Chinese Premier Wen Jiabao's attendance at the
recent China-EU Summit in Brussels capped his vigorous efforts to
nurture and advance Sino-EU relations.
While the EU is China's top trading partner
and largest source of technology imports, China has become the EU's
second largest trading partner. Building on past achievements, Wen
called for more actions. At the summit, he suggested launching
negotiations on a China-EU investment treaty and initiating a
feasibility study on a China-EU free trade agreement. He also
underscored the importance of financial cooperation, such as the
use of the yuan, the Chinese currency, by European firms in
cross-border trade and investment.
A decade into his career as China's head of
government, Wen has spearheaded the Sino-EU relationship at a time
of dramatic changes, fueled largely by China's economic takeoff.
While giving impetus to the relationship, China's emergence is
tilting the balance. Unlike past conditions wherein China looked to
the EU for investment and assistance, the EU—now mired in a
persistent debt crisis—is counting on China to lend a helping hand.
The shift of power demands that both sides adjust the way they view
one another and their relationship.
At the summit in September, Wen reaffirmed
China's commitment to supporting the EU's efforts to resolve debt
problems. China has offered $43 billion to boost the IMF's
crisis-fighting capacity. In recent months, it has invested in
government bonds of eurozone countries. These initiatives show
China has lived up to the responsibilities associated with its
rising status.
At the same time, China expects the EU to drop
outdated practices that do not reflect the new dynamics in their
relations. For instance, the arms embargo, imposed more than two
decades ago, runs counter to the strategic nature of Sino-EU ties
today. It is also unwise for the EU to refuse to recognize China as
a full market economy given the fact that China will gain market
economy status automatically by 2016 in accordance with WTO rules.
On top of these are trade frictions, which escalated recently
following the EU's decision to start a formal anti-dumping
investigation into Chinese solar panels. China opts for addressing
trade disputes through consultations instead of protectionist
measures.
Beijing's unmet expectations testify to the
difficulties the EU has encountered in adapting to China's rapid
development. To relieve these growing pains, the EU should be more
at ease with China's rise, which presents more opportunities than
challenges to Europe. But disagreements will not outweigh
interdependence and shared interests. More importantly, cooperation
between the largest developing country and the largest bloc of
developed countries is conducive to stimulating global economic
growth and shaping fairer and more equitable international systems.
In light of these significant benefits, Sino-EU bonds, cemented by
Wen over the past decade, will continue to flourish in the years to
come.
|