China’s increasing influence in the Global South: what does it mean for the EU?

Key takeaways - China is altering the international landscape by creating new norms and alliances, especially in the Global South. China is building a new set of international institutions and initiatives in opposition to the Western-led liberal international order. - China’s engagement with the developing world is relatively successful because it is better coordinated and more consistent than what the West has been doing. It is also better adjusted to the needs of countries in the Global South. This has enormous economic and security implications internationally. - The West – defined primarily as the US + Europe – needs to face the unpleasant truth that China is winning the influence battle in many parts of the world. - The Chinese Communist Party has the advantage of a relatively monolithic political structure, which enables it to coordinate financial institutions and corporations quite effectively. China can move much faster than the EU, even if this means that funds are misallocated, or used in ways that the West dislikes. - The West is undermining its image through self-inflicted wounds such as US withdrawal of aid and perceived US and EU support for Israel, unpopular in many Muslim countries. - China’s trade with the Global South is steadily increasing, building new markets which reduce dependence on Europe and North America. - In reshaping its engagement with the Global South, the West must take the experiences and concerns of developing countries more seriously. This will also provide a better understanding of why China is currently often successful. - The EU needs to decide whether to compete or cooperate with China – or, we suggest, to use a combination of strategic competition and cooperation in carefully selected areas.