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한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском Although the gesture from Spain, Ireland, and Norway has been welcomed by Palestinian authorities, the past week has highlighted the Zionist determination to obliterate any possibility of a genuine Palestinian state. Pedro Sánchez announced early this morning what has been awaited since it was announced almost a week ago: the recognition of the Palestinian State, which, in the words of the Prime Minister, "must be a viable state, with the West Bank and Gaza connected by a corridor, with East Jerusalem as its capital, unified under the Government of the Palestinian National Authority," he stated. The president also sought to appease Zionist opposition and dispel accusations of supporting Hamas: "This is a decision that is not against anyone, least of all against Israel, a friendly people whom we respect and appreciate, and with whom we want to have the best possible relationship. This decision reflects our outright rejection of Hamas." The announcement of the recognition of the State of Palestine will be made, as the president communicated in the press conference, after it is approved today by the Council of Ministers. Meanwhile, the coalition government partner, ‘Sumar’, has welcomed this step, reminding that other actions are still necessary. "Arms embargo, suspension of diplomatic relations, supporting ICJ measures, and supporting the South African denunciation," have been enumerated in its X account. Today, May 28, 2024, was the date that Spain, Norway, and Ireland had marked on the agenda to take this diplomatic step in support of the Palestinian people. Ireland, for its part, will proceed with the recognition of the State of Palestine following a parliamentary debate to be held during the day. The decision taken by these three European countries, made public last Wednesday, May 22nd, joins them with the 144 countries that already recognized the State of Palestine within its 1967 borders, following the commitment to the coexistence of two sovereign states that can peacefully coexist, a principle underlying the Oslo Peace Accords of 1993, and which, however, three decades later, seem unrealistic given Israeli policies of colonization of the West Bank, isolation of Gaza, and appropriation of East Jerusalem, the territories that should compose an already disjointed Palestinian state. The Spanish recognition of Palestine as a state — a recurring commitment made by the PSOE that has taken time to materialize — coordinated with Ireland and Norway, implies that European countries, traditional allies of Israel, are joining what the Global South and colonized peoples had largely done decades ago. In Europe, Sweden took that step in 2014, many years after several countries in Eastern Europe recognized the Palestinian state in 1988, before the fall of the Berlin Wall. The former Czechoslovakia is a striking case; while the Czech Republic considers this recognition no longer valid, Slovakia reaffirms the decision made in the 1980s. Currently, Belgium, Malta, and Slovenia are other European states that have expressed their intention to recognize the Palestinian state, without specifying a specific date. For Israel, it is important that this trend does not spread. Zionist Foreign Minister, Israel Khan, wasted no time in attacking the Spanish government (again) on social media for its decision, accusing the prime minister of being complicit in "inciting the murder of the Jewish people and war crimes." The decision of the heads of government of Ireland, Norway, and Spain came after the United Nations General Assembly passed a resolution for the recognition of the Palestinian State, calling on the Security Council to accept Palestine as a full member after the US veto. The gesture of these three European countries has been welcomed by the Palestinian authorities, it responds to a historical demand, and contributes to put pressure on those countries that claim to advocate for the two-state solution but have not yet recognized Palestine as such. But beyond its symbolic value, for now, it doesn't seem likely to change the reality of the Palestinian people in Gaza, the West Bank, or East Jerusalem. In fact, Israel has punished Palestinians precisely after the decision of the three European countries: for example, by prohibiting the Spanish consulate in Jerusalem from assisting Palestinian individuals. On the other hand, the fact that most states recognize a Palestinian state has not translated into anything resembling its materialization: many of these states are also important allies of Israel, as emphasized by Sánchez himself this morning, recalling their closeness to the Zionist state. However, Israel, with its foreign minister at the forefront, has not ceased its attacks on Spain, Ireland, and Norway in the last week: in addition to recalling their ambassadors for consultations in the European states, there has been a constant response on social media, with videos accusing the three states of collaborating with Hamas. Meanwhile, violence against Gaza and the West Bank has intensified. Last Sunday, Israel attacked refugee camps in Rafah, leaving around fifty Palestinians dead and causing global outrage at the images of people burned alive, including children. It seems that in response to the symbolic gesture of recognizing Palestine, Israel continues with its plan to make a real Palestinian state impossible. In yesterday’s report (May 27th), the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) pointed out that one million people have been forced to flee again, following Israel's ground invasion of Rafah on May 6th. Meanwhile, the Ministry of Health in Gaza has already reported over 36,000 deaths and more than 80,000 injuries, which, along with the missing persons, would account for 5% of the Strip's population. The United Nations has warned that it will take at least 80 years to rebuild Gaza. The fact that Israel is ravaging Palestine doesn't seem to concern the opposition as much as the worsening of bilateral relations with the Zionist state. While the leader of the opposition, Alberto Núñez Feijóo, stated yesterday that the government's decision "empowers" Hamas, Isabel Díaz Ayuso echoed a similar sentiment, saying, "They are calling for the extermination of Israel and are justifying what Hamas terrorism intends against that state. The offenses from the Government are continuous (...) The State [of Israel] will not respond with flowers," said the president of the Community of Madrid yesterday after the publication of a video released by Israel in which, with flamenco music in the background, it was reiterated that Hamas appreciates Spain's decision. But the recognition of the Palestinian state is not the only open front against the Zionist state: following the ICJ's order to halt the offensive against Gaza, the EU convened a meeting with Israel for the first time yesterday, and mentioned a tool that the EU has had from the beginning, the review of the preferential agreement between Brussels and the Zionist state. Meanwhile, civil society expands its mobilizations; yesterday, demonstrations condemning the bombings in Rafah took place worldwide, overflowing in cities like Paris. Meanwhile, the momentum continues from the encampments, which, as seen in yesterday's action at the Polytechnic University of Madrid, are bringing to light all the ties with Israel, achieving concrete victories, and exposing the extent of the economic interests and networks of influence that Israel has deployed in the university sphere. The article was translated and licensed under CC BY-SA 3.0 ES (Atribución-CompartirIgual 3.0 España).

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском According to the EU, Russia had set several red lines, but then allowed them to be crossed without reacting. Therefore, gradually increasing the temperature can be a good strategy... Whereas, throughout the first two years of NATO's war against Russia in Ukraine, the record of warmongering was almost equally shared between the US and the UK, more recently it has been attributed to Macron. The reasons are diverse, ranging from the great difficulty France is currently facing to the illusion of being able to take advantage of the German crisis to assume European leadership, including the political dwarfism of its president. But the underlying reason is that European leaders, almost unanimously, have essentially resigned themselves to carrying out the task left by the US: taking on the burden of the conflict in the East, supporting Kiev even beyond the last Ukrainian, if necessary. Also in this case, the reasons why Europeans have convinced themselves that they cannot escape this task are multiple. What matters is understanding how they believe they will do it, when they believe they will do it, and, obviously, if they really believe they can do it. Judging by how interventionist statements are intensifying, it seems that the timeline is not so distant; probably, in the European offices, they envision initiating an operational phase at least after the US elections, also to have a clearer idea of the White House's orientations and the timing of their public announcements. At the same time, the evolution on the battlefield does not seem very compatible with these optimistic forecasts: the arrival of good weather has already revitalized the Russian initiative along the entire front line, and the structural deficiencies of the Ukrainian army are evident. Events, therefore, could accelerate. Regarding the how, it seems quite clear that the idea is to boil the Russian bear like the proverbial frog. Step by step, counting on Moscow wanting to avoid an escalation, they will end up letting things happen without a strong response. In conclusion, it is believed that Russia had set several red lines, but then allowed them to be crossed without reacting. Therefore, gradually increasing the temperature can be a good strategy. Furthermore, the public discourse (the narrative used to prepare public opinion) is a mix of nonsense and half-truths, but reading them carefully, the design becomes clear. Macron puffs up his chest and makes aggressive statements, but then between Ukrainian requests and European readiness, the scheme emerges: start by training the Ukrainians in Ukraine (150,000 men...) so they are closer (and prepared) to the front [1]. After all, NATO countries have been training them for years, only the location changes... One imagines that such a debut would be more acceptable to European citizens, and that after all Moscow would not react beyond "strong protests." Then we'll see from there. Clearly, the weak point is the actual possibility of creating the design according to your own scheme. Firstly, the premise is that Russia behaves exactly as expected in Brussels, which, however, is not at all a fact. As always, caught up in their autism, European leaders do not listen, and even if they do, they do not understand. Here, in fact, we are beyond the light statements of Medvedev; when a diplomat like Lavrov clearly says that if Europeans want war they are prepared, it should not be taken lightly. Moreover, when Monti in turn says that "to build Europe" blood must be shed, he is simply more sincere and pragmatic than Macron. The problem, of course, is that a small-step scheme simply runs the risk of resulting in a series of useless steps. The critical problems of the Ukrainian army are basically three: lack of artillery ammunition, lack of personnel, lack of anti-missile and anti-aircraft systems. For the first one, Europeans are unable to remedy it. Even if the Russian industrial relative production did not grow (as it is happening) and remained at current levels, Europeans would take years and years to match it. As for the second one, the difficulties to solve it would be at least the same. Sending even 20-30,000 men would not have a decisive impact. Firstly, we would be talking about men with no real combat experience, let alone in a war of attrition like the one being fought. The logistic support would be very complicated, as the rear would have to be located in Poland and/or Romania, a thousand kilometers from the front. And anyway, even such a figure would amount to 5,000-6,000 men in combat. Irrelevant. It would be necessary to send at least 200 or 300 thousand men, practically the entire European NATO force, to have any impact. The Europeans could transfer almost all of their missile/anti-aircraft defense systems, leaving their respective countries almost defenseless, but this would also have a limited impact over time: the Russians would exploit the large quantities they have to saturate the defenses and destroy the batteries one after another (as Iran did with Israel). The only thing that could introduce an element of discontinuity would be the intervention of the air force. European fighter-bombers taking off from airfields outside of Ukraine, striking Russian rear areas. But this would inevitably bring the war to European soil, as it is clear that at that point the Russians would strike the departure air bases with their ballistic and hypersonic missiles. The same would happen if missile defense batteries from neighboring countries were used. Furthermore, if this level of intervention were to create problems for the Russian armed forces, it is virtually certain that at that point Moscow would resort to tactical nuclear weapons. Because for Russia, the risk of defeat in this war equates to an existential threat. And here Macron comes into play again, boldly promising the coverage of the French nuclear umbrella, the 'force de frappe'. Unfortunately, the comparison with the Russian Federation is ruthless, and the quantity of French nuclear weapons (as well as the aircraft carriers to deliver them to the target) is ridiculously smaller: At most, France can offer the shelter of a cocktail umbrella, and Moscow would turn Paris into a milkshake. Therefore, the European strategy of boiling the Russian bear slowly – though as stupid as a frog - cannot work. Gradualness simply runs the risk of exacting a very high price (in terms of casualties, wounded, destroyed weapon systems, etc.) without achieving any noteworthy result. On the other hand, an acceleration, by promptly engaging a significant force in combat, is practically equivalent to plunging Europe into a prolonged conflict, without equally managing to change the terms of the equation. Without direct intervention from the US, European countries alone are absolutely incapable of significantly engaging Russia [2]. But direct engagement is exactly what Washington shies away from, and they are very aware that once you put boots on the ground, there's no turning back, and the logic of war drags you deeper and deeper. Something they learned well from Vietnam, and they have never forgotten. Therefore, combat continues to present itself as a gamble. It's like having far fewer chips than your opponent and still betting everything without even holding a pair of twos in your hand. In all of this, of course, we have not taken into account at all the fact that there is no unified point of view - beyond the facade - among the different European capitals. Likely, there are countries - not only Hungary, or Slovakia, but also Germany and Italy... - that secretly hope for an immediate collapse of the Ukrainian army, to render any hypothesis of deploying their own forces useless. Although the scenario briefly described is very realistic, it is clear that there are those who believe that Europeans would have an excellent opportunity in a confrontation with Russia. That this is believed possible among political leaders, although dangerously disheartening, is also plausible; much worse is when it is supported by senior NATO military commanders, whose opinion cannot fail to influence political decisions. And quite a few generals, French, German, and from other countries, seem convinced that they can win the game (or perhaps just dream of a moment of glory, after a lifetime behind a desk or playing war games). [3] Certainly, what happens on the European chessboard also depends on what happens elsewhere, because this is a global game where everything is interconnected. The problem is that European leaders not only lack decision-making power, not even marginally, regarding this dimension, but they also completely lack global vision. The real one, of course, not the one that appears in the news. The coming months, therefore, will be full of consequences for the Europeans, but they will also be largely played as pawns, with their movements directed largely from outside, while the effects will be almost entirely at our expense. And it is clear that the interest of the US is to push the Europeans, but not NATO, to assume the risks and burdens of the conflict, which Washington would like to prolong indefinitely. [4] The inadequacy of leadership is another risk factor, in addition to the objectives. In this context, as we see, these leaders tend to curl up like a hedgehog; aware of their own weakness, both against the enemy they are confronting and their own citizens who do not wish to die for Kiev (not even for Washington), they are increasingly moving towards the militarization of public space, the restriction of democratic spaces, and an authoritarian shift. They wage war on the dissent of their citizens today so that they can wage war on Russia tomorrow. And if the European peoples lose this war, they will be dragged into another one, in which defeat could coincide with the extinction of European civilization as we have known it. Notes [1] According to The New York Times, due to the shortage of troops, the Kiev government has asked the US and NATO to "contribute to the training of 150,000 new recruits" within Ukraine so that they can be deployed to the front lines quicker. Obviously, this is a gigantic absurdity. However, these training camps should be located as far away from the front lines as possible to minimize the risk of being targeted (large troop concentrations are obviously an attractive target), and they would require adequate protection against air attacks; the risks and logistical efforts would far outweigh the minimal benefit of having recruits in training a little closer to the battle line. This is blatantly a ploy to bring NATO military personnel onto the ground. [2] A research done by the British newspaper 'The Daily Mail' established that in the event of an open conflict between NATO and Russia, NATO forces would not be sufficient. Although the strength of the Atlantic Alliance appears superior in numerical terms, this superiority is essentially due to the armed forces of the US, without which it significantly deteriorates. Additionally, the research does not consider, even marginally, factors such as industrial production, experience, combat capability, etc. [3] According to the commander of the combined armed forces of the Alliance in Europe, General Christopher Cavoli (USA), the Russian armed forces "lack the skills and capabilities to operate on the scale necessary to exploit any advances to gain a strategic advantage." [4] In this regard, a reputable American magazine like 'Foreign Affairs' has explicitly indicated this direction, and certainly not by chance. According to the FA, which is obviously closely aligned with the State Department, "European countries must do more [...] They should seriously consider deploying troops in Ukraine to provide logistical support and training, to protect Ukraine's borders and critical infrastructure, or even to defend Ukrainian cities. They must make it clear to Russia that Europe is willing to protect Ukraine's territorial sovereignty". After dismissing the idea that this could lead to World War III, the authors cunningly suggest that "a strictly non-combat mission would be easier to sell in most European capitals". However, they immediately stress that "Europe should consider a direct combat mission to help protect Ukrainian territory". In fact, "since European forces would operate outside the framework and territory of NATO, any losses would not trigger a response under Article 5 and would not involve the United States". And to reassure European leaders - to whom the message is clearly directed - they add: "At a certain point, European leaders must ignore Putin's threats, as they are nothing more than propaganda." The article was translated and licensed under CC BY-NC-SA 3.0 ES (Atribución-NoComercial-CompartirIgual 3.0 España).

