Abstract
This chapter aims to study two questions: how does the EU strike a balance between a value-based versus an interest-based approach in its diplomacy vis-a-vis China and how to evaluate the implications of Brexit towards Sino-British and Sino-EU relations? Chinese leaders emphasize on trade and investment, while trying to put aside the political-normative aspects in China-EU relations. China considers that Brexit provides both challenges and opportunities. As the UK would not be the gateway for Chinese investments in the EU, Chinese enterprises will tend to reorient their investments into EU. The internationalization of the RMB would also be affected by London losing its role as the European financial centre. Given the worsening economic situation in the UK and the EU, Beijing thinks it might be easier to conclude free trade agreements with and facilitate Chinese investments in both the UK and EU.
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Notes
- 1.
Discussion with the author during the Annual Jean Monnet Conference held by the European Commission, Brussels, 17–18 October 2016.
- 2.
The PhD thesis of Thomas Stiegler from the School of Modern Languages and Cultures, University of Hong Kong, defended in October 2016.
- 3.
P. I. Crookes, “Resetting EU-China Relations from a Values-based to an Interests-based Engagement”, International Politics, 50:5, 2013, pp. 639–663.
- 4.
Presentation given by Professor Richard Higgott, University of Warwick, at the seminar on “Brexit and the Future of EU-China Relations”, European Institute for Asian Studies, Brussels, 5 October 2016.
- 5.
See Ayse Kaya, “The EU’s China Problem: a Battle over Norms”, International Politics, 51:2, 2014, p. 224.
- 6.
See Zhou Xinyu, “UK’s New thinking on China Policy”, Guoji Wenti Yanjiu (International Studies), 171, No. 1, 2016, pp. 63–76.
- 7.
See High Representative of the Union for Foreign Affairs and Security Policy, Joint Communication to the European Parliament and the Council, Elements for a New EU Strategy on China, JOIN (2016) 30 final, Brussels, 22 June 2016, pp. 11, 17.
- 8.
See Bu Shaohua, “Sino-European ‘Sub-regional Cooperation’: Dynamics and future Directions”, Guoji Wenti Yanjiu (International Studies), 172, No. 2, 2016, pp. 29–39.
- 9.
According to Chinese analysts, 76.5% of Polish banks, 88.5% of the Czech bank, more than 80% of Hungarian’s banks and 99.2% of Slovakia’s banks are controlled by capital from Western Europe. Ibid., p. 33.
- 10.
Ibid., p. 39.
- 11.
See Benjamin Barth, “China’s Re-emergence as a Global Economic Power: How should Europe Respond?”, European View, 13, 2014, pp. 233–241.
- 12.
High Representative of the Union for Foreign Affairs and Security Policy, Joint Communication to the European Parliament and the Council, Elements for a New EU Strategy on China, JOIN (2016) 30 final, Brussels, 22 June 2016, p. 17.
- 13.
See Zhang Lei, “The European Parliament in China-EU Relations”, Guoji Wenti Yanjiu (International Studies), 174, No. 4, 2014, pp. 37–49.
- 14.
See Feng Zhongping, “Brexit and its Influence to China”, Xiandai Guoji Guanxi (Contemporary International Relations), No. 7, 2016.
- 15.
See Financial Times, 13 November 2013, https://www.ft.com/content/f9a4a22c-4bbc-11e3-8203-00144feabdc0
- 16.
Ibid.
- 17.
See Alex Barker & Jim Brunsden, “Brussels Readies Rule Change to Target UK Euro Clearing”, Financial Times, 16 December 2016, p. 4.
- 18.
Angela Stanzel, “Brexit: An Opportunity for China?”, China Analysis, European Council on Foreign Relations, September 2016, p. 3.
- 19.
Ibid.
- 20.
See George Parker & Alex Barker, “May eases Brexit fears but warns UK will walk away from ‘bad deal’”, Financial Times, 18 January 2017, p. 1.
- 21.
See Jin Ling, “UK leaving EU: Background, Impacts and Prospects”, Guoji Wenti Yanjiu (International Studies), 174, No. 4, 2014, pp. 24–36.
- 22.
See the interview of Philippe le Corre in Ta Kung Pao, 29 September 2016, p. A12.
- 23.
See George Parker & Alex Barker, “May eases Brexit fears but warns UK will walk away from ‘bad deal’”, Financial Times, 18 January 2017, p. 1.
- 24.
See Anand Menon & Brigid Fowler, “Hard or Soft? The Politics of Brexit”, National Institute Economic Review, No. 238, November 2016, pp. R4–R12.
- 25.
See Wang Yuanxue, Xu Zhiyu & Zhang Xiaolei, “The Influence of Brexit towards Sino-British and Sino-EU Trade and Investment”, Guoji Jingji Hezuo (Journal of International Economic Cooperation), 12, December 2016, p. 8.
