Ursula von der Leyen Stresses Need for “De-Risking” Strategy Before Beijing Visit

Ahead of her trip to Beijing with French President Emmanuel Macron, European Commission President Ursula von der Leyen has called for a comprehensive reassessment of the European Union’s approach to its diplomatic and economic relations with China. In a significant speech delivered in Brussels, von der Leyen stressed the importance of understanding the risks associated with China’s evolving political and economic policies, as relations between the two have become increasingly complex.

Von der Leyen pointed to China’s shift towards a more assertive global stance, where the Communist Party aims to reshape international norms by placing China at the center of a new world order. This “systemic change” threatens the principles of individual rights and civil liberties, she warned. Human rights violations, especially the treatment of Uyghur Muslims in Xinjiang, were highlighted as a critical issue that will heavily influence Europe’s willingness to cooperate with Beijing.

Despite these concerns, von der Leyen acknowledged that the EU’s economic relationship with China remains too important to sever. The EU does not wish to “decouple” from China but instead seeks to “de-risk” its engagements, prioritizing security and economic stability. China remains one of Europe’s largest trading partners, contributing €1.9 billion a day in trade. However, von der Leyen emphasized that Europe must protect its strategic interests by ensuring that investments and trade with China do not contribute to China’s military build-up or undermine European values.

She also poured cold water on hopes for a swift revival of the EU-China Comprehensive Agreement on Investment (CAI), an agreement that was put on hold in 2021 due to human rights concerns, particularly over China’s treatment of ethnic minorities in Xinjiang. Von der Leyen acknowledged that the geopolitical landscape has changed significantly since the agreement was initially negotiated and suggested that the European Commission is now focusing on “de-risking” rather than full engagement.

Additionally, von der Leyen discussed the need for greater scrutiny of European high-tech companies investing in China, especially in sectors like quantum computing, artificial intelligence, and robotics. She stated that the EU might impose restrictions if it believes that such investments could compromise national security or contribute to China’s military capabilities.

The EU’s stance towards China will also be shaped by the China-Russia relationship, particularly in light of President Xi Jinping’s recent visit to Moscow. Von der Leyen noted that China’s continued support for Vladimir Putin’s regime amidst the ongoing war in Ukraine could heavily influence how the EU manages its relationship with Beijing moving forward. China’s “no-limits friendship” with Russia, according to von der Leyen, may offer China greater leverage over Russia, further complicating the EU’s geopolitical calculations.