Ukraine war and sanctions tipped to top China-EU summit agenda

EU trade chief says tensions between China and the EU ‘need to be addressed at the highest political level’
With all eyes on Beijing over Russian invasion, trade committee of European Parliament hears the EU is ‘in a complicated phase of relations with China’

China-EU relations

Teddy Ng

Published: 5:58pm, 1 Mar 2022

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The European Union will hold a summit with China next month to discuss sanctions they have imposed on each other and address the crisis in Ukraine, showing both are keen to open lines of communication despite growing tensions.

With observers watching China closely over its stand on Russia’s invasion of Ukraine, European Commission vice-president and EU trade chief Valdis Dombrovskis confirmed the summit would take place on April 1. It is expected to occur online.

Diplomatic sources and observers said the two were expected to discuss the Russia-Ukraine war and the sanctions China and the EU imposed on each other last year.

China has refused to condemn Russia since Russian President Vladimir Putin launched the military operation against Ukraine last week despite Washington, Brussels and others sanctioning Moscow.

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At a German Marshall Fund event on Monday, Washington’s top Asia official said the US warned China that Russia was planning an invasion of Ukraine.

“We engaged China in advance. We explained to them what we thought were the risks associated with a reckless invasion, and that President Putin was [an] increasingly … isolated, alone leader, making decisions with [the hope] that very effective feedback, China could play a critical role in encouraging them to reconsider some of their options,” Kurt Campbell said during a panel discussion with his EU counterpart Gunnar Wiegand.

But China chose “not to weigh in”, Campbell said.

Campbell said China’s desire to “sustain their deep and fundamental relationship with Russia” left China “occupying an awkward nexus”.

“I don’t think we know how this will fundamentally play out in decision-making corridors in Beijing. I do think that the circumstances are difficult for them in the current environment. And it’s clear from our perspective, that the association that is so public and so deep between Russia and China, is quite uncomfortable right now,” he said.

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Wiegand, the EU’s managing director for Asia Pacific, said he was encouraged by China’s abstention in the UN Security Council votes on Russia’s invasion, saying that “China does uphold a number of key principles in the UN Charter, in a way that is quite different from the way Russia interprets” them.

He said it was important “in this extremely tense and very dangerous situation that we … keep very good communication channels” with China.

In recent days, Beijing has repeatedly said sanctions are not the way forward, and that the crisis should be resolved through diplomatic negotiation. It also said Russia’s security concerns over the expansion of Nato should be respected, as should the sovereignty of all nations, including Ukraine.

Confirming the meeting, Dombrovskis told the trade committee of the European Parliament on Monday the EU was “in a complicated phase of relations with China”.

Dombrovskis did not say whether Russia’s invasion of Ukraine would feature in the upcoming summit, but he acknowledged there was a risk that a tighter China-Russia alignment could emerge from the conflict.

“Actually, there are signs that it is already happening,” he said.

“As you also know, China is taking a very careful approach in this conflict. They are clearly not following the Western democratic world example and putting pressure on Russia. The risk is there.”

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In addition to discussion of the Russia-Ukraine war, the issue of sanctions between the EU and China is expected to feature on the summit agenda.

Dombrovskis referred to an investment agreement struck with China that stalled after Beijing imposed sanctions on some members of the parliament and a dispute between China and Lithuania after the latter allowed Taiwan to open a de facto embassy in Vilnius.

“It is clear that some of those topics need to be addressed at the highest political level to see to what extent we can align and improve our cooperation,” Dombrovskis said.

The European Union regards China as a strategic rival in some fields, but a partner in areas such as fighting climate change. It also wants to bring China on board in its push to reform trade rules at the World Trade Organization.

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Both sides are keen to maintain communication. In a phone call with German Foreign Minister Annalena Baerbock, Chinese Foreign Minister Wang Yi said China supported Nato, the EU and Russia resuming dialogue.

In late November, a Chinese delegation led by Wu Hongbo, Beijing’s special representative on Europe, met European officials in a week-long visit to Europe.

Chinese Commerce Minister Wang Wentao said it was normal to have differences in the relationship because China and the EU were at different development stages.

“China’s development is an opportunity, not a challenge, to the European Union,” Wang said in Beijing on Tuesday.

“Cooperation between the two is bigger than competition.”

Additional reporting by Reuters