Skip to main content

The Comprehensive Agreement on Investment Strengthens the ‘European Party’ in China

From the series News from the Silk Road

“Chinese people treat [US democracy] as a variety show which is much more interesting than House of Cards’ [...]”. Beijing does not feel the same embarrassment as the old democracies of the West faced with the grotesque scenes of demonstration against the Capitol organised by the president of the United States. Zhao Minghao from the Chongyang Institute spelled out the obvious in his analysis some time earlier: “the political farce by the incumbent president and some Republican lawmakers is reflecting the profound crisis on US domestic politics.”

The Global Times is serving a hefty bill to the ideologies of liberal interventionism: “the ‘beacon of democracy’, and the beautiful rhetoric of ‘City upon a Hill’ [...]” are undergoing a serious debacle or in other words, a “Waterloo of US international image”. It will be a while before the US can “interfere in other countries’ domestic affairs with the excuse of ‘democracy’[...]”.

Attention is also drawn to the distinction between the image of the United States and die totality of American power, but Beijing still holds the “US democracy” accountable to its “complicated and long-standing systemic crisis”. Zhang Tengjun of the CHS (China Institute of International Studies of the Foreign Ministry) in Beijing notes how “American democracy’ has been unable to prevent characters like Trump from being elected”. Global Times writes that “the Republican party hesitated”. Zhang predicts that “the reordering of the chaos will depend on the capacity of die two parties to find consensus again”. Finally, Global Times again asks itself whether the United States will be more “unpredictable in the future”.

A burden to share

For Jia Qingguo, former dean of Peking University’s School of International Studies, the Chinese Dragon has no interest in American instability in the medium and long term, but can take advantage of it in the short term.

Jia is a proponent of Chinese "strategic composure” and writes that, in their rise to power, the United States continued to “use the British-led international order to strengthen itself” (The Great Country Persists, Shanghai, 2019). Subsequently, “with the expansion of their international interests, [the United States] began to pursue their own interests in an increasingly authentic manner, participating in the maintenance of the international order”. Only after the Second World War did they discover the “cost of maintaining an international order, which protected American interests, was extremely high”.

The theory seems to echo Henry Kissinger’s criticism of the American management of the Suez crisis in 1956 when, after unnecessarily damaging the image of France and the UK, the United States then saddled itself with the regional burden and, ten years later during the Vietnam war, found itself alone. Beijing, writes Jia, “should reflect on how to protect its interests through the protection of the international order”, although this means cooperating with the United States. For 40 years China has "used the order used by the United States, including American resources, for its own development, when China becomes stronger in the future, it will still need to use American resources. If China is to become the world’s leading power, it has to acknowledge this fact without proper use of American resources, the cost of maintaining a world order will be markedly higher”.

American party and European party

According to Fu Ying, of the National People’s Congress Foreign Affairs Committee, the predominant currents of the Chinese consensus are calling for the reopening of a dialogue with the United States, as a consequence of Joe Biden’s inauguration. These are components of that ‘American party’ whose transformation we have been following in the context of the “peaceful rise” and the relative abandonment of the “low profile”, including the proposal of a "new type” of relationship with the USA or the updating of the Shanghai Communiqué. However, in the negotiations with Washington the Comprehensive Agreement on Investment (CAI), concluded at the end of December with Europe, is now an additional factor.

For Xin Hua, of the Centre for European Studies of the SISU (Shanghai International Studies University), Europe is "carefully balancing” between the consensus for a “transatlantic geopolitical coordination to deal with China” and the strategic autonomy required for “dealing with China on its own terms”. The spotlight is on Berlin.

Atlanticist pressure to delay the signing of the agreement, triggered via Twitter by the American National Security Advisor Jake Sullivan, was enough to “embarrass some of the old European guard, especially the German establishment” and cause an “intensifying debate between Atlanticists” and pro-Europeans, i.e., "those Europeans who support more independence and autonomy from the US and NATO”. This debate is complicating the ratification. But “this time”, the analyst in Shanghai observes, Europe has not caved in to American pressure.

