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The EU and China
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Introduction

EU-China logoChina’s transformation over the past four decades from a secretive, Communist state into a global, economic powerhouse has been nothing short of incredible.

It now has second largest economy in the world after the United States and is also one of the fastest growing, making it an important partner for the European Union.

In fact, the EU is already China’s biggest trading partner, exporting billions of euro in goods and services to its 1.35 billion people, while China is also the EU’s largest source of imports.

Bilateral relations on foreign affairs, security, the economy and global challenges such as climate change have been established over the past four decades, and further strengthened in recent years.

Annual EU-China summits and economic dialogues are held on a regular basis and projects put in place to help build an understanding between the two global powers.

But Europe’s relations with China are still developing and can sometimes be complicated. The Chinese record on human rights has been widely condemned by EU leaders who have also been critical of China’s death penalty, its role in Tibet and its treatment of ethnic minorities.

However, the EU’s policy is to support China in its efforts to transform itself into a more open society that’s based on the rule of law and respect for human rights.

Constructive dialogue will help tackle human rights issues and build mutually beneficial links between Europe and China in important areas like business, trade, education and scientific research.

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History

H.E. Ambassador Li Lien-Pi, Head of the Popular Republic of China to the EC, on the left, presents his credentials to François-Xavier Ortoli, September 1975Diplomatic relations between the EU and China began as late as 1975 when the Asian nation signalled its intention to become more open to the rest of the world.

Up to then and under the authoritarian leadership of Mao Zedong, or Chairman Mao, China had been left devastated by a long series of disastrous Marxist policies.

However, shortly before Mao’s death in 1976, China began to express a desire to develop relations with the outside world and the EU was one of the first to take it up on its offer.

In May 1975 diplomatic relations were established and Christopher Soames became the first European Commissioner to visit the People’s Republic of China.

After an internal power struggle following the death of Mao, the first trade agreement between the EU and China was signed in April 1978.

Relations developed slowly over the following years with inter-parliamentary meetings taking place, joint projects launched to help China develop and more agreements signed in agriculture and medicine.

In 1985 the EU and China signed an important Trade and Cooperation Agreement and seven other legally binding agreements, which still form the basis of relations between the two powers today.

In 1988 an official Delegation of the European Commission was opened in Beijing but relations soured the following year after the massacre of anti-government Chinese protesters at Tiananmen Square.

Poster of the 35th Anniversary of the establishment of diplomatic relations between China and the EUWhile contacts were resumed in 1990 it wasn’t until 1995 when the European Commission published a long term policy document for China-Europe relations that diplomatic ties developed further.

The policy has continued to evolve and has resulted in annual EU-China summits at which both parties discuss important issues and strive to reach agreements on subjects of mutual benefit.

The relationship has developed positively in recent years and on May 6, 2010 the 35th anniversary of diplomatic relations was celebrated by EU and Chinese leaders.

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Reaching Agreement

Since 1998 the EU and China have held annual summits that alternate between Beijing and Europe after which joint statements are usually issued. These statements set out agreed policy positions on a wide range of bilateral, regional and international issues.

In between summits regular political, trade and economic dialogues are also held and Europe and China now cooperate in more than 50 areas ranging from environmental protection to industrial policy, education and culture.

The political dialogues began in 1994 when the European Commission issued a communication ‘Towards a New Asian Strategy’ designed to help countries like China move from state-controlled to market based economies.

The following year a new communication specifically set out the principles of EU policy on China and led to a policy paper in 1998 which laid the foundations for a lasting partnership.

The policy paper, ‘Building a Comprehensive Partnership with China’ , outlined Europe’s support for Chinese integration into the international community and ambitions to raise the EU’s profile in China.

At the EU-China Summit in 2002, both sides agreed to further cement their political dialogue and in 2006 a new Commission communication, ‘EU-China: closer partners, growing responsibilities’ outlined recommendations for Europe’s future relationship with its Asian partner.

In the years since, the EU and China have worked together to find common ground on a wide range of issues from nuclear non-proliferation and economic recovery to global warming and the fight against human trafficking.

Today’s EU policy on China is built on the foundations of those early agreements, which are regularly updated to support economic and political developments in both Asia and Europe.

China may now be a major player on the world stage, and an important business and trade partner for Europe, but the benefits of rapid, economic growth have not been felt by all of its citizens.

It’s still a developing country in many aspects with an estimated 10 per cent of the population living on under $1 a day. Europe is committed to working with China to help its transition into a modern nation where economic success, the rule of law and respect for human rights benefits all its peoples.

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Working Together

A strong partnership between China and the EU is good for global stability and it’s something that can benefit tens of millions of Chinese and European citizens.

China’s economic development and trade relations with Europe have captured media attention in recent years but the EU-China partnership goes much deeper than that and covers many different areas.

  • Science and Technology

Flags of the partners in the ITER project: the EU, Japan, China, India, Korea, Russia and the USAEurope and China have been cooperating in science and technology since the early ‘80s. Both powers are jointly involved in the global ITER project that works to find new, sustainable sources of energy and China has previously been involved in Galileo, Europe’s flagship global navigation satellite system.

Around 150 Chinese researchers have also worked with European partners under the EU’s 7th Framework Programme (FP7), which provides funding for research and development projects, and a number of events held during China-EU Science and Technology Year in 2007 highlighted and demonstrated the importance of ongoing cooperation in science and technology.

  • Transport

Transport is another area of cooperation between the EU and China. In September 2005, a Memorandum of Understanding was signed setting up EU-China dialogue on strategies in both transport and energy sectors.

