Comprehensive Agreement on Investment (CAI). As one of the most recent investment agreements concluded by the EU, the paper aims to assess specific concessions made in the agreement, and provides lessons learnt for Indonesia on the ongoing negotiations of the Indonesia–EU free trade agreement, the Comprehensive Economic Partnership Agreement (IEU CEPA). The paper will present an overview of the main areas covered under the CAI, assess the potential impacts of the CAI on EU investment into Indonesia, and set out lessons that can be learnt from the CAI.
Topic:
Economics, International Cooperation, International Trade and Finance, European Union, and Investment
Political Geography:
China, Europe, Indonesia, and Asia

140. Hedging by Default: The Limits of EU “Strategic Autonomy” in a Binary World Order

Author:
Richard Higgott and Simon Reich
Publication Date:
02-2021
Content Type:
Special Report
Institution:
LSE IDEAS
Abstract:
For some time, international relations has trended in the direction of an American and Chinese dominated binary world order. While the Trump administration has been an accelerator not a cause of this trend between 2016 and 2020, not coincidentally the post 2016 era has also seen key EU figures move to develop a strategy of greater "strategic autonomy". This interest in strategic autonomy was, in no small part, a reflection of growing European distrust in the reliability of both China and, increasingly, the USA. The paper shows, in contrast to the Cold War era during which the EU was unambiguously aligned, how the EU now appears to have embarked on a hedging strategy, albeit implemented more by default than design. In its desire to defend its core interests the EU appears to lean to one side or the other on an issue by issue basis in at least seven key policy domains identified in the paper. This approach is seen to be the outcome of its dual desire to articulate the values of its much touted “Geopolitical Commission" at the same time as it tries to continue its traditional institutional commitment to multilateralism. The paper concludes that the ambiguity present in this endeavour to straddle the realist-liberal fence only serves to expose the limitations of the strategy.
Topic:
International Relations, European Union, Geopolitics, and Strategic Autonomy
Political Geography:
China, Europe, Asia, and United States of America