Council of the EU General Secretariat

THINK TANK REVIEW MARCH 2019

Council Library SPECIAL ISSUE

Special issue on China

Dear Readers,

This special issue , compiled by the EU Council Library*, covers

articles and studies about China published in previous issues of

the Think Tank Review, from February 2018 to February 2019.

(click to share on Twitter).

On EU-China relations, articles address foreign direct investment

trends and their impact, with particular reference to the Chinese

presence in the Mediterranean; 5G, Huawei and the security risk

for communications networks; possibilities for an EU-China free

trade agreement; and the Chinese ambitions in Eastern Europe

and South Caucasus.

Other publications deal with US-China relations, and more specifically with the US-China

economic relationship, China's impact on Russia's economy and China's international relations in

the era of Xi Jinping and their implications for Europe. A number of articles assess the potential

and impact of the Road and Belt initiative.

The TTR can be downloaded from Council's Library blog. TTR articles are available via Eureka,

the resource discovery service of the Council Libraries.

* This collection of abstracts and links was compiled by the Council Library of the General Secretariat of the EU Council for information

purposes only. The content links are the sole responsibility of their authors. Publications linked from this review do not represent the positions, policies or opinions of the Council of the EU or the European Council.

The Council Library is open to staff of the EU institutions and Permanent Representations of the member states. The general public may use the Library for research purposes. It is located in the Justus Lipsius building, at JL 02 GH, Rue de la Loi 175, 1048 Brussels.

For further information, contact the Council Library: library@consilium.europa.eu 2/19

TABLE OF CONTENTS

ISSUE 65 - MARCH 2019 ........................................................................................................................ 3

ISSUE 64 - FEBRUARY 2019 .................................................................................................................. 6

ISSUE 63 - JANUARY 2019 .................................................................................................................... 8

ISSUE 62 - DECEMBER 2018 ................................................................................................................. 9

ISSUE 61 - NOVEMBER 2018 ............................................................................................................... 10

ISSUE 60 - OCTOBER 2018 ................................................................................................................. 11

ISSUE 59 - SEPTEMBER 2018 ............................................................................................................. 12

ISSUE 58 - JUNE 2018 ......................................................................................................................... 13

ISSUE 57 - MAY 2018 .......................................................................................................................... 15

ISSUE 56 - APRIL 2018 ........................................................................................................................ 16

ISSUE 55 - MARCH 2018 ...................................................................................................................... 18

For further information, contact the Council Library: library@consilium.europa.eu 3/19

ISSUE 65 - MARCH 2019

EGMONT – ROYAL INSTITUTE FOR INTERNATIONAL RELATIONS

Redefining the EU-China economic partnership: beyond reciprocity lies strategy

by Tobias Gehrke @TGehrke_

A new EU strategy on China must start at home. Of course, member states’ political expediency is the Union’s eternal handicap. But this policy brief offers three lines of action in which policy reform can support Europe’s resilience and reinforce the foundation of an EU strategy on China: (1) follow the money; (2) invest in substance; and (3) step up in your neighbourhood. (8 p.)

NOTRE EUROPE - JACQUES DELORS INSTITUTE

Les enjeux du contrôle des investissements chinois en Europe

by Elvire Fabry @elvirefabry and Jacopo Maria D'Andria

While all major economic powers (US, China, Japan, Canada, Australia ...) already have some means to control foreign direct investment (FDI), Europeans have begun to coordinate to better assess the risks associated with certain FDI in the single market. The creation of a European mechanism is to be voted by the EP and the Council in the spring 2019. This contribution explains that, in order to better react, Europeans must anticipate more effectively the risks posed by these FDI with a common strategic thinking that must be put on the agenda of the next Commission. (6 p. - FR)

MERCATOR INSTITUTE FOR CHINA STUDIES / RHODIUM GROUP

Chinese FDI in Europe: 2018 trends and impact of new screening policies

by Thilo Hanemann @ThiloHanemann, Mikko Huotari @m_huotari and Agatha Kratz @AgathaKratz

Chinese foreign direct investment (FDI) in the EU continued to decline in 2018. Chinese firms completed FDI transactions worth EUR 17.3 billion, which represents a decline of 40 percent from 2017 levels and over 50 percent from the 2016 peak of EUR 37 billion. This decline is very much in line with a further drop in China’s global outbound FDI, a trend that can be attributed to continued capital controls and tightening of liquidity in China as well as growing regulatory scrutiny in host economies. (26 p.)

EUROPEAN INSTITUTE FOR ASIAN STUDIES

Moving towards a bright future: Chinese students in the EU

by Jia Fu

This paper provides an analytic description of mobility trends of Chinese students pursuing overseas education in the EU, and discusses major characteristics of Chinese students’ mobility. It focuses on potential economic and social benefits brought in by Chinese students. It addresses existing challenges and prospects in promoting educational mobility between China and the EU, as well as retention of Chinese talent in the EU, and a discussion of its implications and a list of policy recommendations. (10 p.)

For further information, contact the Council Library: library@consilium.europa.eu 4/19

ÖSTERREICHISCHE GESELLSCHAFT FÜR EUROPAPOLITIK (AUSTRIAN SOCIETY FOR EUROPEAN POLITICS)

Cotonou 2020 - what the European Union can learn from Chinese trade and investment relations with Africa

by Jasmin Baier @jassilike

In light of the upcoming Cotonou negotiations, this paper aims to ascertain what exactly makes Chinese activities in Africa arguably more successful and more popular. The results make it clear that current plans to go forward with similar propositions as in the old Cotonou agreement will be met with frustration and disagreement. Change is needed and instead of looking West, maybe this time solutions can rather be found in the East. (11 p.)