Germany: multilateral power

Sun Keqin, a researcher of the CICIR (China Institutes of Contemporary International Relations) who worked at the Chinese embassy in Germany, writes that Berlin “has begun to give a new response to Washington’s demands”.

Germany’s “multilateralism is in stark contrast with the US’ unilateralism under President Trump. And the great power competition for Germany is the competition and cooperation between the US, Russia, Europe, and China. It is not merely about an Atlantic alliance proposed and lead by the US targeted against China.” Sun warns that "Europe will try to take care of American emotions” and that "the counterweight of NATO” will ensure that Berlin "could not simply reject US’ demands”. But he sees possibilities opening up for China to balance "the influence of pressures exerted by the US on Europe”.

It is useful to fake a step back to frame these Chinese currents interested in European power, returning to a collection of works edited by Sun Keqin in light of the Atlantic "serious discrepancy” that saw Berlin fake a stand against the war in Iraq in 2003 (Germany and China in the New Century, Beijing, 2003).

Bonn in the Maoist theory of the united front

As early as 1956 Zhou Enlai declared that Beijing would welcome the normalisation of relations with the Federal Republic of Germany. Pan Qichang, of the Institute of European Studies of CASS (Chinese Academy of Social Sciences) gives the following assessment of the real purpose of what would later become the “Maoist theory of the united front”: “to attack not only the US, but also the USSR”, and to counterpose Western Europe and Japan to these major powers. China would also seek “something in common” with both Europe and Japan.

In January 1964, Gaullist France opened up to China. In May Chen Yi alluded to good relations with West Germany. In Bonn, Pan Quichang writes, a major discussion ensued. This discussion was revived, we should add, after the clashes on the Ussuri river. This China-USSR conflict was one closely followed by Arrigo Cervetto (Lotta Comunista — The Bolshevik Model, Marxist Science Publication, 2019).

The following was the situation at the time according to Pan Qichang. The “dominant currents”, he writes, thought that Germany could not use China to influence the USSR and challenge the Hallstein doctrine, which prevented diplomatic relations with countries apart from the USSR - that recognised the German Democratic Republic. But “many thought that the time had come to play the Chinese card on the German question.” One “should test whether and to what extent the conflict between the USSR and China could be used”, and in particular whether Beijing was willing to weaken or reconsider its relations with the GDR. This could have been done by signing a trade treaty as German industrialists were also demanding. In any case, the negotiations with Beijing would give Bonn more diplomatic breathing space “to counteract the cooperation between the USA and the USSR”. However, Erhard, initiating ‘secret’ negotiations in Bem, “dared not” move without Washington’s knowledge.

The ‘tweet’ of 1964

There was no Twitter then, but “the Americans required that the Federal Germany consulted with America before it took an important decision ”. Bonn decided not to follow Paris and Erhard declared, on a visit to Washington, that he did not intend

to sign a “trade treaty” that would recognise Beijing, but a “state agreement on the trade in goods". In the Chinese view, it was a "surrender” and the “renunciation by Erhard of a policy of independence”. Germany was “undoubtedly one of the forces that could be combined” in the “united front theory”. But the Bern talks, broken off in September 1965 by Chen Yi, account only for a chapter of the story.

By 1966, Ostpolitik on the one hand and the Cultural Revolution on the other shelved the Chinese card. Germany could not achieve its strategic goal of détente in the East by involving a China in open contention with Moscow. The Chinese card will have to wait It is no coincidence that it will be played first by the United States.

The Chinese card and the European card

In the article “The East-West Oscillation of the German Question” (May 1982), Cervetto estimated that the opening of Nixon and Kissinger to China had been, “from many points of view, [...] a response to the German initiative and the offer to the USSR of new conditions in order to shore up the Yalta agreement”. In essence to serve an anti-European function. According to Chen Feng of the CICIR, even after establishing diplomatic relations with Beijing in October 1972, Bonn remained heavily influenced by this dynamic. It would take Helmut Kohl to “greatly” develop bilateral relations after German reunification and the collapse of the USSR — when Germany’s strategy of “diplomatic globalisation” looked to China to promote “the emergence of multiple identities in the world economy” and “a stable multipolar world”.

