EU-China relations: Commission sets out its strategy

The European Commission agreed today on an ambitious new agenda for EU-China relations for the coming years. The new strategy seeks to respond to China's re-emergence as a global economic and political power. The EU's fundamental approach to China remains one of engagement and partnership. A closer strategic partnership means mutual responsibilities increase. Today's initiative sets out a comprehensive approach, identifying as priorities support for China's transition towards a more open and plural society, sustainable development, including co-operation with China on energy issues, climate change and international development; trade and economic relations; strengthening bilateral co-operation, including on science and technology, and migration; and the promotion of international security, both in East Asia and beyond and more broadly on non-proliferation issues. It is accompanied by a trade policy paper setting out the challenges of our trade and investment relations in more detail.

Commissioner for External Relations and Neighbourhood Policy, Benita Ferrero-Waldner said: "Getting the partnership between Europe and China right is a key challenge for this Commission and the EU. Our new China initiative represents an ambitious agenda. To tackle the key challenges facing Europe today - like climate change, economic growth, migration, and international security - we need to leverage the potential of a dynamic relationship with China. Our joint goal should be to join efforts and offer joint solutions to today's global problems. Today's Communication offers an important backdrop to negotiations for a new EU-China Framework Agreement, which I will launch in China early in the New Year."

Commissioner for Trade, Peter Mandelson said: "China is not a globalisation scare story, it is a globalisation success story. China means cheaper goods in European shops, cheaper inputs for business, more competitive European companies, growing markets for Europe's exporters and lower interest rates. For China, access to Europe's market has helped lift 180 million people out of poverty since 1990. Europe has an economic interest in an economically strong China. Both sides benefit from openness. But China's growing trade muscle means growing expectations. China must fulfil its WTO obligations and commit to trading fairly. Europe must accept fierce competition. China must ensure it is fair competition."

Partners in a changing relationship

The EU and China account for a quarter of the world's population. China is the world's 4^th economic power, the 3^rd biggest exporter and has increasing international political weight. As it grows it is entering a new and challenging period of its economic and social reform process. Europe has a major political and economic stake in supporting China's full and successful transition into a prosperous, stable and open country, embracing the rule of law and free market principles.

Strategic partners since 2003, the EU and China have a growing interest in working together on today's key geo-political challenges, promoting sustainable development, peace and prosperity, to the benefit of both sides.

The EU-China Summit in Helsinki on 9 September agreed to launch negotiations on a comprehensive new Partnership and Co-operation Agreement which would encompass the full scope of EU-China relationship, including enhanced co-operation in political matters. This will be the key mechanism to take this partnership forward and today's Communication will provide impetus for that process. Preparations are already underway and Commissioner Ferrero-Waldner will formally launch the negotiations during a future visit to China.

Partnership and economic competition go hand in hand

Accompanying today's Communication is a separate policy paper that sets out a wide-ranging new strategy for building the European Union's trade and investment relationship with China. The strategy review, which is part of the wider Global Europe trade policy framework launched in October 2006, reflects the dramatic changes in EU-China trade and the importance of managing China's massive new weight in the global trading system. The review argues that both China and Europe have benefited from China's economic rise, despite the competitive pressure it has exerted in the global economy. It argues that China's growing trade muscle brings with it new responsibilities to fulfil its WTO obligations, open it markets and trade fairly. The review sets out a range of strategies for improving the conditions on which EU companies trade in China: including better market access, tougher action on intellectual property theft and providing new resources for business on the ground in China.

Today the Commission is also adopting a separate Communication on its relations with the Hong Kong and Macao Special Administrative Regions.

For more information:

The EU's Relations with China: http://ec.europa.eu/comm/external_relations/china/intro/index.htm

http://ec.europa.eu/trade/issues/bilateral/countries/china/index_en.htm

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