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском In October 2023, the EU Commission identified four technology fields as critical: advanced semiconductors; artificial intelligence (AI); quantum, and; biotechnologies.[1] All four areas are greatly impacted by the U.S.-China rivalry in technology, making it essential for Europeans to understand the Sino-American competition. This article examines this rivalry from the Chinese and U.S. perspectives. It recounts their prevailing attitudes, which are shaped by recent events, and that, in turn, mold Chinese and American strategic approaches. From the Chinese policymakers’ perspective, its geo-technological competition with the U.S. is novel and passively learned. During Xi Jinping’s first term, the Chinese government still positioned technology under the economic-oriented strategy of innovation-driven development. This stance followed the idea that ‘science and technology constitute a primary productive force’ and the ‘peaceful development’ principles set during Deng Xiaoping’s era. However, around 2018, two sanctions incidents that targeted Chinese telecommunications giants shifted Chinese leaders’ understanding of tech strategy into the geopolitical context. The first sanction incident involved ZTE, China’s second-largest communications equipment manufacturer. In 2016, the Barack Obama administration accused ZTE of selling telecom equipment containing American chip technology to Iran, which violated U.S. sanctions. In 2017, ZTE pleaded guilty and paid a fine of $1.2 billion. However, in 2018, Trump’s government stated that ZTE did not comply with the settlement agreement, coupling previous sanctions with export controls on ZTE in April 2018. The second incident involved Meng Wanzhou, then Vice-Chairwoman and CFO of the Chinese telecommunications giant Huawei, who was arrested in Vancouver, Canada, during a layover in December 2018. Her detention was at the extradition request of the Trump administration, which levied charges related to alleged violations of U.S. sanctions against Iran. These included bank and wire fraud and outright violations of U.S. sanctions via a subsidiary called Skycom Tech, which allegedly concealed Huawei’s activities in Iran. The necessity of a strategic adjustment These two incidents caused an uproar in the Chinese media, followed by a surge in public patriotic sentiment. However, for the Chinese government, the impact and significance of the two cases were quite different. The essence of the ZTE case was commercial sanctions, which meant that ZTE violated business norms and deserved economic punishment. The official Chinese government stance was that ‘this is just an individual case of corporate violation.’ Despite this position, the fact that the government was actively involved nonetheless politicized the incident within China. It was Xi Jinping himself who negotiated with Trump to save ZTE from bankruptcy after which ZTE became a state-owned enterprise with absolute state control—a move that ultimately resulted in ZTE gaining a greater domestic market share than Huawei. At the international level, the top-level nature of negotiations prevented the ZTE incident from overly politicizing then-ongoing trade frictions between the U.S. and China. While the ZTE episode was resolved with little rancor, Chinese senior officials became concerned about the impact that the U.S. might have on China’s strategic technology companies.[2] In November 2018, Tan Tieniu, then Deputy Secretary-General of the Chinese Academy of Sciences, reported to China’s top leaders that they should learn from the ZTE incident. They should avoid overreliance on imports of core electronic components and chips, and they should not repeat mistakes made by ZTE. In the same month, Xi Jinping mentioned in a speech that ‘internationally, advanced technology and key technology is more and more difficult to obtain… forcing us to travel the road of self-reliance.’ Terms like technological security, technology ‘chokepoints’ (卡脖子), and core technologies in key fields (关键核心技术) began to appear frequently in Chinese official discourse. These reflected Chinese leadership’s views about the ZTE incident that were in turn shaping strategic thoughts on the geopolitical technology competition with the United States. It was the Meng Wanzhou incident at the end of 2018 that for Chinese leaders confirmed the necessity of a strategic adjustment. As in the ZTE case, Huawei was involved in a business violation that from the Chinese perspective should have resulted in corporate punishment. Instead, a personal arrest warrant was issued for Meng, thereby escalating a commercial sanction into a political and diplomatic incident. Le Yucheng, then Deputy Minister of Foreign Affairs, urgently summoned the U.S. and Canadian ambassadors to China and issued a stern protest. The Chinese government also arrested two Canadian citizens in China, sentencing one to 11 years in prison. The Chinese Ambassador to Canada wrote that the Meng Wanzhou case was a ‘premeditated political act in which the United States wields its regime power to hunt a Chinese high-tech company out of political consideration.’ Chinese Defensive Deterrence These two episodes shaped and reinforced Chinese leaders’ strategic thinking about its geopolitical technology competition with the U.S. The 14th Five-Year Plan issued by the CCP in 2020 proposed ‘making technological self-reliance’ a strategic goal. Soon all official documents established a new tone for China’s technology strategy based on self-reliance. Previously, China pursued a reassurance strategy, a strategy that showed goodwill towards the U.S. and the system it led. Thus, in theory, China had two strategic options: reassurance and/or deterrence. The former strategy involves showing friendliness towards the U.S. and its allies, thereby releasing tension, and maybe re-joining the U.S.-led system. A reassurance strategy allowed China more time for stable development—the logic of ‘keeping a low profile’ of the Deng Xiaoping era. The Xi Jinping government picked the second option, deterrence, which is to show strength or use countermeasures to reduce the likelihood of further U.S. trade or coercive action. To make a deterrence strategy work, however, Xi further believed China needed to gain strong capacity in key tech fields. Therefore, Xi first mobilized domestic R&D resources and tried to acquire advanced technologies before using diplomatic countermeasures. The core logic underlying this geopolitical technology strategy is one of ‘defensive deterrence.’ A typical example of this strategy in play concerns the semiconductor industry. Facing export controls on semiconductor equipment from the U.S., the Netherlands, and Japan, the Chinese government first increased R&D investment in the sector, trying to overcome ‘chokepoint’ technologies. As a result, China’s investment in semiconductor R&D grew from $10 billion in 2018 to $25 billion in 2022, an increase of 150%. At the same time, the Chinese government increased investment in the production of key raw materials (silicon, gallium nitride, etc.) and semiconductor production bases. It also guided industries upstream while also pushing for downstream integration through policies to improve and strengthen supply-chain security. Chinese policy also moved to increase international supply-chain dependence on China through its comparative advantages in the semiconductor industry (and even other industries) in a hedging move against the U.S. and its allies. For example, in the automotive chip sector, in the supply of vital raw materials, and in the semiconductor equipment markets, China sought to utilize its significant comparative advantages. In August 2023, the Chinese government announced export controls on gallium and germanium, two key materials for manufacturing semiconductors. China Seeking More Regulatory Power But in addition to responding to what was perceived as U.S. containment policies in the area of technology, China’s strategic use of technology followed another approach, one led by the Ministry of Foreign Affairs (MFA) and the Ministry of Industry and Information Technology (MIIT). This third approach sought more regulatory power, for example, in the areas of civilian AI where China has huge potential.[3] Starting in 2018, the Chinese government showed a strong determination to introduce and study AI ethics and technical standards.[4] Based on these domestic framework policies, various diplomatic initiatives, and standards proposals, the MFA and MIIT expanded China’s regulatory influence in the field of AI. For example, the MFA proposed the ‘Global Data Security Initiative’ in 2020 and the ‘Global Artificial Intelligence Governance Initiative’ in 2023. Minister Wang Yi explicitly stated ‘We hope to provide a blueprint for related international discussions and rule-making.’ The China Electronics Standardization Institute, affiliated with the MIIT, also actively participates in the formulation of international new technology standards. Selectively decoupling: U.S. Attitudes and Strategies When it comes to strategic technologies, the Joe Biden administration has generally maintained a stance toward China that aligns closely with the previous administration led by Donald J. Trump. This is especially the case concerning competitive technologies such as 5G/6G, the specialized processors designed to handle the computational demands of AI, quantum computing, and electric vehicles (EVs). Taking a page from U.S. President Ronald Reagan’s Cold War playbook of outspending the Soviet Union, president Biden initiated a $2.25 trillion infrastructure plan. This plan, not unlike China’s policy to increase domestic innovation and strength, allocated funds for sectors such as transportation, manufacturing, renewable energy, clean water, and high-speed broadband for both wired and wireless technologies. The justification for these investments, part of the Build Back Better Act (BBB) policy and later incorporated into the Inflation Reduction Act (IRA) and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act, was that they were a response to Xi Jinping’s ambitious goals of doubling China’s economy by 2035, intending to establish China as a global leader in biotechnology, green energy, and AI. In addition to a spending strategy to boost U.S. competitiveness in strategic technologies, the Biden administration continued with some of Trump’s punitive measures. For example, Biden maintained tariffs amounting to approximately $300 billion. He also continued action against Huawei, which has the potential to outcompete in 5G/6G mobile network technology. The Trump administration used the Bureau of Industry and Security to exclude Huawei from global semiconductor supply chains and it placed the company on the Commerce Department’s Entity List, thus requiring U.S. companies to obtain a license before exporting to Huawei. As discussed above, Trump’s executive branch also brought fraud allegations against Huawei’s Chief Financial Officer Meng. While Biden kept in place Trump-era prohibitions on sales of U.S. goods to companies like Huawei, as well as maintaining restrictions on exports of U.S. critical technology, he did quickly resolve the dispute over Meng. Within hours of the deal for her release, the two men caught up in the game of hostage diplomacy left China on a flight back to Canada. Highlighting the political nature of the incident, when Meng returned to China, senior local officials at the airport met her. Encourage Multilateralism to meet Global Challenges Along with strident measures, the Biden administration also sought a more nuanced stance. Indications that suggest a less hawkish approach to China include emphasizing a collaborative approach toward global challenges like climate change and future pandemics. Biden further pushed for engagement in high-level meetings with, for example, Secretary of State, Antony Blinken, and National Security Advisor, Jake Sullivan, who held talks with their Chinese counterparts, Yang Jiechi and Wang Yi, in Anchorage, Alaska, in March 2021. These talks were frostier than U.S. officials would have preferred but they got the two sides to engage in some dialogue. Similarly, Biden sought to engage with China in multilateral forums and organizations where both countries are members, such as the recent Asia-Pacific Economic Cooperation (APEC) forum that Biden hosted in November 2023. Even the choice of San Francisco as the venue was designed to be conciliatory as it has historic ties to Asia as well as a central role in global technology as the home of Silicon Valley. Still, one must keep in mind that in deciding on a strategy towards China, Biden must also contend with a Congress and public opinion that are growing increasingly skeptical of doing business with China, which they believe steals good jobs and sends balloons over American territory to spy on U.S. critical infrastructure. One primary shaper of U.S. attitudes towards China are the leaders of the House Select Committee on the Chinese Communist Party, Republican Representative Mike Gallagher and Democratic Representative Raja Krishnamoorthi, who lead one of the last bastions of functioning bipartisanship in Washington, D.C. With their many investigations, subpoenas, and policy recommendations, the House China Committee has become the ‘beating heart’ of U.S. Congressional policy, which, with regards to technology, argues for selectively decoupling from China for national security reasons.[5] A way forward Faced with the U.S.’ decoupling or blunting strategies and China’s defensive deterrence strategy, what steps might European nations take to navigate through the choppy, contentious waters of strategic technologies? Are there also steps that Europeans can take to mitigate the impact on their own strategic technology vulnerability? First, recognizing the pivotal role of technology in the rapidly digitizing global economy, Europeans need to stress that it is in the collective interest of everyone to establish institutions, norms, and policies for effective global governance. Rather than engaging in reactive geopolitical maneuvers resembling a chess game, these institutions could concentrate on constructing a more cooperative foundation for crucial technology sectors. Second, along with this recognition, efforts could be directed toward the development of future institutions, policies, and norms that set standards for next-generation and sensitive technologies. Such efforts should take into account initiatives already made by the Chinese and the Americans. Such efforts could also coincide with a third approach of encouraging the Biden administration to adopt a comprehensive multilateral approach. The U.S. needs to push for collaboration beyond issues such as climate change and economic inequality to encompass the intensely competitive areas in technology like those discussed in this article. For one, Europeans could point out that U.S. blunting strategies are simply not working and may even be backfiring by accelerating Chinese technological advances. In September 2023, Huawei released the Mate 60 Pro smartphone equipped with a 7nm domestic chip, revealing that China has overcome some hurdles that U.S. bans were designed to stymie.[6] Since no one knows how long China’s defensive deterrence strategy will hold (and shift to what Chinese leaders believe is a more offensive deterrence), nor whether Trump or someone as equally anti-multilateral as Trump will be (re)elected, Europeans have many incentives to encourage a softer engagement between China and the U.S. Changing the narrative is a fourth important recommendation. It is essential to recognize that the essence of the Sino-American technology competition is more about narrative construction than a description of the current situation. One indication of this is that both sides believe that the other side started what has been described as the ‘new Cold War.’[7] It does not help that both sides have engaged in behavior that supports the other side’s narrative with some hawkish actors employing similar bash-the-other tactics to gain political advantage.[8] Typically, the factual basis for technological competition is grounded in industrial competition, corporate rivalry, or intellectual property disputes. However, the high-tech relationship between China and the United States has been one of complementarity as well as rivalry. Both China and the United States, as well as European stakeholders, need to be careful of the narratives they espouse, lest they become a self-fulfilling prophecy. This work has been funded by the REMIT project, funded from the European Union’s Horizon Europe research and innovation programme under grant agreement No. 101094228 Footnotes [1] EU Commission Recommendation of 3.10.2023 on critical technology areas for the EU’s economic security for further risk assessment with Member States. [2] Gregory C. Allen. 2023. ‘China’s New Strategy for Waging the Microchip Tech War.’ csis.org, May 3. [3] Jing Cheng and Jinghan Zeng. 2023. ‘Shaping AI’s Future? China in Global AI Governance.’ Journal of Contemporary China 32(143): 794-810. [4] See White Paper on AI Standardization, a Guide to the Building of a National Standard Framework for New Generation AI, a report on Ethical Norms for New Generation AI, a White Paper on Trustworthy AI as well as other regulatory documents. [5] Robbie Gramer. 2023. ‘The Masterminds: Washington wants to get tough on China, and the leaders of the House China Committee are in the driver’s seat.’ foreignpolicy.com, November 27. [6] Weiwen Wang. (2023). ‘China Breaks Through 7nm Chip Technology, Has the China-U.S. Tech War Entered Phase 2.0?’ (中国突破7纳米芯片技术 中美科技战进入2.0阶段？). Lianhe Zaobao (联合早报), September 17. Retrieved from https://www.zaobao.com.sg/news/china/story20230917-1433739 [7] Patricia M. Kim, Matthew Turpin, Joseph S. Nye Jr., Jessica Chen Weiss, Eun A Jo, Ryan Hass, and Emilie Kimball. 2023. ‘Should the US pursue a new Cold War with China?’ Brookings.edu, September 1. [8] Roberta N. Haar. 2020. ‘Will China replace the U.S. as the world’s predominant power?’ Atlantisch Perspectief 44(3):9-13.

