China and India and the EU

China and the European Union

Outline

A historical review of EU-China relations

Achievement of EU-China relations

Examination of the overlapping and conflicting interests between the EU and China

Analysis of the promises and problems of the partnership

Conclusion

A historical review

Establishing diplomatic relations (1975)

Mutually disregard (1975-1994)

Mutually attraction (1995-2002)

Honeymoon (2003-2004)

Reflection and adjustment (2005-now)

Reflection and adjustment (2005-now)

The EU’s rising trade deficit: China’s exports to the EU

US$19.09 billion in 1995 US$181.98 billion in 2006 China’s imports from the EU

US$21.25 billion in 1995 US$90.32 billion in 2006

European Commission (2006):“EU-China: closer partners, growing responsibilities”

European Commission (2006):“the first policy paper on EU-China trade and investment: Competition and Partnership”

Achievements of EU-China Cooperation

Institutionalized Cooperation Trade Safety

EU-China Dialogue

Trade

The EU and China enjoy one of the world's biggest trade relationships. The EU is China's biggest trading partner while China is the EU's second biggest after the United States. Trade in goods was worth €467 billion in 2014, while trade in services reached €54 billion. EU-China trade and investment exchanges have become a major source of wealth, jobs, development and innovation.

Trade

Trade

Foreign policy and Safety Issue

• The EU and China share the common goal of improving international security, including nuclear non-proliferation in the world. Cooperation in this first pillar is expanding, including in successfully fighting piracy off the coast of Somalia or joining forces as part of the international community efforts on the Iranian nuclear deal.

• EU and Chinese maritime vessels are successfully cooperating in fighting piracy. Since 2011, Chinese vessels have escorted World Food Programme vessels in the Gulf of Aden, burden-sharing with the EU. China expressed great appreciation for EUNAVFOR's involvement in the liberation of hostages from a Panamanian-registered cargo ship in 2012. The EU also assisted in freeing Chinese hostages from a Taiwanese-operated ship. In the last two years, piracy off the coast of Somalia has decreased 95% thanks to such international efforts.

• China is stepping up its support for peacekeeping operations, as evidenced also in President Xi's pledge on peacekeeping at the United Nations last year. This increases potential for cooperation also between China and the EU, as in Mali, where both are engaged. Consideration of further cooperation in these areas is of importance given that today's major international problems cannot be solved by acting individually.

Conflicts and Mutual Interests

Conflicts The arms embargo issue(1989-) Textiles conflicts(2005) Anti-dumping

Mutual Interests• Multipolarity

The arms embargo issue

The issue before 2003

The issue between 2003 and 2005

The issue at current stage

The textile dispute

The abolishment of the 40-year-long quota regime on Jan. 1, 2005

The surge of Chinese textile products export to the EU

The agreement in June 2005 between the EU and China

The second agreement in September 2005

The textile dispute

Problems indicated: The Community does not speak with one

voice. Different groups have different interests. Both the EU and China lack a necessary

understanding of each other’s market development.

A joint monitoring system introduced

China’s understanding of building multipolarity before 2003

Multipolarity “helps weaken and curb hegemonism and power politics, serves to bring about a just and equitable order and contributes to world peace and development.”

China’s understanding of multipolarity after 2003

Our efforts to promote the development of the world towards multipolarization (multipolarity) are not targeted at any particular country, nor are they aimed at re-staging the old play of contention for hegemony in history. Rather, these efforts are made to boost the democratization of international relations, help the various forces in the world, on the basis of equality and mutual benefit, enhance coordination and dialogue, refrain from confrontation and preserve jointly world peace, stability and development.

The EU’s understanding of multilateralism

The end of the Cold War has left the United States in a dominant position as a military actor. However, no single country is able to tackle today’s complex problems on its own.

Europe should be ready to share in the responsibility for global security and in building a better world.

International cooperation is a necessity. We need to pursue our objectives both through multilateral cooperation in international organizations and through partnerships with key actors.

Promises and difficulties

Shared long-term interest in achieving economic prosperity and worldwide political influence:

EU-China 2020 Strategic Agenda for CooperationDifficulties:(1)Differences in ideological and development stages of member states

(2)China’s attitude towards EU:“Brussels is losing importance: we must go back to the capitals, who make the decisions, speak to Member States, even on trade”.

(3)The role of the US

Conclusion

The EU and China have both put forward strategic development plans - China's two centenary goals and the 12th Five Year Plan, the EU 2020 Strategy - which present potential for synergies to enhance cooperation for win-win results. The two sides are committed to promoting the EU-China Comprehensive strategic Partnership in the next decade.

The partnership may not be exempted from difficulties and problems, but it needs to be maintained and developed for the sake of mutual benefits.

