A Farewell to Neo-Liberal Europe

Xi Jinping's itinerary in Europe epitomizes the deep ideological and political undercurrent shaping the future of Europe and its shift from neo-liberalism to neo-sovereignism

Xi Jinping's visit to France, Serbia, and Hungary highlighted the PRC's strategic approach to Europe. The ceremonial nature of the visit to France was evident as Emmanuel Macron felt compelled to invite EU Commission President Ursula Von der Leyen for official talks. This invitation appeared somewhat confrontational in its tone toward China's trade policies. Macron aimed to assert that France should not be relegated by China only as a middle power due mainly to its limited nuclear arsenal and conventional forces projection capabilities. Instead, it should be viewed as one of the main forces behind the European Union. However, Xi Jinping's face-to-face meeting with an unelected civil servant chosen by EU member states seemed overshadowing for Macron.

Macron also attempted to pressure Xi about China's alleged backing of Russia's war in Ukraine. However, this criticism was disregarded as the Putin-Xi relationship holds far more significance for Xi than the words spoken by the French president. Macron’s statements were likely aimed at domestic politics and his strategic positioning within the European Union, rather than having a substantial impact on Chinese policy or Russian actions. Other EU and NATO leaders' reaction to Macron's bold declaration of sending Western troops to Ukraine indicates a significant disparity between aspirational rhetoric and reality.

Macron and his spouse invited Xi and his partner to enjoy the fresh mountain air in the Pyrenees region, which Macron had visited during his childhood. This created a contrast between the formal discussions, which yielded little results, and this lighthearted "getaway" that captured tabloid attention. Perhaps Macron aimed to emulate Kennedy's style for posterity, but he fell short of it. In the words of Karl Marx, "History repeats itself: first as tragedy, second as farce."

Contrast this with the turbocharged program of Xi’s visit to Serbia and Hungary. These countries were strategically chosen, not randomly. For China, Serbia has been a long-time partner, and the bombing of China’s embassy in Belgrade by NATO in 1999 is still remembered by the Chinese. By alluding to this incident—forgotten or seemingly ignored by NATO—Xi reminded the European Union and the world who his main adversary is. According to Politico's report, Serbian President Aleksandar Vu?i? showed great respect toward a major power as expected by Xi. Additionally, Serbia signed a free trade agreement with China and welcomed Chinese investments in its physical and virtual infrastructure along China’s Belt and Road Initiative as well as standalone projects.

In the early 2000s, Serbia was warm to the idea of joining the EU. However, as other nations were admitted faster and contentious issues like Kosovo were constantly framed by Brussels as key hurdles in Serbia's accession bid, both the population and political elites grew increasingly disenchanted. Instead, under the leadership of Aleksandar Vu?i?, first as a Prime minister in 2014 and then as a twice-elected President from 2017 onward, Serbia strengthened its ties with Russia, from which it imports its oil and gas, and China. The refusal to apply sanctions on Russia after the start of the war in Ukraine in 2022 further distanced Serbia from the EU.

Serbia also saw the opportunity to benefit from China's interest in creating a gateway to Europe through the Balkan region. It is worth noting that China's COSCO already oversees operations at Athens' Piraeus Port in Greece, which it invested in during Greece's sovereign debt crisis. In 2010, Piraeus had a container operating capacity of about 1.5 million TEUs (twenty-foot equivalent units). Today, this number has risen to 6.2 million TEUs

“Twenty-five years ago today, NATO flagrantly bombed the Chinese embassy in Yugoslavia, killing three Chinese journalists—Ms. Shao Yunhuan, Mr. Xu Xinghu and his wife Zhu Ying. This we should never forget. The Chinese people cherish peace, but we will never allow such tragic history to repeat itself. The China-Serbia friendship, forged with the blood of our compatriots, will stay in the shared memory of the Chinese and Serbian peoples, and will inspire us to march forward with big strides.” (From Xi Jinping’s oped in Politika.rs )

When it comes to Hungary, China's involvement with an influential EU member that resisted the US-China decoupling and subsequent Western-China division thesis is quite evident. Orban has defied pressure by not withdrawing from the Belt & Road Initiative, unlike Italy’s Meloni, who shares some ideological and political similarities with Orban but lacks sufficient institutional and political strength to resist the Atlantic influence and lobbying within the EU.

This “all-weather comprehensive strategic partnership”, as touted by Xi himself, has already yielded significant results for Hungary. The country was chosen over automotive industry heavyweights like Germany or, to a lesser extent, France, by Chinese battery makers BYD and CATL as the chosen site for their European giga-factories. A new rail line across the country will be constructed to transport electric cars, batteries, and other products from Chinese factories in eastern Hungary to Western Europe. Other major Chinese-led projects in Hungary include the reconstruction of the Budapest-Belgrade railway, a high-speed railway connecting the center of Budapest and its airport, and cooperation in nuclear energy.

The political and ideological significance of Xi's chosen itinerary in Europe goes beyond the enumeration of projects. Germany was not an option as Xi already met Chancellor Olaf Sholz in Beijing in mid-April. France was a natural choice, considering Macron's desire to project a larger persona than his foreign policy achievements - which are practically negligible - and France's stature as a middle power would entitle him to do so. During his visit to China last year, Macron spoke about "strategic autonomy" and conveyed the message that Europeans should refrain from getting involved in Taiwan and broader South China Sea affairs. By including Ursula Von der Layen in the formal talks and adopting a firm position on Europe's geopolitical opponents like Russia and China, while reaffirming his commitment to the Western US-led alliance, Macron highlighted the difficulties of securing substantial outcomes in one-on-one conversations with Xi. Gone are the days when Charles de Gaulle dared to defy the United States and assert France’s right to an independent foreign policy.

Serbia and Hungary embody what Xi and China view as the future of European politics and the ideological center: a shift away from neo-liberalism and the elite that governed the European Union through the first quarter of the XXIst century, moving towards a unique blend of sovereignty or neo-sovereignty. This avant-garde is represented by Hungary, and potentially Serbia when it eventually joins the EU. It's important to remember that Maoism represents an idiosyncratic mix of Marxism, nationalism, and sovereign Leninism. Therefore, there are many similarities between Xi, Putin, and leaders with increasingly central sovereignist political orientations within Europe. Some might even consider this a form of European Trumpism. Many observers continue to adhere to rigid classifications in labeling various populist parties as "far-right." However, even neoliberal and centrist politicians like Macron acknowledge this trend while attempting to use its playbook for their political advantage. This strategy is bound to fail because neither Macron nor his circle genuinely supports this emerging trend; their approach is purely tactical and opportunistic rather than being driven by strong beliefs or strategic considerations.

The upcoming European Parliament elections are likely to confirm a significant shift from neoliberalism to neo-sovereignism. This could have far-reaching consequences that may impact ongoing conflicts in Ukraine and other regions. Interestingly, this change might be what is necessary to advance Macron’s "European sovereignty" agenda. It makes sense for one to practice at home what they preach abroad. The accusation by neoliberal elites against China, regarding over-capacities in key industrial sectors and technologies such as electric vehicles and renewable power generation, reflects the failure of the same brand of politics that governed Europe for over a quarter century without reversing the trend toward deindustrialization on economic matters or achieving independence from NATO and ultimately from the United States on security matters.