Chinese Path to Modernization, European Model, and China-Europe Relations

The report to the 20th National Congress of the Communist Party of China outlined China’s development goals up to 2035 and specific tasks to accomplish in the next five years.It particularly put forward the “Chinese path to modernization” concept and provided a comprehensive account of China’s foreign relations.1Xi Jinping, “Hold High the Great Banner of Socialism with Chinese Characteristics and Strive in Unity to Build a Modern Socialist Country in All Respects,” Report to the 20th National Congress of the Communist Party of China, October 16, 2022, http://english.www.gov.cn/atts/stream/files/6357d404c6d028997c37ca9b.

As an all-encompassing concept, the “Chinese path to modernization”involves eight objectives, namely, high-quality development of economy and technology, modernization of the national governance system, the institutionalization of whole-process people’s democracy, enrichment of people’s spiritual and cultural life, synchronized growth of income and economy, a remarkable improvement of the natural environment and living condition, strengthening national security, and elevating China’s rising status on the global arena.2Ibid.At least three aspects of the Chinese path to modernization are associated with the outside world.

First, it shares the common or universal characteristics of modernization across all nations.The talks between President Xi Jinping and German Chancellor Olaf Scholz reiterated this point.3“Xi Meets German Chancellor Olaf Scholz,” Xinhua, November 4, 2022, https://english.news.cn/20221104/f544bca38c33443186d3de8b3d0a9a27/c.html.Common characteristics refer to not only high-level economic and technological development, such as industrialization, urbanization and agricultural modernization, but also informatization and smart technology transition, as well as approaches and ways to cushion the impact of industrial transformation on society and the natural environment.In these areas, China has drawn lessons from other countries, sharing our wisdom with them, and will continue to engage in exchange and interaction with the global community, learning from and adopting the best practices.

Second, the Chinese path to modernization should be tailored to our national conditions and based on our specific country’s endowments.Unlike other countries, China has a huge population base, a fragile natural environment and unevenly distributed resources.However, in China,we have the leadership of the CPC, the unique socialist system, and a rich historical and cultural heritage, along with an array of programs and achievements exemplifying our unique characteristics that align with global civilization, such as a modernization featuring common prosperity,coordinated development of material civilization and spiritual civilization,harmonious coexistence between man and nature, and the whole-process people’s democracy.

There are differences in Chinese civilization compared to other countries, and there is no one-size-fits-all approach for all countries in their modernization drive.It is imperative to systematically address the challenges arising from the Chinese path to modernization.Indeed, there are complementary aspects within these differences.For instance, though the concept of common prosperity has roots in Chinese history and culture,the world socialist movement helps shape it.China has to achieve common prosperity in its unique way; the whole-process people’s democracy also has Chinese characteristics, especially for its necessity to adapt to China’s national conditions and institutional characteristics after drawing lessons from the Western democratic system.The process of establishing the concept of whole-process people’s democracy is also a crystallization of humanity’s exploration of the democratic path.

Third, we will adhere to peaceful development and avoid falling into the Thucydides Trap.A peaceful international environment is a prerequisite for every nation’s development.Achieving a rational and optimal allocation of resources globally is essential to fostering peace and development.Moreover, cooperation and transactions conducted on equality and fairness are indispensable in development.China’s development is contingent upon global peace and development, and the country can meaningfully contribute to advancing world peace and development.Therefore, to realize the Chinese path to modernization, we must dedicate ourselves to advancing world peace and development, expanding common ground among nations worldwide and building a community with a shared future for all humanity.

As stated in the report to the 20th National Congress of the Communist Party of China, it is essential to link China’s future development blueprint with its specific foreign policy.It is reflected in four fronts in terms of foreign policy:1) adhering to the principle of sovereign equality and diversity and respecting the development path and social system chosen by each country; 2) expanding the convergence of interests of all countries and promoting the partnership of equality, openness, cooperation, mutual benefit, mutual trust and integration of interests; 3) continuing to strengthen solidarity and cooperation with developing countries and safeguard the shared interests of the Third World countries; 4) continuing to implement the opening-up policy of and actively participate in the reform and construction of the global governance system.4Xi Jinping, “Hold High the Great Banner of Socialism with Chinese Characteristics and Strive in Unity to Build a Modern Socialist Country in All Respects.”

