In an effort to repair strained relations caused by its perceived support for Moscow during the Ukraine conflict, China has signed letters of intent for cooperation with several major European corporations. The agreements were made between China’s top economic planner and manufacturing conglomerates such as Airbus, BMW, Mercedes-Benz, Volkswagen, Siemens, and BASF. The National Development and Reform Commission (NDRC) confirmed the signings, stating that the collaboration will include areas such as electric vehicles, energy saving, emission reduction, low-carbon product production, and new chemical materials.
During a signing ceremony in Paris, Airbus CEO Guillaume Faury and NDRC’s head Zheng Shanjie pledged to expedite the construction of Airbus’ new assembly line in the Chinese city of Tianjin. The NDRC expressed its support for domestic airlines cooperating with Airbus based on their requirements. Chinese Premier Li Qiang’s visit to Europe served as an opportunity to lobby European business and government leaders on the importance of economic cooperation. Li witnessed the signing of agreements between the NDRC and European companies in both Berlin and Paris, as part of China’s charm offensive to mend ties with Europe.
China’s eagerness to rebuild relationships with Europe comes in light of its aggressive “wolf warrior” diplomacy and its ongoing partnership with Russia, despite the conflict in Ukraine. Relations have also strained due to EU regulators and governments imposing restrictions on China’s access to sensitive technology. European countries, while acknowledging the need to mitigate risks, are also keen to maintain economic ties with China and seek balanced partnerships throughout Asia and beyond.
Italy recently implemented measures to restrict China’s access to sensitive chip technology through curbs on Pirelli’s largest shareholder, Sinochem. These moves reflect Europe’s reassessment of its diplomatic and economic relations with China, prompted by concerns over disinformation, economic coercion, and the need to protect critical technologies.
China’s pursuit of cooperation with European giants like Airbus and BMW signifies its efforts to rebuild trust and strengthen economic ties, despite ongoing geopolitical tensions.