Given Russia’s invasion of Ukraine, the path to a new order in Central and Eastern Europe, away from Chinese domination and expansionist policies, could be charted as China’s lack of external financing transparency is seen as a security threat. These types of funding often come from authoritarian regimes, such as China and Russia. These countries exploit governance loopholes in capital-receiving countries to influence their decision-making, Geo Politica reported.
Chinese expansionist policies are supported by “coercive capital”. The concept of “coercive capital” defined by the International Center for Private Enterprise refers to “external sources of finance that lack transparency, accountability and market orientation”. Last year, China hosted the Summit of Leaders of China and Central and Eastern European Countries (CEECs or 17+1 initiative). What is important to note during the meeting is that the leaders of six countries did not attend the meeting and Lithuania took the initiative (February 2021) to boycott the summit.
To add insult to injury, Lithuania announced its withdrawal from the 17+1 initiative, announcing the establishment of a trade representative office in Taiwan. From this, it becomes clear that there has been a reluctance on the part of the CEECs to cooperate with China. Poland has also aligned with US 5G policy, the portal reported.
It should be noted that the Russian-Ukrainian war pushes the CEECs towards the US-led West, given China’s tacit support for Russia, in addition to their own security concerns. (ANI)
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