STIFTUNG WISSENSCHAFT UND POLITIK (GERMAN INSTITUTE FOR INTERNATIONAL AND SECURITY AFFAIRS)

5G, Huawei und die Sicherheit unserer Kommunikationsnetze

by Daniel Voelsen @d_voelsen

The planned launch of the new 5G mobile communications standard triggered a debate over the security of digital communication networks. The question is whether Western states should use the network technology of the Chinese company Huawei. The US and its closest allies from Five Eyes see it as a security risk and Beijing's attempt to influence the digital infrastructure of the West, and they are pushing for Huawei to be excluded from setting up 5G mobile networks. The controversy on Huawei has a technical but also economic and geopolitical dimension. (DE - 8 p.)

BROOKINGS INSTITUTION

The China challenge, democracy, and US grand strategy

by Tarun Chhabra @ChhabraT

The rise of China and the persistence of deep, internal challenges across open societies have created tremendous headwinds for democracy and liberal values globally, threatening US alliances, liberal economic order, and even the political identity of the US and its democratic partners and allies. Beijing’s “flexible” authoritarianism abroad, digital tools of surveillance and control, unique brand of authoritarian capitalism, and “weaponization” of interdependence may in fact render China a more formidable threat to democracy and liberal values than the Soviet Union was during the Cold War. (20 p.)

BROOKINGS INSTITUTION/ AMERICAN ENTERPRISE INSTITUTE

The US-China economic relationship : a comprehensive approach

by Joshua P. Meltzer @JoshuaPMeltzer and Neena Shenai

The US-China economic relationship has reached a critical juncture. Over the past year, the US has imposed tariffs on $250 billion worth of Chinese imports and China has retaliated, raising tariffs on US exports. At the G-20 leaders’ summit in November 2018, Presidents Trump and Xi agreed to resolve the trade dispute within 90 days—by March 1, 2019, though this deadline has been recently extended. (25 p.)

For further information, contact the Council Library: library@consilium.europa.eu 5/19

OBSERVER RESEARCH FOUNDATION

Russian Far East and central Asia: impediments to Sino-Russian partnership

by Dhananjay Sahai

This brief analyses the politico-economic relations between Russia and China and the recent changes in their power equation owing to Russia’s fall in economic and demographic strength and, for its part, China's economic and military growth. Russia’s unfavourable position has been identified as a possible reason for the rise in Chinese influence in Central Asia and the Russian Far East. The brief closes with recommendations for India to position itself as a strategic partner for Russia while subverting Chinese influence. (20 p.)

CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE/ NATIONAL UNIVERSITY OF SINGAPORE/MIDDLE EAST INSTITUTE

Kazakhs wary of Chinese embrace as BRI gathers steam

by Philippe Le Corre @PhLeCorre

Kazakhstan is one of China’s direct neighbours, and a prominent one by size and border. As the Chinese proverb states, “a close neighbour is more valuable than a distant relative”, hence the importance of Sino-Kazakh ties, especially at a time when Beijing tries to promote its “Belt and Road initiative” across Eurasia. It is known that many Uyghurs –the main tribe of Xinjiang, China’s troubled autonomous region – live in Kazakhstan. There are also ethnic Kazakhs living on the Chinese side, in Xinjiang (many of them facing great political difficulties, if not persecutions). (6 p.)

CENTRE FOR INTERNATIONAL GOVERNANCE INNOVATION

Chinese industrial actors in global rule marking - A preliminary exploration

by Hanzhi Yu @Hanzhi_YU and Hongying Wang

In contrast to the growing profile of the Chinese government in global governance, the engagement of Chinese industrial actors in global rule making is quite limited and uneven. This policy brief offers suggestions to Chinese industrial actors and to those concerned about China’s role in global governance, with the purpose of reducing misunderstanding and building trust between Chinese industrial actors and businesses, regulators, non-governmental organizations, and stakeholders from other parts of the world in developing global standards for good governance. (12 p.)

S. RAJARATNAM SCHOOL OF INTERNATIONAL STUDIES

Introduction to China’s military operations other than war

by Fan Gaoyue and James Char

With its increasing capability witnessed in recent decades, the People’s Liberation Army’s (PLA) conduct of military operations other than war (MOOTW) remains woefully understudied. This report provides a retrospective account of how the PLA has overseen previous MOOTW activities and identifies those areas of PLA MOOTW expected to undergo further refinement. A better appreciation of non-traditional security and China’s MOOTW will provide a positive platform for facilitating cooperation between Beijing and other countries in the region. (17 p.)

For further information, contact the Council Library: library@consilium.europa.eu 6/19

CENTER FOR NEW AMERICAN SECURITY

Understanding China's AI strategy - Clues to Chinese strategic thinking on artificial intelligence and national security

by Gregory C. Allen @Gregory_C_Allen

This paper summarizes the authors key judgements on China's leadership’s views, strategies, and prospects for artificial intelligence and how those apply to China's economy and national security. (32 p.)

INSTITUT FRANÇAIS DES RELATIONS INTERNATIONALES

Going green: are chinese cities planting the seeds for sustainable energy systems?

by Thibaud Voïta

Aimed at using artificial intelligence to develop smart energy systems, the Chinese central government is creating the “city of the future” in the Xiongan zone 100 km southwest of Beijing. It is currently the most promising city-level experiment, as the project covers a zone three-time the size of New York. While digital innovations in Chinese smart cities do not only aim at greening these cities, but also at strengthening social control over inhabitants, this may ultimately limit the exportability of the Chinese concept. (44 p.)

