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    Greater China
     Nov 2, 2006
New EU, China pact looks beyond trade
By Duncan Freeman

BRUSSELS - The European Union and China have a thriving relationship that has expanded enormously in recent years. The signing of a "strategic partnership" agreement between the EU and China three years ago symbolized the strength of the relationship, but in many ways posed more questions than it answered. It is far from clear that the relationship has been either strategic or a partnership.

Despite the unanswered questions, how the relationship is defined by Beijing and Brussels has little to do with its substance, which



has continued to be strengthened across many areas. To the companies that drive trade and investment, and even to EU and member-state officials who take part in summits and policy dialogues, or experts who work on the many EU-funded aid projects in China, whether they are part of a strategic partnership or not has little importance.

Nevertheless, Brussels still feels the need to draw together the strands of its policy on China into a coherent whole that responds to the rapidly changing Chinese reality and its impact on the world. The need for a clear formulation of policy is also stimulated by the fact that the EU and China are embarking on the negotiation of a new Partnership and Cooperation Agreement, which will provide the legal framework for their relationship and will replace their original Trade and Cooperation Agreement signed in 1985.

The change in title of the proposed new agreement, like the strategic partnership, indicates that both sides now see their relationship as being much broader than simply trading. This certainly reflects the reality that aside from trade and investment, official contacts and policy dialogues, educational exchanges and tourism are all growing rapidly. Hence the European Commission (EC, the executive body of the European Union) has issued two documents that attempt to define the EU's relationship with China and set out the foundations on which policy toward China will be conducted.

The new documents, the first of which deals with the overall relationship with China, while the second covers trade and investment, are certainly not encumbered with much detail, but they nevertheless indicate the thinking that will inform the direction of policy adopted in Brussels. Even if there is little new in policy detail that emerges from the documents, they indicate that there may be some shifts in emphasis in the way the EU approaches China.

From the point of view of Europe, China is increasingly seen as much more than a narrow policy problem defined by purely bilateral issues. Over the past few years the bureaucrats in Brussels have woken up to the fact that China's rise raises questions on a regional and even global scale. This demands a new approach to China. The direction that the EU would like to see its relationship with China move in is indicated by the title of the overview of the relationship: "EU-China: Closer Partners, Growing Responsibilities". The basic premise is that the two sides should move toward a closer partnership to deal with the growing number of problems that place an increasing weight of responsibility on both Europe and China.

The EU is apparently willing to pursue the idea of the strategic partnership. But as that strategic partnership develops, acceptance of mutual responsibilities must also increase. This means that the partnership should meet both sides' interests, but also that the EU and China must work together to provide solutions to global problems. The EC argues that Europe and China can do more to promote their own interests together than they will achieve apart. However, the message for China is that it must accept an increasing burden of responsibility as an international actor commensurate with its growing stature.

Of course, no matter how much China and the EU may wish to construct a partnership, there will be conflicts in their relationship. These have been seen often enough, on everything from trade issues to the EU embargo on arms sales to China. But in the assessment of the EC, these differences are being managed effectively within relations that are increasingly "mature and realistic". It is certainly true that the differences on tough issues, such as trade disputes over textiles and footwear, have not been allowed to undermine the positive mood of the overall relationship.

The EU wants to make clear that the closer partnership should be about more than simply successful management of disputes. While on one level relations may be realistic, the EU is at pains to present a policy that is not simply realist. Despite its emphasis on partnership, the EC goes out of its way to emphasize that this does not simply mean accepting China as is. There is an explicit argument that EU policy toward China should be based on values. The EU should therefore continue to support China's internal political and economic reform process, "for a strong and stable China which fully respects fundamental rights and freedoms, protects minorities and guarantees the rule of law".

One of the key proposed elements of the policy is support for China's transition toward a more open and plural society. Noting that China's leadership has repeatedly stated its support for reform, including basic rights and freedoms, the EC concedes that progress has been limited. Therefore, the EU must consider how it can most effectively assist China's reform process, and make the case that better protection of human rights, a more open society and more accountable government would be beneficial to China, and essential to continued economic growth. According to the EC, democracy, human rights and the promotion of common values are fundamental tenets of EU policy and of central importance to bilateral relations.

Another major area of concern is sustainable development, which is increasingly becoming the focus of policy attention in Europe. China will be central to ensuring that global development is sustainable. The EC identifies several areas that are of concern in relation to China - ensuring secure and sustainable energy supplies, combating climate change and improving the environment - and proposes seeking joint solutions.

Duncan Freeman is a writer and consultant based in Brussels. He can be contacted at duncanfreeman@skynet.be.

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Commerce greases EU-China 'partnership' (Sep 20, '06)

 
 



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