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском French and German credibility has reached new lows on the Ukraine issue, risking European security as each seeks to sure up political and geopolitical influence. Solidarity is weak, and arms corporations have proven influential in national decisions for EU integration on security matters. In the numerous crises that hit the European Union (EU) in the 21st century – the role of the so-called “integration engine,” as the French-German duopoly is called – was crucial. However, after Moscow’s aggression against Ukraine in 2022, both integration leaders from Western Europe receded into the background. The leaders of aid for fighting Ukraine were mainly the countries of NATO’s eastern flank, led by Poland and the Baltic states. Germany and France defended themselves against too radical sanctions imposed on Moscow, did not support Kiev, and did not want, among other things, either Ukraine’s accession to the EU nor to NATO. Why did Paris and Berlin distance themselves from Russian aggression in 2022, which violated European values and human rights and also threatened the EU itself? In short, the war hit various economic interests that France and Germany conducted with Vladimir Putin’s regime. An example of this was the expansion of Nord Stream, a gas pipeline through the Baltic Sea, after Putin’s first military aggression against eastern Ukraine in 2014. It is worth recalling that the entire climate transformation in the EU in its initial phase was based on cheap Russian gas. Economic ties were not the only reason for the strange behavior of Berlin and Paris in the face of Moscow’s aggression. Geopolitical considerations were even more important. The elites of Western Europe have traditionally, with minor interruptions, cooperated with Russia and considered it an important economic and political partner. The geopolitical goal of both Western European countries was to seek strategic autonomy from Washington and rapprochement with Moscow and Beijing. Historically, Central Eastern Europe has been treated as an area of influence of Berlin and Moscow, which they share or (less frequently) compete for. Before 2022, for Berlin, this sphere of influence included the Central European countries and the Baltic states; for Moscow, this included Belarus and Ukraine. This is why, among other things, Western Europe distanced itself from Moscow’s aggression in 2022. It did not want to spoil relations with Moscow. It also did not want to provoke even greater Russian aggression, fearing a full-scale war with NATO. Western Europe wanted to reach an agreement with Putin as quickly as possible and return to the previous economic and geopolitical arrangement. However, in 2024, there was a clear change in Western Europe’s position towards the war in Ukraine. First, Germany increased its financial and military assistance, although it continued to block the delivery to Kiev of the most modern weapons requested by President Volodymyr Zelensky. France and Germany increased the scope of sanctions imposed on Moscow, although they were still full of loopholes that allowed the Kremlin to avoid them. Meanwhile, Berlin and Paris unblocked their veto on Ukraine’s accession to the EU, nevertheless they continued to maintain their opposition to Kiev’s membership in NATO. Under the influence of both Western European countries, the EU’s financial and military assistance to Kiev increased. It was still too small in relation to Ukraine’s needs, and Brussels faced great problems and delays in fulfilling aid declarations. The most radicalized person was President Emmanuel Macron who announced in 2024 that he would send troops to Ukraine. In the same year, German politicians proposed that NATO troops should protect the sky over western Ukraine from the territory of Romania and Poland. What caused this radical turn in Berlin and Paris? First of all, it turned out that both countries were losing credibility in NATO and the EU, and thus political influence in Central Europe and Ukraine. What was no less dangerous – especially for German politicians – was the growing dissatisfaction with their attitude in the US. The Germans feared that Washington would lose trust in Berlin and focus on NATO’s eastern flank, mainly Warsaw. Furthermore, Germany and France believed less and less in renewing good relations with Moscow. They also had little hope that their “neutral attitude” could protect Europe from further aggression by Putin, including his attack on NATO and EU countries. At this point, both Western European countries launched a diplomatic offensive to introduce changes in the European Union. It was primarily about revising EU treaties to strengthen the political influence of the two largest countries in Western Europe. Therefore, it was proposed, among others, the abolition of voting based on unanimity in foreign and defense policy, which gave a decision-making advantage to the countries with the greatest voting power (Germany and France). In addition, efforts were made to strengthen the Common Security and Defense Policy (CSDP). The main goal was to increase the production of ammunition and weapons from EU funds. Typically, such actions were aimed at strengthening the potential of arms corporations in Western Europe, as well as limiting arms exports from outside the EU, including from the US and South Korea. It goes without saying that in the event of a real threat from the East, the EU should not limit the transportation of weapons from non-European allies, because Europe itself produces too little ammunition and weapons. Nevertheless, subsequent actions of the European Commission after 2022 clearly rewarded aid for German and French corporations, as well as restricting access to arms imports from outside the EU. These attempts to strengthen the strategic autonomy of the EU against Washington are short-sighted in the face of a real threat on the EU and NATO. Moreover, instead of primarily supporting coordination within NATO, France and Germany have sought to duplicate the structures of the North Atlantic Alliance, focusing on the expansion of EU’s rapid reaction forces (rather than NATO’s rapid reaction forces), which were much more modest in terms of numbers and equipment. In other words, their goals were political, not real defense. The idea was to strengthen Franco-German leadership in Europe, and this was to be achieved by supporting the development of EU structures in the area of security. All these aspirations to expand the CSDP could encounter serious obstacles in implementation. First, Germany and France often disagree on EU security considerations, particularly when it comes to their own national interests. For example, the French were disappointed with Germany’s decision to purchase the American F-35 multi-role fighter capable of carrying nuclear warheads. This affected plans to build a sixth-generation aircraft in cooperation between German, French, and Spanish corporations. Moreover, Berlin was developing its own anti-aircraft and anti-missile defense project in the EU (European Sky Shield Initiative), to which it did not invite the French, and even competed with their own European defense program (La défense aérienne du continent). Therefore, Macron criticized the German shield initiative, which he considered hasty and incomplete. Instead, he promoted a truly “European initiative,” where the French arms industry is the dominant force. Secondly, the actions of France and Germany in the field of defense have been delayed and ineffective. More than two years after the announcement of the famous Zeitenwende, the modernisation of the Bundeswehr, the federal government in Berlin managed to order only eighteen Leopard 2 tanks and twelve Panzerhaubitz 2000. Thirdly, it became increasingly clear early on that Germany and France were not ready to defend NATO’s eastern flank in solidarity, wanting rather to show initiative and leadership in order to maintain geopolitical influence in Europe. In terms of real security, their subsequent ideas were controversial. They were certainly beneficial to their arms corporations. For all these reasons, the credibility of Germany and France has been trending downwards on eastern EU security considerations. For the time being, it is difficult to predict whether the plans of Paris and Berlin will ultimately be implemented and whether cooperation within the CSDP will be strengthened. However, if this does not happen, it will paradoxically be a good solution for the security of the eastern flank. Efforts to defend it will be focused within NATO and, above all, located in the countries most at risk from Moscow’s aggression. This analysis is based on a recent article published by the Journal of International Affairs.

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском As Beijing’s investment approach to Latin America focuses on industries of strategic importance, the EU and US will need to contend with growing Chinese competition China is pouring less foreign direct investment (FDI) into Latin America. But while this may seem like a sign of Beijing’s disinterest in the region, data suggests that Chinese companies are simply recalibrating, not retreating. In doing so, they are becoming important players in sectors key to Western interests: critical minerals, fintech, electric vehicles, and green energy. While the European Union and the United States have long been top investors in Latin America, increased competition with Chinese investment now jeopardises their interests in the Latin American industries that will become most crucial to the digital and green transitions. The number of Chinese projects in Latin America grew by 33 per cent from 2018-2023, compared with the previous five-year period of 2013-2017, even as the total value declined. In other words, Chinese companies are making more investments in the region but are pursuing smaller-scale projects on average. These investments are also more focused on what China calls “new infrastructure“ (新基建), a term which encompasses telecommunications, fintech, renewable energy, and other innovation-related industries. In 2022, 60 per cent of China’s investments were in these frontier sectors, a key economic priority for the country. Beijing also views smaller projects in these industries as incurring less operational and reputational risk, especially compared to some of the large-scale infrastructure investment projects often associated with the Belt and Road initiative. Like China, the investment priorities of the G7 grouping – particularly the US and the EU – are centring on critical minerals, fintech, electric vehicles, and green energy as they aim to grow and reinforce existing economic and political partnerships in Latin America. However, both the US and the EU risk falling short of China’s investment strategy in the region. The US has signalled want for greater economic engagement with the region, especially in sectors of strategic interest. However, to date, US efforts to compete with China remain largely focused on building US domestic capacity in these strategic sectors, even as some US companies, such as Intel, are increasingly focused on including regional partners in their supply chains. Some see opportunity for Latin America in Joe Biden’s landmark legislation, the Inflation Reduction Act (IRA), which is aimed at incentivising the energy transition while also de-risking critical supply chains. For example, certain countries in the region may benefit from preferential market access for their lithium or other key inputs to new energy and technology supply chains. However, the reach of the IRA – which remains a largely domestic policy – does not stretch as far as China’s current investment reshuffle. The Americas Act, announced by members of Congress in March could generate promising new investment opportunities for the region, as it encourages US companies and others to move their operations out of China, to which Latin America stands as a promising replacement. But Americas Act reshoring would primarily incentivise textiles and potentially medical equipment manufacturing, with less overall focus on the range of “new infrastructure” industries that China is prioritising. Chinese interests in information and communication technologies reveal a similar story. While the US has focused its policy on 5G equipment sales, China is undertaking a process of vertical integration in Latin American tech sectors that will dramatically boost its competitiveness. For instance, Chinese company Huawei is rapidly expanding its focus to include data centres, cloud computing, cybersecurity, and other services, especially in Argentina, Brazil, Chile, Colombia, Mexico, and Peru. (Computing accounted for a sizable 41 per cent of total Chinese information technology investment in the region between 2018 and the first half of 2023.) At the same time, Global Gateway, the EU’s proposal for a global investment initiative is yet to reach its potential in the region. Brussels is looking to be Latin America’s partner of choice by building local capacity for making batteries and final products like electric vehicles, as European Commission president Ursula von der Leyen noted last year. Yet even as the EU signals renewed commitment, China is becoming increasingly dominant in the electric vehicle market in Latin America and other regions. China surpassed the US in electric vehicle sales in 2023, with Chinese companies accounting for 45 per cent of total global sales and three times that of Germany’s. What is more, China has invested $11 billion in lithium extraction in the region since 2018, as part of a bid to control a third of global lithium-mine production capacity. Meanwhile the EU has secured some access to lithium as part of trade deals with Chile, alongside other nations, but this pales in comparison to what will be required to fuel the future of EU battery production. Latin America as a whole accounts for an estimated 60 per cent of the world’s lithium reserves. Based on its current levels of engagement in the region, the EU risks falling short of lithium, stalling its battery production and subsequently, its electric vehicle sales, just as China advances in this field. The window is closing for the EU, the US, and other partners looking to both maintain market share and compete with China in these Latin American industries, despite still-high rates of US and EU investment in and trade with the region. Indeed, US automakers increasingly see Chinese competition across the globe as an “extinction-level event.” Ensuring competitiveness in “new infrastructure” and related sectors will require a continuous commitment by partners to building and supporting project pipelines, and to delivering products and services at price points that can compete with China’s subsidised offerings. Both the EU and the US remain critical economic partners for Latin America and are contributing in ways that China is not. Still, complacency risks allowing China to take the lead in emerging industries in the region, some of which weigh heavily in the EU’s green and digital transformation. To protect their own future industries, the EU and the US need to first take a longer look at Latin America’s – especially as China vies for a dominant position.

