The "17 + 1" Mechanism

Abstract

The second decade of the 21st century has been marked by rising tensions between the United States and China, with the European Union caught between the two powers in an era of strategic competition. The "17+1" mechanism, which focuses on economic cooperation between China and Central and Eastern European (CEE) countries, is not spared from the U.S.-China economic confrontation. The United States has launched a political and public campaign against China's telecommunication giant Huawei in the CEE region, where most countries are U.S. allies. Since its establishment as "16+1" in 2012, the mechanism has made slow progress in generating expected benefits to CEE countries, as many of China's investments are under negotiation, delayed, or even canceled. The case of Romania indicates that CEE countries' engagement in "17+1" depends heavily on the changing priorities of their political leadership, which adds much uncertainty to the future development of the mechanism. Besides, there is lingering EU concern that the mechanism may divide the Union. To enhance its status as a strong and responsible partner with CEE countries and the EU, China needs to reform "17+1" into a more transparent, effective and inclusive regional mechanism that engages all interested countries.