Economic and trade issues were at the heart of the 21st EU-China Summit on Tuesday 9 April, reflecting their importance in the relationship between the two economic powers.
The declaration, which was achieved after arduous discussions, as acknowledged by the leaders, is not lacking in ambition (see EUROPE 12230/13). It remains to be seen whether this will be followed by action.
At the multilateral level, first of all, both sides agreed to "intensify the discussions with the aim of strengthening international rules on industrial subsidies". According to President Tusk, this is a "breakthrough" in that, "for the first time, China has engaged with Europe on this key element of WTO reform".
Another major grievance of foreign companies regarding access to Chinese markets, explicitly mentioned in the joint statement, is that both parties "agree that there should not be forced transfer of technology."
As for the bilateral level, Chinese and Europeans recalled, at a press conference, the terms of their common timetable, which were included in the declaration. Chinese Prime Minister Li Keqiang has thus promised "decisive progress" in the negotiations on a global investment agreement by the end of 2019, with a view to concluding them in 2020. A consensus would also have been identified to close the agreement on geographical indications before the end of 2019.
Recalling the Chinese President's words in Paris last month, Mr Li said the Chinese government "determined to broaden the country's openness" because this has enabled its economic development (see EUROPE 12222/24). He promised that Beijing would soon reduce the list of sectors closed to foreign investors in order to ensure "fair" treatment for foreign investors.
However, this is not the first summit to result in an ambitious declaration which, for Europeans, was not subsequently followed by the expected actions. The President of the Commission, Jean-Claude Juncker, underlined this: "We must deliver in the weeks and months ahead", particularly with a view to the G20 meeting in Osaka at the end of June 2019.
Commitments on 5G
Both sides also reiterated their respective commitments regarding the deployment of 5G. This corresponds, for the EU, not to exclude Chinese companies such as Huawei from the new networks, and for the Chinese government, not to ask such companies to provide information under the 2017 Intelligence Law. The joint statement refers to an "open, secure, stable, accessible and peaceful information and communication technology (ICT) environment", before referring to the international framework and, in particular, the Charter of the United Nations.
Speaking to the press, the Chinese Prime Minister pointed out that no espionage complaints by a Chinese company or evidence supporting such an allegation had been filed so far. To which Mr Juncker replied: "Let me be clear: we are not targeting any particular company. We have an open market and we respect WTO rules". However, he stressed the EU's twofold objective: "security and innovation".
Climate/Environment/Sustainable Development
The EU and China also underlined their strong commitment to implement the Paris Climate Agreement and the Montreal Protocol on Substances that Deplete the Ozone Layer. Given the urgency of the climate action required both at national and international level, they committed themselves to contribute effectively to an effective global response to the threat of climate change and to intensify their cooperation on the basis of the July 2018 Joint Declaration on Climate and Clean Energy (see EUROPE 12063/2).
Both sides stress the importance of carbon pricing and reform of fossil fuel subsidies in this regard.
Europeans and Chinese have decided to strengthen their cooperation on green finance to mobilise private capital flows towards a more environmentally sustainable economy. They pledged to cooperate in the success of the UN summits on sustainable development goals and climate action in September in New York.
At the bilateral level, both sides agreed to increase their exchanges on international development cooperation and to explore cooperation with other partner countries to work together towards the implementation of the 2030 Agenda.
The EU and China want to show determination on energy transition and take a stronger leadership role on environmental issues on the international agenda. They recognised the importance of cooperation in addressing global environmental challenges - including the fight against pollution and marine litter - and wish to deepen their cooperation in preserving biodiversity, combating illegal trade in protected species and sustainable forest management.
Universality of human rights and international cooperation
The joint declaration also addresses human rights, a subject of tension between the EU and China. The text reaffirms that "all human rights are universal, indivisible, interdependent and interrelated". In front of the press, Mr Li, as well as the President of the European Council, Donald Tusk, announced that the regular EU-China Human Rights Dialogue will continue, with the European representative reiterating the EU's concerns about human rights in China. The Chinese Prime Minister called for the defence of multilateralism, international law and the United Nations Charter.
Chinese and Europeans therefore reaffirmed "their intention to contribute together to international peace and stability through intensified dialogue and cooperation and in accordance with international law".
On the South China Sea, "China and the EU call on all parties concerned to engage in dialogue, resolve disputes peacefully and refrain from any action that could increase tensions", the statement said, while the Permanent Court of Arbitration in The Hague ruled in July 2016 that China did not have "historical rights" over the majority of the strategic waters of this sea (see EUROPE 11595/9).
Signing of several bilateral agreements
In the margins of the Summit, the EU and China signed several agreements: a Memorandum of Understanding on a dialogue in the field of the State aid control regime and the fair competition review system, an agreement on the mandate of the EU-China competition policy dialogue, a joint statement on the implementation of EU-China energy cooperation and the mandate for a joint study to identify the most sustainable rail transport corridors between Europe and China.
See the joint statement: https://bit.ly/2IamCwu (Original version in French by Hermine Donceel, Sophie Petitjean, Aminata Niang and Camille-Cerise Gessant)