A European in China – Exclusive interview with the Ambassador of European Union in the People’s Republic of China, H.E. Jorge Toledo Albiñana
This article was originally published in Italian in Panorama on 1st March 2024.
Please note that this is a courtesy translation of the Italian language article originally published in the Panorama Magazine Issue at: https://www.panorama.it/economia/europa-cina-intervista-ambasciatore-albinana
Embark on an enlightening journey through the corridors of diplomacy as we delve into a riveting interview with Ambassador Jorge Toledo Albiñana, a key figure shaping global relations. In our series dedicated to influential personalities in Italian and European business and institutions, we are thrilled to present a dialogue with the esteemed European Ambassador to China since September 2022.
Born in Ludwigshafen Am Rhein, Germany, and a Law graduate, Ambassador Toledo Albiñana's diplomatic career, which commenced in 1989, has traversed continents, offering unique perspectives on international affairs. From India to Japan and Senegal, his trajectory culminated in his current role as the European Ambassador to China.
Join us as we explore the profound insights and experiences of this distinguished diplomat, shedding light on the evolving dynamics of EU-China relations, economic collaboration, and the intricate dance of geopolitics.
1. Could you please provide us with an introduction about yourself and narrate the journey that led to your role as the EU Ambassador in China?
After taking his Degree in Law and entering the Diplomatic School in Spain, I joined the Spanish Foreign Service in 1989. Since then, except for three years in Senegal, where I was Ambassador of Spain from 2008 to 2011, my career has been devoted mostly to European Union Affairs and Asia. Throughout my career I held different position in the Spanish Ministry of Foreign Affairs and the Prime Minister’s office. From 2016 to 208 I was Spanish Secretary of State for the EU and European Affairs. In Asia, I have been posted to the Spanish embassies in India and Japan, the second time there as Ambassador of Spain, before arriving to China in September 2022 as the Ambassador of the European Union.
2. In recent years, there have been notable shifts in the dynamics of the EU-China relationship. Having arrived in China approximately a year ago, how would you assess the current state of diplomatic ties between the European Union and China?
After over three years of very limited contacts because of the pandemic restrictions, we have just come out of an intense period of EU-China in person exchanges and dialogues that culminated in the EU-China Summit in December last year.
The EU has described its relations with China as three-pronged: partnership, competition and systemic rivalry. But dialogue is the common instrument to deal with the three of them. This is why it was so important to resume this exchanges. Despite our different political and economic systems, the European Union continues to believe that we can similarly pursue constructive and stable relations with China, when anchored in respect for the rules-based international order, balanced engagement, transparency and reciprocity. While we were able to have candid discussions, how we follow up these exchanges will be essential, as we need to see concrete outcomes and progress, especially when it comes to market access barriers that our companies face in China.
3. Furthermore, could you identify the key factors that have played a significant role in shaping these evolving dynamics?
Of course many factors are important in a relationship as broad and complex as that of the EU and China. However, if you ask me to highlight one factor that has shaped the dynamics recently, it would be Russia’s illegal war of aggression in Ukraine. For us in Europe this issue is existential. Ever since I arrived as European Union Ambassador to China in September 2022, one of my most important tasks has been to explain the profound impact the Russian illegal full-scale invasion of Ukraine has had on the EU as well as globally. But it has also impacted EU-China relations because China’s image and reputation in Europe has suffered because of the position it has taken on this war of aggression. Europeans cannot understand that an important permanent member of the UN Security Council like China, who proclaims the fundamental importance of the respect for territorial integrity, does not condemn clearly this blatant violation of the most basic principles of the UN Charter, and does not use its influence with Russia to press her into stopping the aggression and respect the territorial integrity of a sovereign country.
I should of course also mention the trade and economic relationship, where we face an extreme imbalance, and where we will continue to seek to ensure a level playing field, to ensure that the trade and economic relationship is balanced, reciprocal and mutually beneficial.
4. The EU-China Summit plays a crucial role in shaping bilateral relations. What key outcomes or agreements emerged from the summit, and how do they reflect the priorities and challenges in the EU-China relationship?
First of all, on December 7, 2023, it was the first in-person Summit in four years. I would also like to highlight the tone of the discussions, which were candid but I believe were held in a good, forward looking and constructive atmosphere. Both sides recognized the importance of our relationship and the need to manage our differences.
The Summit allowed us to cover the full range of our relations, including areas of disagreement such as Russia’s war of aggression against Ukraine, the situation in the Taiwan Strait and the South China Sea, and human rights issues. We also held important discussions on the growing imbalances in our trade and investment relationship and on climate change and the green transition, where EU-Chinese partnership is key to the future of our planet.
5. Looking ahead, what areas of cooperation do you see as particularly promising for the European Union and China? Are there specific sectors or initiatives where increased collaboration could bring mutual benefits?
We must continue to engage on tackling global challenges, to encourage China to take more ambitious action on climate change and continue our very constructive partnership in the protection of biodiversity, while engaging more intensely in health and pandemic preparedness, food security, disaster reduction, debt relief, and humanitarian assistance.
6. As we step into 2024, what to expect from EU-China relations, and how can businesses and policymakers ready themselves for development that lie ahead in the coming year?
I sincerely hope that China will address the EU’s concerns seriously in 2024. We urgently need concrete progress in addressing the imbalances in our economic and trade relationship and the long list of market access barriers that our companies find increasingly in China. This is urgent and necessary to avoid that this extreme imbalance becomes politically toxic. As President Von der Leyen said on the occasion of the summit, we in the EU do not want to follow the path some others have taken to protect their market from unfair competition and uneven playing field, but for that we need to be able to show progress and concrete results towards a fairer and more balanced relation.
7. What advice do you feel like sharing with managers or investors who are considering investing in China?
Despite the obvious appeal of a huge market and the unparalleled development of the Chinese economy in the last four decades, we have been witnessing a steady decrease of foreign direct investment in China, including from EU companies, in the last few years. This is particularly true for SMEs. An obvious reason for this has been over three years of very strict pandemic restrictions, but there are other worrying trends that seem to have reduced China’s attractiveness and that have to be addressed by the Chinese government if it wants China to regain the important place it had as a destination for foreign investment. And here I am talking of a barely disguised policy towards self-sufficiency or a marked preference for allowing and promoting investments in sectors where China’s authorities decide that they still need foreign technology. But also a worrying and recent trend, which is really affecting foreign investment appetite in China: the absolute priority increasingly attached to national security, shown among other manifestations in the recent legislation on counter espionage or of cross-border data transfer. Legal uncertainty brought about by very wide and unclear definition of the terms in the legislation and new and unclear obstacles to transfer data from China, putting business models at risk, are clearly making foreign investors rethink their investment options. All these elements, have to be considered before making an important investment decision. I hope the Chinese government will address the negative effects on foreign investment of some of these policies.
The interview graciously provided by Ambassador Jorge Toledo Albiñana serves as an invaluable compass for entrepreneurs and institutional figures navigating the intricate landscape of EU-China relations. In a world where diplomatic intricacies and global partnerships play a pivotal role, the insights gleaned from this conversation offer a strategic understanding of the challenges and opportunities that define the contemporary dynamics between the European Union
Edited by: Lawyer Carlo Diego D'Andrea, Vice President of the European Union Chamber of Commerce in China