In power relations with Washington, meanwhile, the European process was changing the balance. “Before reunification, the Federal Republic had always adopted a diplomatic strategy of ‘hiding its forces and biding its time’ [...]”. Since the 1990s, Berlin has been expressing itself as a “political power” through the European Union. It “does not yet have the strength to control half the sky and must still rely on the power of the United States to pursue its own status and influence as a world power. Therefore, it is impossible for Germany to separate itself from the United Stats, which sooner or later will seek a compromise”.

Meanwhile in Beijing the ‘American party’ is flanked by the ‘European party’.

Lotta comunista, January 2021

Popular posts in the last week

Democratic Defeat in the Urban Vote

Internationalism No. 71, January 2025 Page 2 From the series Elections in the USA A careful analysis of the 2022 mid-term elections revealed the symptoms of a Democratic Party malaise which subsequently fully manifested itself in the latest presidential election, with the heavy loss of support in its traditional strongholds of the metropolitan areas of New York City and Chicago, and the State of California. A defeat foretold Republican votes rose from 51 million in the previous 2018 midterms to 54 million in 2022, a gain of 3 million. The Democrat vote fell from 61 to 51 million, a loss of 10 million. The Republicans gained only three votes for every ten lost by the Democrats, while the other seven became abstentions. In 2022, we analysed the elections in New York City by borough, the governmental districts whose names are well known through movies and TV series. In The Bronx, where the average yearly household income is $35,000, the Democrats lost 52,00...

India’s Weaknesses in the Global Spotlight

Farmers’ protests around New Delhi have been going on for four months now. A controversial intervention by the Supreme Court has suspended the implementation of the new agticultural laws, but has raised questions about the dynamics between the judiciary and the executive, and has failed to unblock the negotiations between government and peasant organisations. The assault by Sikh farmers on the Red Fort during the Republic Day parade as India was displaying its military might to the outside world — the Chinese Global Times maliciously noted — paradoxically widened the protest in the huge state of Uttar Pradesh. The Modi government has been trying to revive India’s image with the 2021 Union Budget: it announced one hundred privatisations and approved the increase to 75% of the limit on direct foreign investment in insurance companies. For The Indian Express ( IEX ) this is a sign of the commitment to push ahead with reforms despite the backlash from rural India. Also for The Economi...

China’s Electromechanical Champions

Internationalism No. 85, March 2026 Page 9 From the series Major industrial groups in China Analysing the WTO data for 2023, it emerges that China exported goods worth $3,379 billion, surpassing the European Union and the United States. Industrial machinery accounted for over 7% of exports and electrical machinery 9%. In the same sectors, Chinese imports did not reach 40% of the value of exports, indicating that these are among the pillars of Beijing’s export economy. Sany Heavy Industry In this newspaper we have already examined the Chinese mechanical engineering giant Sinomach. But in the field of machine construction, Sany Heavy Industry also holds a prominent position, particularly in excavators, cranes, industrial elevators, and cement machinery. The company, based in Changsha (Hunan) since 1991, was founded by Liang Wengen, who had previously been an executive at a State-owned arms factory, and is its main shareholder. Sany had a 2023 turnover...

Armed Negotiations between the Gulf and the Mediterranean

David Petraeus, Commander of the US forces in Iraq and the Gulf in 2007-2008, then director of the CIA in 2011-12, described the elimination of Iranian General Qasem Soleimani on January 3 rd in Baghdad as a defensive action , with which the Trump presidency restored a US deterrence , which was weakened by recent Iranian actions . This is a reference to the attacks conducted indirectly, unclaimed by Tehran, against the Saudi oil infrastructures on September 14 th 2019. In March 2008, when the forces under Petraeus’ command supported the Iraqi Army in the fight against local Shite militias, Soleimani sent a message to the American general: informing him that he was the person in charge for Iranian policies in Iraq, Syria, Lebanon and Gaza therefore the channel through which to define an agreement to resolve the various issues with Tehran. Petraeus holds the advisors of the Quds Force, the spearhead of the Pasdaran asymmetric operations, responsible for the killing of around 600 ...