The aforementioned points are the fundamental foreign policy statements in the report to the 20th National Congress of the Communist Party of China.The values specified in the report, specifically the “peace,development, fairness, justice, democracy and freedom,” are not exclusive to the West but the shared values of humanity, and it takes the joint efforts of everyone to achieve, rather than an empty slogan a party chants to suppress the other.The current negative global geopolitical dynamics mean the world still needs to face up and curb the growing zero-sum game mentality and prevent this counter-current from interfering and hindering human progress.The international community must expand shared interests, uphold principles of tolerance, mutual support and unity, and address deficits in peace, development, security and governance.Rather than mindlessly pursuing confrontational victories over others, we should prioritize collaborative solutions that benefit everyone.

A frame of reference is essential when we study the report to the 20th National Congress of the Communist Party of China and seek full insights into the Chinese path to modernization.In this case, we focus on Europe as the subject of analysis.

The question is, what is “European modernization”? We have been talking about “European transformation” for quite a while, so what did Europe transform from? Does Europe, like China, have some unique patterns and characteristics? Under what conditions did Europe start the transformation process? What is the direction and model of its transformation? Finally, how should we deal with Europe in transition? All these issues merit extensive discussion.

About 20 years ago, the Chinese academic community studying Europe began to discuss European characteristics or models and formed initial views on the subject.In short, the European model features a multi-domain, multifunctional matrix model composed of various power combinations.The EU has come off as a “dwarf” in the security field, and the European security system is hidden in NATO under the umbrella and baton of the United States.Europe always rubs against NATO but cannot break the shackles and go free.The EU implements a social market economy in the economic and social fields.Its social distribution accounts for a larger proportion of expenses compared with other liberal capitalist countries.The social market economy of the EU has both characteristics of liberalism and protectionism in the process of globalization.Free competition in Europe follows the rules of self-interests.Javier Solana, European Union High Representative for the Common Foreign and Security Policy, once said in a speech at the Central European University in Hungary that Europe needs to ensure she is sitting in the driver’s seat instead of taking the back passenger seat.5Cited from a speech by Javier Solana, European Union High Representative for the Common Foreign and Security Policy, at Central European University (CEU) in Hungary in 2010.

In other words, rather than being swayed by others, Europe needs to control the “vehicle” in both directions and approaches, meaning that Europe must engage, steer and lead the formulation of competition rules.A role that Europe did play in the past.

In the political arena, Europe and the United States share the same roots and values, such as implementing competitive party politics, universal suffrage democracy, separation of powers, regime rotation, etc.However, the political rules at the EU level differ from those of its member countries.At the member countries’ level, elected politics holds more sway, and the influence of public opinion is more prominent.In contrast, elite politics is mainstream at the EU level, and the so-called consultative democracy and technocratic system are stressed.In the diplomatic field, the EU and member countries support and restrict each other simultaneously, as “speaking with one voice”has always been an unattainable goal of the EU diplomatic landscape.

Since World War II, the European model has evolved, transformed,and established its development logic.However, in the 21st century, the EU innovation and transformation process has been distorted by changes in the outside world, and its endogenous driving force is waning.In the past decade, the series of external shocks has made Europe lurch from one crisis to another.The global financial crisis and the European debt crisis from 2008 to 2009 put the European economic growth model under close scrutiny.The post-2010 refugee crisis has challenged its model of social solidarity; the Ukraine crisis in 2013 highlighted the role of values in the diplomatic field;the terrorist attack crisis in 2015 challenged Europe’s pluralistic integration,ethnic integration and social governance capabilities; Brexit in 2016 took a toll on the confidence in the future of European integration; the COVID-19 pandemic delivered a heavy blow to the effectiveness of its dual governance,the unity of the people, the adequacy of public finance and the supply of innovative key products; the outbreak of Russia-Ukraine crisis in 2022 and the EU sanctions against Russia have wreaked havoc on the European economy, imperiling the economic lifeline of Europe and driving up the cost of the European manufacturing industry.All the developments significantly hurt the EU’s development.