EU-India relations

Historical Evidence

Historically, EU countries have had interest in India

English, French, Dutch, Portuguese have all had colonised India

in the past

Silk route, though India - biggest factor in development of

civilisations in India

In addition to economic trade, the Silk Route served as ways of

carrying out cultural trade between the networking civilisations

Chronology

1962: India establishes diplomatic relations with EEC

1971: EU provides trade support through the Geberalised System of

Preferences (GSP)

1973: The EU and India sign a Commercial Cooperation Agreement for

marketing support to several sectors of Indian industry with export potential

1991: India and the EU sign a Commercial and Economic Cooperation

Agreement

1983: The EU sets up a Delegation in India

1988: The first meeting of the EU-India Joint Commission

1989: Scientific cooperation between Indian and the EU set up in fundamental

as well as applied research

1992: European and Indian industry establish a Joint Business Forum to

promote trade and investment.

1993: The first sector cooperation programme is launched in primary

education with EU support of €150 mn. to the Indian Government's

District Primary Education Programme(DPEP)

1994: EU-India Cooperation Agreement on Partnership and

Development upgrades relationship

1996: A second sector cooperation programme is launched in the area of

health with a grant of €200 mn.

2000: The first EU-India summit is held in Lisbon, €200 mn. support to

India's Sarva Shiksha Abhiyan

Chronology

2001: The EU and India sign an agreement on Science and Technology

Cooperation 2004: A Strategic Partnership is launched

2005: A Joint Action Plan to implement the Strategic Partnership is

agreed to strengthen dialogue and consultation mechanisms, bring together

people and cultures, enhance economic policy dialogue and develop trade

and investment

2006; €160 mn. State Partnership Programme is launched with Rajasthan

and Chhattisgarh 2008: A Joint Declaration on Education is signed to facilitate cooperation

in higher education

Chronology

2009: A Joint Declaration on Multilingualism is singed between the EU

and India

2011: The European Investment Bank provides a framework loan of €

200 mn. to finance projects in the renewable energy sector. The EU and

India sign a Joint Declaration on Culture 2012: Adopted at the EU-India Summit, a Joint Declaration on Energy

foresees cooperation on smart grids, clean coal technologies, nuclear

safety and security, biofuels and renewable energy

2012: The EU-India Skills Development Project is launched for

vocational education and training

Chronology

Trade and Economic Cooperation

• EU is India's largest trading partner

• The bilateral relationship is reviewed annually by India - EU

Summit at the level of Indian PM and the Presidency of the EU

• Announcement of Strategic Partnership was made at 5th India-

EU Summit held in Hague in November 2004

Investment and Economic Cooperation

• To promote business and research cooperation in the key sectors of

energy, environment, biotechnology and transport, the EU has

supported the creation of the European Business and Technology

Centre(EBTC)

• Over many years, the EU has also offered targeted trade-related

assistance to boost India's competitiveness so it can take greater

advantage of the opportunities that the European market represents

• The scope and potential gains of the EU-India partnership are enormous

Free Trade Agreement

• In the short run alone, India is expected to gain €5 bn. and the EU over €4 bn.

• The FTA vies for stricter enforcement of Intellectual Property(IPR) and would

largely eliminate import duties on both sides. This means, for example, that

clothing exported from India to the EU would no longer pay the current

applicable tariff of 9.6%.

• Indian agricultural products such as rice would also gain significantly improved

market access.

• On the other hand European products like machinery, transport equipment or

other industrial products would get better access to the Indian market.

• The EU-India FTA would be one of the most significant trade agreements ever,

touching the lives of 1.7 billion people.

Economic Sectoral Dialogues and Co-operation

Under the Economic Policy Dialogue and Co-operation section of the Action

Plan, enhanced cooperation and dialogue is envisaged in the following sectors:

• Trade, Transport, Environment, Energy

• Science and Technology, Space Technology

• Information Society, Pharmaceuticals and Biotechnology, Industrial Policy,

Customs Co-operation

• Dialogue on Economic and Financial Matters

• Employment and Social Policy

• Agriculture and Business Dialogue & Co-operation

Economic Policy Cooperation

The proposed initiatives for Economic Policy Cooperation include the

following actions:

• Trade, Industry, and Business Co-operation

• Transport

• Energy

• Environment

Multi-sector Policy Dialogue Support Facility

• Financial support provided to the other sectors of the Action Plan enable the

progressive development of enhanced cooperation in these areas.

• These sectors will receive funding either through the 7th Framework

Programme or will be included in the multi-sector Policy Dialogue Support

Facility.

• Some of them will also receive funding through the respective thematic

programmes for external action.

• Depending on the progress made in the period of the first MIP (Multi

Annual Investment Policy) (2007-2010), some of these sectors could be

considered for more substantial Economic Policy Co-operation actions in

the second MIP (2010-2013)

Thank you for your attention!