MERCATOR INSTITUTE FOR CHINA STUDIES

Manufacturing creativity and maintaining control: China's school struggle to balance innovation and safeguard conformity

by Didi Kirsten Tatlowr @dktatlow

China entered the top 20 most innovative world economies for the first time in 2018, according to the UN global innovation index. With a state policy in China that is utilitarian and focused on innovation, not creativity, the push for citizens to be more creative in order to establish world class tech companies appears to be working. The survey shows that teachers in China must straddle a fine line between the needs of the children and the needs of the system. (11 p.)

ISSUE 64 - FEBRUARY 2019

ISTITUTO AFFARI INTERNAZIONALI

Development through acquisition: the domestic background of China's Europe policy

by Fabio Angiolillo @FabioAngiolillo

Recently, the Chinese government released two economic plans: made in China 2025 and the 13th five-year plan. These guidelines are not mere industrial plans but also draw crucial foreign-policy trajectories, including as regards China’s relationship with Europe: to intensify economic and investment relations with individual EU countries and to strengthen the long-standing relationship between Beijing and EU institutions, considered by the leadership in Beijing to be crucial for the international rise of China. (17 p.)

For further information, contact the Council Library: library@consilium.europa.eu 7/19

BRUEGEL

The Belt and Road turns five

by Michael Baltensperger @baltensperg and Uri Dadush

This paper recounts the background of the Belt and Road initiative and its context, what is known about the extent of the initiative and the intentions behind it. China’s goal of forging stronger links with its trading partners around the world is legitimate assuming the underlying intent remains peaceful. (15 p.)

INSTITUTO ESPAÑOL DE ESTUDIOS ESTRATÉGICOS

La estrategia global de China para defender sus intereses

by Javier de Carlos Izquierdo

China launched a new global strategy in 2013 which was not formally published until 2015. Although this strategy is an example of China’s public diplomacy, that diplomacy takes its corporate image from UNESCO’s silk roads project, which seeks to promote the global spread of its business. China's first strategic objective is to rule the world, changing global governance rules for its own benefit. (ES - 23 p.)

POLSKI INSTYTUT SPRAW MIEDZYNARODOWYCH (POLISH INSTITUTE OF INTERNATIONAL AFFAIRS)

China and the challenges of the fourth industrial revolution: value chains, 5G and emerging markets

by Marcin Przychodniak @Molos123

China has identified the ongoing digital revolution as its first opportunity in modern times to compete with other international powers, especially the US. The advantage of technological development is that it will allow China to become a “major cyber power,” introduce its own technological standards worldwide, raise its position in global value chains, and influence the world economy. (12 p.)

INSTITUT FRANÇAIS DES RELATIONS INTERNATIONALES / POLICY CENTER FOR THE NEW SOUTH

Rare earths and China: a review of changing criticality in the new economy

by John Seaman @johnfseaman

For the last two decades China has produced between 80 and 95 percent of the world’s rare earths: a group of 17 metals that have become key components of revolutionary technological progress in fields ranging from energy, to ICT, to medical devices, to defence. A new wave of overseas Chinese investment may mean that the production (and pollution) that was once delocalized to China will increasingly be diverted to other areas of the globe, with China still looking to master the more valuable downstream industries. (36 p.)

For further information, contact the Council Library: library@consilium.europa.eu 8/19

ISSUE 63 - JANUARY 2019

MERCATOR INSTITUTE FOR CHINA STUDIES

Chinese views of European defense integration

by Scott W. Harold @ScottWHarold

The paper sets out five ideal-type scenarios for the Permanent Structured Co-operation (PESCO) and Europe´s allies of the EU global strategy, exploring prospects for success or failure, impacts on the cohesion of the trans-Atlantic alliance, and how China might react. (12 p.)

INTERNATIONAL INSTITUTE FOR STRATEGIC STUDIES / MERCATOR INSTITUTE FOR CHINA STUDIES

Emerging technology dominance: what China’s pursuit of advanced dual-use technologies means for the future of Europe’s economy and defence innovation

by Meia Nouwens @MeiaNouwens and Helena Legarda

China has embarked on a major process to achieve civil-military integration and develop advanced dual-use technologies. The EU does not have strong, coordinated strategies to promote the development of indigenous dual-use technologies or to protect Europe’s indigenous innovation. As a result, China is either catching up to or surpassing. This paper develops recommendations for the EU to boost its own innovation potential both at the supranational and member-state level. (29 p.)

INSTITUT FRANÇAIS DES RELATIONS INTERNATIONALES

China’s ambitions in Eastern Europe and the South Caucasus

by Nadège Rolland @RollandNadege

Eastern Europe and the South Caucasus have long been a blind-spot for Chinese diplomacy and economic policy. For over a decade, however, China has been laying the foundations of a long-term presence in the area, a process which has accelerated since the end of 2013 with the launch of the Belt and Road initiative. (26 p.)

LOWY INSTITUTE FOR INTERNATIONAL POLICY

Economic conflict between America and China: a truce declared, the talks begin

by John Edwards

China and the US are in talks over their so-called trade war, the biggest threat to economic globalisation in decades. This paper sorts through some of the main economic issues involved in the negotiations to identify those which despite their public prominence no longer really matter, those in which agreement is possible, and those where agreement is unlikely. (45 p.)