In response to the continuous crises and challenges, what kind of transformation has occurred in the European model? As the largest participant in international trade and investment, the EU has long regarded economic power as a tool to show its strength to the outside world.However, after entering the 21st century, the EU suffered from a shrinking share of global GDP.Weighed by the COVID-19 pandemic and the Russia-Ukraine crisis, the EU economic future is facing a great deal of uncertainty.At the same time,the EU is ill-prepared for the increasing competition among big countries and is getting into an uncertain strategic swing period.The proposals of the“European strategic autonomy” and “sovereign Europe” precisely show the strategic anxiety in Europe, the need to pool together strength, and even a sense of urgency ensued from the heightened awareness that “time waits for no one.” As demonstrated in the foreign policy area, firmness and selfconfidence in the early stage of European integration have become a thing of the past.Before the outbreak of the Russia-Ukraine crisis, Europe did not have a unified and clear position on some major issues.For example, is Russia the main energy supplier or the biggest security challenge to Europe? Is China an indispensable partner and competitor for European prosperity or a systematic rival? In particular, how to treat the United States, and to what extent does Europe need the ongoing protection of the United States? In what ways can Europe get rid of the restriction of the United States and realize strategic autonomy? On these major strategic issues, Europe held an ambiguous attitude until the outbreak of the Russia-Ukraine crisis.

Amid changes in an ever-moving world, the countermeasures taken by Europe are generally centering on resilience and transformation.As an idea frequently stated in EU documents, resilience means to stick to the basic values and systems of Europe and make them adaptable and vital; Transformation refers to innovation power and upgrading capacity in key areas and rising above challenges.Resilience focuses on the superstructure, while transformation is a concrete policy measure embodied in various basic fields.

We can look at the transition of Europe from five dimensions.The first is the economic field.It pays equal focus on quantity and quality in the transition process, with the understanding that system and society must operate hand in hand, which requires the coordination of technology, system and society,as well as investment and governance innovation from the high level of government.The EU is an expert in the transformation and innovation of the economic system, and it has been strengthening its economic and financial management (such as establishing banking alliances, economic recovery funds and other institutional innovations).When the economy fares well, it is easier to implement the new mechanism created by the EU and the new methods introduced.However, when the economy is in a rough patch, and there are intensifying conflicts of interest among members, it is difficult to reach a compromise, and members will be unwilling to hand over power to the EU.

The Russia-Ukraine crisis has taken a significant toll on Europe’s economic transition.The disruptive war suddenly changed the continent’s geopolitical picture and squeezed the space for economic system transition.It is difficult for EU members to be on the same page regarding energy policies,which have a bearing on the lifeline of the European industrial economy and competitiveness.The EU is forced to coordinate members’ positions on sanctions against Russia, and its investment in the most critical fields of economic and technological transformation is reduced and delaying the entailed transformation.

The second is the digital field.Digital transformation is crucial for enhancing the EU’s competitiveness and is key to the European economic transition.Ever since 2020, the EU has rolled out many documents, such as Shaping Europe’s Digital Future, A New Industrail Strategy for Europe,European Data Strategy, White Paper on Artificial Intelligence, Europe’s Digital Decade: Digital Targets for 2030, to lead the digital transition process.The success of digital transformation involves not only the mastery of technology, the implementation of favorable policies and the support for enterprises but also deepening and moving beyond the economic and social areas.If an individual’s digital employability and livelihood are not improved,the digital transition will be elusive.Digital transformation involves a package of measures.Even though the EU has proposed digital transformation, it relies on its members to provide employment and social input, as digital transformation also needs the recognition and cooperation of EU members.

The third is in the green field.The green transition is where the EU has advantages and is also a key area for improving its competitiveness and international status.The EU has started a comprehensive project named the“Green Deal,” which includes policy formulation, technological upgrading,industrial transformation, social reform and ideological construction.To achieve the goals set in the Green Deal, the EU needs to strengthen international cooperation in related fields because achieving the green goals is a global problem instead of a local issue for Europe.Without global cooperation,the EU will hardly get far.In addition, the energy crisis caused by the Russia-Ukraine crisis has forced members to seek alternative energy supplies, which impeded the green transformation.The changing external environment has greatly affected the EU’s green transformation.

