NATO fears Chinese may use projects in Europe to aid Russia, plans to reclaim them

NATO officials are reportedly deliberating actions to reclaim some Chinese-owned infrastructure projects in Europe if a broader conflict with Russia escalates.

According to a CNN report, NATO members are viewing these Chinese investments as potential liabilities a decade after welcoming Chinese companies in bid to recover from the global financial crisis. The underlining reasons behind this change of heart have been attributed to the onging conflicts in Europe and China’s support for Russia’s invasion of Ukraine.

Hence, the alliance is now exploring ways to address these concerns and possibly reclaim some of the infrastructure projects.

One U.S. official was quoted in the report highlighting concern that China might use its European infrastructure investments to support Russia if the conflict intensifies. NATO officials aim to develop strategies to address these risks before any potential escalation.

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The discussions highlight NATO’s growing focus on China. The joint declaration released on Wednesday at the 75th anniversary summit in Washington denounced Beijing’s support for Moscow, marking a shift from the previous year when such references were omitted.

The declaration expressed deep concerns about the strategic partnership between Russia and China and their efforts to undermine the international order.

The conversations about reclaiming infrastructure are in preliminary stages and involve varying degrees of engagement from NATO member countries. A NATO diplomat indicated that the US, leading the discussions, may need to pursue bilateral talks to garner necessary support.

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Reportedly, China has invested tens of billions of dollars in European infrastructure through its Belt & Road Initiative since 2013, including rail lines and ports. A NATO official suggested that in the event of a conflict, such infrastructure might be nationalised or placed under temporary control by nations for security reasons, with China potentially pursuing legal action afterward.

US officials draw parallels to European actions against Russian assets following the 2022 invasion of Ukraine. For example, Finland’s blockade of the Helsinki Shipyard, owned by a Russian entity, led to the sale of the company to a Canadian entity.

The discussions now also encompass high-tech sectors such as quantum computing, semiconductors, and telecom infrastructure. US Secretary of State Antony Blinken remarked that the Ukraine conflict has highlighted the interconnected nature of global security concerns, as evidenced by support from nations like Japan, South Korea, Australia, and New Zealand.

Despite general concern among NATO members about Chinese-owned infrastructure, some countries, including France, have proposed shifting the focus to the European Union for handling economic matters related to these investments.

Tensions over this issue influenced the language of the NATO declaration, with some countries arguing that NATO might not be the ideal platform to address the challenge posed by China.