Chinese firms increasingly win EU-funded projects via BRI models, challenging Brussels’ competition narrative.
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The largest wind farm project in Central Asia, a 1-gigawatt facility built by China Energy Engineering Group (CEEC) and financed through European loans under Saudi developer ACWA Power, exemplifies new international cooperation within China’s Belt and Road Initiative (BRI). This arrangement presents a dilemma for Brussels regarding credit attribution when EU funds are involved. CEEC promotes the project as a BRI flagship aligning with Saudi Vision 2030, which contrasts with the EU’s rhetoric of competing against China via its Global Gateway initiative. Experts note that using EU funds in such projects does not strengthen the EU’s international reputation, a key goal of Global Gateway. Although European institutions like the European Bank for Reconstruction and Development (EBRD) are involved, their influence is limited as private sector clients can choose contractors freely, allowing Chinese companies to secure contracts even with EU-backed financing. Recent trends show Chinese firms increasingly winning EBRD and EIB contracts outside the EU, indicating a shift in BRI towards co-financing with multilateral development banks. Despite reduced lending activity, Chinese state corporations remain heavily involved in green energy projects, such as those in Uzbekistan, where Chinese contractors dominate EPC contracts even when financed by European public funds. This pattern of tripartite cooperation between the EU, China, and Gulf nations is seen elsewhere, like in Croatia and Egypt, raising concerns that European money may support Chinese involvement, potentially undermining European industries. Ultimately, BRI is increasingly leveraging multilateral financing to mitigate risks for Beijing while maintaining its central role, which benefits recipient countries but complicates the strategic narrative promoted by Brussels through Global Gateway.
