“More similarities between the EU and China”

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From the sobering appearance Trumps a positive pulse for the 19. EU-China summit, to assume, to expect the Premier Li Keqiang in Brussels. But differences remain, such as Jan Gaspers explains.

Deutsche Welle: after the cold snap by visiting Trumps in Brussels now warm sunshine from China, through the visit of Li Keqiang? In other words: Could be a greater approach of the EU to China is a result of the disappointment with Trump?

Jan Gaspers: Europe and China currently have in some policy areas, more in common, than it is within the transatlantic Alliance. These similarities are particularly apparent in the global trade and climate policy, although much at the Moment, still remains at the level of rhetoric. Nevertheless, a more intensive and more productive exchanges between European and Chinese politicians, and this is also due to the unpredictable foreign policy of Washington. The US foreign policy is perceived in Beijing as well as in major European capitals are equally as unreliable and short-sighted.

Gaspers: Europe room for manoeuvre in policy areas such as value-based foreign policy, however, small

China has recently worked with a large Protocol, its “One Belt One Road”Initiative. The EU took a critical Position and listed the “eight principles” for such an “ambitious project for the Chinese-European teeth” is essential. Much is expected of the Chinese, against the grain, so points such as the greatest possible transparency, multilateral participation, and economic benefits for all Involved, and to “stake holders”. The EU attitude towards the “New silk road” is a Problem for EU-China relations?

It is not wrong, Europe of the silk road Initiative met with a constructive scepticism. Finally, the project is in this Chinese century not everything Gold that glitters. Many of the planned silk road projects are associated with huge economic and security-political risks for Beijing, but also for the countries along the silk road. The failure of loans, fiscal instability, but also the fuelling of regional conflicts seems to be of many of China within the framework of the Initiative to award Great many pre-programmed.

Nevertheless, the Initiative has, of course, also great potential to open up new economic areas, and to continue important development impulses, particularly in the Eurasian region. This is, of course, in the interest of Europe. The silk road-the summit has shown once again that the larger EU member States increasingly their own economic interests with the silk road Initiative.

Many of the projects that are planned in the framework of the new silk road, will need specific technical Know-how, which bring in this Form, only European companies. Consider, for example, the ambitious plans for the renewal and Integration of Central Asian energy networks. European companies can also contribute to the Controlling of individual projects. In addition, Germany’s automotive industry benefits already massively from the new freight train services, which were raised in the context of the silk road Initiative in the last three years, in Eurasia from the baptism.

Ultimately, Beijing is interested above all in political recognition and support for the Initiative across Europe. Therefore, Beijing will do in the future, the support of the silk road Initiative certainly also a condition for the recognition of European interests. Sure, we will see the EU-China summit this week.

China’s silk road initiative, met with the EU with “constructive skepticism”

In the “elements for a new China-EU strategy” the EU Commission by June 2016 States: “A comprehensive investment agreement is the immediate priority for the EU, with a view to the deepening and realignment of our relations with China.” What is the status of the target investment agreement between China and the EU? The European companies have promised them a lot, so it companies in China finally comes to the often requested “fair market access” for EU? Are there expected progress?

In the meantime, the last of them in mid-may have taken place on this topic already 13 rounds of negotiations between the EU and China, in Beijing. Despite the improved political situation could, however, be no significant progress. From a European point of view has not moved on the Chinese side, the Central dispute is still not enough. The EU Commissioner for trade, Cecilia Malmström called for, most recently in Beijing that the Communist party needs to reduce its influence on the economy, in order to allow real competition in China. They also criticised the fact that European companies in China trusted again and again with obscure rules and regulations, as well as ask operation, inspection and audits to be faced. A number of European companies Malmström has spoken to, without a doubt, from the soul.

Of the EU-China summit this week can expect a new impetus to the negotiations on the investment agreement, if Beijing’s commitment on its latest products will allow to measure the free markets. In fact, it was last again and again signals from Beijing that certain markets are more open to foreign investors. Here is the time for action.

In the case of the EU – China relations, the dispute over steel since the middle of last year-Dumping and China’s Demand to get the Status of a market economy, granted, in the focus. Has eased this topic now?

It’s not like the EU to China, would have granted the market economy status. Rather, has emancipated Europe from this debate to a certain degree. The European Council has just agreed on a comprehensive modernisation of the Trade defence instruments of the Union. This provides, inter alia, that the EU economies in the future, between market and Non-market economy will differ. Rather, the EU wants to determine in the future, whether market distortions in third countries, such as China, and then appropriate protective duties impose.

For China, this is unsatisfactory. Beijing continues to insist on formal recognition as a market economy and linked to the theme, for example, with an easing of the planned E-car mobility rates, which would mainly affect German manufacturers hard. Also is also is not yet clear whether the reform of EU Trade defence instruments consistent with WTO law.

The EU sees itself not only as an economic block, but also as a community of values. The extent to which the EU has on a number of areas, such as Foreign and security policy (territorial conflict in the South China sea) and civil rights (censorship, Repression against critics of the government), your ideas compared to Beijing? Alone in the field of trade policy, this is hard enough as it is.

The European room for manoeuvre in these areas has become in the last few years, in fact, considerably smaller, not least because the US policy is flighty and the EU was engaged as a reliable ally in questions of value-based exterior with their own crises. In addition, it has been able to Beijing last very skillfully, EU Agreement to such key issues as the territorial disputes in the South China sea to undermine. Here are the first political consequences of the increase of Chinese investments are already beginning to emerge, especially in Central and southern Europe.

Europe is, therefore, currently certainly less in a Position in which you should mull over how you can affect at the most effective China policy. Rather, Europe should be thinking about how China can engage in the pursuit of European interests in other important fields. I think, for example, the preservation of the Paris climate agreement, the strengthening of international Trade rules or negotiations on the North Korean nuclear weapons program.

Jan Gaspers is the head of the European-China Policy Unit at the Berlin-based China research Institute MERICS