China and the Belt and Road Initiative: Trade Relationships, Business Opportunities and Political Impacts (Understanding China)

This book offers critical insights into the China-led Belt and Road Initiative (BRI) from an EU perspective. It analyzes the political, cultural, and diplomatic effectiveness of Xi's efforts to expand socio-cultural ties and build new trade corridors between Europe and the Far East, and sheds light on the lasting success and influence of China-led economic programs. The book is divided into three parts. The first part provides an overview of the various dimensions of the BRI initiative, including the challenges and opportunities of the EU-China trade relationship, China's geopolitical interests, and foreign policy approaches. The second part analyzes BRI cooperation from the perspective of the business sector, while the third part presents case studies that examine the impacts and responses of various European countries to the BRI. Acknowledgements Contents EU–China Trade: A Review of the Facts and Where We Stand 1 Background 2 The Normalization of China–EU Trade Relationship and the Surge of Trade in Goods 3 Is the EU–China Trade Relationship Complementary or Substitution? 4 The USA is a Crucial Variable for China–EU Trade Relationship, Particularly in the Trade War Era 5 Interest Conflicts Within the EU Facing Trade with China 6 Conclusion References Theoretical Overview of China and BRI Relations Narrating Models of Development—China and the EU Between “Strategic Modernizer” and “Rules-Based Transformer” 1 Introduction 2 Development Narratives About China and the EU and Their Role in the World 2.1 Strategic Modernizer: Background and Implications of China’s Development Narrative 2.2 Rules-Based Transformer: Europe’s Peace Through Integration Narrative 3 Strategic Modernizer Versus Rules-Based Transformer Seen in the Context of China’s Silk Road Initiative and the EU’s Connectivity Strategy 4 The Impact of the “Strategic Modernizer” and “Rules-Based Transformer” Narratives on EU–China Business Relations Today and in the Future 5 Conclusion References Challenges and Opportunities in the EU-China Trade Relations 1 Introduction 2 A New Bilateral Agreement in the Making 3 Current Difficulties in EU-China Trade Relations 4 A Chinese Perspective of the EU-China Trade Relations 5 Possible Ways to Improve EU-China Trade Relations 6 Conclusions References From ‘International Relations’ to ‘Global Foreign Policy’—Examining the New Framework of Chinese Strategic Relations Through the BRI 1 Introduction 2 Understanding the Diplomatic Divide: Mao and the War with Russia 3 Deng: Navigating Diplomacy Through the Tiananmen Square Protests of 1989 4 The ‘Good Neighbourhood Policy’: Collective Progression Under Ziang and Hu 5 COVID-19 and the Evolution of the Chinese Character 6 Conclusion—The Road Ahead for the BRI References BRI Collaboration Through the Business Sector In Fear of Trojan Horse? China’s Cross-Border Acquisitions in Europe Amid the One Belt One Road Initiative 1 Introduction 2 BRI and Europe 3 Data and Variables 4 Empirical Methodology 5 An Overview of China’s M&A ODI in Europe 6 Empirical Analysis of China’s M&A Activities in Europe 6.1 Overview of China’s ODI in Europe 6.2 Completed and Incomplete Merger Deals 6.3 Friendly Versus Hostile Merger Deals 6.4 Full-, Majority-, and Minority-Ownership Acquisitions 6.5 New Versus Incremental Acquisitions 6.6 M&A Activities of SOEs and Non-SOEs 7 Concluding Remarks 8 Appendix References Unwary Dreams, Rude Awakenings: BRI in the Developing World and Emerging Europe 1 Introduction 2 Briefly on BRI and Why It Came Along 3 Key Takeaways from the Non-European BRI Praxis 3.1 Faulty Project and Infrastructure Route Selection 3.2 Tilted Playing Field, Unfair Competition 3.3 High Indebtedness and Debt Trap Risks 3.4 Claims to Strongly Secure Chinese Loans 4 The 17 + 1 Platform—A Dysfunctional BRI Tool in Emerging Europe 4.1 The General 16 + 1 Landscape 4.2 Outcomes of China-CEE16 Economic Cooperation 5 Romania-China Economic Relations Within the 16 + 1 and BRI Frames 5.1 Romania-China Trade Relationship 5.2 Chinese Investments in Romania 6 Conclusions References Towards a Win–Win EU-China Bilateral Investment Treaty: Challenges and Prospects 1 Introduction 2 The Case for a Comprehensive EU-China CAI 3 Key Impediments for a Successful EU-China BIT 3.1 Lack of a Level Playing Field 3.2 Limited Market Access 3.3 Lack of Legal Certainty and Transparency 3.4 Threat of Opportune Takeover and National Security Concerns 4 The 2019 New Chinese Foreign Investment Law: A Catalyst for EU-China BIT 4.1 The Old Foreign Investment Law Regime and Its Critics 4.2 The New Foreign Investment Law 2019 4.3 Addressing the Sticking Points in EU-China BIT Negotiations 5 Conclusion References Country Case Studies Russia–China Collaboration Under Pressure from the West: The Russian Perspective 1 Introduction 2 Russia–China Partnership: Basis for Collaboration 3 Russia Under Pressure of the West 4 China Under Pressure of the West 5 Opportunities and Constraints in Russia–China Partnership 6 Limitations of the Rapprochement Between Moscow and Beijing 7 Russia–China Partnership on the Eurasian Continent 8 Conclusion References EU–China—Failed Prospects of Win–Win Partnership 1 Introduction 2 Early Stages of Relationship and Mutual (Mis)perceptions 3 “Sixteen/Seventeen Plus One” Framework of Cooperation and the BRI 4 EU Connectivity Strategy and COVID-19 Impact on the Relation 5 Conclusion References On the Role of the Belt and Road Initiative and the 16 + 1 Cooperation Within the Sino-European Relation 1 Introduction 2 A Regional Negotiating Platform for China: 16 + 1 3 The Belt & Road Initiative 4 Coevolution 5 Conclusion References A Test Case for Europe: Sino-Italian Relations in the ‘Old’ and ‘New’ Cold War 1 Navigating the Cold War: Sino-Italian Relations in 1950s and 1960s 2 The Golden Era of Sino-Italian Relations: From Normalisation to the End of the Cold War 3 No Place in the Sun: Italy’s Unfruitful Initiatives in China After the Cold War 4 Another Lost Romance? Sino-Italian Relations in Xi Jinping’s Era 5 Conclusion References Commercial Relations Between Italy and China from the Past to the Future 1 Commercial Relations in the First Part of Twentieth Century 2 Trade in the Second Half of Twentieth Century 3 Trade in the First Decade of Twenty-First Century: China Becomes a Member of WTO 4 China as a Giant of International Trade: Italo−Chinese Trade Until the Pandemic 5 Italian Foreign Direct Investments (FDIs) in China 6 Chinese Foreign Direct Investments in Italy 7 The Covid Pandemic and Its Immediate Consequences References