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском Press statement on the occasion of the visit of French President Emmanuel Macron Full statement to the press by the President of the Republic, Luiz Inácio Lula da Silva, following the visit of French President Emmanuel Macron in Brasília (DF), on March 28, 2024 It is a great joy to reciprocate the hospitality with which my delegation and I were received in Paris when I participated in the Summit for a 'New Global Financial Pact' last June. Over the past three days, we have carried out an extensive agenda that included stops in Belém, home to COP30; Itaguaí, where we have Prosub; and now Brasília, for a State visit. This true marathon gives a sense of the breadth of the cooperation and friendship ties between France and Brazil. Among traditional powers, none are closer to Brazil than France. And among emerging powers, you tell me if any are closer to France than Brazil. In today's highly complex international landscape, the dialogue between our nations serves as a vital bridge connecting the Global South to the developed world, fostering efforts to overcome structural inequalities and achieve a more sustainable planet. Brazil and France are committed to collaborating in advancing a shared global vision through democratic dialogue. A vision grounded in the priority of production over unproductive finance, solidarity over selfishness, democracy over totalitarianism, and sustainability over predatory exploitation. President Macron was able to personally witness that our commitment to the environment is not merely rhetorical. In the past year, we have reduced illegal deforestation in the Amazon by 50%, and we aim to eliminate it entirely by 2030. As a symbol of the revitalization of our partnership, today we embraced a New Action Plan, broadening our collaboration into new arenas. These include financing the ecological and energy transition, advancing in bioeconomy, agriculture, public administration, digital issues, artificial intelligence, and reinforcing human rights and gender equality on our bilateral agenda. This range of topics is reflected in the more than 20 agreements we celebrate today. We discussed the success of the Brazil-France Economic Forum, held yesterday in São Paulo, which had not convened presentially since 2019. We explored ways to expand and diversify trade, which reached 8.4 billion dollars last year and has the potential to grow even further. France is the third-largest investor in Brazil, with a strong presence in sectors such as hospitality, energy, defense, and high technology, which generate employment and income in our country. I presented to President Macron the new investment opportunities in infrastructure and sustainability facilitated by the Growth Acceleration Program (Programa de Aceleração do Crescimento - PAC) and the Neoindustrialization Program. I presented our commitment to combating inequalities as the cornerstone of Brazil's G20 Presidency. Within this context, we are launching a Global Alliance Against Hunger and Poverty. As we mark the 80th anniversary of the Bretton Woods institutions this year, President Macron and I concur on the imperative for the G20 to send a clear message advocating for global governance reform and the reinforcement of multilateralism. We also agree that it is time for the super-rich to pay their fair share of taxes, in line with the proposal for fair and progressive international taxation that Brazil advocates within the G20. As strategic partners, we exchanged views on the major dilemmas facing humanity. Across the globe, democracy is under the shadow of extremism. The denial of politics and the dissemination of "hate speech" are growing and concerning. For this reason, Brazil joined, in 2023, the French initiative Partnership for Information and Democracy and will continue to work to promote and protect the circulation of reliable information. It is time to promote a truly multilateral debate on the governance of artificial intelligence. It is unacceptable for a new divide to emerge, segregating wealthy nations, possessors of this technology, from developing countries where basic internet access remains precarious. I reiterated to President Macron Brazil's unwavering belief in dialogue and the defense of peace. My administration will continue working diligently to ensure that Latin America and the Caribbean remain a conflict-free zone, where dialogue and international law prevail. The Security Council's paralysis in response to the conflicts in Ukraine and Gaza is both alarming and inexplicable. The arguments questioning the obligation to comply with the recent ceasefire directive in Gaza during the month of Ramadan once again undermine the authority of the Council. Discussing a world governed by rules that are not collectively agreed upon signifies a regression of centuries, reverting back to the law of the jungle. Brazil categorically condemns all forms of anti-Semitism and Islamophobia. We cannot permit religious intolerance to gain ground among us. Jews, Muslims, and Christians have always lived in perfect harmony in Brazil, contributing to the construction of the modern nation we see today. Dear friend Macron, the Strategic Partnership with France embodies our joint endeavor to modernize and invigorate our economies, prioritizing sustainability and upholding human rights. I am convinced that, even after three intense days, there is still much work ahead of us. The future holds countless possibilities for our countries to cooperate, develop, and create together I look forward to seeing you again soon at the G20 Summit in Rio de Janeiro. Thank you very much.

한국어로 읽기 Читать на русском Leer en español Gap In Deutsch lesen اقرأ بالعربية Lire en français What is required of member states between now and the Alliance's anniversary summit in Washington D.C. from July 9 to 11 75 years after its founding, NATO is facing an unprecedented set of challenges. The global security landscape is changing rapidly - from the ongoing war in Ukraine to crucial elections on both sides of the Atlantic. The summit in Washington D.C. will not only be a celebration of the past, but also a crucial marker for the future direction of the Alliance.  NATO is in troubled waters ahead of its 75th birthday - on the one hand, it is not 'brain dead' but offers protection to new members - on the other hand, the challenges are enormous in view of the war in Ukraine.  In the third year of the war, the military situation in Ukraine is serious. The military is coming under increasing pressure and European partners are delivering too little and too slowly.  Western support must be stepped up in order to influence the outcome of the war - Russia's future behavior towards its neighbors also depends on this.  Elections will be held on both sides of the Atlantic in 2024 - the US presidential election in November will be particularly decisive for NATO.  Two thirds of NATO member states are well on the way to meeting the two percent national defense spending target - Germany in particular must ensure that this target is met in the long term.  Now it is up to the leadership of larger countries such as Germany, France and Poland to develop traction in European defense in order to present a future US president with a resilient burden-sharing balance sheet and not leave Ukraine - and the European security order - in the lurch. Return to the core mission In the 75th year of its existence, the North Atlantic Defense Alliance has returned to its core mission: deterrence and defense against a territorial aggressor. NATO defense planning will be reviewed for its resilience before the NATO summit in Washington D.C. from 9 to 11 July 2024. What challenges does the Alliance face in its anniversary year and what needs to happen between now and the NATO summit to make the summit a success? The state of the Alliance ahead of the summit NATO is in difficult waters ahead of its 75th anniversary. On the one hand, it has proven since the beginning of the Russian war of aggression that it is capable of acting and not brain-dead. The two new members, Finland and Sweden, have given up their decades of neutrality because their populations are convinced that they are better protected against Russian aggression within the 30 allies, despite the excellent condition of their military. On the other hand, the admission process has taken much longer than was to be expected given the high level of interoperability of both countries with NATO standards. It took a good twenty months since the application was submitted for both flags to fly on the flagpoles in front of NATO headquarters in Brussels - the internal blockade by Turkey and Hungary is an expression of the Alliance's challenge to maintain a united front against the Russian threat. The Vilnius decision of 2023 to adhere to the previous two percent target for annual defense spending as a percentage of national gross domestic product (GDP) as a minimum figure in future and even to strive for additional spending beyond this is an enormous effort for the members of the alliance - and the biggest point of criticism from its sceptics. The implementation of this goal goes hand in hand with the further development of the defense posture, which was also decided in Vilnius. This includes new regional defense plans that provide for more combat-capable troops that can be deployed more quickly. The Washington summit will show how far the Alliance has come in this respect in a year - gaps between targets and actual capabilities would consequently have to be covered by investments that go beyond the two percent GDP contributions. There are also a number of other important events and factors that will influence the summit. Ukraine's military situation In the third year of the war, the military situation in Ukraine is serious. The fighting has largely turned into a war of position, with high casualties on both sides. The sluggish supply of support from the West means that the Ukrainians have to make do with significantly less than their defense needs. The European Union has failed to meet its promise to deliver one million 155-millimetre shells within a year (by March 2024), while the Russian war economy is producing supplies in multiple shifts. This imbalance is making itself painfully felt in the Ukrainian defense - due to the material deficit, nowhere near enough Russian positions can be eliminated and Russian attacks repelled, and Ukrainian personnel on the front line are depleted. President Volodymyr Zelensky is coming under increasing pressure to mobilize fresh forces for the front. As a result, the Ukrainian military is having to give up some of its terrain in order to conserve material and personnel and take up the most sustainable defensive position possible for the coming weeks and months until relief hopefully comes. comes.1 The Czech initiative to procure half a million rounds in 155 millimeter caliber and 300,000 rounds in 122 millimeter caliber on the world market for Ukraine by June 2024 is urgently needed - but it does not change the fact that Europe and the West are delivering too little and too late, despite the efforts that have been made so far and must continue to be made.2 Even if the US and Europe were to produce at full speed, it would only be half of what Russia produces and receives in support from its allies. Western support therefore urgently needs to be ramped up, as it is of crucial importance for the outcome of the war - and for Russia's future behavior in its neighborhood. Upcoming elections A series of landmark elections will take place on both sides of the Atlantic in the run-up to the summit. The US presidential elections in November 2024 will be of the greatest importance for the future direction of NATO. To date, the USA has been the largest single supporter of Ukraine in the military field; in addition, the USA has decisive weight in the coordination of concrete support from NATO countries - the German Chancellor has repeatedly oriented himself towards US arms deliveries when it comes to the question of German support or even made this a condition for his own commitments.3 While the Democrats in the US Congress continue to support aid packages to Ukraine, the Republican Party is dominated by voices around presidential candidate Donald Trump calling for this "European war" to be left to the Europeans and for domestic challenges to be addressed instead.4 This has led to a months-long blockade of further aid amounting to 60 billion US dollars in the US House of Representatives, which is led by a wafer-thin majority of Republicans. Ukraine urgently needs these supplies to avert shortages in ammunition and air defense. At the time of publication of this Monitor, a release of the funds is not in sight. In terms of foreign policy, there is a bipartisan consensus that the real danger for the USA lies in a systemic conflict with China. Among Republican supporters, impatience with the continuation of the war is increasing, while approval for further support for Ukraine is decreasing. The mood among the general population is similar: between April 2022 and September 2023, the view that the US is doing "too much" for Ukraine increased (from 14% to 41%).5 On the European side, the most important milestone for further support for Ukraine is the election of the new European Parliament from 6 to 9 June 2024. Since the outbreak of the war, approval ratings in the EU for support for Ukraine have been remarkably stable.6 Even in the face of a sometimes difficult economic environment in the 20 eurozone states, approval ratings for the continuation of aid to Ukraine have only fallen slightly in a few EU states - starting from a high level. While the broad center of the EP groups (EPP, S&D and Renew) are united in their support for Ukraine and the transatlantic alliance, the foreign and security policy positioning of the far-right parties of the ECR and ID groups and the non-attached groups is not always clear. According to Nicolai von Ondarza and Max Becker from the German Institute for International and Security Affairs (SWP), while the ECR parliamentary group "largely plays a constructive and compatible role" in foreign and security policy, including with regard to NATO and Ukraine, parts of the ID parliamentary group such as the French Rassemblement National (RN) or the German AfD either voted against resolutions critical of Russia in parliament or abstained.7 According to Olaf Wientzek from the Konrad Adenauer Foundation, both the ECR and ID can expect significant seat gains in the upcoming EP elections.8 In terms of numbers, the ID and ECR groups are competing with Renew to be the third strongest force behind the EPP and S&D - according to current estimates, they all have between 80 and 90 seats. It would be conceivable for the currently non-attached Hungarian Fidesz (currently 13 MEPs) to join both the ECR and ID. In view of the increasing co-decision role of parliament - including for further Ukraine support packages - it is important for the EU how these parties and party alliances position themselves in terms of foreign and security policy.9 In fact, parties in the ID faction represent Russian propaganda within Europe in order to exert influence through disinformation, subversion and mobilization and thus undermine the social consensus with regard to Ukraine and NATO.10 This may also become apparent in individual elections, such as in the eastern German states in September 2024. Economic pressure - prioritizing defence? Global