London Daily

Focus on the big picture.
Saturday, Nov 01, 2025

Beijing is quietly challenging Brussels

Beijing is quietly challenging Brussels

The new agreement between China and the US on climate change, announced this week, contained the usual worthy overtures. Both nations reasserted their commitment to fighting the ‘climate crisis’ by ‘co-operating with each other and with other countries.’ But can the West really take the Chinese Communist party at its word?
Judging by Beijing's activity in the Western Balkans, the answer is a resounding no. In Bosnia and Herzegovina, Chinese state-owned energy companies have built four coal power plants since 2010, with a further four planned – made possible by the Chinese Development Bank.

China’s belt and road charm offensive is no secret in the West. What Europe’s political elites haven’t yet grasped is how Beijing's growing influence in the region is being used to counter EU expansion. Over the last decade European banks have stopped investing in coal in order to comply with the Paris Accord and the European Commission’s push for half of Europe to become carbon neutral by 2030. Chinese investors have readily filled the void, targeting poorer countries in the Balkans that are considering EU membership.

The EU specifically states that in order to reach carbon neutrality by 2050, no more coal power plants must be built by member states. Countries like Bosnia and Herzegovina and Serbia, which have begun building coal plants with Chinese-state owned companies, may well have compromised their journey towards EU membership. Existing EU countries are also being targeted. If China presses ahead with its plans for a €1 billion (£860 million) thermal power plant in Romania, it will control 15 per cent of Romania’s energy supply.

The European Commission's signing of its new Comprehensive Agreement on Investment with China makes it difficult for Brussels to object to these projects, despite many of them contravening EU law on the provision of state aid for coal power plants. By jumping into bed with the CCP, they have significantly weakened any leverage they may have had on the environment.

Not everyone in Eastern Europe is happy about the growing influence of Beijing. Poland has made clear where its allegiance lies, having entered into an agreement on greater military support from the US at the tail end of Trump’s presidency. The Polish government was at pains to point out to the Commission that the Comprehensive Agreement on Investment should not be entered into without the support of ‘transatlantic allies’. It was keen to slow the process down in order to protect its own relations with Washington. But the Commission carried on with the deal regardless.

What’s interesting is the speed with which countries who are historically wary of communism have welcomed the influence of the Chinese communists when investment is offered. On paper, it is hardly an obvious diplomatic match. But as the EU raises the bar on the climate, it risks alienating poorer potential member states who have embraced China’s belt and road strategy in return for key infrastructure. The EU may soon find that it has to decide between political expansion and environmental idealism.

As for China, actions clearly speak louder than words: it may say that it is committed to co-operating with other countries to tackle the climate crisis but it’s clear from its behaviour in Eastern Europe that it will contravene this sort of commitment in order to extend its global reach.
Newsletter

Related Articles

0:00
0:00
Close
U.S. Secures Key Southeast Asia Agreements to Reshape Rare Earth Supply Chains
US and China Agree One-Year Trade Truce After Trump-Xi Talks
BYD Profit Falls 33 % as Chinese EV Maker Doubles Down on Overseas Markets
US Philanthropists Shift Hundreds of Millions to UK to Evade Regulatory Uncertainty in Trump Era
Israeli Energy Minister Delays $35 Billion Gas Export Agreement with Egypt
King Charles Strips Prince Andrew of Titles and Royal Residence
Trump–Putin Budapest Summit Cancelled After Moscow Memo Raises Conditions for Ukraine Talks
Amazon Shares Soar 11% as Cloud Business Hits Fastest Growth Since 2022
Credit Markets Flooded with More Than $200 Billion of AI-Linked Debt Issuance
U.S. Treasury Secretary Scott Bessent Says China Made 'a Real Mistake' by Threatening Rare-Earth Exports
Report Claims Nearly Two Billion Dollars in Foreign Charity Funds Flowed into U.S. Advocacy Groups
White House Refutes Reports That US Targeting Military Sites in Venezuela
Meta Seeks Dismissal of Strike 3’s $350 Million Copyright Lawsuit
Apple Exceeds Forecasts With $102.5 Billion Q3 Revenue Despite iPhone Miss
Israel's IDF Major General Yifat Tomer-Yerushalmi Admits to Act Amounting to Aiding Hamas During Wartime (Treason)
Shawbrook IPO Marks London’s Biggest UK Listing in Two Years
UK Government Split Over Backing Brazil’s $125 Billion Tropical Forest Fund Ahead of COP30
J.K. Rowling Condemns Glamour UK Feature of Nine Trans Women as 'Men Better at Being Women'
King Charles III Removes Prince Andrew’s Titles and Orders His Departure from Royal Lodge
UK Finance Minister Reeves Releases Email Correspondence to Clarify Rental-Licence Breach
UK and Vietnam Sign Landmark Migration Deal to Fast-Track Returns of Irregular Arrivals
UK Drug-Pricing Overhaul Essential for Life-Sciences Ambition, Says GSK Chief
Princesses Beatrice and Eugenie Temporarily Leave the UK Amid Their Parents’ Royal Fallout
UK Weighs Early End to Oil and Gas Windfall Tax as Reeves Seeks Investment Commitments
UK Retail Inflation Slows as Shop Prices Fall for First Time Since Spring
Next Raises Full-Year Profit Guidance After Strong Third-Quarter Performance
Reform UK’s Lee Anderson Admits to 'Gaming' Benefits System While Advocating Crackdown
United States and South Korea Conclude Major Trade Accord Worth $350 Billion
Hurricane Melissa Strikes Cuba After Devastating Jamaica With Record Winds
Vice President Vance to Headline Turning Point USA Campus Event at Ole Miss
U.S. Targets Maritime Narco-Routes While Border Pressure to Mexico Remains Limited
Bill Gates at 70: “I Have a Real Fear of Artificial Intelligence – and Also Regret”
Elon Musk Unveils Grokipedia: An AI-Driven Alternative to Wikipedia
Saudi Arabia Unveils Vision for First-Ever "Sky Stadium" Suspended Over Desert Floor
Amazon Announces 14 000 Corporate Job Cuts as AI Investment Accelerates
UK Shop Prices Fall for First Time Since March, Food Leads the Decline
London Stock Exchange Group ADR (LNSTY) Earns Zacks Rank #1 Upgrade on Rising Earnings Outlook
Soap legend Tony Adams, long-time star of Crossroads, dies at 84
Rachel Reeves Signals Tax Increases Ahead of November Budget Amid £20-50 Billion Fiscal Gap
NatWest Past Gains of 314% Spotlight Opportunity — But Some Key Risks Remain
UK Launches ‘Golden Age’ of Nuclear with £38 Billion Sizewell C Approval
UK Announces £1.08 Billion Budget for Offshore Wind Auction to Boost 2030 Capacity
UK Seeks Steel Alliance with EU and US to Counter China’s Over-Capacity
UK Struggles to Balance China as Both Strategic Threat and Valued Trading Partner
Argentina’s Markets Surge as Milei’s Party Secures Major Win
British Journalist Sami Hamdi Detained by U.S. Authorities After Visa Revocation Amid Israel-Gaza Commentary
King Charles Unveils UK’s First LGBT+ Armed Forces Memorial at National Memorial Arboretum
At ninety-two and re-elected: Paul Biya secures eighth term in Cameroon amid unrest
Racist Incidents Against UK Nurses Surge by 55%
UK Chancellor Rachel Reeves Cites Shared Concerns With Trump Administration as Foundation for Early US-UK Trade Deal
×