The relationship between the European Union (EU) and China is a complex and significant one. The two powers engage in diplomacy, trade, and investment, and have common interests as well as divergent views. This article explores the history and present state of EU-China relations, covering topics such as bilateral trade policies, diplomatic dialogue, human rights concerns, and strategic competition.
Overview
The EU and China are two of the largest economies in the world, accounting for around 15% and 18% of global GDP respectively. Their economic relationship is crucial, with China being the EU’s second-largest trading partner and the EU being China’s largest trading partner. The EU is also a major destination for Chinese foreign direct investment (FDI), and Chinese investments in European infrastructure, especially in the context of the Belt and Road Initiative (BRI), have raised concerns about competition and security.
The two entities share some common interests, such as climate change, multilateralism, and global governance, but also have divergent views on issues such as human rights, democracy, and security. EU-China relations have been complicated by trade disputes, concerns about intellectual property theft, and geopolitical tensions. The COVID-19 pandemic has further strained the relationship, as China has been criticized for its handling of the outbreak and for alleged disinformation campaigns.
Trade policy
The EU and China signed a Comprehensive Strategic Partnership in 2003, which aimed at deepening economic, political, and social ties. The partnership included a Joint Economic and Trade Commission (JETCO) which has been a key forum for managing trade relations. In 2019, the two parties held the 21st JETCO and reached agreements on issues such as geographical indications, food safety, and customs cooperation.
However, the trade relationship has been characterized by tensions and disputes. In 2018, the US imposed tariffs on Chinese goods, leading to a decrease in China’s exports to the US and an increase in its exports to the EU. This caused concerns in the EU that China might use Europe as a dumping ground for its excess production, and that Chinese subsidies to its industries might give it unfair advantages.
The EU addressed these concerns by adopting a more assertive trade policy, exemplified by the proposal for a new EU-China investment agreement. The agreement aims to ensure a level playing field for European businesses in China, by securing better market access, more transparency and guarantees for intellectual property rights. Negotiations were launched in 2014 and have progressed slowly, with China facing calls to open up its market more widely. The agreement is expected to be finalized in 2020, but some critics argue that it does not go far enough in addressing Chinese state aid or human rights abuses.
Diplomacy and human rights
The EU and China engage in regular high-level political dialogue, including an annual EU-China summit. The dialogue covers a wide range of issues, including regional security, non-proliferation, development, and human rights. The human rights issue is one of the most contentious in the relationship.
The EU has been critical of China’s human rights record, particularly in relation to Tibet, Xinjiang, and Hong Kong. The EU has called for the release of political prisoners, the abolition of the death penalty, and the respect for religious and cultural diversity. The EU also expressed concern about China’s introduction of a national security law in Hong Kong in 2020, which it feared could undermine Hong Kong’s autonomy and the rule of law.
China has been sensitive to what it perceives as interference in its internal affairs and has accused the EU of double standards. China argues that its human rights policies are based on its own cultural traditions and that it is making progress in addressing social and economic rights.
Security and strategic competition
In recent years, the EU has become more concerned about China’s strategic ambitions and its implications for European security. The EU’s Global Strategy of 2016 identified China as a “systemic challenge” to the EU’s values and interests, and called for a more coherent and strategic approach.
China’s military modernization, territorial claims in the South China Sea, and strategic investments in critical infrastructure have raised concerns about its future role as a global power. The Chinese government has denied accusations of expansionism, and claims that it is committed to peaceful development and the building of a community of shared future for mankind.
However, some observers argue that China’s domestic repression and authoritarianism could pose a threat to the liberal international order that the EU seeks to promote. The EU has also been concerned about China’s use of cyber espionage and theft of intellectual property.
Conclusion
The relationship between the EU and China is one of both cooperation and competition, with common interests and diverse agendas. The EU has sought to engage China on issues ranging from trade to human rights, while at the same time guarding against security risks and geopolitical challenges. The EU-China relationship is likely to remain complex and contentious, as both sides seek to protect their interests in an increasingly interdependent world.
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