Decentralized Research On Sino-European Relations

This thesis reviews the decentralization of China-EU relations after Eurozone Debt crisis with focus on two case studies of Greece and 16+1 mechanism. This research provides a brief introduction to China-EU relations before Eurozone Debt crisis and analyze how the reaction of both actors have affected their relationship. Moreover the impact of decentralization China-EU relations is discussed together with promising initiatives that offer many possibilities for future cooperation between China and EU. Usually the conducted research is focused either on Eurozone Debt crisis or China-EU relations. Very few academic works are trying to find an answer to the question how has the Eurozone Debt crisis affected the China-EU relations. This thesis is trying to better understand this issue. The major argument for this thesis is that China-EU relations are more focused on bilateral relations with Members States because of the Eurozone Debt Crisis. This shift can be considered as decentralization of China-EU relations. Two research questions are general. Is decentralization obstacle to official China-EU relations? How could the EU foreign policy become more centralized in the future? Two are more specific. Which role China and EU played in tackling Eurozone Debt crisis in Eastern European countries and in Greece? Which role China and EU played in tackling Eurozone Debt crisis in Eastern European countries and in Greece? This detailed analysis can be found in the two chapters dedicated to Sino-Greek relations and 16+1 mechanism.The reason why this two specific cases were chosen are as follows. Greece is the symbol of Eurozone Debt crisis and has a significant importance for China in its One Belt One Road initiative.The 16+1 mechanism was proposed by China and thanks to this mechanism bilateral relations between Central and Eastern European countries and China greatly improved. That is something that concerns EU because EU has to cope not only with financial crisis but also ideological one. If bilateral relations will have greater significance than China-EU relations it might result in decentralization of this relations. This thesis is offering possible solutions of how to improve China-EU relations and avoid further decentralization. Decentralization can have negative impact on China-EU relations and its in the interest of both parties to strengthen its comprehensive strategic partnership that was established in 2004.For this thesis the primary data sources are official policy papers of EU and China, websites of EU's and China's institutions,online sources and journal articles concerning the China- EU relations. The secondary source is academic literature focused either on Eurozone Debt Crisis or China-EU relations. As for the academic papers the main ones are - Effects of the debt crisis on the EU-China relations written by Julia Mezo and Beata Udvari and Hans Kundnani's policy brief How Economic Dependence Could undermine Europe's Foreign Policy Coherence. One of the most important academic literature for this research is China and Europe in 21st Century Global Politics: Partnership, Competition and Co-Evolution. Its chapters provides balanced view on the topic of European Sovereign Debt Crisis from both from Chinese and European side. The supporting evidence for this thesis can be found in the policy papers of EU and China however it is not the main source. The most visible evidence is the increasing trade between China and CEE countries. The same applies for Sino-Greek relations.The findings of this thesis to research questions are as follows. In the future decentralization could be an obstacle and have negative impact on China-EU relations in the sense of slowing down progress of this relation. The reaching of agreement on common policy issues might get complicated with EU member states preferring deepening relations with China in their own way.EU should improve its communication with members states and stress the importance of common voice in EU's foreign policy. Considering the previous unsuccessful attempts of EU of to motivate its member states it will be an extremely difficult task to achieve. More centralized China-EU relations might be possible if the economic situation of EU member states and EU in general will improve. The decreasing EU internal export and import decreases the dependency on foreign investors and capital.The reaction of China and EU to Eurozone Debt crisis has been diametrically different. China clearly stated its willingness to help but emphasized that is primarily task of EU to tackle its own economic problems. Because of the limitation of the EU's budget and lack of legislative support in the European Treaty EU does not have many ways how to help its Member States to overcome their economic problems. Many member states have found solution in increasing their public debt and looking for trade partners outside of EU to restart their economies and China was a perfect candidate.Greece is a strong supporter of China-EU relations. That was confirmed many times. However the latest development among Troika has caused tension because of the conditions of financial help to Greece. With more austerity measure coming from EU and on the other side stronger economic support from China it is possible that Greece might change its opinion about EU in the future.Another source of decentralization is 16+1 mechanism. To show EU that 16+1 mechanism is not a threat China invites to every summit EU representative and put a clause in final declaration that everything that was agreed on during the meeting is in accordance with EU regulation. EU expresses its opinion about this mechanism very rarely.The growing importance of bilateral relations with China for Member States means less focus on EU's foreign policy. EU needs support of all its members to improve its situation but that will not happen until EU solve its own internal issues. As a result the progress of China-EU strategic partnership might slow down and could possible lose some of its importance in the future.China's initiative One Belt One road and EU's Investment Plan for Europe provide a good opportunity for China-EU relations. Successful cooperation and common achievements in these initiatives would mean strengthening of China-EU relations. There are three scenarios in which way will China-EU strategic partnership develop - decreasing, stagnating or improving. Based on the conducted research the second option is the most likely one.