INSTITUTO ESPAÑOL DE ESTUDIOS ESTRATÉGICOS

El juego geopolítico de la nueva ruta de la seda en Asia

by Águeda Parra Pérez @agueda_parra

The deployment of "One Belt One Road" is expanding among the block of pro-China countries, whereas the uncertainty in the anti-China block grows in the face of the loss of US hegemony in the Indo-Pacific under the Trump administration. A circumstance that is causing changes in the power balance game in favor of China that allows Beijing to consolidate its influence in the region as a regional and global power. (ES - 19 p.)

For further information, contact the Council Library: library@consilium.europa.eu 9/19

EUROPEAN UNION INSTITUTE FOR SECURITY STUDIES

Along the road – China in the Arctic

by Cécile Pelaudeix @CecilePelaudeix

This brief focuses on China’s polar silk road project, which incorporates the Arctic Ocean into Beijing’s Belt and Road initiative, and examines what it reveals about China’s broader geopolitical ambitions in the region. The Arctic has growing importance as part of China’s quest to secure access to natural and energy resources, including highly prized rare earth elements. (8 p.)

INSTITUTE FOR DEFENCE STUDIES AND ANALYSES

China's big push for solar energy

by Chithra Purushothaman

China has emerged as the leader in the renewable energy segment, doubling its production between 2008 and 2016. China is trying to especially adopt solar energy into its energy mix and has been leading in both solar photovoltaic installed capacity and solar power generation since 2015. Against this backdrop, this brief evaluates China's forays into solar energy and how it is making it big in the international solar energy industry. (11 p.)

ISSUE 62 - DECEMBER 2018

FONDATION POUR L’INNOVATION POLITIQUE

L’intelligence artificielle en Chine: un état des lieux

by Aifang Ma

This note returns to the Chinese policies that have enabled the development of artificial intelligence. From the elaboration of conquering strategies to the colossal investments committed, the e-commerce giants and the Xi Jinping government have shaped a social climate conducive to the development of this new technology. (FR - 60 p.)

DANSK INSTITUT FOR INTERNATIONALE STUDIER (DANISH INSTITUTE OF INTERNATIONAL STUDIES)

China's engagement in Pakistan, Afghanistan and Xinjiang

by Lars Erslev Andersen and Yang Jiang

The authors discuss the potential of China’s approach to stabilising security conditions in Pakistan and Afghanistan through development. The report explores China’s westward policy by analysing the opportunities and obstacles related to its flagship Belt and Road initiative in South Asia, in particular the China–Pakistan economic corridor. (33 p.)

REAL INSTITUTO ELCANO (ELCANO ROYAL INSTITUTE)

Sri Lanka and great-power competition in the Indo-Pacific: a Belt and Road failure?

by Mario Esteban @wizma9

This paper analyses China’s involvement in Sri Lanka in order to identify why it has become a key economic and strategic partner. It also identifies areas of improvement in its relationship with local governmental and civil society actors. (8 p.)

For further information, contact the Council Library: library@consilium.europa.eu 10/19

ISSUE 61 - NOVEMBER 2018

INSTITUT DE RELATIONS INTERNATIONALES ET STRATÉGIQUES

The “16+1” platform. China’s opportunities for Central and Eastern Europe

by Andreea Budeanu

China's cooperation with the countries of Central and Eastern Europe, known as "16 + 1" platform, brings together sixteen countries (EU members and candidates), all of which share a communist past. Aside from the risks that it may represent, the "16+1" generates multiple opportunities. With a focus on Romania, this study offers a reading of the opportunities to be explored as to the growing and unstoppable presence of China in Central and Eastern Europe. (15 p.)

INSTITUT FRANÇAIS DES RELATIONS INTERNATIONALES

La France face aux nouvelles routes de la soie chinoises

by Alice Ekman @alice_ekman, Françoise Nicolas, Céline Pajon @CelinePajon (et al.)

This study provides some clarifying elements concerning the Chinese approach regarding the Belt and Road initiative (BRI) in order to identify and analyse the risks and opportunities it poses for France. This is particularly useful for understanding how French actors can be solicited by the Chinese project, today and in the future, and how they can respond to it. The French and European approach as well as the reactions of key countries, such as the US, Japan, India, Russia or the South-East Asian countries against the BRI are also examined. (FR - 149 p.)

THE HAGUE CENTRE FOR STRATEGIC STUDIES

The belt and road initiative looks East

by Willem Oosterveld @WTheOos, Katarina Kertysova @KKertysova and Eric Wilms @EricWilms

In 2018, China formally invited countries in Latin America and the Caribbean to join its Belt and Road initiative (BRI) which has mainly be seen as an endeavour to secure steady supplies of raw materials, principally from Africa and the Middle East, and to tie the economic fates of its Asian neighbours to that of China. The big question is why would China want to include the Caribbean and South Pacific in the BRI? As neither region is highly promising in terms of critical raw materials, speculation about Chinese engagement has focused on geopolitical motives. (101 p.)

OBSERVER RESEARCH FOUNDATION

China’s growing footprint in Nepal: challenges and opportunities for India

by Anil Sigdel @Anil_Sigdyal

How does China’s expanding footprint in Nepal affect India? This brief examines the possibilities for India’s success in competing with China in Nepal, and posits two overarching factors: New Delhi’s overall capacity to challenge China, and India’s political will to address its own controversial approaches towards Nepal. It argues that in the changing geopolitical context, a strongly sovereign Nepal that can exercise an independent foreign policy is beneficial, and not detrimental to India. (12 p.)