- 26.
Norway, Iceland and Liechtenstein belong to the EEA.
- 27.
See Anand Menon & Brigid Fowler, p. R8.
- 28.
See Ta Kung Pao, 14 June 2017, p. A18.
- 29.
See Xu Jianwei, Alicia Garcia-Herrero & Zhang Jiawei, “Would Brexit Affect Trade Relations between China and Europe?” Guoji Jingji Pinglun (International Economic Review), 3, 2017, p. 48.
- 30.
Ibid., pp. 53–55.
- 31.
See Philip Stephens, “How Brexit may not Mean Brexit”, Financial Times, 16 December 2016, p. 11.
- 32.
See Philip Stephens, “A Hard Brexit Heralds a Closed Britain”, Financial Times, 21 October 2016, p. 11.
- 33.
See Alex Barker & Jim Brunsden, “Barnier Calls for UK Realism on Brexit”, Financial Times, 1 December 2016, p. 2.
- 34.
European Union, Trade in Goods with China, DG for Trade, European Commission, 4 Nov 2016.
- 35.
Wang Yuanxue, Xu Zhiyu & Zhang Xiaolei, “The Influence of Brexit towards Sino-British and Sino-EU Trade and Investment”, Guoji Jingji Hezuo (Journal of International Economic Cooperation), 12, December 2016, p. 5.
- 36.
Jagjit S. Chadha, “UK and Europe: What Next? Introduction”, National Institute Economic Review, No. 238, November 2016, p. R2.
- 37.
See Jin Ling, “EU’s New Thoughts on Global Governance and its Implications to Sino-EU Relations”, Guoji Wenti Yanjiu (International Studies), 154, No. 2, 2013, pp. 59–71.
- 38.
Shi Zhiqin, “The influence of Brexit on Sino-European and Sino-British relations”, Tsinghua-Carnegie Global Policy Centre, Tsinghua University, 10 August 2016, http://carnegietsinghua.org/2016/08/10/zh-pub-64625
- 39.
See Richard Maher, “The Elusive EU-China Strategic Partnership”, International Affairs, 92:4, 2016, p. 965.
- 40.
See Zhao Ke & Li Gang, “The Strategic Risk that Brexit brings to Sino-EU Relations”, Guoji Shiye (International Horizon), No. 8, 2016, p. 58.
- 41.
The five criteria include: (a) absence of state intervention on allocation of resources, production costs and prices, (b) absence of state intervention in enterprises linked to privatization and the absence of non-market forms of exchange, (c) a company law in practice, including modern accounting standard, (d) businesses subject to bankruptcy and intellectual property laws, (e) financial sector independent from the state. See Commission Staff Working Document on Progress by the People’s Republic of China towards Graduation to Market Economy Status in Trade Defence Investigations, European Commission, SEC(2008) 2503 final, Brussels, 19/09/2008. China only fulfills condition (b). See also “Status of market Economy to China: What Political answers can be Given to this Legal Straitjacket?”European Issues, No. 389, 18 April 2016.
- 42.
See Feng Zhongping, “Brexit’s Influence to EU and Sino-EU Relations”, Ouzhou Yanjiu (European Studies), No. 4, 2016, p. 8.
- 43.
“Chinese investment in Europe hits $23bn record”, Financial Times, 9 May 2016.
- 44.
See Benjamin Barth, “China’s Re-emergence as a Global Economic Power: How should Europe Respond?”, European View, 13, 2014, p. 236.
- 45.
Francois Godement & Angela Stanzel, “The European Interest in an Investment Treaty with China”, European Council on Foreign Relations, Policy Brief, February 2015, p. 6.
- 46.
See High Representative of the Union for Foreign Affairs and Security Policy, Joint Communication to the European Parliament and the Council, Elements for a New EU Strategy on China, JOIN (2016) 30 final, Brussels, 22 June 2016, p. 9.
- 47.
Guy Chazin, “China not Amused by Berlin Blockade”, Financial Times, 4 November 2016, p. 4.
- 48.
E. Zhihuan, Dai Daohua & Choi Wing Hung. Zhongying Caijing Suping (Financial and Economic Insight), Economics and Strategic Planning Department, Bank of China, No. 70, 24 June 2016, http://www.bochk.com/dam/investment/fininsight/EI2016070.pdf
- 49.
See Ayse Kaya, “The EU’s China Problem: a Battle over Norms”, International Politics, 51:2, 2014, pp. 214–233.
- 50.
See R, Maher, p. 975.
- 51.
See Richard Maher, p. 976.
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Ting, W. (2018). EU-China Relations After Brexit. In: Huang, D., Reilly, M. (eds) The Implications of Brexit for East Asia. Palgrave Macmillan, Singapore. https://doi.org/10.1007/978-981-13-0185-8_5
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