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Saturday, 10 November 2018

The Netherlands finally leaves its naïve stance against the growing economic influence China. Not a second too early!

Living by the walls that would fascinate the world
China felt so different from the rest
Expecting fellow man was the basis of their plan

It was one of my frustrations of the last decade: the naïve stance of most European countries and – in particular – The Netherlands towards the “stealth” expansion of the Chinese economic and political influence on the European continent.

China, with its inconspicuous masterplans that could have time horizons of decades, was using soft power and smart investments to stealthily increase their economic – and in the process political – influence on the European continent, without the Europeans even noticing it initially.

China’s investments have always been smart and well-chosen and with a keen eye on the future of their trading empire, which was traditionally based upon the manufacturing, export and distribution of mass-produced consumer goods and 
(increasingly) on the development and distribution of (in)expensive technology:
  • The German industrial robot manufacturer Kuka;
  • The French supplier for the nuclear waste industry Manoir Industries;
  • A currently developed €20+ billion British nuclear plant that must become the successor of the infamous Sellafield plant;
  • Avalon, a large Irish leasing company specially for the aviation industry, as well as a few other companies in the same business;
  • The port of Piraeus in Greece, when Greece was strapped for cash due to the Euro crisis;
  • Large shares in seven other European ports (a.o. Rotterdam, Genua, Napels en Marseille), where Chinese stateowned companies usually purchase complete quays, that change overnight in a little pieces of China; fully controlled Chinese trade and import areas, carefully hidden away from governmental oversight by the hosting countries.

And there were other, far-stretching plans to take over European railroads in (a.o) Greece and finance the construction of highway infrastructure in the traditionally cash-strapped Eastern Europe.

These takeovers and financing operations always meant some desperately needed billions of Euros in cash for the countries involved. Consequently most countries dearly wanted to believe in the benevolent smiles of the Chinese government leaders and their willingness to operate as a partner, thus in fact giving away some of their strategic assets to China.  

And the proverbial pot of gold at the end of the rainbow of doing business with China was unlimited access to the vast Chinese market, with its 1.3 billion inhabitants. This would mean additional labour for their own companies and sales coming from their own exports, as well as a slice of the pie from the enormous Chinese distribution networks building up around the world (i.e. the new Silk Route).

Yet, the open access to the Chinese market always seemed to be a mirage: when you came close to it, it vanished again. When companies moved to China or opened a subsidiary over there, things also did not go hunkydory. High tech manufacturing companies regularly became victims of theft of their patents, ideas and construction methods, while true access to the open market never seemed to have lift-off.

The aggressive Chinese policy concerning the Spratly Islands and Taiwan should have been a warning signal for the European countries, that their Chinese partner was not so benevolent and "trade-driven" as the European might think. 

The reef-based islands belonging to the former were suddenly invaded by the Chinese, who waded millions of cubic meters of sand and constructed runways, villages and factories, while scaring away everybody who came too close (read: Vietnam, Malaysia, the Phillippines).

In Africa and Latin-America, the Chinese neocolonialism was based upon beads and mirrors” in the form of new roads, railways and other infrastructure of which… China itself profited most. The country did so, while shutting up the leaders overthere with unlimited personal wealth for them and their families and soft loans for their country to pay for their new infrastructure projects. 

In exchange the Chinese “confisquated” their supplies of soy beans, rice, palm oil and other agricultural produce, as well as gold, silver and copper, rare earth metals, minerals and oil. Most of these trade deals of African and Latin American countries with China were (imho) extremely unbalanced, with China and the local rulers having the winning hand, while the country was plundered of its natural resources.

But the European countries seemed to ignore all these warning signals emerging from the rest of the globe and kept on smiling against the Chinese government representatives. They dreamed golden dreams of bedazzling exports and unlimited influence on the second most powerful country in the world, while ignoring that not everything was so well with China. And so did The Netherlands.

Until last week… It seemed that the Dutch government suddenly had a brainwave about what is at stake in the Chinese-European trade policies and especially with regards to China’s increasing industrial espionage at one hand and their mounting influence on the European economies and politics on the other hand, via China’s recent network of participations and takeovers.

De Volkskrant wrote this about it:

The [Dutch] government comes with a new China strategy, as it is worried about the mounting Chinese influence on The Netherlands. The Cabinet especially wants to focus on economic espionage and risky, hostile takeovers by China. This was stated by Minister Eric Wiebes of Economic Affairs.

“Chinese companies, which appear with a backpack full of subsidies and state support, can do almost everything what they want overhere”, Wiebes warned. 

The Cabinet is seriously involved in this approach, with eight officials, under guidance of the Prime Minister”.

As far as I’m concerned this is not a second too early!

This is not a sign of emerging protectionism of the Dutch government, but rather the realistic insight that international trade should be “quid pro quo’, with mutual burdens and benefits. Not a one way street, in which the majority of the benefits lands at only one of the two parties involved.

On top of that, the Dutch government should finally get rid of their blind eye for the unavoidable drawbacks of doing business with China: 
  • their locust-like neocolonialism in the Third World countries in Africa and Latin America; 
  • their extremely brutal and intrusive policies against minorities within their own country... 
  • and their aggressive stance against Taiwan, Tibet and other neighbouring countries, in case of political and territorial conflicts.

This, in combination with the unstoppable dominance of the Communist Party, their economic restraint towards their trade partners, as well as the opaqueness of their policies and their future agenda, makes that China as a “friend” is far more dangerous than Russia as an enemy, to these eyes.

All this, however, does not mean that the European Union cannot do business with China... It only means that you should not give too much away to someone of whom you are not sure that he will repay you to the same extent. 

In other words: do business, but don’t be naïve about your business partner!


My late mother had this old and beautiful expression: “When a fox preaches about world peace, the farmers can better take care of their chickens”.

Think about China and the European Union and think for yourself which one is the fox and which are the chickens?! I think you will know the answer to that question!

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