Download The EU and China: painting a brighter future together

SPEECH/05/444
José Manuel BARROSO
President of the European Commission
The EU and China: painting a brighter
future together
Chinese Academy of Social Sciences
Beijing, 15 July 2005
Ladies and gentlemen,
It is a real pleasure to be with you today. This is my fourth visit to China but my first
official visit as President of the European Commission. I have come here - on this
special occasion of the 30th anniversary of our diplomatic relations - with one central
message: the EU is deeply committed to developing its strategic partnership with
China further.
World peace, prosperity, progress, harmony, friendship, protection of the
environment – these were key themes for hundreds of Chinese children when they
took part in a painting contest held by the European Commission Delegation in
Beijing to mark the thirtieth anniversary. The bright and colourful pictures clearly
demonstrated the very high expectations our children have for our relationship and
its benefits.
Have we come a long way together in these last thirty years? Yes we have. When
Sir Christopher Soames, then European Commissioner for External Relations,
arrived in China in 1975 to establish diplomatic relations, who could have imagined
that, thirty years later, the EU and China would be global players enjoying such a
rich partnership? With total annual trade between us at €175 billion, the EU is now
China’s largest trading partner. And China is our second largest. But the relationship
has now gone well beyond the commercial.
Our manifold achievements range from trade and tourism, to environment and
energy. We now engage in twenty different dialogues in as many sectors. We have
signed several major new agreements, including our milestone Approved
Destination Status tourism and Galileo satellite navigation agreements, which have
opened up Europe to thousands of Chinese tour groups and taken our scientific
cooperation to a new level.
And the EU remains a key contributor to China’s development and reforms: by
providing access to our huge market; through inward investment of €10 billion per
year; by fostering exchanges of expertise and technology through involvement in
programmes such as the international thermonuclear fusion project; and last but by
no means least through EU financial cooperation, which is used to support China’s
reform process.
Do we have difficulties? Of course we do, - as in any relationship we do not always
see eye to eye on all issues. For example, only when there is a strong trade
relationship are there trade problems. Nonetheless, we should be confident that our
relations have matured sufficiently to deal with any disagreement in a responsible
manner and in full confidence of the willingness of both sides to overcome these
challenges. We must always keep the big picture in mind and should not let one or
two issues overshadow our overall relationship.
Should we take this relationship even further? No doubt about it, this is in the clear
interest of both sides. Looking ahead, China will certainly remain at the top of our
external relations priorities, and we are interested in extending our partnership to
cover even more areas.
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Undoubtedly, one of the most ambitious projects lying ahead of us is an ambitious
new EU-China Framework Agreement, which will give full expression to our strategic
partnership. Our current bilateral agreement dates back more than 20 years and has
long been overtaken by events. A new framework agreement would upgrade our
political relations and provide a much stronger basis for our increasingly multilayered relationship. It would also allow us to anchor our ties in shared values as
well as shared interests in vital areas such as human rights, non-proliferation, antiterrorism and migration.
The EU is also interested in negotiating bilateral agreements on civil aviation and on
readmission and visa facilitation. Only a few days ago we held a very successful
EU-China Aviation Summit here in Beijing, which marks the beginning of a new era
in our relations in this field.
Combating illegal migration and trafficking of people has been a priority for our
cooperation. Just last week, we held our 6th High Level Consultations on the subject
here. We are looking forward to starting negotiations on agreements for both
readmission and visa facilitation before the end of 2005. Once concluded, these will
be major cornerstones in the common home that we are building.
Many of these issues will be in play at the 8th EU-China Summit, on 5 September in
Beijing. I will be back then for my second visit this year to China.
As you can see, key players in Europe and China meet each other frequently at all
levels. But is that sufficient to ensure true long-term sustainability in EU-China
relations? I don’t think so. We need to get our people more directly involved.
I therefore propose to make people-to-people contacts one of our priorities.
Exchanges at all levels of civil society would underpin our political relations and
strengthen mutual understanding and trust. To that end I propose to establish an
ambitious exchange programme of students and scholars.