For further information, contact the Council Library: library@consilium.europa.eu 11/19

ISSUE 60 - OCTOBER 2018

STOCKHOLM INTERNATIONAL PEACE RESEARCH INSTITUTE

The 21st century maritime silk road - security implications and ways forward for the EU

by Richard Ghiasy, Fei Su and Lora Saalman

This policy report presents an analysis of the sea-based component of the Belt and Road initiative. It examines security implications in the two strategic maritime spaces that it crosses: the South China Sea and the Indian Ocean region. Special consideration is given to how the Road might affect the interests of EU and how the EU could consider responding. (63 p.)

REAL INSTITUTO ELCANO (ELCANO ROYAL INSTITUTE)

Cooperación tecnológica entre España y China Technological cooperation between Spain and China

by Andrés Ortega @andresortegak

Scientific and technological cooperation between Spain and China has significant potential to be developed for the benefit of both countries. However, such cooperation would need to be based upon the notions of complementarity and reciprocity. It would also require that Spain develop a specific strategy within its broader approach to technology. While Spain must act within the European framework for such relations, it also should deepen further its own existing institutional framework. (ES - 12 p.) (EN -12 p.)

CENTER FOR A NEW AMERICAN SECURITY

Power play - addressing China’s belt and road strategy

by Daniel Kliman @dankliman and Abigail Grace @abigailcgrace

The US and China are in a competition to shape the course of the 21st century. At stake is whether the prevailing international order that has backstopped peace, prosperity, and freedom will endure, or whether Beijing’s emerging vision will become the global reality. What China calls “One Belt, One Road" is its newest power play combining economic, diplomatic, military, and informational instruments of statecraft. This strategy is designed to lay the foundation for an alternative order and is already eroding international norms and standards in a way that privileges China. (44 p.)

INSTITUTO ESPAÑOL DE ESTUDIOS ESTRATÉGICOS

Las nuevas rutas de la seda en Asia Central y sus efectos en las relaciones internacionales

by Miriam González Francisco

Central Asia, the geographical pivot of Eurasia, is an area of great energy and mineral resources. Five young republics, Kazakhstan, Uzbekistan, Tajikistan, Turkmenistan and Kyrgyzstan where the problems that emerged after the dissolution of the USSR are still present. The Central Asian region, which has no access to the sea, is the basis for the connection of the commercial and energy routes of Eurasia. There are several silk routes that are being projected there by different states and great powers; excluding projects in some cases, but they show the importance of this region in the immediate future. (33 p.)

For further information, contact the Council Library: library@consilium.europa.eu 12/19

ISSUE 59 - SEPTEMBER 2018

CENTRE FOR EUROPEAN POLICY STUDIES/ WORLD TRADE INSTITUTE AT THE UNIVERSITY OF BERN

Tomorrow’s silk road: assessing an EU-China free trade agreement – 2nd edition

by Jacques Pelkmans, Weinian Hu, Federica Mustilli @f_mustilli (et al.)

This study aims to provide an independent and in-depth contribution on the status of bilateral economic exchanges and persistent trade barriers between the EU and China. A second objective is to encourage a frank and open dialogue, based on a scientific evaluation and without prejudice, of the possibility of a preferential trade agreement between the two sides. (333 p.)

CENTRE FOR EUROPEAN POLICY STUDIES

Reciprocity and mutual benefits: EU-China cooperation on and protection of geographical indications

by Weinian Hu

This report illustrates that, in the context of negotiating the geographical indications (GI) protection agreement, the EU succeeded in extending its GI protection philosophy, i.e. the so-called ‘old-world’ approach, and model to China, paving the way for more GIs to be registered in the country for future protection. The EU leverages GI protection to enhance its food quality policy, which goes hand in hand with the reform of the CAP. As for China, doubling down on GI exports to Europe and through ambitious trade agreements with other trading partners should be a goal. (29 p.)

MTA KÖZGAZDASÁG- ÉS REGIONÁLIS TUDOMÁNYI KUTATÓKÖZPONT - VILÁGGAZDASÁGI INTÉZET (CENTRE FOR ECONOMIC AND REGIONAL STUDIES HAS - INSTITUTE OF WORLD ECONOMICS)

Chinese investment in central and eastern European countries: analysis of the EU factor

by Zhang Fumei

Historically, the international relationship between China and the EU mainly refers to trade and investment with western European countries. However, the cooperation between China and CEE countries is much neglected under the EU framework. (21 p.)

ISTITUTO AFFARI INTERNAZIONALI

The new sea people: China in the Mediterranean

by Ronald H. Linden

The surge in overseas investment that has accompanied China’s Belt and Road initiative has swept into Mediterranean region. Mediterranean countries are part of the world’s largest market but also the EU’s divided governance and now with the US an uncertain ally, vulnerability to Chinese economic power has grown. (21 p.)

UTRIKESPOLITISKA INSTITUTET (SWEDISH INSTITUTE OF INTERNATIONAL AFFAIRS)

Сhina's impact on Russia’s economy

by Vladislav Inozemtsev

On June 9, 2018, at the very same day when the G7 leaders got together in Canada, for their annual summit, Russia’s President Vladimir Putin gleefully peacocked in in front of reporters in Qingdao, China, standing side by side with the leaders of China, India, and several post-Soviet

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states. His three-daylong state visit to China was used to demonstrate how close the ties between the two nations were nowadays and how important China is for Russia. This paper focuses on the China and Russia relations that go far beyond the traditional issues of trade and investment. (12 p.)

