De-risking + Export controls + Foreign relations law
picture alliance / ASSOCIATED PRESS | Geert Vanden Wijngaert

De-risking + Export controls + Foreign relations law

A lot is happening in China’s relations with the world: a law regulating the PRC’s foreign relations that has just come into force stresses the leading role of the Communist Party and prioritizes China’s security and development interests as key factor in shaping relations with other countries. Meanwhile, China’s imposition of export controls on two raw materials needed for the manufacturing of electric cars and fiber optic cables is creating tensions. At the same time, efforts to prevent escalation in relations with China are emerging at various levels. US Treasury Secretary Janet Yellen is currently traveling to Beijing, and the EU summit last week sent signals of moderation in the debate about "de-risking" relations with China.?

We look at these and other topics in the current issue of MERICS China Essentials, the last before our short summer break until August 17. Here are some current assessments by our experts:

What’s next for the EU’s de-risking after the last European Council? MERICS analyst Grzegorz Stec says: “The Council may be trying to ease up on the rhetorical pressure. But for any new China policy to be credible, the EU will have to be assertive with China in the long run.” Read more

MERICS Analyst Rebecca Arcesati comments on the planned Dutch export controls for chip-making equipment to China – an apparent response to US pressure: “Any further unilateral move by the US to apply extraterritorial instruments would not go down well in Europe. … [It] could make it even harder for the European Commission to persuade reluctant capitals like Berlin of the need for better EU-wide coordination of export controls for critical technologies.”?Read more

Beijing’s announcement to control gallium and germanium exports is a deliberate move to target weak spots of the US and its allies, says MERICS Senior Analyst Jacob Gunter: “If they want to, the US and friends have the technology to replace these China-made minerals, but it will take some time and a lot of support to do so.”?Read more

China’s new Foreign Relations Law expands legal foundations of Beijing’s coercive tools, but “it does little to ease international concerns about sudden retaliations if foreign states or companies act contrary to Beijing’s interests,” said Katja Drinhausen, Head of the Politics and Society program at MERICS.?Read more

Continue reading this issue of MERICS China Essentials on our website.

Paul Berthe

Observateur de la vie

1 年

Ignore PRC, invest in ASEAN, Mongolia and India

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Rainer Arnstadt

Optimieren wir Ihre IT und TK!

1 年

I'm not sure if the description here is complete. The introduction of export controls in China is "only" a reaction to how the USA and some EU states dutifully follow it, exclude Chinese companies from the market or sanction the local economy. And now that you are witnessing China's foreseeable reactions, are you being portrayed as de-escalating and peaceful with your appeasements? While the sanctions and bans on Chinese companies continue unhindered.... I think export controls will be lowered as soon as we Western countries lower/remove our sanctions - who is the trigger and who is just reacting?

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Benjamin Creutzfeldt

Concerned global citizen

1 年

China "with the world"?!!! Surely Mercator Institute for China Studies (MERICS) gGmbH can do a better job formulating. China is a very central player with THE REST OF the world.

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