Dr Nicola Casarini writes: Beijing is rolling out an ambitious plan to create trade routes that stretch to the heart of Europe. This will bring much-needed investment to the countries in its path, but threatens to change the balance of power between rising Asia and the Old Continent

This year, China and the European Union celebrate the 40th anniversary of their diplomatic relations. Once marginal, their partnership has become one of the world’s most important. Trade between Beijing and Brussels now exceeds €1.2 billion a year. Their level of interdependence is such that China’s market meltdown this summer was felt in Europe immediately. 

The two sides are currently discussing ways to link China’s ‘one belt, one road’ (OBOR) initiative with the European Commission president Jean-Paul Juncker’s plan for jobs and growth to boost two-way investment and commerce.

Closer Sino-European relations, however, risk weakening the transatlantic bond which was strained in March by the decision of Britain to join the Asian Infrastructure Investment Bank as a founding member despite United States pressure to stay out. Germany, France and Italy were quick to follow the British lead. 

The state visit by Xi Jinping to Britain in October – the first by a Chinese president in 10 years – will be watched closely by the US and other EU states to see whether London will be able to send a reassuring message to Washington, while reaping the benefits of growing links with Beijing. China Paves Its Way to the EU