The Right Time

By Zhang Jian

The Chinese Government issued Chinas Policy Paper on the European Union （EU） at the end of 2018， making it the third of its kind after 2003 and 2014. The publication of the paper came at a perfect time to promote greater development of China-EU relations.

Important messages

Since 2018 marked the 15th anniversary of the China-EU Comprehensive Strategic Partnership and the 20th anniversary of the China-EU Summit， a review of past achievements and a plan for the future development of China-EU relations is well-timed.

Since 2014， major changes have taken place in the EU. Brexit and rising rightwing populism have aroused great concern about the future of the union. The decline of Europe has become a heated debate， as the EU itself has begun to worry about how the worlds major countries view the continent， with China one representative.

The world has also witnessed growing instability and uncertainty， with unilateralism， protectionism and de-globalization on the rise， damaging the common interests of both the EU and China. Against this backdrop， the policy paper conveys many important messages.

The policy paper showed Chinas firm support of European integration under the new circumstances. The policy paper stated that despite issues such as Brexit， the EU has remained committed to integration， pressed ahead with reforms in response to challenges and played a major role in regional and international affairs. The EU remains a strategically important player in the international arena. China attaches great importance to the EU and strongly supports continued European integration.

At the same time， the paper also called on the EU to honor its commitment to respect Chinas sovereignty and territorial integrity， uphold one-China principle with concrete actions and respect Chinas core interests and major concerns. China hopes that the EU will keep its investment market open and reduce and eliminate investment hurdles and discriminatory barriers. In addition， the EU and its member states are expected to lift their arms embargo on China as soon as possible.

The paper stressed the positive significance of strengthening cooperation between China and the EU. According to the paper， the Chinese Government hopes to deepen and broaden comprehensive cooperation with the EU in the new era to move forward China-EU relations and jointly build world peace， contribute to global development and uphold the international order.

China and the EU are located at either end of Eurasia and there should be no fundamental conflict of interests. In the process of reforming the international order and governance， China and the EU both have the will to maintain regional stability and world peace， and are prepared to assume their respective responsibilities. On the global issues of climate change， energy security and development， there is much common ground.

The EU has been Chinas largest trading partner for 14 consecutive years， while China is the EUs second largest trading partner. Developing a sound relationship with the EU has long been a foreign policy priority for China. Over the past few years， bilateral ties have maintained sound and stable development， high-level exchanges have continued and cooperation at all levels in various fi elds has been extensive and in-depth.

Cooperation amid competition

There is no doubt that China and the EU need to strengthen cooperation， something that is in their common interests and conducive to maintaining world peace and sustainable development. However， an analysis of the current situation shows that China-EU relations are far from where they should be. The EUs policy toward China is seemingly taking a negative turn.

One noticeable problem is that the EUs mounting protectionism toward China is threatening bilateral relations. On December 20， 2017， the EU issued a 465-page economic assessment report on China， stating that there are “significant market distortions” in the Chinese economy. The EU was reluctant to fulfi ll its obligations under Article 15 of the Protocol on Chinas Accession to the World Trade Organization， refused to recognize Chinas market economy status， hoped to continue using the surrogate country approach to conduct anti-dumping investigations of China， and finally proposed the concept of “market distortions，” trade protectionism in essence. The EU has also agreed on legislation to screen foreign direct investment （FDI） to protect its so-called strategic industries and national security， an obvious move targeting China.

Since the EU is not a country but a consortium of sovereign states， for any country that wants to cooperate with the EU， it needs to make contact not only with EU institutions such as the European Commission， but also have good communication with different member states. That is， contact between EU member states and any other country is based totally on the objective needs of both sides. However， Chinas cooperation with Central， Eastern and Southern European countries is considered by the EU as an erosion of EU norms. In particular， the 16+1 cooperation mechanism between China and Central and Eastern European countries has been under increasing suspicion by the EU， as it continues to have a hard time shedding its unjustifi ed fear of China.

In addition， the success of Chinas unique socialist development path and its foreign policy， in the eyes of European countries， is a challenge to their own values and development models. For example， the Belt and Road Initiative， which is fundamentally in line with the EUs economic interests and global strategies， actually has suffered from unwarranted suspicion.

The EUs rising negative impression of China is not only related to the rapid development of China and world changes， but also to the development of the EU itself and its perception of the world. The EU has been under a cloud of financial crises for many years， and its status and influence continue to diminish on the world stage.

As a result， China is now viewed as a strong competitor to the EU in the fi elds of economy， technology， culture and even institutions and development models. The EU is concerned that Chinas presence in the mid- and high-end of the value chain will affect the competitiveness of EU products. Moreover， it fears that Chinas development model will become more attractive to the world as well as to European countries and that U.S. President Donald Trumps “America First” policy is adding to the decline of the West.

However， it should also be noted that although competition has risen， China-EU relations have seen cooperation grow. European leaders， such as French President Emmanuel Macron， British Prime Minister Theresa May and German Chancellor Angela Merkel， have all expressed their willingness to strengthen relations with China. Both sides value international rules and multilateral governance， have inherently open needs and are rational international actors. Although there is competition within economic and trade cooperation with China， it is mutually benefi cial in nature.

The EU has recognized that Chinas development will bring a bigger market for EU products and services. Issues of concern to the EU， such as Africas development， climate change， stability in the Middle East， refugees and world sustainable development， are also of interest to China. Cooperation is， and will continue to be， the mainstay of China-EU relations， which have great potential and broad prospects. Nevertheless， both sides need to be able to effectively manage differences and enhance mutual understanding， and especially avoid short-term and partial differences that may affect long-term bilateral cooperation.

There is even greater motivation for ChinaEU cooperation in the new era. The Chinese Government has already expressed its sincerity and confidence in strengthening China-EU pragmatic cooperation， and is hoping to get a positive response from the EU. China-EU cooperation is not only in the interests of both sides， but also conducive to the stability and prosperity of the world at large.