Strong ties

In the heart of Beijing at the entrance to the Imperial Palace hangs a larger-than-life portrait of Mao Zedong. From his place on the wall, Mao will be watching over the EU-China summit when it opens on Tuesday in the Great Hall of the People. Diplomatic ties between China and the EU go back to Mao's day in 1975.

The summit is taking place during difficult times. Originally, top EU representatives were scheduled to meet with officials from Beijing last October in Tianjin. However, the EU, busy with the Greek and euro crises, had to postpone the gathering.

But the European debt crisis will still very much be on the agenda when Chinese Premier Wen Jiabao ultimately meets with Herman Van Rompuy, president of European Council, and Jose Manuel Barroso, president of the European Commission.

With around $3 trillion (2.28 trillion euros), China has the world's largest foreign reserves. During German Chancellor Angela Merkel's visit at the beginning of February, Wen didn't make any more than a vague statement that China would think about participating in a euro rescue. He added that the Europeans would have to do their part in overcoming the debt crisis.

Turning economic might to political power

China and Europe maintain close economic ties. In 2010, trade amounted to around 400 billion euros, making the EU China's number one trade partner. And for the EU, China is soon likely surpass the US as its number one trading partner. That means China has a vested interest in an economically healthy Europe.

China also enjoys strategic partner status with the EU, as do the other members of the so-called BRICS group of emerging powers - Brazil, Russia, India and South Africa.

On February 1, the European Union's High Representative Catherine Ashton called on the BRICS states to turn their "economic power into political power" and fight terrorism, implement climate policies and improve human rights as self-confident and ambitious EU partners.

Economic giant, political runt

China's demands for the European Union are not as high. The EU is seen as an economic giant, but the bloc is also viewed as a political runt.

While Europeans have trouble finding consensus on key political issues, China displayed its confidence by voting against a UN Security Council resolution that would have demanded the resignation of Syrian President Bashar al-Assad. That, along with another important issue - Iran - will be on the agenda for talks in Beijing.

For Van Rompuy, differences of opinion are nothing new. "We speak openly about our differences in views - they are no secret," he told DW. "We have good relations with China; we are strategic partners."

"But we also have to be honest in that we have different systems and different beliefs on many issues," he added. "We also have many interests in common. And we have the will to have the best relationship possible."

Different views

There is certainly no lack of differences in opinion between the strategic partners. China would like to be recognized as a market economy and would like to see an end to the weapons embargo.

Europe, on the other hand, is not only looking toward Beijing to help with the euro crisis, but also to see China implement policies on climate change, open its market further, create fair conditions for tendering contract bids and improve human rights.

China and the EU will be launching joint projects in Beijing. One of them is a partnership for sustainable urban development. Another involves developing further ties in the energy sector.

The seventh EU-China Business Summit is also taking place parallel to the EU-China summit in the Great Hall of the People. There, high-ranking delegates will be discussing their theme, "Cooperation on a new level: Innovation, Industry and Investment."

Author: Matthias von Hein / sb
Editor: Gregg Benzow