The fourth is political transition.Imperceptibly, the EU has adjusted its political development goal to differential integration and “Multi-speed Europe.” However, external shocks such as the refugee crisis and the Russia-Ukraine crisis have challenged the political stability within the EU and emboldened extremist forces.Although the ideological trend has temporarily brought Europe to a political agreement, differences and divisions are widening beneath the surface among various social classes, large and small members, and East, West, North and South Europe.

The fifth is diplomatic transition.A mantra of European politicians goes: “The EU must be a player and not a playground.”6“EU Must Be a Player and not a Playground, Argues Mr.Michel,” Europe Daily Bulletin, No.12559,September 15, 2020, https://agenceurope.eu/en/bulletin/article/12559/1.Europe has just become a playground and must bear the consequences of unexpected disasters from external players.Three notable diplomatic trends are showing Europe is a playground.One is a return to geopolitics, such as Ursula von der Leyen’s declaration that the new European Commission is a “commission valuing geopolitics.”7“Ursula von der Leyen Highlights the EU’s Leadership on Global Issues,” http://www.mofcom.gov.cn/article/i/jyjl/m/2019 11/20191102915555.shtml.This trend has grown more prominent after the outbreak of the Russia-Ukraine crisis, which represents a historical retrogression.The disruptive geopolitical event runs contrary to the integration rules that the EU has pursued, so isn’t it a historical retrogression for the EU to abandon the integration logic and cater to the geopolitical logic? Another manifestation is tightening trade and investment policies to align them with politics, that is,politicize, ideologize and securitize economic and foreign trade policies.For example, it strengthened transatlantic cooperation, set up Trade and Technology Council (TTC), and coordinated the formulation of future global economic and trade rules and standards with a value alliance.The adoption of restrictive trade policies driven by values, new regulations on “foreign government subsidies,” and the put-in-place of new censorship systems reflect the increasing influence of ideological factors on the EU’s foreign economic and trade policies.

The intertwining of foreign trade with value and security concepts highlights the new EU approach’s evolving nature.For instance, in 2022,the European Commission adopted a proposal for a Directive on Corporate Sustainability Due Diligence (the “CSDD proposal”), requiring enterprises under the jurisdiction of EU countries (including upstream and downstream industrial chain links with direct or indirect business links) to provide information on human rights, environment and good governance.These practices of dividing the world market and setting up trade barriers are also a historical retrogression compared with the earlier, more liberal European Community.

Third, abuse of sanctions tools.After the EU imposed sanctions on China in March 2021, it expanded the use of sanctions tools against other countries and suffered significant pushback in the latest sanctions against Russia.It is not a smart move for the European Community that is traditionally acknowledged as an expert in diplomatic mediation, seeking common ground while reserving differences and creating a peace mechanism.

Although Europe started to embark on the transition path earlier,it has faced a difficult journey marked by external pressures and foreign threats.The core of its transition is to build up its system and mechanism,enhance strategic autonomy, promote technological transformation, enhance international competitiveness, take the initiative in the global governance system, and take the driver’s seat in setting the direction of the global agenda.However, the recent shift of direction to reshape geo-economy and geopolitics, reconfigure the industrial chain and supply chain, accentuate regionalization characteristics and re-steer globalization trend is loaded with ideological elements, which is not in the interests of the EU itself.

