China undoubtedly has historical experience in water resources engineering. And in our time, it breaks records in terms of the level of complexity of manufactured and managed water structures. For the rapid implementation of all necessary infrastructure solutions for climate adaptation within Ukraine and the countries of the Three Seas (see Annex I). E.D. "Geo-economic project "From the Varangians to Asia"), it is necessary to build special relations with China. Despite the fact that China is at the same time a key economic partner, systemic rival and competitor for the EU: in April 2023, the EU announced the creation of a strategy for the economic so-called. de-risking (reducing dependence on China in critical areas). This indicates both the EU's bet on the development of internal partial replacement of Chinese suppliers (for example, critical components of renewable energy sources), and the fact that that in the near future, the EU will be actively involved in the search for long-term investment partners capable of ensuring a reliable supply of a number of trade items. At the same time, China's Concept of the Global Security
Initiative (2022) declares a new basic principle of international relations: "Promote coordination and reliable interaction between major countries and build relations between large countries characterized by peaceful coexistence, overall stability and
balanced development». How can Ukraine ensure a balance of interests between the new declared economic sovereignty of the EU and China's non-conflicting access to part of the Eurasian trade area?
Today, China is stuck on a key problem faced by any long-term consumer of external innovation, which has also modernized rapidly. For a couple of decades, China has found these innovations the most profitable price "realized in metal" on the global market. But today, the Chinese export sector of the economy in terms of factors of production (first of all, high labor costs)
has ceased to be a priority in the region in the sectors of the so-called simple goods. By this time, China's domestic policy of economic stimulus has managed to create a wave of excess production capacity, which threatens the formation of potential "rust belts" in the Chinese way. The global stagnation of consumption in this economic cycle does not increase either domestic or external demand. At the same time, the ideology of China's state policy does not allow for high unemployment: it restrains the active use of intensive methods of increasing labor productivity throughout the country, with the exception of certain sectors. The introduction of "efficiency improvements" is potentially fraught with an increase in unemployment (which is already very sensitive now to any fluctuations in external demand for Chinese export goods). A demographic rollback to a population of 800+ million is expected only after the 2050s. The lack of "efficiency improvement" triggers the reverse movement of foreign and domestic capital, which benefits from the relocation of production to China's closest neighbors. This movement is now being actively implemented in the direction of ASEAN members, who are luring the final, assembly and registration stages of commodity production to their side. Vietnam will be one of the leaders of such "off-shoring" from China in the coming decades. China's stabilization will require new approaches.
New European, African, and Latin American direct investment are the first steps to find a way out of this slowdown. The "Belt and Road" project was only a prelude to the upcoming stage of China's search for a way to recover sustainably and a new model of growth. The current decline in demand for Chinese direct exports is also accompanied by the continued politically motivated restraining of domestic consumption. It has been replaced by a priority stimulus for industrial sectors with large employment: concrete, steel, glass, mechanical engineering, etc. The construction sector has absorbed these goods, but it has also recently jumped into a severe recession itself, collapsing the corresponding demand. Commodity consumer expansion was followed by a natural drop in the rate of profit, which was increased by China's technological dependence in certain advanced areas. The West controls and develops key technologies of the current technological paradigm, which China has been able to masterfully master and has begun to produce competitive finished products based on them. Increased technological competition between the Western community and China by blocking access to innovation (which, for example, was declared by the leaders of the United States and Britain in the "New Atlantic Charter" of 2021) may well seriously affect the competitiveness of Chinese electronics and any computerized goods in the international market - and this is a challenge for the structure of the Chinese economy, which is now being formed with a distorted emphasis on electronics, cars and RES components. Without the technology of chip production (it will take 10-15 years to master the current level of Dutch ASML machines), without owning its own chip architectures and software development tools, the competition, in case of counteraction, will only
lose.
The contradictions between developed countries and developing economies are receding into the background, giving way to competition between technologies of different levels. China proposed to break the old model of the center-peripheral division of labor, on the contrary, offering its industrial potential as a driver for the modernization of peripheral economies, building a new economic multipolarity. The initial driver of this was the integration project "The Belt and Road". Initially, it only connected the sources of raw materials to China itself. But in the second wave, some participants (ASEAN members) of the "Belt" began to be included in the production chains of Chinese manufacturers. However, this turn triggered a corresponding competitive pushback from former technology donors (who see China's all-encompassing market power as a threat), beginning to separate the Chinese economic center from the "Western" system of science-technology division of labor and exchange.
Realizing the risks of losing the surplus model of the economy, China will soon need to implement a new model of interaction with the world, which will accelerate the demand for its own non-hi-tech industrial products, where it retains a competitive profit margin
. In fact, China will need to actively modernize its more backward importing trading partners to compensate for the decline in those sectors that are hit by the West's "shutdown" policy. A community of common destiny "in the Chinese way" will require China to engage more deeply and purposefully in the accelerated modernization of developing countries. It is important for Ukraine to include in its new spatial and economic planning, which takes into account the recapitalization of natural and economic resources, those areas of activity (important according to the cluster scheme) that China can consider as a worthwhile long-term investment in its economic development, as well as a political and economic factor of regional security in Europe. This will provide a strategic tool for
closing the point of inconsistency of the world order in the European part of the world. It is necessary to offer China a rooted economic and, as a result, political interest in Ukraine, which could help it bring cooperation with the EU on the issue of microelectronics and mechanical engineering to a qualitatively higher level. It is the USA, not the EU, that blocks access to these technologies. And EU is the leader in the production of the key equipment. This approach requires the preparation of a number of complex design solutions in the EU-Ukraine-China triangle with their subsequent legislative fixation in the status of "national projects", which will provide for the long-term continuity of Ukrainian policy. Only this approach can change China's position on the territorial war between Ukraine and russia. This will give grounds for the security and integrity of Ukraine to be entrenched in Chinese "doctrines" for a long time.