NATO allies are discussing reclaiming some Chinese-owned infrastructure in Europe

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NATO officials are discussing taking action to reclaim some Chinese-owned infrastructure projects in Europe, requiring a broader conflict with Russia in the east of the continent, three officials involved in the discussions told CNN.

A decade ago, when Europe was still climbing out of the commercial hole caused by the global financial disaster, guarantees of infrastructure investment from Chinese-owned investment companies seemed like a great prophecy.

Now, with the most significant land conflict being waged in Europe since World War II — and the West’s ultimatum to assist Beijing in Russia’s invasion of Ukraine — NATO nations now see those investments as a legal responsibility, the allies said. have started talking about strategies to reclaim some of those initiatives, officials said.

According to one US expert, the concern is that if the fighting escalates, Beijing could value the infrastructure it has in Europe to hand over material aid to Russia. The aim, officials said, is to determine a path forward well before any potential fighting.

The discussions reflect the growing focus on China through the NATO alliance. A joint declaration by the 32 leaders attending Washington’s 75th summit on Wednesday strongly called for Beijing’s help for Moscow, disguised as a signal of the way out for those willing to take a more tough step. Such a reference to the anti-Beijing stance then was not noted in 2023.

“The deepening strategic partnership between Russia and the PRC and their mutually reinforcing efforts to undermine and reshape the rules-based international order are cause for deep concern,” the declaration said.

Discussions on taking action on infrastructure are still at an early stage and involve varying levels of involvement from some NATO member states, according to three officials interested in it. A NATO diplomat recommended that the US, which is leading the discussions, might want to pursue discussions on a bilateral basis to preserve vital aid.

From rail lines linking Eastern Europe to China to ports located in the North Sea and the Baltic Sea, China has financed tens of billions of dollars in infrastructure investments under its Belt and Road Initiative, which European countries agreed to in 2013. Started signing in.

A NATO professional said that if a conflict broke out, the infrastructure “would almost certainly be nationalized, or nations would temporarily assume operational control under emergency security measures.” China can sue them in court after the fact.

US officials see a precedent for such acquisitions or sales in attacks by EU countries to force Russia to sell assets in view of a 2022 invasion of Ukraine. For more than an hour, Finland imposed sanctions on the industry of Helsinki Shipyard, a maker of ice-breaking ships once owned by a Russian entity — until Russia buys the company, based in Canada, in late 2023. Not one unit sold.

A senior US professional says the discussion has moved beyond low-tech to include high-tech activities such as quantum computing, semiconductors and telecommunications infrastructure.

US Secretary of State Antony Blinken said on Wednesday that the Ukraine conflict may be the reason why the European Union and Asian countries have become clear about their security by connecting with each other.

“Perhaps this was made clear by Ukraine, when Prime Minister Kishida of Japan said that what is happening in Europe today could happen in East Asia tomorrow. When Russia did its aggression, its renewed aggression against Ukraine, and Japan stood up, South Korea stood up, Australia, New Zealand stood up, it was a reflection of the recognition that these challenges are linked,” Blinken told NATO. Said in the discussion board.

Although most NATO member states have expressed some degree of displeasure about Chinese-owned infrastructure, two officials involved in the discussions told CNN that France specifically wants to shift the discussion on infrastructure to the EU, Who has authority over alternative financial issues.

Officials say pressure from France and other countries influenced the language of the declaration and countries argued that NATO is not the most effective forum to challenge China — but many member states still have a very real concern. That Beijing can do this. Most of the dry wealth is moving forward in opposition to the alliance, and pushing to keep the alliance in place in defiance of the ultimatum.

Speaking in Washington in mid-June, outgoing Secretary-General Jens Stoltenberg said Beijing would face consequences for aiding Russia on the battlefield in Ukraine.

CNN’s Natasha Bertrand contributed reporting.