The crisis in Ukraine has had a detrimental impact on the transformation of Europe, disrupting its progress and exacerbating a retrogressive trend.The European security model was activated promptly after the Russia-Ukraine crisis.The security model features Europe’s deepening dependence on the United States that implies a lack or shelving of strategic autonomy; choosing a political position of alignment with the United States that has brought a heightened sense of crisis and strategic anxiety over its inability to grasp its own development.The fundamental interests of Europe, including economic competitiveness and rule-setting power in the international community,are being challenged.The economic performance of Europe is subject to transformation in line with the shifting energy sources.Energy is one of the key inputs in industrialized Europe, and its rocketing cost implied a heavy blow to European competitiveness and the loss of many comparative advantages.The arbitrary interest rate by the United States prompts the dollar recycling,a weaker euro, and a decline in market confidence in the euro that hurts the euro’s standing as an international reserve currency.It is embarrassing for Europe, which has been promoting its strategic autonomy, to act as a“conformist follower of the United States” in the international arena.Despite the strong anti-Russian sentiment in Europe, the fact remains that there is no way Russia can be removed from the world map.When emotions subside, it is time to devise a solution to the crisis, and no normal and rational European politician and strategist will consider “fighting to the bitter end” as an option.The only way out for Europe is to re-establish the strategic balance in Europe and not revert to the traditional geopolitical confrontation.Therefore,Europe finds itself in an awkward position, characterized by a lack of strategic autonomy and confusion over the direction and approach to its transformation.

When discussing China-Europe relations in the context of Europe’s transformation, it is essential to adopt a broader perspective.The new perspective should involve understanding Europe’s strategic fluctuations and vulnerabilities, recognizing the influence of public opinion in its decisionmaking, and acknowledging the media’s inclination towards sensationalism,bias, distortion, and extremism.Acknowledging Europe as a victim of the crisis and considering Europeans’ historical memory of the war damage, we should not let Western media’s one-sided and malicious reports and some think tanks affect our rational thinking.While believing that the Chinese path to modernization is bright, we should also believe that Europeans’ hard work and efforts for European-style modernization are by no means aimed at long-term confrontation with the world’s largest market.

We should study the current situation and circumstances in Europe and the US impact on the decrease of mutual trust between China and Europe and realize the widening and deepening gap of mutual understanding between China and Europe caused by COVID-19.A better understanding of Europe enables us to hold a better grip on the policy towards Europe, and promoting the positive side of China-Europe relations can be attained in a focused way.

The report to the 20th National Congress of the Communist Party of China elaborated on the country’s foreign policy as follows: China adheres to the principles of sovereignty and diversity and respects the development paths and social systems independently chosen by all the world’s peoples; China is committed to broadening the convergence of interests with other countries and expanding global partnerships based on equality, openness, cooperation, mutual trust, and integration of interests; China endeavors to strengthen solidarity and cooperation with other developing countries and safeguard the common interests of the developing world; China is committed to its fundamental national policy of opening to the outside world; and China is actively participating in the reform and development of the global governance system.8Xi Jinping, “Hold High the Great Banner of Socialism with Chinese Characteristics and Strive in Unity to Build a Modern Socialist Country in All Respects.”

The above-mentioned principles are enshrined in the China-EU relati ons and China’s Europe policy.Specifically, the following guidelines for building sound China-Europe relations should be maintained.

First, determining that China’s independent development is correlated with Europe’s common development is the direction for the future development of China-Europe relations.Instead of highlighting differences and provoking confrontations, China seeks common ground while reserving differences in its relations with Europe, strives to eliminate counter-currents and disturbances in bilateral relations, and increases cooperation in pragmatic areas.

Second, China, the European Community and the European countries should be guided by the principle that “different social systems can coexist peacefully and mutually beneficial.” The countries should adjust their bilateral relations from a long-term strategic perspective to reap the benefits of cooperation between different political actors of different social systems.As proven by history, long-term strategic confrontation is not in the interest of any country or people.The so-called systemic and institutional differences should not constitute barriers to bilateral relations.Countries with different social systems and political views can coexist peacefully and mutually benefit from each other and therefore need to find ways to reverse misaligned positioning and misjudgments between China and Europe and optimize the common interests.

Third, China and Europe should work together to ensure cooperation in a forward, and not a backward way, work together to make progress in global governance and third-party cooperation, and cooperate on global issues such as climate change, trade facilitation, common security, epidemic prevention, and reduce any clash over civilizations.The two sides should properly address the negative impact of mutual misunderstandings on their relations and establish a new partnership model for win-win cooperation between different social systems.