Among other things, we must speak each other’s languages in order to understand
each other better. Now, I know it is a tall order to learn the many European
languages, and Mandarin seems to be somewhat of a challenge as well, but we
have millions of smart young people on both sides who can rise to the challenge.
This would also pay dividends for our economic and trade relations.
Now, let me talk for a moment about the EU. I have been told that China is
concerned about recent developments in the EU and their possible effects on our
relationship with China. I would like to reassure you that the EU is not about to turn
its back on the world.
On the contrary, we have had to deal with setbacks in the past and the EU emerged
from them stronger than before. The recent rejection of the European Constitution in
two Member States is certainly a setback for us, but it is also a great opportunity to
reflect on the future direction of Europe.
Take a historic perspective. Think of Europe 60 years ago – WWII, Europe divided
by a terrible war. This was one of the worst events in European history. Then think
of Europe 30 years ago – some European states, e.g. Portugal were not
democracies. And only 15 years ago, an iron curtain divided Europe. Today, most of
the countries that used to be separated by the iron curtain are in the Union.
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Think historically and you will see there are only reasons for optimism. Twenty-five
Member States with 500 million people share the same values. Never in history, had
twenty-five independent states shared a common future. Europe is not built around
an empire imposing its will, but consists of independent countries. Of course running
this system is complex. Sometimes we have problems, but there is no reason to
think that Europe is not on the move. Some crises can also present opportunities.
All over the continent vigorous debates are now taking place about the future of the
EU. This is a sign of a healthy democracy, which is one of the core values of the
European Union. We now have to identify a way forward that is more acceptable to
our citizens, as well as beneficial to the EU as a whole and the world at large. I am
confident that we will use this debate in a positive way, leading towards a more solid
European Union.
This is important, as the CASS President said in his intervention, because the world
community expects the EU to become a more coherent and effective foreign policy
actor. We must rise to that challenge. You have witnessed for yourselves that the
EU is playing an increasingly important role in international issues such as Iraq, on
which we hosted a major international conference in Brussels last month, and an
important role in other issues. Indeed, we have committed to doubling our
development aid in 2004-2010, giving special priority to Africa. At the G8, the
Commission made a major contribution to moving forward on climate change and
development. The EU is as active as ever and playing its full part.
We in Europe are full of admiration for China’s spectacular economic growth.
China’s economic development is truly impressive by any measure. If current annual
growth rates persist, China will soon be one of the world’s largest economies. Barely
three years after China joined the World Trade Organisation, the country has risen
to be the third largest global trader. This is really impressive.
The EU has been supportive of China’s transition and opening up and we stand
ready to assist in China’s political and economic reform process further, drawing
from our own experience. We have also welcomed China’s increasing international
and multilateral engagement, both in the political and economic field.
Of course, we are aware of the huge challenges China is facing: while development
has lifted millions out of poverty, it has also created huge income disparities
between both urban and rural areas and between regions. We know that addressing
these disparities is an urgent priority of your government, not only in the interest of
equity, but also in the interest of maintaining political stability.
We understand the magnitude of the tasks facing the Chinese Government. In
Europe, we have learnt from our experience that without a sufficient level of political
reform, growth may eventually be slowed or disrupted by instability. China’s internal
long-term sustainability also depends on its ability to introduce political reform,
allowing for more democracy and civil liberties. We are of the opinion that the further
improvement of human rights, good governance and the rule of law and the
development of a strong civil society are key elements for the sustained success of
China’s reform process.
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Economic growth may also be slowed by environmental problems such as the
depletion of natural resources and the impact of high pollution levels on human
health. The environment is just one area where the EU is keen to collaborate more
closely with China, looking at the post-Kyoto framework, and better ways of using
existing or alternative forms of energy, for example. Further risks are increasing
unemployment related to the restructuring of state enterprises and instability of the
financial and fiscal system.
