The Impact of the Current Economic Crisis on the Chinese Position in Europe

Abstract

Since the beginning of the financial crisis relations between the EU and China have fundamentally changed. Beijing used to be a recipient of European aid and investments. Nowadays, China is perceived as a donor and investor, and thus the status quo has changed. Coming back to Whalley’s concept of economic power, Chinese “bargaining power in cooperative arrangements between countries” has definitely increased, and so has its retaliatory power. Beijing has a new instrument that can be used in political relations with European partners: investment promises. For the time being its importance may be limited, but it could become very valuable for China in the future.