China-Russia relations are creating divisions in the EU

BRUSSELS — China’s relationship with Russia is causing discomfort and division in the European Union, with some in the bloc saying it’s time to rethink their relationship with Beijing.

President of China Xi Jinping visited Russia earlier this week, where both leaders shared common concerns, warm words and called each other “close friends”. Speaking next to the President of Russia PutinChinese leader Xi predicts voters will re-elect his Russian counterpart next year and describes his leadership as “strong”.

Their conversations are closely watched by officials in the US and EU, especially regarding the possibility of military assistance Beijing could offer Moscow, which could materially help Moscow in the made strides in the war in Ukraine.

More broadly, however, the stronger ties between Moscow and Beijing are creating problems within the European Union, which has so far sought to strengthen its economic links with China.

There is a school of thought that the EU needs to strictly restrain its relationship with Beijing – something the US would welcome. But instead, some EU leaders want to be careful with their words and actions in case they offend Beijing.

Arturs Krišjānis Kariņš, Latvia’s prime minister, told CNBC on Thursday that Mr. Xi’s visit to Russia “was a bit of an eye-opener for us in Europe”.

“If it could be many, many people would have hoped that China could somehow play the role of a [peace] broker, China does not do this at all. For now, China is definitely openly siding with Russia. And this is really a huge challenge and a big difficulty for all of us,” he said.

Last month, China presented a 12-point plan for peace between Russia and Ukraine. The plan did not specify whether Russia would need to leave Ukrainian territory for the deal to be completed. Kiev has made it clear that it will not agree to any peace agreement that does not involve regaining full control of its territory, including Crimea, which the Kremlin annexed in 2014.

“We looked at it very carefully [the] Dutch Prime Minister Mark Rutte told CNBC. “We very much hope that a phone conversation will take place as soon as possible between Xi Jinping and Volodymyr Zelenskyy.”

There has been speculation that the Chinese leader, after leaving Moscow, will have his first phone conversation with the Ukrainian president since the invasion began in February 2022.

However, there are doubts in Western nations that China can be an effective mediator between Russia and Ukraine. When asked if he trusts Beijing to do that, Rutte said: “It’s very difficult to judge.”

While Ukraine has previously criticized Hungary and Germany for drawing closer to Russia, it has maintained a more friendly tone towards Beijing.

Prime Minister Xavier Bettel of Luxembourg told CNBC in Brussels on Thursday: “I don’t want to attack China just because China is attacking. He said that China is a competitor of the EU, but also a partner. Indeed, in 2022, China is the third countrylargest destination for goods from the EU.

“So is TikTok,” continued Bettel. “In my country, TikTok hasn’t been banned yet. I’m not banning TikTok because it’s Chinese, but if I have proof that something is up, I’ll ban it – but I’m not in favor of stoning or banning it. There’s no proof.”

European institutions, Belgium and Denmark – among others – have banned the use of Chinese-owned apps on work phones out of national security concerns.

Speaking in Davos, Switzerland, in January, French Finance Minister Bruno Le Maire said France’s position was to cooperate with China.

“China cannot stay out, China must stay inside. This is a difference of opinion between the US and Europe,” he said. “We don’t want to be against China, we want to cooperate with China.”

Overall, EU is stuck Between a rock and a hard place. Its trade links with China are important, especially as economic growth in the EU is vulnerable to the ongoing war in Ukraine. But at the same time, it is seeing closer ties between Beijing and Moscow, which could be in direct conflict with the EU’s goal for peace in Ukraine.

Furthermore, the EU has become more dependent on the US in security matters since the invasion and meanwhile Washington’s rhetoric is increasingly critical of China.