Sino-European Free Trade and Investment Agreements in the Emerging Bipolar Era

This thesis sets out to analyze the effects of free trade and investment agreements with China for European countries' foreign policy in light of increasing rivalry between the United States and China. European states now confront similar challenges in balancing between the economic opportunities closer ties to China entails, while maintaining a good relationship with its most crucial ally, the United States. As the world is moving towards bipolarity, the guiding assumption is that European states will confront more dilemmas and increasingly be disposed to pick sides on various issues, while attempting to not cause dismay in either Washington or Beijing in the process. Key factors for explaining these dilemmas are the effect of economic dependence and formal alliances. While China’s influence in Europe today should not be exaggerated, findings reveal that their influence has increased in tandem with their economic growth. This study takes the form of a comparative case analysis which considers the implications of geoeconomic forces and alliance commitments. Four cases will be put under the limelight, starting with the China-Iceland and China-Switzerland free trade agreements, which were both signed in 2013 and entered into effect in 2014. Next, the EU-China bilateral investment treaty, signed in 2020 but yet to be ratified, will be examined. The final case to be analyzed is that of the China-Norway free trade agreement which has been at the negotiation stage since 2008. Synthesizing empirical and theoretical finding, a conclusion on the foreign policy effects of European states entering into free trade and investment agreements with China will be presented