EU nations are significantly divided on how to deal with China's economic and political influence.

While the EU has officially labeled China a "partner, competitor, and systemic rival," individual member states often prioritize their own economic and political interests, leading to a fragmented and inconsistent approach. 

This division stems from a mix of economic dependence, differing threat perceptions, and varying political priorities.

The "Hawks" vs. the "Doves" 

The division within the EU can be broadly categorized into two groups: the "hawks" and the "doves."

• The "Hawks": These countries, often including France, Germany, and countries in Eastern Europe that have experienced a shift in policy, advocate for a tougher stance on China. They share many of the same concerns as the U.S., focusing on issues like China's human rights abuses in Xinjiang and Hong Kong, its aggressive stance toward Taiwan, and its support for Russia's war in Ukraine. These nations are pushing for a more unified EU front on security issues and are concerned about Chinese investments in strategic infrastructure and industries. They also champion the concept of "de-risking"—reducing critical dependencies on China without a full-scale "decoupling."

• The "Doves": This group, which has historically included countries like Hungary, Greece, and Portugal, has tended to prioritize economic relations and has been more receptive to Chinese investment. For these nations, Chinese capital for large-scale infrastructure projects—like the Piraeus Port in Greece or rail lines in Hungary—is a welcome source of financing that traditional Western institutions might not provide. These countries often take a more accommodating diplomatic stance toward Beijing, sometimes acting as a check on tougher EU-wide policies.

These divergent priorities make it difficult for the EU to formulate and enforce a cohesive and unified China policy.

Economic Dependence and the Trade Imbalance 

The primary driver of EU disunity is economic. China is the EU's second-largest trading partner, and many European companies, especially from Germany and France, are heavily invested in the Chinese market.

• Germany's Automotive Sector: German automakers like Volkswagen, Mercedes-Benz, and BMW rely heavily on sales in China, which is their largest market. Any significant downturn in their business there would have a major impact on Germany's economy. This economic reliance makes the German government cautious about taking actions that could provoke retaliation from Beijing.

• Trade Deficit: The EU has a massive trade deficit with China, meaning it imports far more than it exports. While this provides cheap goods for European consumers, it also undermines local industries and creates a significant economic imbalance. The sheer volume of Chinese imports and the fear that Chinese producers will flood European markets with products they cannot sell in the U.S. creates a difficult trade-off for policymakers.

The economic dependence of individual countries on China gives Beijing significant leverage to influence policy. By offering lucrative deals or threatening to cut off trade, China can play EU member states against each other, hindering the bloc's ability to act in a unified manner.

The Political and Security Dimension 

While economic interests are a major factor, political and security concerns also contribute to the divide.

• Human Rights: The EU has been outspoken about China's human rights record, particularly the crackdown in Xinjiang and Hong Kong. However, the willingness of individual member states to prioritize human rights over economic ties varies widely. While the EU has imposed sanctions on Chinese officials, these actions have been met with retaliatory sanctions from Beijing, often targeting members of the European Parliament, which has further complicated relations.

• Investment Screening: In response to concerns about Chinese influence, the EU has developed a framework for screening foreign direct investment to protect strategic assets. However, the enforcement of these regulations is left to individual member states, leading to a patchwork of policies. Some countries are more rigorous in screening Chinese investments in their critical infrastructure and technology sectors, while others remain more lenient.

• Support for Russia: China's continued support for Russia since its invasion of Ukraine has been a major point of friction for the EU. While all EU countries oppose the invasion, their views on how to handle China's role are not uniform. Some nations, particularly in Eastern Europe, see China's support for Russia as a direct threat to European security and call for a tougher stance, while others prioritize avoiding a full-blown confrontation with Beijing.

In conclusion, the EU is deeply divided on how to approach its relationship with China. While there's a growing consensus that China is a "systemic rival," the bloc's ability to act cohesively is hampered by the differing economic interests, political priorities, and security concerns of its 27 member states.

This fragmentation gives China opportunities to exploit divisions and pursue its own interests, weakening the EU's collective influence on the global stage.