ITALIAN INSTITUTE FOR INTERNATIONAL POLITICAL STUDIES

China: champion of (which) globalisation?

by Alessia Amighini @aaamigh

This year marks the 40th anniversary of China’s reforms and opening up. In four decades, China has learned how to grasp the benefits of globalisation and has become a world economic champion. Is Beijing offering more risks or more opportunities to both mature and emerging economies? To what extent is China willing to comply with international rules and standards? Is Beijing trying set its own global rules and institutions? Is the world destined to a new model of economic globalisation detached from political and cultural openness? (150 p.)

ISSUE 58 - JUNE 2018

ESADEGEO - CENTER FOR GLOBAL ECONOMY AND GEOPOLITICS

Chinese investment trends in Europe

by Ivana Casaburi

Under the presidency of Donald Trump, the US has taken a step backwards as a leader of nations and a defender of economic and commercial globalization, leaving a large gap on the world's geopolitical chessboard. Doubtlessly, no country is better prepared than China to fill this gap, since it is the second largest economy in the world (or the first in terms of purchasing power parity). (24 p.)

EUROPEAN INSTITUTE FOR ASIAN STUDIES

How China approaches international law: implications for Europe

by Tim Rühlig @ruehlig

The author argues that China has a very different legal tradition that does not treat legality as carrying normative value in itself. Instead, China rather adopts a functionalist approach that impacts its approach to law until this day. Reviewing China's rhetorical reference to the law, its recent domestic reforms as well as three cases of Chinese treatment of international legal obligations he substantiates this claim and draws policy recommendations for the EU. (16 p.)

MERCATOR INSTITUTE FOR CHINA STUDIES

China kennen, China können - Ausgangspunkte für den Ausbau von China-Kompetenz in Deutschland

by Matthias Stepan @M1pan, Andrea Frenzel, Jaqueline Ives @jacky_ives and Marie Hoffmann

China has developed rapidly in recent decades and has long since become an important economic and political partner for Germany. This study provides - without claim to completeness - an overview of the local education offers in relation to China. The analysis of statistical data and information gained in more than 100 individual interviews, supplemented by a small-scale student survey, will also provide an insight into the status and existing need for "China competence". (DE - 112 p.)

For further information, contact the Council Library: library@consilium.europa.eu 14/19

CENTER FOR AMERICAN PROGRESS

Blue future: mapping opportunities for US-China ocean cooperation

by Melanie Hart, Michael Conathan @Conathan, Blaine Johnson (et. al.)

The US and China share a deep common interest in ocean protection. The world's ocean and coastal resources are currently under threat from overfishing, pollution, and unchecked resource extraction. As the largest ocean stakeholders—with unparalleled dependence on seaborne trade, the economic vitality of coastal cities, and the production and consumption of living marine resources—the US and China face new, increasing economic and security risks from the degradation of global ocean health. (39 p.)

NEDERLANDS INSTITUUT VOOR INTERNATIONALE BETREKKINGEN - CLINGENDAEL (NETHERLANDS INSTITUTE OF INTERNATIONAL RELATIONS)

Hybrid conflict: the roles of Russia, North Korea and China

by Frans-Paul van der Putten, Minke Meijnders @Minke_M, Sico van der Meer

@SicovanderMeer (et al.)

The rationale to focus on these three countries was that they are believed to engage in various forms of hybrid conflicts in parts of their home regions. Moreover, they have political systems that are based on values that contrast with those on which the Dutch political system is founded. From a Dutch security perspective, this raises the question of whether these activities potentially affect the Netherlands. (49 p.)

INSTITUTO ESPAÑOL DE ESTUDIOS ESTRATÉGICOS

Geopolítica en el Indo-Pacífico: el factor militar en la nueva China

by Laura Paíno Peña

The remarkable increase of the Chinese defence budget in the last decade and its unstoppable trade expansion, along with the Chinese occupation of the disputed maritime territories and the creation of new aircraft carriers, illustrate Chinese intention to exercise supremacy over the Indo-Pacific. (ES - 15 p.)

EUROPEAN INSTITUTE FOR ASIAN STUDIES

The invisible silk road: enter the digital dragon

by Grzegorz Stec @grzestec

Discussions around the Belt and Road initiative tend to focus on its tangible aspects; primarily related to physical infrastructure including roads, rail and power plants. However, in addition to the two tangible "Silk Roads" – the Silk Road Economic Belt (land route) and the 21st-Century Maritime Silk Road (sea route), a third "Silk Road" was also proclaimed in 2015. The "Information Silk Road", since rebranded as the Digital Silk Road, aims to "improve international communications connectivity" and foster the internationalization of China's rapidly growing tech companies. (5 p.)

RAND EUROPE

China and the international order

by Michael J. Mazarr, Timothy R. Heath and Astrid Stuth Cevallos

This report offers four major findings about the relationship of China to the international order. (173 p.)

For further information, contact the Council Library: library@consilium.europa.eu 15/19

S. RAJARATNAM SCHOOL OF INTERNATIONAL STUDIES

Game of institutional balancing: China, the AIIB, and the future of global governance

by Kai He and Huiyun Feng

The establishment of the Asian Infrastructure Investment Bank (AIIB) has signified a "charm offensive" by China towards multilateral institutions and existing global financial governance. This project introduces a "leadership transition" framework to explain policy dynamics in global governance with the AIIB as a case study. It suggests that China, the US, and other countries have employed different types of institutional balancing strategies to compete for influence and interest in the process of establishing the AIIB. (23 p.)

