EU-China relations, Autumn 2003

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Publication Date 03/11/2003
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The sixth EU-China Summit was held on 30 October 2003 in Beijing. Agreements signed by the two sides covered intellectual property, industrial policy, tourist visas, and the Galileo satellite navigation system.

Speaking before the Summit, European Commission President Romano Prodi said 'EU-China relations have expanded rapidly in recent years. As the EU enlarges and China continues to emerge on the world stage, our bilateral and international agenda is more challenging than ever and this summit affords a major opportunity to move forward together.'

China's President Hu Jintao said after the Summit that 'China always hopes to develop its relations with the EU from a strategic and long-term perspective. China agrees with the EU proposal on developing a full strategic partnership, and is ready, on the basis of mutual respect and seeking common ground while reserving differences, to promote bilateral political ties to grow in a healthy and stable way. China is also ready to push forward cooperation in all areas in the spirit of consultation on an equal footing and mutual benefit, to expand friendship and understanding on the basis of learning from each other.'

The Summit followed in the wake of two policy documents on EU-China relations, one published by the European Commission on 10 September, the other issued a month later by China's Ministry of Foreign Affairs.

The sixth EU-China Summit

The first EU-China Annual Summit took place in London in April 1998. The latest Summit, the sixth, took place in Beijing on 30 October 2003, with the EU represented by President of the Council Silvio Berlusconi, President of the European Commission Romano Prodi, and the EU High Representative for Common Foreign and Security Policy Javier Solana. The major figures on the Chinese side were President of the People's Republic Hu Jintao and Prime Minister Wen Jiabiao. This was the highest-level meeting between the two sides since the new Chinese administration was appointed in March 2003.

Issues discussed at the Summit were summarised in a Joint Press Statement released after the event. Leaders welcomed progress in relations since the previous Summit, held in Copenhagen in September 2002 and 'stressed their resolve to further expand and deepen China-EU relations, guided by the two policy papers, which promote the development of an overall strategic partnership between China and the EU.'

Two items drew particular attention from commentators. The first was the agreement on the Galileo satellite navigation system, which followed approval by the Environment Council on 27 October of a Commission Decision authorising the signing of a Cooperation Agreement between the EU and China on Galileo. Earlier, on 19 September, a joint China-Europe Global Navigation Satellite System Technical Training and Co-operation Centre (CENC) had been inaugurated. The Centre, which will serve as a focal point for activities on Galileo, is located in Beijing, and was created as a joint venture between the European Commission, the European Space Agency, the Chinese Ministry of Science and Technology, and the Chinese Remote Sensing Centre.

The second notable item was the signing of a Memorandum of Understanding on Approved Destination Status (ADS), which is expected to help increase Chinese group tourism in the EU by simplifying visa procedures.

Amongst the other issues noted in the joint statement were: industrial policy, trade, foreign direct investment, the failure of the WTO Ministerial Meeting in Cancun, scientific and technological cooperation, customs cooperation, civil aviation, environmental protection, human rights, the fight against terrorism, and illegal migration and trafficking in human beings.

Leaders also highlighted the importance of sector-specific dialogues, with competition, intellectual property rights, macro-economic questions, health, employment and education identified as new areas for discussion.

In a statement issued the day after the Summit, President Hu Jintao said that China 'always hopes to develop its relations with the EU from a strategic and long-term perspective. China agrees with the EU proposal on developing a full strategic partnership, and is ready, on the basis of mutual respect and seeking common ground while reserving differences, to promote bilateral political ties to grow in a healthy and stable way. China is also ready to push forward cooperation in all areas in the spirit of consultation on an equal footing and mutual benefit, to expand friendship and understanding on the basis of learning from each other.