inflation averaged 6.2% in 2023. Current forecasts assume falling inflation rates in the Euro-Atlantic region over the course of 2024 to 2026.11 At the same time, however, global economic growth of 3.1% (2024) and an expected 3.2% (2025) compared to the previous year is well below the projections for the post-pandemic recovery.12 The combination of higher consumer prices and slower economic recovery continues to pose the risk of declining approval for strong support within the populations of the European Ukraine-supporting states. Protests in the face of announcements of cuts in various policy areas have demonstrated this in Germany and Europe over the past year. This does not make it easy to prioritize defence spending from a national perspective for the coming years. In the case of Germany, the defense budget is competing with all other departments in the budget negotiations for 2025, which are calling for an increase in social spending and investments in view of the current burdens on the population.13 At the same time, inflation does not stop at military procurement. As early as 2022, Germany therefore had to cancel a number of planned procurement projects due to increased costs.14 The cost increase also affects the maintenance of existing equipment and personnel. Even if Germany nominally reaches the two percent target in 2024, the increases in national defense spending within the Alliance will actually be lower when adjusted for inflation. Systemic threat from China The increasing systemic confrontation with China is not only identified in the US national security strategy; for the first time, China was classified as a concrete threat by NATO in its Strategic Concept of 2022. China is threatening to annex the democratically governed island of Taiwan to its territory, possibly by military means.15 This would have enormous global escalation potential and far-reaching effects on important international sea routes. Concerns about free trade routes are leading to a convergence of threat perceptions on both sides of the Atlantic. As a result, many European partners are rethinking their relations with China - as is Germany in its China strategy. China's global ambition to restructure the existing multilateral order according to its own ideas does not only affect Taiwan's independence. China's supremacy in key technical and industrial sectors as well as critical infrastructure, rare raw materials and supply chains would lead to a deepening of existing dependencies. Because the USA sees China as a systemic threat to international order, freedom and prosperity, it has been refocusing its efforts since President Obama took office. European NATO partners are therefore expected to invest in Europe's security themselves. Only greater burden-sharing by the Europeans would enable the USA to focus its attention more strongly on the Indo-Pacific. Challenges in new dimensions In addition to the geopolitical challenges outlined above, NATO designated space in 2019 as an additional battlefield to the existing fields - land, air, sea and cyberspace - due to its increased importance.16 In recent decades, China has rapidly expanded its presence in space in both the civilian and military sectors.17 The war in Ukraine has once again underlined the importance of satellite-based intelligence and the significance of connected weapons for combat. In addition, the effects of man-made climate change, which also have an impact on security in the Euro-Atlantic alliance area, have recently become increasingly apparent. At the 2021 NATO summit in Brussels, the Alliance set itself the goal of becoming a leading international organization in understanding and adapting to the effects of climate change on security.18 To this end, it adopted the "Climate Change and Security Action Plan". The NATO countries' homework A successful NATO summit in the anniversary year 2024 would send an important signal of the unity and defense capability of the Euro-Atlantic alliance in the face of Russia's breach of international law in a time of systemic competition. NATO member states are confronted with a complex threat situation ahead of the next summit in Washington D.C.. These give rise to various requirements: More NATO members must reach the two percent target In financial terms, the Washington summit will probably be considered a success if a substantial number of member states reach the two percent target. In 2023, this was the case for eleven countries (Poland, USA, Greece, Estonia, Lithuania, Finland, Romania, Hungary, Latvia, UK, Slovakia).19 In February 2024, NATO Secretary General Jens Stoltenberg announced on the sidelines of a meeting of the Ukraine Contact Group in Brussels that 18 countries would reach the target by the summit.20 Germany, the Netherlands, Czech Republic, Bulgaria, Denmark, Albania and North Macedonia are the countries that have recently reached the target.21 The newest NATO member, Sweden, increases the number to.19 Achieving the two percent target for defense spending is not an end in itself. The discussion within NATO as to whether one should deviate from the numerical contribution target and instead assess the actual capabilities contributed by the individual member states is not a new one. Amounts of money to measure collective defense remain the simplest way to approximate burden-sharing within NATO - and until all countries have achieved this, it will remain the relevant metric in the political discussion. From NATO's perspective, the gap between the desired capabilities listed in the defense plans and the troop contingents registered by the member states has widened steadily of late. In reality, there is no way around increased defense spending in order to adequately equip the required personnel, who would have to be subordinate to the NATO Supreme Allied Commander (SACEUR) in an emergency - from a military perspective, the demand is therefore increasingly being made that two percent should be the minimum target. In order to achieve all the required capabilities, larger contributions are needed from all nations. Due to the threat situation and political pressure, it seems possible that 21 countries, i.e. two thirds of the member states, will meet the two percent target by the NATO summit in Washington. In addition to the 19 countries mentioned above, these are France22 and Montenegro.23 Turkey wants to achieve the target by 2025,24 although this commitment is uncertain in view of the poor economic situation. Italy wants to spend two percent within the next two years25, while Norway should reach the target by 2026 according to Prime Minister Jonas Gahr Stoere26. Slovenia has set 2027 as the target date for meeting the commitments27, while Portugal, Spain and Belgium have set 2030 as the target date. Canada (1.38%), Croatia (1.79%) and Luxembourg (0.72%) have not provided any information. Reduce bureaucracy, speed up procurement In material terms, the main aim is to convert the increased defense spending into "material on the farm" in a timely manner. To achieve this, the planning and procurement processes in many European countries need to be accelerated, made less bureaucratic and at the same time better coordinated. The common European defense will require massive improvements in the coming years. Some announcements have already been made during the pre-election campaign for the European Parliament; here, too, what counts is how the announcements are implemented after the election. Progress must also be made in the area of research and development in order to invest scarce resources in state-of-the-art systems. The question of joint development versus off-the-shelf procurement of available equipment will also have to be decided in many cases. A rethink in European procurement is essential for this. This is primarily the responsibility of the European nation states: long-term contracts with the arms industry must be concluded urgently, cooperation initiated and loans granted for production. Strengthening EU-NATO cooperation and NATO partnership policy NATO's Strategic Concept and the EU's Strategic Compass show a strong convergence in threat analysis. The EU has effective starting points and tools, particularly for cross-cutting challenges such as combating climate change, the threat of hybrid attacks and the protection of critical infrastructure. With the European Peace Facility and other instruments, a concrete institutional framework has been created to strengthen the European pillar in NATO and contribute to fairer burden-sharing on both sides of the Atlantic. The EU and NATO should further intensify the exchange on common challenges and utilize the strengths of the respective forum. In addition to the partnership with the EU, the member states should continue to promote NATO's partnership policy. 2024 marks the 25th anniversary of NATO's eastward enlargement and the 30th anniversary of NATO's Partnership for Peace program. In view of a global confrontation with Russia and an increasingly aggressive China, it is worth taking a look at the instruments that were devised during the Cold War with a view to 'like-minded' partners outside the Alliance. NATO's partnership policy - adapted to the new circumstances - is an ideal instrument for forging close ties with democratic nations in the Indo-Pacific that share NATO's interests and values.28 Investing in interoperability NATO must continue to act as a "guardian of standards" in favor of military interoperability. This year's major exercises as part of "Steadfast Defender 2024" and "Quadriga 2024" will show, among other things, which weaknesses still exist in the various dimensions of interoperability in practical tests. In addition, care must be taken to ensure that military innovations from pioneers within NATO do not leave the Alliance's other allies behind in technical terms. This does not mean that technological progress is slowed down in a race to the bottom; instead, member states with lower expenditure on research and development must be enabled to catch up more quickly - especially in areas such as space technology and the use of artificial intelligence in warfare, it is becoming increasingly important to avoid the technological gap between the members of the alliance. What does this mean for Germany? The Federal Chancellor's announcement on February 27, 2022 that the establishment of the 100 billion euro special fund heralded a turning point in Germany's security policy was seen everywhere in Germany and within the Alliance as the right decision in view of Russia's aggression. In his speech, Olaf Scholz emphasized that Germany was not seeking this expenditure to please allies. The special fund serves national security. However, the acute threat to European security remains and although the NATO target will be reached in 2024, the future of Germany's defense budget is anything but certain. However, investment in the Bundeswehr's defense capabilities is essential to contribute to credible deterrence. The foundation for securing sustainable defense spending in Germany's medium-term financial planning must be laid now, otherwise two percent - depending on the spending status of the special fund - may already be unattainable in 2026, when the regular federal budget is once again used as the basis for calculating the NATO target. As the budget for 2025 will not yet have been decided at the NATO summit in July 2024, the Chancellor will need to make a credible commitment to the allies that Germany will not fall behind. The Bundeswehr will also have to stretch itself enormously in order to achieve the troop levels announced for the new defense plans. The number of servicewomen and men is currently stagnating at just under 182,000. 29 In order to be able to provide the brigade in Lithuania in addition to the nationally required forces and to meet the division commitment for 2026, the Bundeswehr must come significantly closer to the target figure of 203,300 active servicewomen and men by 2027.30 The questions of how many of the 182,000 soldiers available on paper are also willing to become part of the brigade in Lithuania and how many of the total number are actually deployable in an emergency have not even been asked at this point. What counts now - political leadership The security situation in Europe is serious and NATO has no shortage of challenges in its 75th year of existence. It is in good shape to meet these challenges and has welcomed two strong nations into its ranks, Finland and Sweden. However, it is now important not to let up in the efforts that have been agreed. A united external stance is key here, as the current NATO Secretary General Jens Stoltenberg never tires of emphasizing. His successor will have to continue this. Even more important, however, are actual, concrete and substantial actions - the English expression "put one's money where one's mouth is" must be the leitmotif of all European NATO nations in view of the US elections at the end of the year, regardless of the outcome. Ultimately, political leadership is what counts within the alliance in virtually all the areas mentioned - and it matters now. Many smaller countries in Europe look to the larger member states such as Germany, France and Poland for leadership. This applies both in terms of sustainable compliance with the two percent target and when it comes to political agreement and cooperation in the field of armaments. Here, the larger states have a role model and leadership function that can develop traction and pressure on the Alliance as a whole. This political leadership will be more important than ever for the European representatives in NATO in 2024. At the moment, however, it seems questionable whether the current leadership vacuum can be filled before the NATO summit. Germany, France and Poland have not yet been able to develop a jointly coordinated stance that could have a positive effect. It is therefore also questionable whether the NATO summit will be able to send important signals beyond the minimum objectives. The US presidential election hangs over everything like a sword of Damocles - the erratic leadership style of another US President Donald Trump could be difficult to reconcile with the strategic goals of the alliance. Imprint This publication of the Konrad-Adenauer-Stiftung e. V. is for information purposes only. It may not be used by political parties or election campaigners or helpers for the purpose of election advertising. This applies to federal, state and local elections as well as elections to the European Parliament. Publisher: Konrad-Adenauer-Stiftung e. V., 2024, Berlin Design: yellow too, Pasiek Horntrich GbR Produced with the financial support of the Federal Republic of Germany. References 1 Reisner, Markus: So ernst ist die Lage an der Front. In: Streitkräfte und Strategien Podcast, NDR Info, 12.03.2024, online unter: https://ogy.de/0ne7 2 Zachová, Aneta: Tschechische Initiative: Munition für Ukraine könnte im Juni eintreffen. Euractiv, 13.03.2024, online unter https://ogy.de/gofh 3 Besonders eindrücklich bleibt das Beispiel der Lieferung schwerer Waffen in Erinnerung: so rang sich Bundeskanzler Scholz zur Freigabe der Lieferung Leopard-Panzer deutscher Fertigung erst nach amerikanischer Zusage von Abrams-Panzern von militärisch zweifelhaftem Mehrwert durch. 