A Mismatch between Ambition and Reality: The EU’s Efforts to Counterbalance China and the US in East Asia

Abstract

In 2009, when proposing a Council Decision on the conclusion of the Partnership and Cooperation Agreement between the EU and Indonesia (EU-Indonesia PCA), the European Commission put forward four major contributions the EU-Indonesia PCA would make: economic, political influence, values, and culture. Economically, according to the Commission, PCAs with member countries of the Association of the Southeast Asian Nations (ASEAN) would constitute prerequisite frameworks for negotiations of free trade agreements (FTAs). In terms of political influence, the European Union (the EU) would be able to assume greater responsibility and exert greater influence in a region dominated by China and the United States (the US). The Commission also suggested that the EU would be able to better promote European values and enhance concrete cooperation on matters of mutual interest. Finally, the EU-Indonesia PCA could be seen as an example of an inter-civilizational partnership given that Indonesia is the world’s most populous Muslim country.

The EU’s interest on Asia is longstanding. In 1977, following the establishment of the ASEAN, the EU (then, the European Economic Community, EEC) became one of the organisation’s first dialogue partners; this dialogue partnership was institutionalised through a formal Cooperation Agreement between the EU and ASEAN in 1980. More recently, the EU has been negotiating PCAs with a number of ASEAN member countries. An FTA between the EU and Singapore has also been inked. The Northeast Asian countries Japan, China and South Korea are all EU strategic partners. The EU has already concluded an FTA with South Korea, and is negotiating an FTA with Japan. Regarding China, the EU and China are currently updating and upgrading the 1985 Cooperation Agreement, and the two sides have launched the negotiations for a stand-alone bilateral investment treaty (BIT). In addition, the Commission has published strategy papers addressing its relations with Asia, including Toward a New Asia Strategy, Europe and Asia: A Strategic Framework for Enhanced Partnerships, and A New Partnership with South East Asia.

In view of the EU’s renewed interest in Asia and its high ambition to counterbalance the influence of China and the US in Southeast Asia, this chapter explores whether existent policy tools are sufficient for the EU to achieve its goals. To this end, this chapter firstly maps the image of Asia in the eyes of the EU and investigates EU strategy papers on Asia. This chapter then examines the legal and policy instruments by which the EU weaves its relationship with Asia, and the various fora in which the EU exercises its influence in the region. This chapter then explores the EU’s role in Asian geopolitics. This chapter argues that there is a mismatch between ambition and reality when the EU aims to counterbalance China and the US in (Southeast) Asia. This is especially evident when it comes to high politics. Further, in forging its trade relations with Asian countries, the EU is more a follower of the US than a counterbalancing power. The major role the EU plays in East Asia relates to the provisioning of humanitarian aid, which corresponds to its image of itself as a ‘civilian power’.

Keywords: EU, China, ASEAN, US, FTA, BIT