TaiShang
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Note: I felt especially the second professor has a somehow economistic-reductionist outlook on China's interests in Europe.
**
There would be more and more Chinese capital in the European market
The Voice of Russia
Voice of Russia is discussing these issues with Professor Dai Changzheng, Dean of School of International Relations at the University of International Business and Economics in Beijing, and Dr. Cui Hongjian the Director of European Studies at the China Institute of International Studies.
This week the Chinese prime minister Li Keqiang has been on a trip to Europe. His visit to the UK has been marked by closing a number of deals totaling 28 bln dollars. Besides, according to a joint statement issued during the visit, both sides attach high importance to deepening the China-European Union (EU) strategic partnership. They "support negotiations for an EU-China investment agreement to lift pragmatic cooperation to a new level, and reaffirm their commitment to the long term goal of an ambitious and comprehensive EU China free trade agreement", the statement said.
We are taking a closer look at the Chinese European strategy with Professor Dai Changzheng, Dean of School of International Relations at the University of International Business and Economics in Beijing.
"The EU is now among the most important partners for China, not only regarding economics, but also politically. Of course, China and the EU have gone a long way of foreign relations development. And now China is the second largest economic power in the world. And also, China is trying hard to push its industries and businesses to be more open to the outside world.
I do think that China’s investment needs more chances and, of course, the EU needs China also regarding the economic sphere. And also, we need each other regarding the global governance on the issues such as antiterrorism, economic cooperation and climate change issues. In all those areas China and the EU would have more brighter perspectives.
You know that the first stop of the Prime Minister Li Keqiang was in the UK. And in the UK the Prime Minister Cameron and the Prime Minister Li Keqiang had a very significant dialog with each other. And also, very significant economic and trade contracts were signed between China and the UK.
I do think that, although China would like to push its relations and cooperation with the EU countries, actually it is beyond the economic significance. Also, China would like to go further in the bilateral relationship with the EU diplomatically, economically and especially politically.
As China is now becoming stronger, China needs more chances, it needs to open its market, to push its investment and trade with foreign companies further. This is proclaimed in the China’s Grand Plan that was made on the 3rd Plenum of the 18th CCP Congress.
China would like to integrate the policy of opening the market and reforming together. For China, opening the market goes parallel with its reforms or we can say that the way of opening up brings the course of the reform. China needs a more open market and a more open policy to cooperate with its foreign partners to push its domestic reforms. That is why I think it was significant for the Prime Minister Li Keqiang to visit the EU".
Dr. Cui Hongjian the Director of European Studies at the China Institute of International Studies is sharing his vision on the past, present and future of the China-EU economic cooperation.
" I think that from the Chinese Government’s perspective, certainly, Europe is a very helpful partner not only for the development of China itself, but also for the stability of the world economy and the sustainable development of the world economy. As we understand, the EU with its 28 member states together is now the biggest economy in the world. And also, the EU is the biggest trade partner to China now.
So, I think for China this cooperation with the European countries in economics, trade, technology and investment is of particular importance. As we all know, both sides are now working on the BIT negotiations. And maybe in the future we are going to have FTA negotiations. So, I think this kind of cooperation has a bright future perspective.
But by doing so, and especially by discussing the FTA with the European Union, China might also challenge American interests in Europe.
As we understand, so far there is a negotiation between the EU and the US that is called the T-TIP [The Transatlantic Trade and Investment Partnership - a comprehensive, and high-standard trade and investment agreement negotiated between the US and the EU]. I do believe that this is a very important reason for stimulation this negotiation or the plan of the negotiation on FTA between China and Europe, because, as we understand, certainly there is a kind of competition between various FTAs.
I don’t think that China wants to be out of any kind of big FTA arrangement. So, I think it is in the interest of China and also Europe to have this FTA arrangement, because otherwise the situation between China and Europe is a little bit ridiculous. I mean, Europe is the biggest trade partner to China and there is not any kind of FTA arrangement.
So, it is very logical for China and the EU and I think we will have this FTA negotiation in the future. But, certainly, now both sides are facing some problems or challenges with this FTA negotiation, because, as we understand, both sides need to evaluate the losses and gains from this FTA arrangement, especially after there is a higher tariff standard from the Chinese side, than from the European side.
Maybe, after the BIT [bilateral investment treaty] negotiation there will be more time for China to prepare for this kind of FTA negotiation with Europe. And also, from the European side, as we understand, the difficulty always is how to get a consensus among all of the 28 member states, because these 28 member states have different trade relations with China. Some countries like Germany and Italy enjoy the trade surplus with China, but some EU member states suffer from the deficit of trade with China.
