The CSS Blog

China-EU Relations: Post-Summit Perspectives

China and EU Flags

Courtesy Friends of Europe/Flickr

This article was originally published by the Polish Institute of International Relations on 27 July 2016.

The latest EU-China summit confirmed the increasing discrepancies between the two sides. China, in protecting its own market, treats European investors unevenly. Simultaneously, the PRC is seeking unlimited access to the EU market to export products resulting from its overcapacity. The EU is concerned about subsidised Chinese exports, which may increase unemployment in Europe. There are rifts in the normative domain as well: China has not accepted an arbitration tribunal’s decision about the South China Sea. The EU, in supporting peaceful means of resolving international disputes, has acknowledged the ruling. Now more than ever, the member states should take into account the European context of relations with the PRC and coordinate their policies towards China with the EU institutions.

The latest EU-China summit (12–13 July) was held after the release of a new EU strategy towards China and coincided with an announcement by an arbitration tribunal of its decision about the South China Sea.[1] The new strategy is the EU’s response to China’s global ambitions and the increasing number of problems in bilateral relations. The noticeable differences in the topics raised by the two sides during the summit vindicates the assumption of deepening discrepancies, including asymmetry in relations at the expense of the EU.

» More

China’s Growing Influence in the Caribbean

Caribbean flags

Caribbean flags, courtesy Sberla_/flickr

This article was originally published by the Institute for Defence Studies and Alalyses (IDSA) on 3 August 2016.

In June 2013, during the visit of Chinese President Xi Jinping to Trinidad and Tobago, the then Prime Minister of the Caribbean nation, Kamla Persad-Bissessar, in a fawning speech, had lauded President Xi’s vision saying, “We see in your China Dream a splendid opportunity for China to become a model for the world.”(1) Like a royalty holding court, President Xi thereafter hosted the leaders of Antigua and Barbuda, Barbados, the Bahamas, Dominica, Grenada, Guyana, Suriname and Jamaica in Port of Spain, capital of Trinidad and Tobago, where he announced soft loans and investments worth US$ 3 billion as well as grants of up to $8 million for the region.(2) President Xi’s visit was an effective and a graphic demonstration of China’s growing influence and outreach in the English-speaking Caribbean region, coming at a time when the United States (US) had been somewhat less forthcoming with financial grants for the region.

President Xi’s visit to Trinidad was followed by a reciprocal visit by Prime Minister Persad-Bissessar to Beijing in February 2014, when, in a major breakthrough for Chinese arms sales to the region, the controversial purchase of a long-range maritime patrol vessel was agreed upon.(3) This was again a demonstration of the growing Chinese influence over the governments of the region, which so far had been firmly under the largely benevolent gaze and geopolitical sway of the US. The decision to buy Chinese patrol vessel also marked the first sale of a non-Western military hardware to the Caribbean nation since the end of the Cold War.(4) In fact, acceptance of Chinese aid and investment has since become a norm in the English-speaking Caribbean, where the US has been conspicuous by its absence in respect of doling out large bilateral loans and grants. In quite a contrast, while the private American investment declined post the 2008 financial crisis, the Chinese investment in the region grew by more than 500 per cent between 2003 and 2012.(5)

» More

10 Things You Should Know About the Recent South China Sea Ruling

Storm clouds

Courtesy Peter Baer/Flickr

This article was originally published by the Centre for International Governance Innovation (CIGI) on 18 July 2016

The recent arbitration tribunal’s ruling on the Philippines’ case against China represents a milestone both in international law and in the politics of the South China Sea. In a sweeping, magisterial, and unequivocal decision, the tribunal has moved the goalposts, changed the channel, and put China on the defensive. From this point forward the main question will not be who owns what in the South China Sea, but who does or does not respect international law. China has rejected the decision in the strongest possible terms, with evident (and no doubt heartfelt) emotion. Whether China sticks to that script or ultimately decides that the costs of noncompliance outweigh the benefits is, of course, the $64,000 question. We will have to wait and see. Meanwhile, though, here are key some things about the decision that you may not have noticed:

When it comes to maritime rights, UNCLOS trumps all. The tribunal has made clear that other state-to-state agreements or principles of customary international law can confer maritime rights, but only if they are consistent with UNCLOS principles.Put another way: if you want to be seen to be playing by the rules, you have to be seen to be playing by UNCLOS rules.

» More

China: A Partner for the Development of Latin America?

542445315_00df230180_b

Courtesy Diego Wyllie/flickr

This Expert Commentary was published by the Elcano Royal Institute on 11 July 2016. It also appeared in the discussion paper “EU-China Relations: New Directions, New Priorities” by Friends of Europe.

China’s re-emergence over the last few decades coincides chronologically with the process of diversification in Latin America’s pattern of international insertion. We have witnessed Beijing grow from a marginal factor in Latin America, to become a key player in shaping the evolution of countries in the region and their process of regional integration. Deepening relations with non-traditional partners has opened a more pluralistic scenario for Latin American countries, extending the range of their international cooperation options in all spheres.

The economic dimension of Chinese-Latin American relations has blossomed in the areas of trade and finance. Beijing has become the second largest trade partner and the main source of international public finance for Latin America. With that being said, the economic development of some Latin American countries is so dependent on the performance of the Chinese economy that a fall of one percentage point in the growth rate of Chinese GDP would reduce Latin American growth by 0.6%, according to the World Bank. Therefore, it is particularly relevant to analyse whether engagement with China is healthy for the economic development of Latin America or not.

» More

Judgement Day: The South China Sea Tribunal Issues its Ruling

Red Dragon

Red, ornamental dragon, courtesy rumpleteaser/flickr

This issue of the PacNet was published by the Pacific Forum CSIS on 12 July 2016. The article first appeared in the CSIS Asia Maritime Transparency Initiative Brief

Today an arbitral tribunal at the Permanent Court of Arbitration in The Hague issued a long-awaited ruling in Manila’s case against Beijing’s claims in the South China Sea. The five-judge tribunal was established under the compulsory dispute settlement provisions of the United Nations Convention on the Law of the Sea (UNCLOS), and despite China’s refusal to participate in the proceedings, its ruling is final and legally binding. For a closer look at the tribunal’s ruling and the areas it leaves legally disputed in the South China Sea, visit the Asia Maritime Transparency Initiative’s new interactive map.

Q1: What did the tribunal rule?

The judges issued a unanimous decision in favor of the Philippines on the overwhelming majority of the claims it made against China. They invalidated Beijing’s claims to ill-defined historic rights throughout the nine-dash line, finding that any claims it makes in the South China Sea must be made based on maritime entitlements from land features. The tribunal ruled that any other historic rights China might once have claimed in what are now the exclusive economic zones (EEZ) or continental shelves of other countries were invalidated by its ratification of UNCLOS. On the question of specific maritime entitlements over disputed features, the court found that Scarborough Shoal is a rock entitled only to a 12-nautical-mile territorial sea. The judges cannot rule on sovereignty over that shoal, but ruled that China has violated the traditional fishing rights of Filipinos by not allowing them to fish at the shoal. Notably the tribunal said it would have found the same regarding Chinese fishermen if they were prevented access to the shoal by the Philippines.

» More

Page 1 of 25