Early View Article - Collision, Competition or Cooperation? China's BRI and the EU's Development Policies Towards Eastern Europe

Collision, Competition or Cooperation? China's BRI and the EU's Development Policies Towards Eastern Europe

Against the backdrop of China's growing engagement in Eastern Europe, the Belt and Road Initiative (BRI) appears to challenge the European Union (EU) approach to promoting development in the region. We take issue with this claim by making three interrelated arguments. First, if at all, the BRI challenges the EU approach to development on the programmatic rather than on the implementation level. The BRI's proclaimed “no strings attached” policy stands in contrast to the EU's rule-and value-based approach with liberal conditionality at its core. Second, we detect decoupling between programme and implementation for both Beijing and Brussels. The BRI applies “conditionality through the backdoor” to support development at home rather than abroad. The EU prioritizes stability over reform necessary to meet membership conditions. Third, the decoupling between programme and implementation may reduce the potential for collision rendering competition and cooperation between Brussels and Beijing more likely. It, however, undermines the legitimacy of both approaches to development, as neither lives up to its proclaimed promise of promoting inclusive growth.

Policy Implications

  • The EU should counter China's narrative that the BRI comes “without strings attached” or non-interference. In strategic communications to local partners, the EU should underline that China's promise of creating “win-win” situations is undermined as engagement comes with conditions, for example through project-related demands, including the utilization of Chinese contractors, China-sourced technology and equipment, and Chinese labour.
  • The EU should critically reflect on its development approach vis-à-vis local partners. The EU should acknowledge the decoupling between EU programmatic ambitions and implementation on the ground to win back lost confidence and ensure, whenever possible, that the implementation of EU initiatives lives up to its programmatic claims.
  • The EU should enhance cooperation with China by stressing common objectives but without compromising the EU's normative foundations: The BRI and the EU approach to development both share commitments to inclusive growth and economic openness. If cooperation takes place, as it happens when the EU or the European Investment Bank finance infrastructure projects, while Chinese firms implement them, it is necessary to ensure adherence to EU norms and rules on the ground (e.g., with regard to public procurement, labour or environment) to avoid the legitimacy of the EU approach getting undermined.
  • China should enhance transparency and public communication to counter growing skepticism about the BRI in Eastern Europe. This includes publishing clear project terms, disclosing contractual obligations, and addressing misinformation proactively. A more open approach in financing structures would reduce fears of hidden conditionalities and improve China's credibility as a responsible development partner.

 

Photo by Malcoln Oliveira