So, how could all those 28 member states get a common ground when they are facing a negotiation on FTA with China, I think it would be a big challenge to the European side.
It could also present a challenge to the US...
I think that regarding the FTA arrangement, China is open enough to any kind of possibility with this main economy in the world. As we know, China and the US now also have the BIT negotiation. So, I think that, maybe, after the BIT we will try to see if there is more possibility for FTA negotiation. But, of course, I do believe that there will be more barriers or obstacles for this negotiation between China and the US, than between China and the EU.
If I remember it correctly, Mrs. Merkel travelled to China back in 2012 to negotiate some anti-crisis measures...
I think that China has always showed a very strong political support. As we understand, even now it looks like that crisis goes to another stage. The most difficult time for Europe is now over, but it doesn’t mean that it’s ended completely.
I think that during all of this time when the European countries have suffered so much, China didn’t use any kind of words like ‘crisis’ officially. China has always used the words like ‘problem’ or ‘challenge’. I think it shows a very strong political support from China to the EU institutions and member states to overcome this crisis.
On the economic and trade level, China has sent a very big delegation consisting of some officials, businessmen and big companies to Europe during the crisis to buy a large amount of European products. And also, if you have a look at the trade volume from 2008 and until now, you can find that China imported from the European countries more and exported less than before to the European market.
I think it gives a very strong support to the European countries to get more money from the Chinese market. And also, China bought some debt from countries like Greece or Italy – the European countries who suffered from that problem. So, all of this showed the Chinese support to Europe during the crisis.
But, of course, at the same time, China also is thinking about what is the better way for China to deal with this crisis in Europe, other than to buy some more debt from the countries. At the same time, China had more investment in Europe. Just like what happened now in the UK and also, maybe, in Germany and France.
I think that if some day in the future we will look back to today, we could find that it is a very important starting point for China and Europe to have a very close and deep cooperation since that crisis. I mean, this kind of cooperation or exchange happened not only in trade, but also in mutual investment, which means that there would be more and more Chinese factories, or more and more merging of the Chinese capital into the European market.
And also, we know that now we are talking about the RMB international organization. At this moment, China has more and more financial cooperation not only with the member states of EU, but also with the ECB. I think it gives a chance for China to have this exchange of cooperation in finances or currency.
I think that the current situation in Europe may give more chances for China to have its investment abroad".
Read more: http://voiceofrussia.com/radio_broadcast/25298789/273727612/
**
There would be more and more Chinese capital in the European market
The Voice of Russia
Voice of Russia is discussing these issues with Professor Dai Changzheng, Dean of School of International Relations at the University of International Business and Economics in Beijing, and Dr. Cui Hongjian the Director of European Studies at the China Institute of International Studies.
This week the Chinese prime minister Li Keqiang has been on a trip to Europe. His visit to the UK has been marked by closing a number of deals totaling 28 bln dollars. Besides, according to a joint statement issued during the visit, both sides attach high importance to deepening the China-European Union (EU) strategic partnership. They "support negotiations for an EU-China investment agreement to lift pragmatic cooperation to a new level, and reaffirm their commitment to the long term goal of an ambitious and comprehensive EU China free trade agreement", the statement said.
We are taking a closer look at the Chinese European strategy with Professor Dai Changzheng, Dean of School of International Relations at the University of International Business and Economics in Beijing.
"The EU is now among the most important partners for China, not only regarding economics, but also politically. Of course, China and the EU have gone a long way of foreign relations development. And now China is the second largest economic power in the world. And also, China is trying hard to push its industries and businesses to be more open to the outside world.
I do think that China’s investment needs more chances and, of course, the EU needs China also regarding the economic sphere. And also, we need each other regarding the global governance on the issues such as antiterrorism, economic cooperation and climate change issues. In all those areas China and the EU would have more brighter perspectives.
You know that the first stop of the Prime Minister Li Keqiang was in the UK. And in the UK the Prime Minister Cameron and the Prime Minister Li Keqiang had a very significant dialog with each other. And also, very significant economic and trade contracts were signed between China and the UK.
I do think that, although China would like to push its relations and cooperation with the EU countries, actually it is beyond the economic significance. Also, China would like to go further in the bilateral relationship with the EU diplomatically, economically and especially politically.
As China is now becoming stronger, China needs more chances, it needs to open its market, to push its investment and trade with foreign companies further. This is proclaimed in the China’s Grand Plan that was made on the 3rd Plenum of the 18th CCP Congress.
China would like to integrate the policy of opening the market and reforming together. For China, opening the market goes parallel with its reforms or we can say that the way of opening up brings the course of the reform. China needs a more open market and a more open policy to cooperate with its foreign partners to push its domestic reforms. That is why I think it was significant for the Prime Minister Li Keqiang to visit the EU".
