For the EU, China is increasingly becoming a third country like any other. Obviously, it is unique, due to its size, its history and civilisation. Since Marco Polo, China has been seen in Europe as a mysterious and distant entity from where Europe, in particular, imported silk, porcelain and acupuncture. Its thundering entry onto the industrial production scene also created other myths: firstly, that of China being a paradise for the relocation of American and European business activity, and secondly, that of a country promoting counterfeit or un-safe products. The EU-China summit at the end of November can be located in the context of increasing Chinese participation in world governance. This does not mean that all divergences have been ironed out but it does signify that disagreements are openly discussed and acknowledged, and at the same time certain questions are clarified and a number of misunderstandings overcome. To be brief (for further details please see previous issues of our publication), the main points to consider are:
1. Climate conference. The Chinese will be present at Copenhagen at the highest level and will contribute to the results. Initial interpretations of the China-USA meeting were false or largely exaggerated. Mr Obama has subsequently announced his country's determination to actively participate in the conference and support the principle of agreed targets and the Chinese authorities informed the European delegation of orientations in the same direction. At the same time, they called for differentiated treatment for developing countries (among which China continues to be placed).
2. Against G2. China has stated that it has no intention of developing a kind of G2 with the US that would guide the world. It rejects such a formula as much as Europe does and supports a multi-polar world. A large part of the world's media previously got this issue very wrong.
3. Exchange rates. The major dispute with regard to China's currency has not gone away. The EU believes that it should be revalued. China, however, is sticking to the principle of stability. The only progress made in this area is the fact that the two parties have discussed the matter openly: the EU, in this connection, put an ad hoc delegation in charge of the matter, headed by the president of the Eurogroup, the president of the European Central Bank, and the European commissioner responsible for this question. It appears that China is establishing a link between interest rates of its currency and protectionist measures it believes the EU is practising. The EU's position and disappointment was clearly expressed by Mr Juncker when he returned to Brussels (EUROPE 10032).
4. Co-operation and trade. China put emphasis on the transfer of technology related to energy efficiency rather than the trade in goods and subsequently avoided arguments involving EU anti-dumping measures or China's respect for intellectual property rights. These aspects, however, were raised in some of the other documents approved, and divergences continue in a lot of areas involving mutual relations.
Some big issues left on sidelines. The fact that the summit took place is a general reflection of the normalisation in relations and also, in particular, implies a certain reduction in political recriminations: subjects such as human rights, freedom of the press and the situation in Tibet are, in principle, brought up but they are not blocking co-operation (a similar situation affects the EU's relations with Russia and other non-EU Mediterranean countries).
Some aspects of Chinese policy, which do not directly affect relations with the EU, are controversial but were not discussed at a bilateral level. China's purchase of vast swathes of land in Africa or Asian countries, it's agreements with African countries which, in practice, involve the ownership of the minerals and other natural resources for long periods of time, Chinese control of oil throughout the world (Nigeria, Sudan, Niger, Angola, Venezuela and Iran etc) were discussed by international organisations, such as the FAO and large western oil companies involved in this issue, but the bilateral summits left these questions out.
Current developments involve many different aspects, which could have considerable repercussions on the European economy. The line taken by member states sometimes diverges, as well as that of the economic operators themselves. This column will return to this subject tomorrow.
(F.R./transl.fl)