The deep strata of workers in an opulent Europe

The inauguration of the Draghi government has revived top trade union leaders anxious to be involved by the government of all , all the more so in the era of the Recovery Fund. The word consultation has been the most used in some recent trade union comments. Annamaria Furlan, of the CIS [Italian Confederation of Trade Unions] is explicit in calling for a great consultative pact [ Il Messaggero , 8 th February]. Pierpaolo Bombardier, secretary of the UIL [Italian Labour Union], adds that the consultation must become a method to help the country restart . Maurizio Landini, of the CGIL [Italian General Confederation of Labor] sees the novelty in the fact that social partners have been involved in the establishment of the new government [ Conquiste del lavoro , 11 th February]. The two phases of European imperialist politics In this sense there are many comparisons to the Ciampi govemment of 1993, omitting that consultation was functional to limiting the costs of labour. There ...

In the Depth of Our Class

The pandemic of the century is a storm that does not subside; it returns to its rampage after 40 million infections and more than a million official victims, perhaps two million according to estimates on the excess deaths. In the contention between powers, China stands as the winner: it seems to have tamed the virus, and industry and services are up and running; the USA and Europe, on the other hand, are moving towards a new wave of infections that casts yet more shadows on the economic cycle. Political structures and health systems are at the height of tension. In America, the elections have judged Donald Trump’s rash demagogy on the basis of the opposite reasons for containing the pandemic and the intolerance of small and large producers; in Europe the executives are attempting to steer between the surge in infections, increasingly stringent confinement measures and the threats of fiscal jacquerie in the tourism and catering sectors. Almost everywhere, in the Old Continent, governm...

Historical Constants and Strategic Surprise

The Strategic Surprise of the Agreement between Beijing and Tehran and the Suggestion of a Six-Power Concert The agreement between Beijing and Tehran falls under the definition of strategic surprise , i.e., events that entirely appertain to the political realm and mark a change or an about-turn in the balance among the powers. New alliances, the breakdown of alliances, the overturning of coalitions, diplomatic openings or unexpected military sorties: these are the regular novelties of international politics that Arrigo Cervetto wrote about. However, if the agreement was an unforeseeable event in itself, the long-term objective economic and political trends. that have determined it and made it possible are entirely investigable. The invasion of Afghanistan by the USSR at the end of December 1979 was interpreted by the United States as a potential threat to the oil routes of the Persian Gulf, and it was a contemporary revival of the Great Game , which had set the British Empire agai...

‘Two Hands’ and ‘Two Roads’

From the series News from the Silk Road The international tensions which China will face on the seas in the next fifteen years could find a buffer in the expansion of China’s influence on land in Central, Southern and Western Asia. Wang Jisi is the dean of the School of International Studies at the University of Beijing and a major figure of the American party in China. His unexpected foray into ‘geopolitics’ has reignited the old clash between different American currents — a phenomenon we analysed more than twenty years ago. At the time, Robert Manning, the author of The Asian Energy Factor and adviser to the State Department in 1991, viewed Asia’s growing dependence on the Persian Gulf for its energy requirements in the light of geoeconomics and geostrategy and foresaw a possible convergence between the USA and China. From a geoeconomic standpoint, both trade and the funding and development of the infrastructure necessary for Asia’s energy needs were more important than terri...

Nuclear Energy and the Power Grid

Internationalism No. 85, March 2026 Page 8 From the series The world energy battle Electricity is at the heart of modern economies and the demand for electricity is growing much faster than the overall consumption of energy in every scenario [ Electricity 2025 , International Energy Agency report]. Overproduction and power grid bottlenecks Electricity represents just 21% of energy consumption at a global level, but it is the main source for the sectors which represent more than 40% of the economy. A fundamental issue for the security of the electricity system is the modernisation of the power grid, which is currently lagging behind the expansion of production capacity. Although global investment in the production of electricity has increased by almost 70% since 2015, reaching $1,000 billion a year, annual spending on the grid has increased at less than half this rate, reaching $400 billion. This is also a European problem. Accordin...