China-EU Economic Cooperation under the Belt and Road Initiative: Challenges and Policy Implications

Abstract

Since the launch of the Belt and Road Initiative (BRI) in 2013, China-EU economic relations have entered a new stage characterised by deeper trade connectivity, increasing investment cooperation, and growing geopolitical competition. Although several EU member states have joined BRI-related cooperation mechanisms, the European Union as a whole remains cautious toward the initiative. This paper examines two interrelated dimensions: the internal challenges that have emerged within the BRI - including debt sustainability concerns, environmental and social governance (ESG) risks, and waning international public perception - and the external repercussions of the BRI on the European Union, focusing on geoeconomic and geopolitical influences. Drawing on policy analysis and qualitative assessment of official data from Chinese and EU sources, think tank reports, and academic literature, the paper argues that while the BRI has generated economic opportunities, its sustainability is increasingly questioned. The EU’s perception of the BRI has shifted from viewing it as an economic opportunity to recognising it as a source of geoeconomic competition and internal cohesion pressure. The paper concludes that the BRI is at a crossroads, and China’s recalibration towards a ‘greener’ and more transparent model will determine its future compatibility with European interests.