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    Greater China
     Jul 19, 2007
Page 1 of 2
Galileo: Europe's great leap outward
By Jose Carlos Matias

When the European Union and China agreed to cooperate to develop the Galileo Satellite System in 2003, the US reacted with strong skepticism, since Washington was against the sharing of sensitive dual-use technology (with civilian and military applications) with China.

In the past, the United States had tried unsuccessfully to impede the EU's ability to set up Galileo, which is an alternative to the



US-established Global Positioning System (GPS). At the time, US analysts questioned why Brussels was spending money (3.6 billion euros, now the equivalent of nearly US$5 billion) to duplicate an existing system that was available "for free", and why it was eager to accept Chinese participation in the program.

Four years later, the EU-China "maturing partnership" has evolved toward a more complex network of common and contradictory interests, as the trans-Atlantic links have slowly recovered since the US-led intervention in Iraq.

Moreover, China has begun to develop its own global navigation satellite system (GNSS) - the Beidou-2. At the same time, the Galileo deployment has suffered a crisis due to disagreements among the industries that were awarded the concession to build and deploy the first four satellites of the Galileo system.

Public funding may save Galileo, but the best-case scenario for a successful program is for the actors involved to pursue a more realistic approach. In addition to China's announcement of upgrading Beidou to mass-market applications, Russia has also decided to complete its own GNSS, called Glonass.

In the face of these developments, what will be the impact of developing the Chinese GNSS for EU-China cooperation and to the commercial feasibility of Galileo?

The EU and the European Space Agency (ESA) made the decision to create their own GNSS because of a combination of factors that imply political, economic, technological, social and military gains. Politically, Galileo has been portrayed as a guarantee of independence and autonomy from the US-established GPS.

This perspective became more evident in the aftermath of the Kosovo war when European forces were fully dependent on the US system, a limitation that has worried the actors involved in the development of a European Security and Defense Policy (ESDP), especially the member states that stand for the modernization of autonomous EU military capabilities.

Since the beginning of the definition phase of Galileo, European Community (EC) papers have noted the importance of Galileo for Europe's Rapid Reaction Force, EU peacekeeping missions and, separately, the realm of activities related to the "Petersburg Tasks", a set of security and military tasks in the field of peacekeeping and stability operations agreed in 1992 among the EU members.

It is noteworthy to underscore the fact that the defense-related justifications for Galileo have been played down by the EU institutions, which instead have highlighted the economic benefits of a GNSS. On behalf of the EC, the consultancy company PricewaterhouseCoopers drew up a business plan for the Galileo project, which was submitted to the European Council of Ministers.

By involving private-sector actors, Galileo "should generate revenues for the operator rising from some 66 [million euros] in 2010 to over 500 [million euros] in 2020", the report said. Definitively, Galileo would create a "virtuous cycle" through a spin-off effect in several sectors of the European economy. Moreover, Galileo has been portrayed as an instrument to create thousands of jobs and as a way to avoid the brain drain in the realm of aerospace, aeronautics and satellite industries.

Undoubtedly, Galileo signifies independence and autonomy from the US and the ownership of cutting-edge technology. Galileo has been regarded as a key instrument not only in the process of modernizing the Common Foreign and Security Policy and ESDP, but also part of the ongoing integration of the EU's defense industries.

The US response
US opposition to the European GNSS can be understood in two different, but complementary, perspectives: economic reasons (in terms of market share of GNSS services) and security and military concerns.

In 2001, then-US deputy secretary of defense Paul Wolfowitz addressed the central problem from Washington's perspective by expressing, in a letter to members of the North Atlantic Treaty Organization, the concern that Galileo could interfere with US military operations guided by GPS. Wolfowitz also expressed the willingness of the Pentagon to take part in the development of Galileo, justifying this position with the fact that NATO enjoyed the benefits of GPS.

After Washington's "diplomatic offensive", analysts thought the birth of Galileo was in danger. Yet in March 2002, there was a breakthrough, and Galileo saw the green light during the Barcelona Summit of Heads of State and Government. After failing to put Galileo on the back burner, Washington started to emphasize concerns over the interference of signals between the two GNSSs.

This problem was solved in June 2004 with an interoperability agreement between the US and the EU. Yet even before, in October 2003, another problem came into sight when Brussels and Beijing signed the cooperation agreement on the development of Galileo.

The China dimension
On September 18, 2003, the EC announced that China was to join the Galileo undertaking and finance it as a preferential external partner. According to the agreement, China would contribute at least 230 million euros. From Washington's point of view, this partnership posed several dangers to the trans-Atlantic relationship and especially to the security and economic interests of the United States.

Basically, by involving China in the development of Galileo, the EU was indirectly helping the modernization of the People's Liberation Army (PLA), an act regarded as unacceptable by many analysts and politicians in Washington.

Indeed, it would be almost impossible to prevent the transfer of technology to the Chinese. This has been a very sensitive issue at a time when the US is increasingly preoccupied with the

Continued 1 2 


Chirac's strategic visit to Beijing (Oct 27, '06)

Galileo: Why the US is unhappy with China (Feb 9, '06)


1. Bush's plan: 'Too little, too late, too risky'

2. Beijing keeps Islamabad honest

3. Russia plays the Shtokman card  

4. Brave new world of Iranian nuclear cooperation   

5. Ready, aim, fire and rain

6. Pakistan struggles with damage control 

7. A fight to the death on Pakistan's border

8. Divorce, Chinese style 


9. Behind the hysteria about China's tainted goods

(24 hours to 11:59 pm ET, July 17, 2007)

 
 



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