Why we won't abandon China

During a successful visit to China, Prime Minister Alexander De Croo and Foreign Minister Hadja Lahbib met President Xi Jinping, among others. Economic and political dialogue was resumed and the first steps were taken towards a more balanced trade relationship. After all, although China is a competitor and rival in some areas, it also remains an indispensable partner.

In November 2019, Princess Astrid led the largest ever Belgian trade mission to China (Beijing and Shanghai). The delegation included no fewer than five ministers and 632 participants representing 312 companies or organisations. Our royal couple visited the country a few years before - June 2015 - followed by then-Prime Minister Charles Michel in October 2016. As an emerging superpower, China offered numerous promising economic opportunities.
 

Coronavirus crisis

But that picture soon changed. Shortly after the trade mission, the coronavirus crisis broke out, which precluded visits. And not only that. The geopolitical context became grimmer, as the rivalry between China and the US increased but also due to Russia's war in Ukraine. In its pursuit of a multipolar world, the Asian superpower also seeks to achieve greater alignment with other emerging economies (BRICS) and the Global South.

The coronavirus crisis also made the European Union (EU) and Belgium more aware that they have become too dependent on China for many essential goods. Since then, the concept of 'strategic autonomy' came into vogue: the EU wants to be much more self-sufficient in the production of drugs, medical equipment, semiconductors and so on.

Increasingly critical voices also emerged in our country about human rights in China, among other issues. For instance, the Chamber of Representatives passed a resolution denouncing the inhumane treatment of the Uyghurs in China. Belgium also excluded China from a tender for a 5G network. Very recently, it emerged that a member of Flemish party Vlaams Belang provided services to a Chinese spy in return for payment.
 

De-risking, not decoupling

The time of naivety vis-a-vis China is over. However, a more cautious approach by no means implies that our country is cutting ties completely. 'Strategic autonomy' is not synonymous with completely shielding our economy. In particular, it suggests that the EU wants to diversify the origin of its raw materials and protect sensitive sectors such as batteries.

As Prime Minister De Croo put it during his mission to China: ‘We certainly do not advocate isolationism. The last thing we should do at difficult times is turn our backs on China. We should do the opposite: remain open to doing business, and remain open to political conversations.' Our country and the EU do not want to decouple, or reduce cooperation, but they do want to reduce dependency through de-risking, or taking less risks.

Partner, competitor and rival

Indeed, China remains an indispensable partner and, as a superpower, also plays an important role in world peace. Belgium essentially maintains the same perspective vis-a-vis China as that which the EU articulated in 2021, namely: China is simultaneously partner, competitor and rival.

China, for instance, is an indispensable partner on environment and climate issues (the implementation of the Paris Climate Agreement), the Sustainable Development Goals (SDGs), food security, fight against poverty, the green energy transition and so on.

'We also need China as a permanent member of the UN Security Council to help resolve the conflicts plaguing the planet,' Minister Lahbib said during the mission. 'For example, to denounce Russia's military aid to North Korea. As for the Middle East, we are on the same wavelength. We both want the two sides to start negotiations and enter into a peace process that can provide a solution for the two States.'

Economically, China is more of a competitor. China's economic structure and centralism - with state subsidies - create an imbalance in the world. Examples include excess capacity of steel, aluminium and semiconductors.

Incidentally, there is also a huge trade surplus with Belgium. In 2022, our country exported €7.8 billion worth of goods. Imports were almost five times higher: 35.35 billion euros. This resulted in a negative trade balance of over €27 billion.

Finally, the rivalry is reflected at the multilateral level. Indeed, China tends to promote its own vision of global governance. This poses risks to the multilateral system based on rules and universal values to which Belgium and the EU adhere. For example, the Asian giant has its own vision of human rights and international maritime law (in the South China Sea).
 

Demand for greater investment

Whatever the case, Belgium cannot disregard China. Maintaining direct contact remains crucial. Hence Prime Minister De Croo's decision to travel to China - accompanied by Minister Lahbib - to hold talks at the very highest level again - after many years of silence. The fact that our country is currently also president of the Council of the EU added additional weight.

But does that giant nation of 1.4 billion people have any interest in a dwarf with a population of 11 million? Capital Beijing alone has twice as many people. Nevertheless, China does have an interest in establishing closer relations with our country. Its rivalry with the US has left it seeking out other partners. EU Member States are certainly coveted in this regard. 'China is pragmatic and rational,' said Minister Lahbib. 'Economic growth is decelerating and youth unemployment is increasing. The Chinese therefore want Europe to relaunch its investments.'

Bruges: building bridges

China also literally rolled out the red carpet for the Belgian delegation. After arriving in Beijing, the convoy of cars and minibuses - carrying journalists and company executives - made its way through almost empty streets - lined with Belgian flags - to the Forbidden City. That prime Chinese monument was also all but abandoned in order to give the Belgian visitors every opportunity to admire the architecture.