On the same day, at a meeting in the Great Hall of the People, Premier Wen Jiabao made four proposals for promoting relations between the two sides:

  • keeping frequent exchanges of high-level visits
  • deepening trade and economic cooperation
  • setting up an effective cooperation mechanism
  • eliminating barriers hindering the healthy growth of China-EU relations

The EU's policy paper on China

The European Union's current policy towards China is based on the May 2001 EU Strategy towards China: Implementation of the 1998 Communication and Future Steps for a more Effective EU Policy. It can be summarised as:

  • engaging China further on the world stage, through an upgraded political dialogue with the international community
  • supporting China's transition to an open society based upon the rule of law and respect for human rights
  • encouraging the integration of China in the world economy through bringing it fully into the world trading system, and supporting the process of economic and social reform that is continuing in China
  • making better use of European resources
  • raising the Union's profile in China

The European Union's latest policy paper, A maturing partnership - shared interests and challenges in EU-China relations, was endorsed by the General Affairs Council of 13 October 2003. It sets out a framework for the development of EU-China relations over the next two to three years, identifying six priority areas:

  1. Governance. Political dialogue should be more focussed. Existing mechanisms should be used to systematically address global and regional governance and security issues. Cooperation on illegal migration should be more results oriented; an agreement on the readmission of illegal migrants should be concluded shortly.
  2. Human rights. The existing EU-China Human Rights dialogue should be enhanced by 'the raising of its level, greater focus on key issues, stronger continuity and follow-through on issues and individual cases, maximising synergies with existing bilateral Member State efforts, and raising the visibility and transparency of the dialogue.'
  3. China's greater economic openness. In the context of the WTO, the need to ensure success of the Doha Development Agenda is highlighted, as is the EU's willingness to monitor and assist China's compliance with its WTO commitments, and to monitor new regional agreements to ensure WTO-compatibility. Agreement on an 'Approved Destination Status' was a key issue, and was reached at the October Summit. The Commission also called for negotiations on a customs agreement to begin as soon as possible.
  4. Sectoral cooperation. Moves towards reform should be strengthened by reinforcing existing dialogues and agreements (on, for example, industrial products, information society, environment, energy and scientific and technological co-operation), and by launching new dialogues. The paper noted the need to reach agreement on the Galileo programme, something which was achieved at the Summit.
  5. The Union's cooperation programme. This supports a variety of activities, according to the aims identified in the 2002 Country Strategy Paper.
  6. Raising the Union's visibility in China. The Commission's paper proposed new initiatives for increasing awareness of the European Union in China, including conducting surveys to identify public perceptions of the EU amongst Chinese, and making greater use of targeted messages.

Speaking about the paper, The Union's External Relations Commissioner, Chris Patten, said: 'The last decade has seen a dynamic growth of the relationship between the EU and China which has expanded well beyond the traditional areas of trade, investment and technical assistance. These changes have brought about a new maturity in the relationship characterised by an increasingly close policy co-ordination in many areas. We have a major political and economic interest in China's successful transition to a stable, prosperous and open country which fully embraces democracy, free market principles and the rule of law, and we will do our utmost to support this transition process.'

China's policy paper on the EU

On the same day that the General Affairs Council approved the Commission's latest policy statement on China, the Chinese Government issued its first paper EU policy paper. The Foreword states: 'The European Union (EU) is a major force in the world. The Chinese Government appreciates the importance the EU and its members attach to developing relations with China. The present EU Policy Paper of the Chinese Government is the first of its kind and aims to highlight the objectives of China's EU policy, and outline the areas and plans of cooperation and related measures in the next five years so as to enhance China-EU all-round cooperation and promote a long-term and stable development of China-EU relations.'

China's EU policy objectives are summarised as:

  • 'To promote a sound and steady development of China-EU political relations under the principles of mutual respect, mutual trust and seeking common ground while reserving differences, and contribute to world peace and stability;
  • To deepen China-EU economic cooperation and trade under the principles of mutual benefit, reciprocity and consultation on an equal basis, and promote common development;
  • To expand China-EU cultural and people-to-people exchanges under the principle of mutual emulation, common prosperity and complimentary, and promote cultural harmony and progress between the East and the West.'

The main section of the document - Part Three - is devoted to elaborating on specific aspects of cooperation between the two parties, divided into five broad headings:

  • politics
  • economics
  • education, science-technology, culture, health
  • social, judicial, administrative
  • military

Commission President Romano Prodi welcomed the paper, calling it 'a significant contribution towards further deepening dialogue and cooperation in our bilateral relations' and saying 'we will now undertake a thorough examination of the Chinese proposals, with a view to defining, together with China, the most promising new avenues to be explored. The next EU-China Summit ... will provide a good occasion to take these matters forward.'

