China's investments in EU neighbourhood countries have raised concerns about its growing influence in the region, according to a report by the Financial Times [b3eec10b]. The study found that China has surpassed the US in terms of investments in countries such as Serbia, Montenegro, and Bosnia-Herzegovina. China's Belt and Road Initiative has played a significant role in its increased investments in the region. Chinese President Xi Jinping's recent visit to Hungary and Serbia to secure deals for economic expansion in Europe further deepens China's influence in the region. Hungary, unlike most EU countries, actively courted Chinese investments, seeing China as essential for Europe's future. During Xi's visit to Hungary, agreements were reached in various sectors, including the nuclear industry, electric vehicle charging stations, and an oil pipeline between Hungary and Serbia. Hungary's pursuit of Chinese developments indicates a lack of faith in financing strategic infrastructure projects from EU funds, while also helping Beijing circumvent costly tariffs and Europe's protectionist policies. Serbia, Hungary's neighbor, also attracted Chinese investments and signed an agreement with China to build a 'shared future,' making it the first European country to do so. The red-carpet treatment of China by Hungary and Serbia has raised concerns among Western partners about China's incursion into the region. Critics argue that China's investments in Hungary and Serbia are a way for Beijing to expand its economic influence in Europe and challenge the unity of the Euro-Atlantic community [d802e748] [5a32d2e8] [b3eec10b].
Europe is increasingly open to deeper relationships with China as trust in the US fades, according to an analysis by thinkchina.sg [a3a14ff1]. The report highlights China's flexible partnership strategy, which allows it to play to its advantage in Europe's fractious nature. The US, on the other hand, has historically seen its allies as vassals and demanded their support, even when it harmed them. The US's geopolitical reliability is being questioned, especially with the potential exit from NATO by a future Trump administration. China, on the other hand, prioritizes stability and does not expect immediate gratification. China's goal in Europe is geopolitical, and it seeks to find the 'weakest links' in Europe, such as France, Hungary, and Serbia, to foster disunity among European states. China's policy is based on flexible partnerships rather than legally fixed alliances, allowing it to forge a pro-China group of nations in Europe and increase tensions between the EU and the US [a3a14ff1].
China's support of Putin's invasion of Ukraine may have been a miscalculation, according to an analysis by Forbes [ca5a60b0]. China had a choice unlike Iran and North Korea, as it had a successful economy and trade relations with Europe. The EU-China trade is valued at almost 740 billion euros, over four times Russia-China trade. Europe has not attached an economic cost to China's behavior, allowing China to maintain its economic relationship with Europe. China sees this as an opportunity to reduce the credibility of the U.S. and its allies. The EU response has been limited to complaints, giving China a green light. This move by China has implications for its growing influence in Europe and its geopolitical strategy [ca5a60b0].