Since then official EU‑China Transport Dialogue has taken place three times - twice in Brussels (2006 and 2009) and once in Beijing (2008) – and a joint declaration on enhancing EU‑China civil aviation cooperation has also been signed.

The European Commission aims to hammer out a comprehensive EU‑China air services agreement in the future and a maritime agreement designed to improve shipping cargo transport operations came into force in 2008.

EU and China also cooperate to improve railway links between Europe and Asia by harmonising standards under the framework of the Organisation for Cooperation of Railways (OSJD).

  • Energy and climate change

Inauguration ceremony of the Europe-China Clean Energy Centre in Beijing, in the presence of Zhang Guobao, Director of the National Energy Administration of China, 3rd from the left, and José Manuel Barroso, 3rd from the rightAs well as working together with other world powers on the ITER project, The EU and China also have a partnership on climate change. The partnership was agreed at the 2005 EU-China Summit in Beijing and its focus is on concrete action to combat this global threat.

One of these actions was the China-EU Near Zero Emission Coal (NZEC) project aimed at developing and demonstrating carbon dioxide capture and storage technology that can reduce CO2 emissions from coal-fired power plants.

In 2010 the Europe-China Clean Energy Centre (EC2) based in Tsinghua University was inaugurated to help promote the use of cleaner energy technologies and supporting energy efficiency and conservation.

The EU and China continue to work together on the development of clean energy and low-carbon economy and several workshops and seminars on clean coal and smart energy grids have been held to enhance the Energy Dialogue.

  • Security

China Customs officials at work, carrying out duties of general surveillance and control of the container trucks at the control station of the Yangshan Deep Water PortThe EU and China hold regular consultations at expert level on nuclear non-proliferation and conventional arms exports. EU-China dialogue on eradicating the illicit trade in Small Arms and Light Weapons (SALW) has also been established and both powers have joined efforts in fighting piracy in the Gulf of Aden.

The EU also holds regular high level consultations on fighting illegal migration and trafficking in human beings with China and has a customs cooperation agreement aimed at combating commercial fraud and counterfeiting.

  • Human rights

The EU-China human rights dialogue was established in 1995 and is held twice a year, rotating between China and the EU, at the level of senior officials.

Topics up for discussion include: ratification of the International Convention on Civil and Political Rights (ICCPR); media freedom; human rights defenders; the death penalty; re-education through labour system; minority rights; and the rule of law.

The dialogue, along with pressure from other international partners, has seen some concrete results such as official visits to China by the UN Commissioner for Human Rights, China’s signing of the UN Covenant on Civil and Political Rights and the release of political prisoners.

However, the EU has made it clear on several occasions that it wants dialogue to achieve more tangible improvements in human rights on the ground.

  • Education

Androulla Vassiliou at the rostrum, in the presence of Song Zhe, Head of the mission of China to the EU, on the left, and Wang Xiao, on the right (in the background)The European Commission and China have signed memorandums of understanding on education, culture and multilingualism, which are designed to forge links of mutual benefit between Chinese and European students, researchers and academics.

The 2011 EU-China Year of Youth highlighted the benefits of student exchanges and the movement of researchers and academics between China and Europe as well as presenting opportunities to exchange experiences, contacts and project ideas.

The world renowned China-Europe International Business School (CEIBS) in Shanghai and the China-Europe School of Law (CESL) are two examples of cooperation in education between the two powers.

China is also a beneficiary of Erasmus Mundus funding, with a specific funding of €26 million that has facilitated nearly 1,000 Chinese students to study in Europe.

Chinese participation in the EU's Marie Curie research fellowships programme is also increasing.

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Trade

China is now the EU's second largest trading partner behind the USA and the EU's biggest source of imports by far. The EU's open market has been a significant contributor to China's export-led growth and Europe has also benefited from the expansion of the Chinese market

3rd EU-China High Level Economic and Trade Dialogue, December 2010: from the left to right: Karel De Gucht, Joaquín Almunia, Wang Qishan, Chinese Vice Premier, and Olli RehnThe EU is committed to open trading relations with China but it also wants to ensure that China trades fairly, respects intellectual property rights and meets its WTO obligations.

The EU's trade with China mostly involves the import and export on both sides of industrial goods such as machinery, transport equipment and miscellaneous manufactured items.

Bilateral trade in goods during 2010 was €395 billion in goods and small businesses in Europe are now starting to realise the potential of China’s massive market.

However, EU businesses still have problems accessing the Chinese market. Barriers to trade in China are estimated to cost EU businesses €21 billion in lost opportunities every year, according to a study in 2007 financed by the European Commission.

Intellectual property rights infringement also remains a huge problem for European businesses with more than half of all counterfeit goods seized at European borders in 2008 coming from China.

In March 2011 a new €25 million trade and investment technical assistance programme to China was initiated. It’s expected to make Chinese goods and services to be of better quality, safer and greener.

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Building Bridges

Europe and China have vastly different cultures and histories so projects and programmes that help our two peoples understand each other are important.

One such programme is Understanding China, which was created to develop a new business dialogue on China-related issues for European businesses, especially SMEs.

River basin in ChinaIt consists of a range of initiatives including training programmes and SME roundtable talks to propose policies that can help smaller businesses trade with China.

Another current project is the EU-China River Basin Management Programme , which is helping the Chinese develop new environmentally friendly approaches to river basin management practices.

Other current projects part funded by the EU include Rewriting the Future which aims to improve early childhood care and development for marginalized, Chinese children and another programme that targets the poverty and health of older people in rural China.

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Last update: 26/10/2011  |Top