ISSUE 57 - MAY 2018

VRIJE UNIVERSITEIT BRUSSEL - INSTITUTE FOR EUROPEAN STUDIES

Innovation diplomacy caught between the two opposing logics of cooperation and competition: case study on EU-China S&T cooperation in the field of solar PV

by Daniel Gehrt

In recent years, the EU Commission has promoted the idea of science diplomacy in various strategic documents. The assumption is that collaboration is generally beneficial and resulting in a win-win situation for both sides. The question is whether this assumption is maintained when applied to a relatively mature technological domain, with clear commercial interests at stake. This question has been tested by taking the example of EU-China science and technology cooperation in the field of solar photovoltaic (27 p.)

ULKOPOLIITTINEN INSTITUUTTI (FINNISH INSTITUTE OF INTERNATIONAL AFFAIRS)

Russian-Chinese relations in Eurasia: harmonization or subordination?

by Marcin Kaczmarski @M_Kaczmarski

Russia and China have largely managed to avoid direct competition in the post-Soviet space, particularly in Central Asia, even though they have been pursuing distinct regional cooperation projects, namely the Eurasian Economic Union and the Silk Road Economic Belt. China is more interested in the practical benefits of regional cooperation. Russia is struggling to maintain the image of a strategic leader in Eurasia. Its concept of 'Greater Eurasia' imitates China’s project as Moscow wants to create the impression of Russia and China being equal partners in Eurasia. (7 p.)

CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES

Security implications of China’s military presence in the Indian Ocean

by Zack Cooper @ZackCooper

According to this paper, the security implications of China's push into the Indian Ocean region are mixed. In peacetime, these efforts will certainly expand Chinese regional influence. In wartime, however, China's Indian Ocean presence will likely create more vulnerabilities than opportunities. (4 p.)

For further information, contact the Council Library: library@consilium.europa.eu 16/19

CENTRE FOR CLIMATE CHANGE ECONOMICS AND POLICY

China, the world and the next decade: better growth, better climate

by Ehtisham Ahmad, Isabella Neuweg and Nicholas Stern @lordstern1

This paper argues that China's internal reform agenda is strongly linked to its actions in its major trading partner countries, especially those associated with the Belt and Road initiative. With China's influence, both through its powerful international voice and its role as one of the world's biggest sources of finance, the country's trading partners are in a good position to embark on cleaner growth that will, in turn, facilitate China's own domestic rebalancing. (31 p.)

STIFTUNG WISSENSCHAFT UND POLITIK (GERMAN INSTITUTE FOR INTERNATIONAL AND SECURITY)

China’s global connectivity politics: on confidently dealing with Chinese initiatives

by Paul J. Kohlenberg and Nadine Godehardt @NGodehardt

European attitudes towards China and its Belt and Road initiative are changing. While the People's Republic under Xi Jinping is the only country in the world pursuing a global vision, distrust of China's expanding influence is growing. The European debate about China is becoming increasingly emotional with interpretations fluctuating between alarmism and reassurance. Ideas about the 'essence of China' and expectations that the country should fit into the liberal order according to Western standards, however, threaten to limit Europe's scope of action in dealing with China. (4 p.)

OŚRODEK STUDIÓW WSCHODNICH (CENTRE FOR EASTERN STUDIES)

High on the party, low on the state: a quantum leap in the process of China’s reconstruction

by Jakub Jakóbowski @J_Jakobowski and Michał Bogusz

The National People's Congress approved a series of changes to the structure and organisation of the Central People's Government and an amendment to China's constitution. The purpose of these changes is to secure continued governance by the communist party of China, to maintain domestic stability and to break the impasse in economic and social reforms. These changes will considerably impact the functioning of the state and China's international relations. (6 p.)

ISSUE 56 - APRIL 2018

STIFTUNG WISSENSCHAFT UND POLITIK (GERMAN INSTITUTE FOR INTERNATIONAL AND SECURITY AFFAIRS) EUROPEAN INSTITUTE FOR ASIAN STUDIES

China’s international relations in the new era of Xi Jinping – implications for Europe

by Tim Rühlig @ruehlig

At the 19th National Congress of the Chinese communist party last October, China’s President Xi Jinping outlined the country’s future foreign policy. In Europe, most observers interpreted Xi’s speech as a turn to a more nationalist foreign policy that strives for fundamental changes in the international order along the lines of Chinese interests. This perception is fundamentally mistaken: China’s rise may indeed call into question whether the liberal Western approach to development and international cooperation is without alternative. However, China rather strives for reforms from within the existing system than to fundamentally change it. (10 p.)

For further information, contact the Council Library: library@consilium.europa.eu 17/19

GERMAN MARSHALL FUND OF THE UNITED STATES

Europe’s response to the Belt and Road initiative

by Garima Mohan @GarimaMo

According to the author, Europe's initial enthusiasm about the Belt and Road initiative (BRI) is tempering. BRI is undermining the EU's internal cohesion, has the potential to impact European security, and is creating stiff competition for European companies on trade, investments, and market access in Europe and Asia. European policymakers are also beginning to realize the impact of BRI beyond the European continent — notably on the power balance and stability in Asia. Asian markets are important export destinations for Europe, and a majority of its sea-borne trade transits through the Indo-Pacific. (6 p.)

