The EU and China LPM014 Asia-Europe Relations A Jean Monnet Module

China-Europe relations A Jean Monnet Module Also long history of trade and cultural exchanges (Silk Road, Marco Polo) Gaining access to Chinese market: motivation kick-starting age of European colonialism Opium Wars ( , ), Unequal Treaties, subjugation of China under imperialism (‘century of humiliation’)

China-EU Relations A Jean Monnet Module opportunities/bilateral-relations/countries/china/ opportunities/bilateral-relations/countries/china/

China – EC/EU relations A Jean Monnet Module Date back to 1975 Following Mao’s death and Deng Xiao Ping’s modernisation policies: trade and cooperation agreements, inter-ministerial meetings 1988: EC Delegation in BeijingEC Delegation in Beijing 1989: Tiananmen incident

Key Documents A Jean Monnet Module 1994: Towards a new Asia strategy. COM (94) 314 final 1995: A long term policy for China-Europe relations, Brussels, COM(1995) 279 finalA long term policy for China-Europe relations 1998: Building a Comprehensive Partnership with China, COM(1998) 181 final, Brussels, 25 March 1998Building a Comprehensive Partnership with China

China-EU Strategic Partnership A Jean Monnet Module Since the postwar era, China and Europe considered themselves to be “distant neighbors” until 1975, when EC and China established formal diplomatic relations; In 1998, regular bilateral summits began; In 2003, a “Strategic Partnership” was established; In 2006, at the second China-Europe Forum meeting held in Hamburg, Chinese Premier Wen Jiabao said: “Based on their common interests and reciprocal needs, China and Europe have strengthened and will continue to strengthen their cooperation so as to achieve the goal of trusting each other politically, making their economies complementary to each other, conducting mutual cultural exchanges, and engaging in common development.”

Economic Relations A Jean Monnet Module In 1975: EC-China trade = $2.5bn; In 2010: total trade = € 437.3bn (EU in deficit, € 160.9bn=36.8%) Trade in goods (EU in deficit, €168.8 bn) EU exports to China: €113.1 bn (+38% on 2009) EU imports from China: €281.9 bn (+31% on 2009) Trade in Services (China in deficit, €3.9bn) EU exports to China: €20.2 billion EU imports from China: €16.3 billion Foreign Direct Investment (China in deficit, €4bn) EU inward investment to China: €4.9 billion China inward investment to EU: €0.9 billion In 2011: total trade = $567 bn ( EU in deficit, $144.8bn=25.5%); China’s exports to EU = $356 bn (+ 14%) China’s imports from EU = $211 bn (+ 25%)

Key Issues between China and EU Definition of the strategic partnership EU’s lifting of the arms embargo China’s market economy status China’s human rights issue Climate change A Jean Monnet Module

Evaluating the EU-China partnership in practice IssueStated as joint priority Formal dialogue CongruenceCo- ordination and joint programmes Mutual recognition as key player AfricaYesPartialMinimal No IranYesNoPartial No DPRKYesNoPartialNo AfghanistanYesNo MyanmarYesNo UN ReformYesPartialNo WTOYesPartial No ClimateYes Partial Source: Jonathan Holslag, “The elusive axis: assessing the EU-China strategic partnership, Journal of Common Market Studies, 2011, 49(2), p. 308 A Jean Monnet Module

The EU lifting of arms embargo to China EU arms embargo was imposed in 1989 after the Tiananmen incident; In 2003, the EU, led by France and Germany, agreed that a new code of conduct regulating deliveries of European weapons to Beijing should be prepared to replace the arms embargo; In 2004, the European leaders gave an oral promise to Beijing that this problem would probably be solved by June 2005; But the US had serious concerns and put pressure on EU (see ‘China threat’ perspectives); 4 June 2012, Euronews: France and Spain have been the most vocal in campaigning to lift the arms embargo, given China’s standing as a strategic and economic partner. The most reticent to get down to arms trading again include the Netherlands, the United Kingdom and Germany. A Jean Monnet Module

China’s market economy status Under the WTO rules, market economy status (MES) means one member economy recognizes another is a “market economy”, which makes it harder to raise tariffs on imports or enforce anti-dumping trade restrictions; By late 2011 China became EU’s No 1 trading partner (replacing the US); EU became No 1 source of China’s imports (replacing Japan); Yet EU has not granted China MES, and European manufactures and EU officials have used investigations and duties to slow the tide of competitive Chinese imports; China views this as political discrimination from the EU. A Jean Monnet Module

Conclusion A Jean Monnet Module Bilateral relations with major powers such as China and Japan represent the EU with an opportunity to be recognised as important international actor However, this is undermined by lack of coherence, consistency and unity in EU’s external relations At best, EU is seen as incoherent negotiator and actor At worst, it is regarded as 27 actors rather than one (with three being of importance)

EU: Consistency problems A Jean Monnet Module Horizontal Institutional Vertical

Other tensions A Jean Monnet Module Rhetoric vs. achievement/ interests Common policy-making vs. interests Big vs small states ‘old’ vs. ‘new’ Europe