4 Dress, Brad: Ramaswamy isolates himself on Ukraine with proposed Putin pact. In: The Hill, 01.09.2023, online unter: https://ogy.de/c9ow 5 Hutzler, Alexandra: How initial US support for aiding Ukraine has come to a standstill 2 years later. ABC News, 24.02.2024, online unter https://ogy.de/h0z6 6 Grand, Camille u.a.: European public opinion remains supportive of Ukraine. Bruegel, 05.06.2023, online unter https://ogy.de/ipbu 7 von Ondarza, Nicolai und Becker, Max: Geostrategie von rechts außen: Wie sich EU-Gegner und Rechtsaußenparteien außen- und sicherheitspolitisch positionieren. SWP-aktuell, 01.03.2024, online unter: https://ogy.de/a62v 8 Wientzek, Dr. Olaf: EVP-Parteienbarometer Februar 2024 - Die Lage der Europäischen Volkspartei in der EU. Konrad-Adenauer-Stiftung, 06.03.2024, online unter https://ogy.de/fv9b 9 s. Footnote 7 10 Klein, Margarete: Putins „Wiederwahl“: Wie der Kriegsverlauf die innenpolitische Stabilität Russlands bestimmt. In: SWP-Podcast, 06.03.2024, online unter: https://ogy.de/7i5s 11 Potrafke, Prof. Dr. Niklas: Economic Experts Survey: Wirtschaftsexperten erwarten Rückgang der Inflation weltweit (3. Quartal 2023). ifo-Institut, 19. Oktober 2023, online unter: https://ogy.de/wunq 12 Umersbach, Bruno: Wachstum des weltweiten realen Bruttoinlandsprodukts (BIP) von 1980 bis 2024. Statista, 07.02.2024, online unter: https://ogy.de/5ohz 13 Petersen, Volker: Ampel droht Zerreißprobe: Vier Gründe, warum der Haushalt 2025 so gefährlich ist. N-tv, 07.03.2024, online unter: https://ogy.de/9fcl 14 Specht, Frank u.a.: Regierung kürzt mehrere Rüstungsprojekte. Handelsblatt, 24.10.2022, online unter: https://ogy.de/71z3 15 Vgl. Wurzel, Steffen u.a.: Worum es im Konflikt um Taiwan geht. Deutschlandfunk, 12.04.2023, online unter https://ogy.de/ddc1 16 Vogel, Dominic: Bundeswehr und Weltraum - Das Weltraumoperationszentrum als Einstieg in multidimensionale Operationen. Stiftung Wissenschaft und Politik, 01.10.2020, online unter: https://ogy.de/c7m1 17 Rose, Frank A.: Managing China‘s rise in outer space. Brookings, letzter Zugriff am 18.09.2023, online unter https://ogy.de/374g 18 Vgl. Kertysova, Katarina: Implementing NATO’s Climate Security Agenda: Challenges Ahead. In: NATO Review, 10.08.2023, online unter: https://ogy.de/ho94 19 Vgl. Statista: Defense expenditures of NATO countries as a percentage of gross domestic product in 2023. Abgerufen am 18.09.2023 online unter https://ogy.de/wtsb 20 Neuhann, Florian: Ukraine-Kontaktgruppe in Brüssel: Eine Krisensitzung - und ein Tabubruch? ZDF heute, 14.02.2024, online unter https://ogy.de/rezf 21 Mendelson, Ben: Diese Nato-Länder halten 2024 das Zwei-Prozent-Ziel ein. Handelsblatt, 15.02.2024, online unter https://ogy.de/quiu 22 Kayali, Laura: France will reach NATO defense spending target in 2024. Politico, 15.02.2024, online unter https://ogy.de/7vdd 23 https://icds.ee/en/defence-spending-who-is-doing-what/ 24 Vgl. Daily Sabah: Türkiye’s defense spending expected to constitute 2% of GDP by 2025. 21.10.2022, online unter https://ogy.de/xtbr 25 Vgl. Decode39: Defence spending: Rome’s path towards the 2% target. 20.07.2023, online unter https://ogy.de/c0g3 26 Waldwyn, Karl: Norwegian defence chief sounds alarm and raises sights. In: Military Balance Blog, International Institute for Strategic Studies, 23.06.2023, online unter https://ogy.de/8b4a 27 Vgl. Army Technology: Russian threat driving Slovenia’s defence budget increase. 02.08.2022, online unter https://ogy.de/c5y7 28 Vgl. Kamp, Dr. Karl-Heinz: Allianz der Interessen. In: IP, Ausgabe September/Oktober 29 Vgl. Bundeswehr. Stand: 31.07.2023, abgerufen am 19.09.2023, online unter: https://ogy.de/m69j 30 Bundeswehr: Ambitioniertes Ziel: 203.000 Soldatinnen und Soldaten bis 2027. Online unter https://ogy.de/3pzs

That there is a miscommunication between Paris and Berlin is something that is already being unreservedly acknowledged even among the power leaders in the two capitals. The rift caused by the war in Ukraine is the arena in which tensions are being played out. But there are underlying factors that have contributed to making this gap a major concern for the European stability. We point out the following: The strategic factor Geography determines strategic choices. Germany has always looked to the East as a pole of concern, but also as a pole of opportunity. The former has almost always outweighed the latter. Wars have historically conditioned coexistence with Rusia, regardless of the political regime that has existed in each historical stage. There is one incontrovertible fact: Germany has never won a war against Russia. On the other hand, when talking about peace, German interests have prevailed. Hence in Berlin (or in Bonn, during the first Cold War) there has always been a tendency towards appeasement towards Moscow. Earlier, Hitler wanted to postpone the inevitable confrontation with Stalin’s Russia with a tactical, not a strategic pact (in 1939), a move to gain time and consolidate his domination of Western Europe. With the victory of the Soviet Union, Germany endured the division of the country for almost half a century, a punishment even more humiliating than the previous ones. The western part prospered, and the eastern part stagnated. However, this underhand triumph did nothing to facilitate the reconciliation. Willy Brandt understood this very well when he launched his ‘Ostpolitik’ (Eastern policy) in the early 1970s. The initiative caused concern in Washington, not so much because it was opposed to a thaw it shared, but because of the risk of losing control of the process. There was also some reluctance in Paris. De Gaulle and his heirs had always maintained an open channel of cooperation with Moscow but were distrustful of German overtures. With the crisis of the Soviet system, Franco-German tensions surfaced again. A united and strong Germany awakened the ghost of three devastating wars for France. The Chancellor at that time, Kohl was Gorbachev’s main supporter and acted as a fundraiser for a Soviet Union that was falling apart at the seams. Germany’s repeated commitment to peace and European integration did not seem to be a sufficient antidote to the vision of an Eastern Europe, ‘germanized’ by the economic weight of the new political and territorial power. Germany’s actions in the Yugoslav wars, initially perceived in Paris as ‘dynamiting’, contributed to increase those fears. After the failure of the democratization trial in the ‘new’ Russia, largely caused by a predatory capitalism encouraged from the West, Germany continued to cultivate very close relations with Moscow to prevent an undesirable drift in the Kremlin. Until the successive crises in Ukraine have brought this strategic project to a halt. In France, there has always been an interest in an autonomous relationship model with Moscow, whether in collaboration with Germany or the United States, but in no way subordinate. Gaullist nationalism has survived, both on the right and on the left. Somehow, the French elites have tried to avoid Paris from playing a secondary role in relations with the Kremlin, whether in cooperation or confrontation. Hence Macron (‘more papist than the Pope: more Gaullist than the General’), will attempt a risky mediation game with Putin after the phantom intervention in Crimea and the more obvious one in the Donbas, in 2014; and eight years later, when the invasion of Ukraine was consumed. There has been much speculation about the true intentions of the French president’s trip to Moscow. Macron is anything but naive. Perhaps it was indeed the inevitable need of the Elysée Palace to leave its mark. Now that any conciliation with Moscow seems distant, Macron takes the lead among the ‘hawks’ and pretends to forget that he once wanted to look like a ‘dove’, by suggesting that, although there is no allied consensus, sending soldiers to Ukraine cannot be ruled out to prevent a Russian military triumph. Of all Macron’s gambits, this has been the most or one of the riskiest. And the one that has provoked the most irritation on the other side of the Rhine [1]. Since February 2022, Germany has buried the various branches of the ‘Ostpolitik’, a task falling to a Social Democratic chancellor, perhaps the most unremarkable and least suited for high-level leadership. Olaf Scholz announced the ‘zeitenwende’ (translatable as “change of era, or time”). Half a century of rapprochement with Russia was called into question. The economic equation (energy raw materials in exchange for machinery and capital goods) in bilateral relations was dissolving under the weight of Western sanctions against Moscow. Moreover, the pacifist post-Hitler Germany committed to a military effort of $100 billion (to start with), aimed rejuvenating, strengthening, and expanding the Germany military apparatus. But in everything there is a limit, or a red line. Germany has not been shy with Putin, despite being the European country most harmed by embargoes, limitations and constraints in the Russian oil and gas consumption. Economic war was accepted as inevitable in Berlin. However, caution has been exercised, particularly in the supply of arms to Ukraine. Nonetheless, Germany is, after the United States, the largest net contributor to Kiev’s arsenals [2]. Let’s not forget that. France has also taken its precautions in pressuring the Kremlin, as has the US, despite the rhetoric and the cold war propaganda prevailing for the past two years. That is why Macron’s latest ‘provocation’ has annoyed Berlin so much. Moreover, as usual in his boasts, the French president added insult to injury by suggesting that Ukraine’s delicate fragility demanded more “courage” and less timidity from the allies [3]. Scholz replied with diplomatic and bureaucratic discretion, without any outbursts, recalling that NATO’s decisions ruled out ‘boots on the ground’ (sending troops to Ukraine). But his Defense Minister, Pistorious, could not resist returning the favor and admonishing him for his new moral lesson. The foreign ministers of both countries attempted to ‘diplomatically’ solve the crisis days later, but did not risk holding a joint press conference in order not to show that the political wound between Berlin and Paris was still open. The leak of a meeting of senior German military commanders, spied on by Russian agents, further clouded the atmosphere [4]. Another element unchanged since the Cold War: Berlin may support the European autonomous defense project, but it has never ceased to consider it as subordinate to NATO. The American nuclear umbrella is untouchable, then and now. And not even an eventual (and only speculative, for now) strategic availability of the French nuclear arsenal is capable of changing that axiom [5]. Political factors Apart from strategic considerations, domestic political factors have also played a role in this latest crisis. Macron faces the European elections with the apprehension of a seemingly inevitable victory of the far-right ‘Rassemblement National’. It was once considered a pro-Russian party and even generously funded by the Kremlin. In recent years, the party’s chairwoman has tried to distance herself from the Kremlin but has not entirely succeeded. And Macron wants to exploit this supposed vulnerability of a woman he has defeated twice in the presidential elections, but who seems destined to occupy the Elysée Palace in 2027 if she achieves successful results in this year’s European elections. In this week’s parliamentary debate on the bilateral security agreement with Kiev, Marine Le Pen ordered an abstention. She made it clear that she supports the Ukraine resistance, so that there would be no doubt about her change of attitude towards Russia. But he saw in the initiative of the President’s party a clear intention for electoral gain. Divisions were evident on the left: rebels and communists voted against, while socialists and ecologists voted in favor, but the latter rejected the suggestion of troops deployment. Scholz also faces a challenge from the far right, with elections this autumn that could consolidate the dominance of the AfD (Alternative for Germany) in the eastern states (Eastern Länder). This party has won over citizens who do not have such negative memories of the GDR, but in its rise, it has also bitten into the social democratic base. The chancellor does not want to appear too hostile to an electorate that does not participate in the anti-Russian discourse. Institutional factors In this Paris – Bonn clash, as in previous ones, the structure of the respective political systems also exerts a disturbing influence. The French political system is presidential; the German one is parliamentary. In France, the President has exclusive and personal authority over foreign policy. He does not even need his own majority (in this case, the minority that supports him) to formulate his international proposals. In Germany, by contrast, the Chancellor has to negotiate foreign policy with the coalition partners, and even on rare occasions when there has been a single-party majority government, the Bundestag has exerted considerable influence. Personal factors Finally, personal style is also not to be dismissed. It is not unusual for the Elysée Palace and the Chancellery to be inhabited by like-minded characters. The French President is conditioned by the aura of a political system that relies on an exalted figure and demands real, but also impactful, leadership. Both being and appearing so. The Chancellor, on the other hand, is a sort of ‘primus inter pares’, no matter how prominent. Therefore, since 1945, the personal stature of German leaders has always been framed in firm structures that prevent hyper-leadership. It is the Chief’s (Fuhrer) chastisement. This limitation (historical and political) is sometimes reinforced by a purely personal style. At present, the gap is perhaps the widest in the last eighty years. A French President who likes to talk and a Chancellor who is perhaps the most discreet since the post-war period. De Gaulle and Adenauer cultivated little personal relationship, but neither intended to. Pompidou and Brandt never got along particularly well, although the German took great care that his growing popularity did not irritate in Paris… until the Guillaume scandal ended his career. Giscard and Schmidt gave their cooperation a technical character, forced by the oil crisis following the wars in the Middle East. Mitterrand and Kohl raised the tone of the bilateral relationship but did not always adjust their personal dynamics. The German was the longest-serving post-war chancellor and so, the most mediatic, but the Frenchman never renounced, on the contrary, the solemnity with which the office was exercised. Merkel played down Sarkozy (and later Hollande), but not to highlight her personal qualities, but to put them at the service of Germany’s undisputed economic leadership in post-Cold War Europe. Macron wanted to put an end to this French ‘inferiority’, with difficulty. It is not clear that he succeeded against a retreating Merkel, but he thinks he has it easier with the unremarkable Scholz. Notes [1] “France-Allemagne, un tándem secoué par l’épreuve de la guerre en Ukraine”. PHILIPPE RICHARD & THOMAS WIEDER. LE MONDE, 9 de marzo. [2] “German Chancellor pledges to boost [ammunition] production for Ukraine”. DER SPIEGEL, 5 de febrero (versión en inglés). [3] “Le débat sur l’envoi de soldats en Ukraine révèle les profondes differences de vision de la guerre parmi les allies”. LE MONDE, 6 de marzo. [4] “Now It’s Germany’s turn to frustrate Allies over Ukraine”. THE NEW YORK TIMES, 4 de marzo. [5] “Dans cette nouvelle ère où l’affrontement a remplacé la cooperation, la question de la dissuasion nucleaire reprend tout son sens”. SYLVIE KAUFFMANN. LE MONDE, 7 de febrero.