Georgien positioniert sich auf Chinas neuer Seidenstraße Georgia positions itself on China’s new Silk Road - Relations between Tbilisi and Beijing in the light of the Belt-and-Road initiative

by Franziska Smolnik

China's importance and presence in Georgia are growing. The Belt and Road initiative, Beijing’s vision of a new Silk Road, has met with active approval here – in contrast to a number of West European capitals. The government in Tbilisi is carefully positioning Georgia as an essential part of the south Eurasian corridor. Large infrastructure projects are being carried out to facilitate transit. However, whether the new Silk Road will be a purely win-win situation for the country, still remains to be seen. (DE - 8 p.) (EN - 8 p.)

RAND EUROPE

China's pursuit of overseas security

by Timothy R. Heath

China's ascent as the world's second-largest economy has brought the country tremendous prosperity, but integration into the global economy has also exposed growing numbers of its citizens and their assets to potential harm. The report examines China's pursuit of security for its overseas interests. It surveys Chinese writings and Western reporting to describe the country's likely approach to protecting its economic and strategic interests abroad. (66 p.)

SOUTH AFRICAN INSTITUTE OF INTERNATIONAL AFFAIRS

China in the era of ‘Xi Jinping thought’: five key trends for Africa

by Cobus van Staden @stadenesque

This briefing identifies five trends that could affect Africa, emerging from China's 19th Communist Party Congress, held in Beijing in October 2017. (4 p.)

INSTITUTE FOR SECURITY AND DEVELOPMENT POLICY

China’s role in UN peacekeeping

Historically, Chinese foreign policy was defined by a lack of international engagement and non-participation in multilateral organizations, such as the UN. Deng Xiaoping’s time in office as Chinese leader from the late 1970s to the end of the 1980s did mark a softening in China's position on peacekeeping and its broader engagement with the outside world. During this period, China began to contribute towards the UN peacekeeping budget and shifted its position in ways which allowed for the direct involvement of its personnel in missions from the 1990s onwards. (7 p.)

For further information, contact the Council Library: library@consilium.europa.eu 18/19

ISSUE 55 - MARCH 2018

INSTITUT FRANÇAIS DES RELATIONS INTERNATIONALES

La Chine en Méditerranée : une présence émergente

by Alice Ekman @alice_ekman

The Chinese presence in the Mediterranean is the subject of growing questions in the diplomacy of the Maghreb countries as well as Southern Europe. In fact, over the past five years, China has been declining with growing activism its national priorities at the Mediterranean level. This activism can be summed up in three main axes: creation of China-Southern Europe sectoral cooperation forums, investments in transport, energy and telecommunication infrastructures, conduct of military exercises in the Mediterranean within the framework of a global development of the Chinese maritime presence. (FR - 24 p.)

OŚRODEK STUDIÓW WSCHODNICH (CENTRE FOR EASTERN STUDIES)

Kolejowy Jedwabny Szlak. Połączenia kolejowe UE–Chiny: uwarunkowania, aktorzy, interesy The Silk railroad. The EU-China rail connections: background, actors, interests

by Jakub Jakóbowski @J_Jakobowski, Konrad Popławski @PoplawskiKonrad and Marcin Kaczmarski @M_Kaczmarski

The report discusses the current state and future prospects of rail connections between China and the countries of the EU. Special emphasis is placed on the role of Central Europe. It presents the goals and the policy adopted by the Chinese side in the process of building rail connections with European countries, compares the current and the planned transport corridors, offers an analysis of the economic potential of the China-Europe rail connections. It also discusses various business models of cooperation with China in rail transport. (PL - 99 p.) (EN -102 p.)

CENTRE INTERNATIONAL DE FORMATION EUROPÉENNE

China's Balkans silk road: does it pave or block the way of Western Balkans to the European Union?

by Magda Stumvoll and Tobias Flessenkemper @tobifle

The presence of China in the Western Balkans has become increasingly visible. Once only remotely interested in this part of Europe, the world’s second biggest economy is involved in a multitude of projects: investing considerably in infrastructure development and thereby advancing its influence along the Balkans Silk Road. Engagement in this part of Europe only accounts for a fraction of China’s global strategic investment. Yet, the fact that it converges with the European Union’s commitment to the European integration of the Western Balkans renders it particularly relevant. (4 p.)

CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES

Seven Chinas: a policy framework

by David Kelly @davidkpolicycn

The debate about China’s changing role in global affairs is often framed as a dichotomous choice between a peacefully rising China that seeks to be a constructive stakeholder and an increasingly dangerous China that is challenging the status quo, both in terms of its norms and the place of the US. The reality is more complicated. The author examines the nature of Chinese identity, or rather, Chinese identities, plural, and how they exhibit themselves in Chinese foreign policy. He concludes

For further information, contact the Council Library: library@consilium.europa.eu 19/19

that some of these narratives facilitate cooperation, but most point toward deep-seated tensions between China and the West in the years ahead. (9 p.)

EUROPEAN INSTITUTE FOR ASIAN STUDIES

China’s Belt and Road initiative is neither a strategy, nor a vision. It is a process.

by Grzegorz Stec @grzestec

According to the author, the Belt and Road initiative (BRI) has constantly been in flux since first being introduced. Due to the nature of the Chinese foreign policy, the author argues that we should see BRI as a process rather than a defined strategy or a clear vision. BRI progresses through an evolutionary process. (7 p.)

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