Dr. Cui Hongjian the Director of European Studies at the China Institute of International Studies is sharing his vision on the past, present and future of the China-EU economic cooperation.
" I think that from the Chinese Government’s perspective, certainly, Europe is a very helpful partner not only for the development of China itself, but also for the stability of the world economy and the sustainable development of the world economy. As we understand, the EU with its 28 member states together is now the biggest economy in the world. And also, the EU is the biggest trade partner to China now.
So, I think for China this cooperation with the European countries in economics, trade, technology and investment is of particular importance. As we all know, both sides are now working on the BIT negotiations. And maybe in the future we are going to have FTA negotiations. So, I think this kind of cooperation has a bright future perspective.
But by doing so, and especially by discussing the FTA with the European Union, China might also challenge American interests in Europe.
As we understand, so far there is a negotiation between the EU and the US that is called the T-TIP [The Transatlantic Trade and Investment Partnership - a comprehensive, and high-standard trade and investment agreement negotiated between the US and the EU]. I do believe that this is a very important reason for stimulation this negotiation or the plan of the negotiation on FTA between China and Europe, because, as we understand, certainly there is a kind of competition between various FTAs.
I don’t think that China wants to be out of any kind of big FTA arrangement. So, I think it is in the interest of China and also Europe to have this FTA arrangement, because otherwise the situation between China and Europe is a little bit ridiculous. I mean, Europe is the biggest trade partner to China and there is not any kind of FTA arrangement.
So, it is very logical for China and the EU and I think we will have this FTA negotiation in the future. But, certainly, now both sides are facing some problems or challenges with this FTA negotiation, because, as we understand, both sides need to evaluate the losses and gains from this FTA arrangement, especially after there is a higher tariff standard from the Chinese side, than from the European side.
Maybe, after the BIT [bilateral investment treaty] negotiation there will be more time for China to prepare for this kind of FTA negotiation with Europe. And also, from the European side, as we understand, the difficulty always is how to get a consensus among all of the 28 member states, because these 28 member states have different trade relations with China. Some countries like Germany and Italy enjoy the trade surplus with China, but some EU member states suffer from the deficit of trade with China.
So, how could all those 28 member states get a common ground when they are facing a negotiation on FTA with China, I think it would be a big challenge to the European side.
It could also present a challenge to the US...
I think that regarding the FTA arrangement, China is open enough to any kind of possibility with this main economy in the world. As we know, China and the US now also have the BIT negotiation. So, I think that, maybe, after the BIT we will try to see if there is more possibility for FTA negotiation. But, of course, I do believe that there will be more barriers or obstacles for this negotiation between China and the US, than between China and the EU.
If I remember it correctly, Mrs. Merkel travelled to China back in 2012 to negotiate some anti-crisis measures...
I think that China has always showed a very strong political support. As we understand, even now it looks like that crisis goes to another stage. The most difficult time for Europe is now over, but it doesn’t mean that it’s ended completely.
I think that during all of this time when the European countries have suffered so much, China didn’t use any kind of words like ‘crisis’ officially. China has always used the words like ‘problem’ or ‘challenge’. I think it shows a very strong political support from China to the EU institutions and member states to overcome this crisis.
On the economic and trade level, China has sent a very big delegation consisting of some officials, businessmen and big companies to Europe during the crisis to buy a large amount of European products. And also, if you have a look at the trade volume from 2008 and until now, you can find that China imported from the European countries more and exported less than before to the European market.
I think it gives a very strong support to the European countries to get more money from the Chinese market. And also, China bought some debt from countries like Greece or Italy – the European countries who suffered from that problem. So, all of this showed the Chinese support to Europe during the crisis.
But, of course, at the same time, China also is thinking about what is the better way for China to deal with this crisis in Europe, other than to buy some more debt from the countries. At the same time, China had more investment in Europe. Just like what happened now in the UK and also, maybe, in Germany and France.
I think that if some day in the future we will look back to today, we could find that it is a very important starting point for China and Europe to have a very close and deep cooperation since that crisis. I mean, this kind of cooperation or exchange happened not only in trade, but also in mutual investment, which means that there would be more and more Chinese factories, or more and more merging of the Chinese capital into the European market.
And also, we know that now we are talking about the RMB international organization. At this moment, China has more and more financial cooperation not only with the member states of EU, but also with the ECB. I think it gives a chance for China to have this exchange of cooperation in finances or currency.
I think that the current situation in Europe may give more chances for China to have its investment abroad".
Read more: http://voiceofrussia.com/radio_broadcast/25298789/273727612/
