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Silk Road Headlines

29 November 2017

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Source: Louis Vest/flickr

 
On 27 November 2017, the 6th summit of China and Central and Eastern European countries (CEEC) was held in the Hungarian capital, Budapest. The China-CEEC summit is the main annual event within the so-called 16+1 framework and brings together the Chinese premier and the leaders of sixteen European (EU and non-EU) countries. The central theme of the framework is cooperation on the Belt & Road initiative. This year’s summit was attended also by representatives from Austria, Belarus, Greece, Switzerland, the European Bank for Reconstruction and Development and the European Union as observers. Besides the annual summit that is usually held at the end of the year, the 16+1 framework also comprises a large and expanding number of China-CEEC events that take place throughout the year. These include working-level, high-level and ministerial meetings on policy domains ranging from customs clearance to health and energy. Next year’s 16+1 summit will take place in Sofia, Bulgaria.

For countries in Central and Eastern Europe, close ties with China potentially bring both economic benefits and an improved diplomatic bargaining position vis-à-vis the European Union. A blog published by the German think tank MERICS states that ‘European integration seems very much at stake when Eastern European governments use their relationship with China to gain leverage over Brussels. […] The 16+1 cooperation is full of symbolism that can threaten the cohesion within the EU if left unaddressed‘ [China’s Charm Offensive in Eastern Europe Challenges EU Cohesion]. Another angle is presented by an article in Forbes, which points out that the economic benefits that the Central and Eastern European countries have been hoping for have not yet materialized [China’s Bid To Buy Eastern Europe On The Cheap: The '16+1' Group].

Since the 16+1 framework was established, its impact on EU cohesion and whether it can deliver economic benefits have been major topics of debate among experts and in the media. This has not stopped China from steadily laying the groundwork for Belt & Road activities in Eastern and Central Europe. While the construction of the Belgrade-Budapest railway – generally regarded as a flagship project – has been delayed, initiatives with a lower profile continue to be prepared or developed. Topics addressed at the Budapest summit include mechanisms for e-commerce cooperation; the railway corridor from the Adriatic ports of Rijeka and Koper into Central Europe; extending the Belgrade-Budapest railway to ports in Montenegro and Albania; the China-Europe Land Sea Express Line (connecting China to Central Europe via Greece and the Western Balkans); port cooperation around the Adriatic, Baltic and Black Seas; the launch of a China-CEEC civil aviation forum; project financing in renminbi; and the involvement of the China Development Bank, the China Ex-Im Bank, the Silk Road Fund, and the China-CEEC Investment Cooperation Fund. If the 16+1 framework indeed undermines EU cohesion, the question comes up why it is that the Central and Eastern European countries would risk weakening the EU by engaging with China.

Frans-Paul van der Putten

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To increase awareness of and facilitate the debate on China's Belt and Road Initiative, the Clingendael Institute publishes Silk Road Headlines, a weekly update on relevant news articles from open sources.

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