EU unprepared for China’s dominance in world economy, expert warns

Sebastian Heilmann warned few governments are taking China seriously enough, least of all the European Union.

He said: “Most Europeans do not know what’s awaiting them. Many national governments are still following the erroneous view that the best way they could pursue their interests is bilaterally with China. 

“The EU currently lacks the community measures in many fields to negotiate with China on an equal footing.”

The comments come two days after the ideology of Chinese President Xi Jinping was enshrined into Chinese communist party lore – putting the premier on a par with revolutionary founder Chairman Mao. 

Mr Heilmann said this is a departure from the guidelines of Deng Xiaoping, who took over from Chairman Mao in 1978 and is credited with modernising the country.

While Deng preached Chinese “restraint” in world affairs, Mr Heilmann said Xi is positioning China to become the “centre of world politics”.

Mr Heilmann, director of the Mercator Institute for Chinese Studies in Berlin, told German newspaper Derbund: “Xi’s world view became apparent at the Silk Road Summit in Beijing in May. China is inviting and the world is coming. 

“A network of trade relations and international institutions is to be established with China as the focal point. In Beijing’s view, only strong and benevolent powers like China can permanently secure stability and peace in the world.”

He added that, far from presenting a threat to China, Xi viewed US President Donald Trump as a weakness to be exploited, as he does the turmoil being created in Europe by Brexit.

He said: “In China, the weakness of the US is perceived as a strategic opportunity. Specifically, as Europe moves increasingly away from the US, China and Europe will build ever closer ties in a developing ‘Eurasian’ economy. 

“The current interpretation in China is that the West is in decline, and the People’s Republic is capable of carrying its model into the world. 

“The international institutions created and dominated by the West are currently being altered or bypassed by Chinese diplomacy.”