President Xi Jinping also took the time to speak with Prime Minister De Croo, incidentally just like the other high-level counterparts: Chinese Premier Li Qiang and President of the Chinese Parliament Zhao Leji. President Xi Jinping recalled his visit to Bruges and noted the word 'bridge' in it. 'We need to build more bridges than walls,' he opined.
 

Panda diplomacy

Chinese Foreign Minister Wang Yi even took the trouble to travel down to the Belgian embassy where a brand new, climate-neutral building was inaugurated. It also featured the Smurfs and pandas from Pairi Daiza, in addition to beer, waffles and chips, of course. Traditional Chinese music was also performed.

'In Chinese culture, a new building also opens new perspectives, it marks a new beginning, the start of a new journey,' Minister Wang Yi commented at the opening. 'And that is exactly what we expect from the China-Belgium and China-EU relationships. I hope Belgian diplomats (...) will continue to build bridges (...) and tell China the story of Belgium in all its diversity and tell Belgium and Europe the true story of China.'

Open, frank and respectful

The Belgian ministers managed to speak openly and frankly in all talks. 'If you do it respectfully, you can actually say anything here,' explained Prime Minister De Croo afterwards. 'Everyone should be made to feel respected. We Belgians have no problem with that. We don't have any ego getting in the way.'

According to Prime Minister De Croo, a conversation usually began with the sentence: 'In a relationship between two countries that respect each other, there must be the opportunity to speak freely. And I appreciate the fact that I can speak freely here.' 'I subsequently clarify the areas in which our views diverge. It is also typical to occasionally say: We agree to disagree.’ It was a successful approach. 'Xi said twice that he appreciated our open and frank conversation.'
 

No interference wanted

That way, it was also possible to raise sensitive issues such as the situation with the Uyghurs, Tibet, Hong Kong, the need for stability around Taiwan, the 5G network etc. Human rights were also discussed. Prime Minister De Croo: 'I said that human rights are universal. (...) Xi replied that they are a country at a different stage of development and that the most important human right remains for people to be happy. 'And our people are happy.'’

The message that Belgium does not want any interference in its political system - referring to the spying affair of a Vlaams Belang member - was also strongly worded and heard. This occurred during public moments where the press was present. 'This got across to them,' explained Prime Minister De Croo. 'Honour is important here. At the state banquet, I told the Premier that we had evidence, but as expected, he denied all government involvement.’ 'I insist that you share your details with us because we take this very seriously,' the Premier concluded.

Minister Lahbib had the opportunity to meet Chinese civil society to discuss women's rights, a subject close to her heart.

Trade embargo on pork

The ministers also dotted the i’s and crossed the t’s in terms of business. 'China is asking for greater European investment,' Minister Lahbib said. 'But we explained our need for a certain level of confidence, with more specifically a genuine respect for intellectual property.'

Important steps were taken towards a primary goal of the mission - building more balanced trade relations. For instance, the Chinese Premier pledged to lift the trade embargo on pork. This mainly refers to pig's heads and legs, which are offal in our country but a delicacy in China. Belgian chicory can also be exported, and peppers and apples are likely to follow later in the year.

Furthermore, direct flights between Zaventem and Shanghai will resume from June. This would benefit Chinese tourism and business relations. Indeed, many of the Belgian companies operating in China hold offices in the region of this Chinese megalopolis. Prior to visiting Beijing, Minister Lahbib visited that region to promote Belgian industry there.

Our country also wants Belgians - like the Dutch, Germans and French - to be able to travel visa-free in China for 15 days. That issue was not entirely worked out but President Xi Jinping did indicate that he favoured visa-free travel.

Long-term work

The Belgian companies travelling in the ministers' wake - Bekaert, Solvay, AB InBev, Novandi, Inbiose etc. - were also extremely satisfied with the trade mission. Meetings with a number of Chambers of Commerce were scheduled. Businesses and the food sector even had the opportunity to put questions to the Commerce Minister during a round table.

Even if this has not (yet) resulted in any concrete contracts, opening up the Chinese market is a long-term job anyway, Prime Minister De Croo admitted afterwards. 'In countries like this, it's more about nudging things forward. Concrete results will follow. Therefore, it is good that we were able to put our country on the radar with this visit, as the Netherlands has been doing for much longer.'

In short, the mission succeeded in reviving relations, and did so through face-to-face meetings with the three key figures of the Chinese regime. They turned into open and frank dialogues that did not shy away from sensitive areas, but consistently showed respect for both political regimes. An approach that China found quite agreeable. Such trips should be much more regular in the future.