EU-China relations

European Commission President Jose Manuel Barroso and Swedish Prime Minister Fredrik Reinfeldt, whose country holds the rotating EU presidency, will head an EU delegation to the eastern city of Nanking on Monday to meet with Chinese Premier Wen Jiabao and his ministers.

While the talks are expected to concentrate on trade, protectionism, climate change and macroeconomic policy, it is assumed that the EU delegation will also attempt to gauge what impact Obama's visit to China may have had on Europe's position as a partner to the Chinese.

At first glance, according to Jonathan Holslag from the Brussels Institute of Contemporary China Studies, Obama's visit is unlikely to have any immediate effect on EU-Sino relations, a view supported by statements coming out of the Chinese government. But if Europe is not to lose ground, the opinion of experts in Europe and China is that the EU should at least try and match US offers of cooperation and trump them with actual concrete action.

"During a high level meeting in Beijing last week, we got a very clear signal from the Chinese leadership," Holslag told Deutsche Welle. "Premier Wen Jiabao and State Counselor Dai Bingguo explained that China attaches a lot of importance to cooperation with Europe and that it should not worry about a G2. But for the Chinese, the ball is in our court now. They want us to prove that we can get our act together and come up with a pragmatic agenda for cooperation. If the EU can add no value to China's essentially commercial relations with individual member states, there will not be a strategic partnership."

Paul Lim, a senior academic adviser at the European Institute for Asian Studies in Brussels, said that China would pick up on any concern within Europe in relation to its position as a partner and could possibly play the EU and US off against each other. But he also said China needs both powers for very different reasons.

"The US, with its history of relations with Asia, its presence in Asia makes it a more important partner than the EU," Lim told Deutsche Welle. "The EU with its soft power which it can use to great influence is still young, and is new in the game. It all boils down to how much of a common voice the EU projects. China will want an ally on certain issues with the EU in relation to the US and the EU will want an ally in the US on certain issues with China. I do not see the EU losing any influence with China and I'm sure that the US and EU will not allow China to play them against each other."

Obama's pragmatism could bode ill for EU

President Obama's visit was the first example of the current administration's desire to engage with China and the importance it attached to China and the wider Asian region as a key strategic partner. While there were few breakthroughs to make the Europeans nervous, Obama came away from Beijing with the paths to dialog firmly open and as such, moved the US into a position which could undermine Europe's influence in future.

"Chinese aid is much needed to keep the American economy afloat and to stabilize Afghanistan," Holslag said. "This has cautioned Obama during his visit. If the United States continues to opt for more pragmatism, this would certainly weaken Europe's bargaining position when it comes to human rights, economic liberalization and other challenges."

To lag behind in relations and cooperation with the Chinese could be damaging to the EU. China's new global influence through investment in Africa and elsewhere, its growing economic muscle and its position as a major player in global issues such as Iran and North Korea, as well as climate change, makes the People's Republic a partner to neglect at peril.

Lack of action damaging EU reputation

What could prove damaging is China's concern that the EU can talk a good partnership but is showing a lack of commitment when it comes to putting these words into practice in areas where EU-Sino relations have been traditionally strong.

"While trade has always been the main driver of Sino-European cooperation, this has now become one of the main sources of friction," Holslag said. "It is clear that Europe's failure to innovate its industries is leading to more sensitivity of competition from countries like China.

"On the international scene we both have a joint interest in stabilizing Africa, securing Central Asia and promoting multilateral cooperation," he added. "But joint interests do not automatically lead to cooperation. Growing assertiveness makes Beijing more eager to promote its own values, while the EU is not proving itself as a strong player."

Calls for reform turning opinion against Europe

Where the EU continues to hold a strong hand is in its dedication to democracy and human rights. The European Union has long been a strong advocate of reform in China and has never missed an opportunity to make its feelings known. In most cases China has responded respectfully but has given few concrete indicators that EU pressure alone is enough to force through radical change. As a result, Europe continues to press Beijing in the hope that persistence will win out in the end.

In fact, the EU's regular advocating of democratic and social reform in China is beginning to turn opinion within the People's Republic, leading some within the Chinese government to suggest that Europe should put its own house in order fist.

"Traditionally the Chinese are concerned about 'saving their face'," Holslag said. "But let us not forget that the pro-Europe camp in Beijing is losing ground. Leaders like Premier Wen have come under quite a lot of pressure from political hardliners and the public opinion. China has become less tolerant of European lecturing. As a result, we might even expect more Chinese criticism on the EU's weak performance in the combat against climate change, its deplorable economic situation or its lack of political coherence."

Despite the uncertain climate between Europe and China, Paul Lim believes that the current level of financial commitment and strategic cooperation between the two powers is enough to look towards the future with guarded optimism.

"The future of EU-China cooperation depends on maturity of relations, of respect, of being able to accept criticisms, and an understanding of each other's culture." said Lim. "However, right now, there has to be a certain degree of closeness, of trust and confidence for the EU to put its money into China. The two powers are also coming closer on climate change as its effects are felt in China and we cannot deny that China is doing something about it even if we think it is not enough. But the big question is how mature the relationship is. This is another matter."

Author: Nick Amies

Editor: Michael Knigge