BK Scholz: A warm welcome, Mr. Prime Minister! I am delighted to welcome you here to Germany for the first time. Your visit is a very special start to a Southeast Asia Week with several high-ranking visits from this important region of the world here in Berlin. The Indo-Pacific region is of great importance to Germany and the European Union. We therefore want to intensify political and economic cooperation. Germany already maintains close economic relations with the region. Malaysia is Germany's most important trading partner in ASEAN. This is of great importance because it is associated with many direct investments in the country, but also with all the economic exchange that results from this. We would like to further expand this partnership. Of course, this is particularly true with regard to the objective of further diversifying our economic relations with the whole world. We want to have good economic and political relations with many countries. We also want closer cooperation on climate protection and the expansion of renewable energies. We are therefore very pleased with Malaysia's announcement that it will stop building new coal-fired power plants and dramatically increase the share of renewable energies. We think this is very important. Malaysia and Germany are established democracies. We are both committed to multilateralism and compliance with international law. It is therefore also right that we deepen our security and defense cooperation. The defense ministries are already working on the necessary cooperation agreements. Of course, we also discussed developments in the Middle East, developments in Gaza and the situation following the Hamas attack on Israeli citizens. It is no secret that our perspective on the Middle East conflict is different to that of others. But that makes it all the more important to exchange views with each other. In any case, we agree that more humanitarian aid must reach Gaza. This is also our clear call to Israel, which has every right to defend itself against Hamas. We do not believe that a ground offensive on Rafah is right. An important step now would also be a ceasefire that lasts longer, preferably during Ramadan, which has now begun and during which we broke the fast together today. Such a ceasefire should help to ensure that the Israeli hostages are released and that, as I said, more humanitarian aid arrives in Gaza. We also have a very clear position on long-term development. Only a two-state solution can bring lasting peace, security and dignity for Israelis and Palestinians. That is why it is so important that we all work together to ensure that a good, peaceful perspective, a lasting common future is possible for Israelis and Palestinians, who coexist well in the two states. Of course, the world is marked by many other conflicts and wars, especially the dramatic war that Russia has started against Ukraine. It is a terrible war with unbelievable casualties. Russia, too, has already sacrificed many, many lives for the Russian president's imperialist mania for conquest. This is against all human reason. That is why we both condemn the Russian war of aggression. It is important to emphasize this once again. The Indo-Pacific is of great importance for the future development of the world. Of course, this also applies to all the economic development and development of the countries there. I therefore welcome the efforts of Malaysia and the ASEAN states to settle disputes peacefully and to find ways to ensure that this becomes typical of everything that has to be decided there. Any escalation must be avoided at all costs. Peace and stability must always and everywhere be maintained on the basis of international law. This applies in particular to the freedom of the sea routes and compliance with the UN Convention on the Law of the Sea. That is why the ongoing negotiations on the Code of Conduct are so important. Thank you once again for coming to Berlin on the first day of Ramadan, at least for our location. We broke the fast together earlier. For me, this is a good sign of peaceful coexistence and solidarity. I see it as something very special. Ramadan Kareem! PM Anwar: Thank you very much, Mr. Chancellor, dear Olaf! Thank you for your wonderful hospitality and for bringing us together today to break the fast! Germany is of course one of our most important partners in Europe. We have seen a huge increase in trade and investment. We can see that major investments have been made. We have visited Siemens. Infineon is a big investor in Malaysia and is showing its confidence in the country and the system here. There are many other examples of companies operating in Malaysia. Of course, my aim is always to expand bilateral relations in the areas of trade and investment and also to benefit from your experience, both in the field of technology and in environmental and climate protection issues. We have set ourselves clear goals for the energy transition. We have drawn up an action plan that is also in line with your policy. Renewable energy, ammonia, green hydrogen - we are pursuing these very actively. Fortunately, Malaysia is also a hub within ASEAN for these renewable energies and technologies. We welcome the German interest in this, also with regard to new investments in the renewable energy sector and with a view to climate change. We have of course discussed this cooperation on this occasion and I am pleased with the Chancellor's willingness to tackle many of these issues. Sometimes we have small differences of view, but it really shows the trust we have in each other. As far as the war in Gaza is concerned, we agree that the fighting must stop. We need a ceasefire immediately. We also need humanitarian aid for the people of Palestine, especially in Gaza. Of course we recognize the concern about the events of 7 October. We also call on Europeans, and Germany in particular, to recognize that there have been 40 years of atrocities, looting, dispossession of Palestinians. Let us now look forward together! I agree with the Chancellor on what he said about the two-state solution. It will ensure peace for both countries. Together we can ensure that there is economic cooperation and progress for the people in the region. We have also positioned ourselves with regard to the war in Ukraine. We have taken a very clear stance against aggression, against efforts to conquer. This applies to every country and, of course, also to Russian aggression in Ukraine. We want a peaceful solution to the conflict. Because this conflict has an impact on trade and economic development as far away as Asia. We have a peaceful region. ASEAN is currently the fastest growing economic area in the world, precisely because it is so peaceful - apart from the issue in Myanmar, but that is contained within Myanmar. The conflict has not spread to the region, although there are of course refugee movements. Within ASEAN, we have jointly agreed on a five-point consensus and the parameters by which the issue can be resolved. The ASEAN countries have agreed that Laos, Malaysia and Indonesia would like to lead the troika together and resolve the conflict with Myanmar. Then there are other issues such as the South China Sea and China. I assured the Chancellor that we are getting along well with China. We have not seen any difficult incidents, but of course we see ourselves as an absolutely independent country. We are of course a small country, but we stand up for our right to cooperate with many countries to ensure that the people of Malaysia also benefit from these mechanisms and from cooperation with other countries. Once again, Mr. Chancellor, thank you very much for this meeting. I am very impressed by your insight, by your analysis of the situation. It is very impressive to see what a big country like Germany is doing, and it was also good to share some of our concerns. I am pleased with the good cooperation. It's not just about trade and investment, it's also about the overall development of bilateral relations in all areas. I also told the Chancellor that the study of Goethe is gaining interest in Malaysia. Questions from JournalistsQuestion: Mr. Prime Minister, can you tell us something about the progress of German investment in Malaysia and can you say something about the challenges for the government in the transition to renewable energy in Malaysia? Mr. Chancellor, in 2022 you spoke about the turning point in German foreign and security policy. But if you now look at ASEAN or Southeast Asia: How does Germany see Malaysia in terms of its bilateral importance, trade and also regional issues? PM Anwar: Within the European Union, Germany is our biggest trading partner. They have made large investments, up to 50 billion US dollars. I have already addressed Infineon and many other leading German companies and I have said in our discussions that we are very pleased that they have chosen Malaysia as an important hub, as a center of excellence, as a training center in the region and I look forward to further cooperation in this area. Of course, I also mentioned that education should be a priority. There are 1000 Malaysian students here in Germany and also several hundred German students in Malaysia. We are also very happy about that. We are working with many German companies to train people and strengthen cooperation. We have taken important steps in renewable energy. We are investing in solar energy, in green energy and in our renewable energy export capacity. There is now an undersea green energy cable to the new capital of Indonesia, another to Singapore, and another cable to the Malay Peninsula. You can also see from the fact that data centers and artificial intelligence are growing and thriving in the Malaysian region that this has great potential. BK Scholz: Thank you very much for the question. - First of all, the turning point lies in the Russian attack on Ukraine. This was the denunciation of an understanding that we have reached in the United Nations, in the whole world, namely that no borders are moved by force. But the Russian war of aggression is aimed at precisely that, namely to expand its own territory as a large country at the expense of its neighbor - with a terrible war. We cannot accept this - not in Europe and not anywhere else in the world. That is why it is right for us to support Ukraine and to do so in a very comprehensive manner. After the USA, Germany is the biggest supporter - both financially and in terms of arms supplies - and in Europe it is by far the country that is making the greatest efforts to help Ukraine defend itself. But this touches on an issue that is important for the whole world. Anyone who knows a little about the history of the world - and it is colorful and diverse - knows that if some political leader is sitting somewhere, leafing through history books and thinking about where borders used to be, then there will be war all over the world for many, many years. We must therefore return to the principle of accepting the borders as they are and not changing them by force. That is the basis for peace and security in the world. That is why we are also very clear on this together. For Germany, however, this does not mean that we lose sight of our own economic development, the development of Europe and the world. As you may already have noticed, it is particularly important for the government I lead and for me as Chancellor of Germany that we now make a major new attempt to rebuild relations between North and South and to ensure that we cooperate with each other on an equal footing in political terms, that we work together on the future of the world, but that we also do everything we can to ensure that the economic growth opportunities and potential of many regions in the world are exploited to the maximum. This is why economic cooperation between Europe and ASEAN, between Germany and ASEAN, between Germany and Malaysia plays such an important role, and we want to make progress in the areas we have just mentioned. Renewable energies are central to this. We know that: We need to increase the prosperity of people around the world. Billions of people want to enjoy a level of prosperity similar to that which has been possible for many in the countries of the North in recent years. If this is to succeed, it will only be possible if we do not damage the environment in the process, which is why the expansion of renewable energies is so important. New and interesting economic opportunities are also emerging, for example in the area of hydrogen/ammonia - this has been mentioned - because the industrial perspective of the future will depend on more electricity, which we need for economic processes - and this from renewable energies - and on hydrogen as a substitute for many processes for which we currently use gas, coal or oil. Driving this forward and creating prosperity together all over the world is a good thing. The fact that the German semiconductor industry and successful German companies in the electronics sector are investing so much in Malaysia is a good sign for our cooperation. We want to intensify this. Question: Thank you very much, Mr. Prime Minister. Your government supports Hamas and, unlike Western countries, has not described Hamas' attack on Israel as terrorism. In November you said that Hamas was not a terrorist organization. Do you stand by this assessment and are you not afraid that this position on Hamas could affect relations with countries like Germany? Mr. Chancellor, I have a question for you: Do you think that Malaysia's position on Hamas could damage bilateral relations between Germany and Malaysia? And if I may, one more question on Ukraine: Germany is still discussing the delivery of cruise missiles to Ukraine. The Foreign Minister said yesterday that a ring swap with the UK was an option, i.e. Germany sending Taurus cruise missiles to the UK and the UK then sending its Storm Shadow cruise missiles to Ukraine. Do you think this is also an option? PM Anwar: Our foreign policy position is very clear and has not changed. We are against colonialism, apartheid, ethnic cleansing and dispossession, no matter in which country it takes place, in Ukraine or in Gaza. We cannot simply erase or forget 40 years of atrocities and dispossession that have led to anger in the affected societies and also action after action. Our relations with Hamas concern the political wing of Hamas, and we will not apologize for that either. This cooperation has also helped to raise concerns about the hostages. We have no links with any military wings. I have already said that to my European colleagues and also in the US. But we have some different views. The Australian National Congress also recognized long before the Europeans or Americans that this apartheid policy must be abolished. That's why we have taken that position. We need to understand what the fundamental problem with this is. We cannot allow people to be plundered, to have their homes taken away from them. This has to be solved. Am I in favor of people, of children being killed? Absolutely not. No, nobody should do that. That is the consistency in our politics. But I am against this obsession, this narrative, as if the whole problem started on October 7 and would end then. It didn't start on October 7, and it won't end then either. It started 40 years ago and it's still going on today. Against this background, I am of the opinion - and I have also said this to the Chancellor - that we should now look to the future. We have a problem. Do we want to deal with history now, with the atrocities that have happened, or do we want to solve the problem now? Solving the problem now means: the fighting must stop, the killing must stop. Then the whole international community - Germany, Malaysia and all neighboring countries - can ensure that there is no more violence, from any group, against anyone - not against Muslims, Christians or Jews. People must be able to live in peace. Thank you very much. BK Scholz: I have already said it and I would like to repeat it again: Germany's position is clear. Israel has every right to defend itself against the terrorist attack by Hamas. We have always made that clear in recent days, weeks and months, and it remains so. Israel can rely on that. At the same time, we have clear positions on further developments, and these have already been stated. Let me say this once again: we want more humanitarian aid to reach Gaza. We want the hostages to be released, unconditionally. We want there to be no unnecessary victims. That is why we have said very clearly what forms of military warfare are compatible with international law and what we find difficult. I have spoken out on Rafah and on the need for a long-term peaceful perspective with a two-state solution that makes it possible for Palestinians in Gaza and the West Bank to live peacefully in a separate, self-governing state alongside Israel - as a democracy in the region, and where the citizens of Israel can also rely on us. That is the perspective we are working for and what is at stake now. That is why we are working - despite the different assessments of the specific issue - on a peaceful perspective, which is necessary. I would like to repeat what I have to