When Xi Jinping visited Europe in late March, European Commission President Jean-Claude Juncker portrayed the future of EU-China relations in mixed terms: “We are strategic partners, and yes, rivals,” he said, “but competition among us is a good thing.” Indeed, EU member states have been at odds about China for a while, and deteriorating U.S.-China relations are complicating matters.
The U.S. is pressuring its European allies to limit the market presence of the Chinese technology giant Huawei, with Secretary of State Mike Pompeo recently visiting Poland, Hungary, and Slovakia to raise the alarm. Italy, which in late March became the first G7 member to join China’s Belt and Road Initiative (BRI), may work with the China-led Asian Infrastructure Investment Bank. Meanwhile, Germany and the UK are forging their own formulas for restrictions and partnerships.