Further information within European Sources Online

European Sources Online: In Focus
EU successfully concludes negotiations with China on its accession to the WTO, Beijing, May 2000
 
European Sources Online: European Voice
23.01.03: 'One China' policy can still accommodate EU relation with Taiwan, says Patten
29.05.03: EU could be overtaken by China's economy, warns Unilever chief
12.06.03: EU forges secret deal with China
25.09.03: Galileo satellite to get EUR 230m from China
02.10.03: EU industry threatened by Chinese operators
 
European Sources Online: Financial Times
03.07.03: EU urged to curb China competition
19.09.03: China to join EU's Galileo navigation satellite plan

Further information can be seen in these external links:
(long-term access cannot be guaranteed)

EU Institutions

Italian Presidency of the European Union
Homepage
EU-People's Republic of China Summit
21.10.03: Cooperation Agreement on a Civil Global Navigation Satellite System (GNSS)-Galileo between the EC and its Member States and the People's Republic of China
30.10.03: Sixth China-EU Summit - Joint Press Statement
 
Council of the European Union
Homepage
30.10.03: EU-China: an ever-deepening partnership (Article by Dr Javier Solana for the People's Daily (International Weekly), Beijing)

European Commission

DG Press and Communication
Press Releases:
  11.06.03: Pascal Lamy visits China to strengthen trade relations [IP/03/822]
  26.06.03: Customs: EU/China co-operation talks [IP/03/903]
  10.09.03: EU-China: Commission adopts new strategy for a maturing partnership [IP/03/1231]
  11.09.03: Commissioner Erkki Liikanen to visit South Korea and China [IP/03/1235]
  17.09.03: EU and China launch a political dialogue on industrial policy and regulation [IP/03/1260]
  18.09.03: EU and China are set to collaborate on GALILEO the European global system of satellite navigation [IP/03/1266]
  14.10.03: President statement regarding EU relations with China [IP/03/1377]
  16.10.03: Commissioner Busquin welcomes China's first human space flight [IP/03/1383]
  27.10.03: GALILEO: Loyola de Palacio welcomes the green light for an EU-China agreement [IP/03/1461]
  28.10.03: Progress in EU-China relations at summit in Beijing [IP/03/1467]
 
Speeches:
  13.06.03: Pascal Lamy: EU's enlargement will contribute to the deepening of EU-China relations [SPEECH/03/302]
  16.09.03: Erkki Liikanen: Better Public Services through eGovernance [SPEECH/03/410]
  17.09.03: Erkki Liikanen: EU-China Regulatory Co-operation [SPEECH/03/437]
  31.10.03: Pascal Lamy: EU-China relations: continuity and change [SPEECH/03/503]
 
Delegation of the European Commission to China
Homepage
Chronology of EU-China relations
Basic EU-China Documents
 
DG External Relations
The EU's relations with China
  25.03.98: Building a Comprehensive Partnership with China
  15.05.01: EU Strategy towards China: Implementation of the 1998 Communication and Future Steps for a more Effective EU Policy
  01.03.02: Country Strategy Paper
  10.09.03: Commission policy paper: A maturing partnership - shared interests and challenges in EU-China relations (COM(2003)533)
 
DG Trade
Bilateral Trade Relations: China

Other organisations

European Union Chamber of Commerce in China
Homepage
China's EU Policy Paper
 
Ministry of Foreign Affairs of the People's Republic of China
Homepage
  13.10.03: China's EU policy paper [text]
  13.10.03: Spokesperson's Remarks on the EU policy paper formulated by the Chinese government
  31.10.03: President Hu Jintao Meets EU Leaders
  31.10.03: Sixth China- EU Leaders' Meeting Is Held in Beijing
  31.10.03: State Councilor Tang Jiaxuan Meets Javier Solana

News organisations

BBC News Online
19.09.03: China joins EU's satellite network
30.10.03: Europe boosts China ties
 
channelnewsasia.com
28.10.03: EU, China to sign space accord during summit; to discuss N Korea, Iraq
29.10.03: EU to press China over rights at summit
30.10.03: EU-China agree on growing importance of strategic ties
30.10.03: Leaders jet in for annual EU-China summit as ties warm
31.10.03: EU's Lamy urges China to further open its market
31.10.03: EU's Lamy urges China to widen currency peg, open market further

Eric Davies
Researcher
Compiled: 2 November 2003

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