say on the issue of supporting Ukraine in its defense. Germany is by far the country that is providing the most support for Ukraine - financially, but also in terms of arms deliveries. All in all, the deliveries to date and those promised amount to 28 billion euros and 30 billion dollars. That is a considerable sum. We have mobilized everything to ensure that Ukraine receives the necessary support from us - ammunition, artillery, tanks, air defence of various kinds, which is also highly efficient and very much appreciated. Our support is reliable and continuous. Ukraine knows this, and we hear time and again how much this great support is appreciated there. As far as the one weapon system is concerned, I am of the opinion that it cannot be used without control in view of its effect and the way in which it can be used, but that the involvement of German soldiers is not justifiable, not even from outside Ukraine. I have therefore said that I do not consider the deployment to be justifiable and that it is therefore not a question of direct or indirect involvement, but of us being clear on this specific issue. My clarity is there. It is my job as Chancellor, as head of government, to be precise here and not to raise any misleading expectations. And my answers are correspondingly clear. Question: Good afternoon, Excellencies! You both mentioned the situation in Gaza and said that we must look ahead to a two-state solution. But how much influence can this meeting have on a humanitarian ceasefire? PM Anwar: Germany is an important country in Europe and has established good relations with Israel, and we have somewhat better relations with Palestine, with the Palestinian Authority and also with the political Hamas. Other Arab countries and neighboring states of Palestine and Israel are doing what they can. We should also be a little more positive. It is of course a chaotic situation, an uncertain situation. There is no easy solution. The Palestinians have suffered a lot. The Netanyahu government has also been very clear in its stance. There is no easy solution. We have to stop the killing of innocent people on both sides, the killing of civilians. We now need a permanent ceasefire and, ultimately, a two-state solution. This is also possible if the international community has the courage and determination. I have said: sometimes you get really depressed when you have the feeling that this case has already been morally abandoned and that there is no real will from all countries to stop the war and find a solution. I am sure that the countries of the Middle East, the international community, Germany and the other parties involved want this peaceful solution. BK Scholz: We would all have liked the start of Ramadan to have been accompanied by a longer-lasting ceasefire, which would have been linked to the release of the hostages by Hamas and also to an increase in humanitarian aid reaching Gaza. Having said that, the aim now is to bring this about as soon as possible. I believe that would be very important for everyone and could also create prospects for further developments. That is what is at stake now. We are in agreement with the American government and the European Union in everything we do. Many people around the world are also trying to work in this direction - as we have heard here, but this also applies to neighboring countries. What we must prevent is an escalation of the war. We also warn against Iran or the Iranian proxies becoming more involved in this war than is already the case. This must be resolved soon. As I said, how this can be done is something that is very clear to me, to the European Union, to the USA and to many others, and it has also been mentioned here together. Question: Mr. Prime Minister, you said that history should be left behind. But for the Israeli hostages, October 7 is still the present, also for their families. Regarding the talks you are holding with the political leadership of Hamas: What are you talking about? How much hope do you have that these hostages will be released soon? Can you also say something about what you saw on October 7 and the fact that these hostages are still being held by this terrorist violence? Mr. Chancellor, you recently met the Pope, who has now caused controversy with his statements on the white flag, which Ukraine has taken to mean, as the Foreign Minister said, that the Church is behaving more or less as it did at the beginning of the 20th century, in other words that the Church did nothing against Nazi Germany at that time. How do you react to the Pope's statements? PM Anwar: Thank you. I have already made my opinion clear. You cannot simply overlook the atrocities of the last four decades, and you cannot find a solution by being so one-sided, by looking only at one particular issue and simply brushing aside 60 years of atrocities. The solution is not simply to release the hostages. Yes, the hostages should be released, but that is not the solution. We are a small player. We have good relations with Hamas. I have told the Chancellor that, yes, I too would like the hostages to be released. But is that the end of it, period? What about the settlements, the behavior of the settlers? No, it goes on every day. What about the expropriations, their rights, their land, their dignity, the men, the women, the children? Is that not the issue? Where is our humanity? Why is there this arrogance? Why is there this double standard between one ethnic group and another? Do they have different religions? Is it because of that? Why is there a problem? Yes, we want the rights of every single person to be recognized, regardless of whether they are Muslim, Jewish or Christian. I am very clear on that. But of course I cannot accept that the issue is focused on just one case, on one victim, and that the thousands of victims since 1947 are simply ignored. Is humanity not relevant? Is compassion not relevant? That is my point. Do I support any atrocities by anyone towards anyone? No. - Do I want hostages to be held? No. But you can't look at the narrative in such a one-sided way. You can ask if I disagree with some subgroups. But that's not the way to solve the issue. We have to be fair, just, and find an amicable solution that is just, that is fair. BK Scholz: Once again what I have already said: Germany has a special and good relationship with Israel. That is very important to us. That's why Israel can also rely on us. You have a clear position on what is necessary now. That includes the release of the hostages. That includes humanitarian aid. It includes the prospect of a two-state solution. I have already spoken about this, I just want to mention it again here. This is also important for us. We were very supportive of the founding of the state of Israel, and German policy will continue to develop along these lines. As far as the Russian war of aggression against Ukraine is concerned, Germany's position is very clear: Ukraine has the right to defend itself, and Ukraine can rely on us to support it in many, many ways. I have already said that we are very far ahead when it comes to the volume and quality of the arms supplies we have provided. That is also true. That is why, of course, I do not agree with the position quoted.

The EU should try to attract more business from Taiwan, though Taiwan’s January 2024 election hasn’t made the job easier Taiwan’s economy has transformed since 2016 under the leadership of the Democratic Progressive Party (DPP). In particular, the Taiwanese economy has diversified away from mainland China, while reliance on semiconductors is now even more acute than eight years ago. In elections in January, the DPP won the presidency for a third term but lost overall control of Taiwan’s parliament, the Legislative Yuan. In contrast to the previous two terms, the DPP therefore needs to agree policy, including economic policy, with other parties. this could signal a softer approach in relation to the continuation of diversification away from the mainland. Ongoing diversification Mainland China remains Taiwan’s biggest export and investment destination, despite the share of Taiwan’s exports that go to China reducing from 40 percent on average between 2016 and 2019 to 35 percent in 2023 (Figure 1). This has happened even though Taiwan signed a free trade agreement with mainland China in 2010 – the Economic Cooperation Framework Agreement (ECFA) – which at the time led to an increase in Taiwanese exports to the mainland. The COVID-19 pandemic in 2020 also triggered a sharp increase as the rest of the world entered a deep recession, but the trend has not lasted. Since 2021, the share of Taiwanese exports going to the mainland has dropped significantly, influenced by US export controls on high-end semiconductors, with a clear knock-on effect on Taiwanese exporters.   Taiwanese FDI into mainland China has also shrunk rapidly, from 65 percent of total Taiwanese FDI on average from 2008-2016 to 34 percent on average from 2017-2023 (Figure 2). The difference between these periods is that in the former, Taiwan was governed by the Kuomintang (KMT, Chinese Nationalist Party), which favours closer relations with the mainland, while in the latter period the DPP was in charge. There are both geopolitical and economic reasons for mainland China’s falling share of Taiwanese FDI. First, the ECFA trade and investment agreement, reached under the first term of KMT President Ma Ying-jeou, was not extended when a new round of negotiations started in 2012, to include technological cooperation, finance and people-to-people exchanges. A broader economic agreement between Taiwan and the mainland, mostly focusing on services – the Cross-Strait Service Trade Agreement (CSSTA) – fell victim to lack of consensus among Taiwan’s main political parties, increased tensions in the Taiwan Straits and student protests in Taiwan (the so-called Sunflower movement) in 2014.1 Second, with the DPP victory in 2016, the new Southbound Policy 2 was launched, offering incentives for Taiwanese companies investing in 18 Asian countries, including ASEAN 3, India and other South Asian and Australasian nations. In addition, rising labour costs in mainland China, the ongoing trade war between the US and China, an increased regulatory burden in the mainland and political tensions between the two sides of the Taiwan Strait also pushed Taiwanese businesses to look elsewhere to invest. -    The new political reality and geographical diversification While the election-winning DPP wants to see further diversification away from the mainland, the more pro-China party, the KMT, wants reinforced economic relations with China.4 Because of the now-hung parliament, the DPP will need to take some of the KMT’s wishes into account it wants pass new rules, including those related to geographical diversification. Beyond the two parties’ preferences, two other important issues also need to be factored in. First, geographical diversification requires open markets but Taiwan is increasingly unable to open any market through trade or investment deals. Taiwan has spent the last eight years negotiating bilateral deals with its closest allies, Japan and the US, but the DPP administration has not even been able to complete these. Incoming President Lai has said that Taiwan should continue to push to be part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), to which it applied in September 2021, but the reality is that Taiwan’s application has little hope of success. China officially applied to be a member of the CPTTP only a couple of days before Taiwan. Since then, the United Kingdom has become a member of CPTTP, but the negotiation processes with Taiwan and mainland China have not started. Australian’s prime minister, Anthony Albanese, has expressed severe doubts about Taiwan’s ability to become member of CPTTP because of lack of international recognition of it as a nation-state.5 Second, while the DPP is likely to continue to offer more fiscal incentives to promote diversification in Southeast Asia and India (under the Southbound Policy), the fastest-growing destination for both exports and foreign direct investment from Taiwan is the United States, followed by Japan. This can be explained by the ongoing artificial intelligence revolution, which needs semiconductors, and the decisions of some key Taiwanese chip companies (especially TSCM) to open factories overseas for chip production, with the US and Japan as the most important destinations. In other words, the DPP’s push for geographical diversification might not be the main reason why diversification has happened; rather, it has been driven by market forces and business opportunities. This also means that the KMT push to maintain – if not deepen – economic ties with mainland China might not succeed unless China’s currently underwhelming economic performance turns around. Implications for the European Union So far, the EU has benefitted little from Taiwan’s trade and investment diversification, at least when compared to the US and the rest of Asia. The EU’s export share into Taiwan has remained practically stagnant (while the US has doubled its share), notwithstanding a large increase in exports from the Netherlands for a single item – ASML’s lithography machines for chip production. The EU lacks a trade or investment deal with Taiwan, but so do some of Taiwan’s other trading partners, including the US. Considering that the EU is the largest foreign direct investor in Taiwan, the question arises of whether the EU should do more to foster more bilateral economic relations. The gains could be substantial, especially from inbound FDI as Taiwanese investment focuses on high-end manufacturing. There has been some movement. A €5 billion investment in France by a Taiwanese company (ProLogium) was announced in May 2023 to build a battery factory 6 . TSMC announced in August 2023 a €4.5 billion investment in a semiconductor factory in Germany 7 . But for the EU to catch up with Japan and the US as a recipient of outbound FDI from Taiwan, the result of Taiwan’s elections could be an obstacle. This is because the DPP will have less control of the economic agenda because it does not control the Legislative Yuan. The close-to-impossible negotiation of a trade and investment deal between the EU and Taiwan – as shown by Taiwan’s difficulties in relation to Japan, the US and the CPTTP – does not point to any improvement in the institutional framework for economic relations to improve. The question, then, is what can the EU offer to attract high-end foreign direct investment from Taiwan? Subsidies to attract semiconductor factories cannot be the only answer, given the very large amounts needed and the pressure such subsidies put on EU member states’ already stretched finances (Legarda and Vasselier, 2023). Working with business associations and chambers should be a key driving force to improve business relations between Taiwan and the EU, especially considering that the EU is the largest foreign foreign direct investor in Taiwan, while Taiwanese companies have been absent from the EU single market until recently. Overall, the US and the rest of Asia have been the main winners from Taiwan’s rapid diversification of its economy away from mainland China. The EU, which is lagging, should work to enhance its economic exchanges with Taiwan. Hopefully the January 2024 election results will facilitate this. Most importantly, the EU should aim to attract more high-tech FDI from Taiwan. Unfortunately, a better institutional framework through a trade/investment deal seems highly unlikely, for geopolitical reasons. This puts all the burden on chambers of commerce and other forums to improve business relations. References 1- The Sunflower Movement was a student-led protest that occuped Taiwan’s Legislative Yuan to put pressure on the KMT government against signing a second cooperation deal with mainland China. See Ho (2018). 2- See the New Southbound Policy portal at https://nspp.mofa.gov.tw/nsppe/. 3- Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. 4- Alicia García-Herrero, ‘Taiwan’s future economic direction hinges on the election outcome’, First glance, 12 January 2024, Bruegel https://www.bruegel.org/first-glance/taiwans-future-economic-direction-… 5- Claudia Long and Stephen Dziedzic, ‘Albanese says Australia is unlikely to support Taiwan 6- France24, ‘Taiwanese battery maker Prologium to invest €5 billion in French factory’, 12 May 2023, https://www.france24.com/en/europe/20230512-taiwanese-battery-maker-pro…. 7- DW, ‘Taiwan’s TSMC to build semiconductor factory in Germany’, 8 August 2023, https://www.dw.com/en/taiwans-tsmc-to-build-semiconductor-factory-in-ge…. Ho, M.-S. (2018) ‘The Activist Legacy of Taiwan’s Sunflower Movement’, Carnegie Endowment for International Peace, 2 August, available at https://carnegieendowment.org/2018/08/02/activist-legacy-of-taiwan-s-sunflower-movement-pub-76966 Legarda, H. and A. Vasselier (2023) ‘Navigating Taiwan relations in 2024: Practical considerations for European policy makers’, China Horizons, 21 December, available at https://chinahorizons.eu/our-research/policy-briefs/278-navigating-taiwan-relations-in-2024-practical-considerations-for-european-policy-makers