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Energy at Stake in Europe

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Energy is fundamental for economic growth; it “is a massive generator of wealth” . Energy is power and
it ensures survival. As we see, the BRI poses a security dilemma for states surrounding the South China
Sea over strategic waterways but not only. Indeed, in Europe, another issue is at stake. Although the BRI
will “connect” Europe to China and ease trade and business with the Middle Kingdom, state-owned
electric utility company State Grid Corporation of China is investing, mostly in mergers and acquisitions
in Europe, just like Russian energy companies did in the 2000’s and let to a divided European voice
against Putin’s vision of the Russian reemergence.

At that time, generous oil and gas prices gave Moscow the ability to defend and expand its interests
outside its borders. Through economical investment (like joint ventures, the purchase of shares,
acquisitions of pipeline companies and refineries, etc.) in oil and gas companies, Russia increased its
leverage. It created a grip and a decision capability in the heart of the European Union territory.

Similarly, in recent years, Europe has received record levels of Chinese inward investment, with minimal
barriers to Chinese-led mergers and acquisitions. But now, Western nations are pushing through stronger
measures to block foreign direct investment (FDI) and foreign takeovers of strategic economic assets,
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citing security concerns. Recently, Germany, the UK, France and Italy, took steps to introduce
legislation, while the European Union looks to adopt an investment screening mechanism by the end of
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the year.

The Chinese grand strategy will not be easy to implement, but it paves the way for a long-term vision for
China to protect its own interests like former and current superpowers such as Spain, Great Britain, or
the US. This century will be China’s and a renewed pax sinica is slowly taking shape.

The Dragon’s Cyber Claws

China’s traditional hacking against the US, along with cyber spying, mostly targeted defense and
aerospace companies for reverse engineering purposes, as seen in two major Advanced Persistent
Threat (APT) campaigns dubbed “Titan Rain” and “Byzantine Hades” that enabled massive exfiltration of

classified information. But one of the biggest data breaches allegedly attributed to China, against the
Office of Personal Management (OPM) in 2015, was probably

14 YERGIN Daniel, “The Prize: The Epic Quest for Oil, Money, & Power”, New York: Free Press, 1991, p.13
15 THIRUCHELVAM Sharon, “Strategic foreign takeovers worry the West”, Raconteur, Oct 2, 2018
https://www.raconteur.net/finance/strategic-foreign-takeovers
16 Ibid.

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