The EU, as the largest trader in the world, greatly values its important trade relations
with China. Nonetheless, I will not hide from you that in the EU there is also some
concern about China. As you know, unemployment in parts of the EU is quite high
and our citizens are increasingly worried about job losses that are perceived to be
caused by outsourcing. The rapidly growing bilateral trade surplus in China’s favour
(€78 billion, or some $100 billion, in 2004) makes these perceptions more difficult to
manage.
The EU is facing structural and global issues here and we will address them by
striving for economic and social reform, innovation and investment in a knowledgebased economy. In this way we will increase our competitiveness and remain an
attractive economic partner.
In doing so, it is nonetheless important to convince public opinion and our citizens
that our partnership with China is a great opportunity. China’s new prosperity will
also create additional chances for us by providing us with new markets. Our recent
agreement over textiles has shown us how dialogue can help to overcome trade
conflicts. And I certainly hope that the new EU-China framework agreement will
include an ambitious trade and investment agenda that will take our relationship to
the next level.
China’s growing economic role has also generated political responsibilities in the
region and China’s regional diplomacy has been positive. China has engaged with
virtually all its neighbours, signing Free Trade Agreements with ASEAN, taking a
moderate stance on the South China Sea territorial disputes, driving the new
Shanghai Cooperation Organisation in Central Asia and above all, hosting the six
party talks with North Korea. I congratulated PM Wen yesterday for the positive role
of China in this regard.
The degree of economic integration in East Asia is already impressive, but to make
East Asia a more peaceful place in the long-run, political cooperation should also be
intensified. Growing nationalism in East Asia needs to be overcome and regional
integration should not be undertaken to the exclusion of others. Reconciliation and
renewed cooperation between India and China, as two emerging powers in Asia, are
encouraging, for their neighbours as well. Chinese–Japanese reconciliation is
equally important for a stable Asia and for further integration in this area.
We also encourage China to persuade the regime in Burma to pursue national
reconciliation and progress towards democracy. The EU shares China’s desire for
peace and stability in Asia and will continue to actively support Asian integration and
dialogue through the ASEM process and the EU-ASEAN dialogue.
In the run-up to the Beijing Olympic Games in 2008 and the 2010 World Expo in
Shanghai, the international community would welcome China starting a direct
dialogue with Taiwan as a sign of great maturity. This would also greatly advance
China’s international standing and reputation as a global player, with a particular
responsibility for peace and security in East Asia. Both the region and the world as a
whole cannot afford conflict in East Asia.
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The EU wholeheartedly welcomes China’s growing international role and its
increased international and multilateral engagement in tackling global challenges.
There are many recent examples where China has made a difference, for example
through its growing participation in UN peacekeeping missions, through its
appointment of a Middle East envoy and its hosting of a UN conference on Peace in
the Middle East. China has also become an important partner in the global fight
against nuclear proliferation.
The EU and China have many common multilateral priorities, such as nonproliferation and the reform of the UN system, and international cooperation is
already a basic part of our relationship. But we must go further and strengthen our
global partnership to promote international cooperation, global security and
governance and forge new alliances to counter the darker side of globalisation,
which includes international crime, terrorism, illegal immigration and epidemics.
Reform of the United Nations is essential for successfully tackling the challenges of
the 21st century. The EU and China should cooperate in the preparation of the
Millennium Review Summit in September and in the achievement of the Millennium
Development goals.
Together we can encourage effective multilateralism, whether within the UN,
specialised international agencies or the WTO. We applaud China’s increasing
acceptance of globally-accepted rules and standards, in particular its ratification of
the International Covenant on Economic, Social and Cultural Rights. We look
forward to its ratification of the International Covenant on Civil and Political Rights.
The EU expects a China that is open, democratic, committed to the rule of law at
home and abroad, acting responsibly as a global player in helping to maintain
regional and global security.
As I said earlier, the development of a strategic, mutually beneficial and enduring
relationship with China is one of the EU’s top foreign policy priorities for this century.
In achieving this goal we must convince the international community that the EUChina partnership is not a threat, but an opportunity to create a more stable and
balanced international order. It is not our intention to just steam ahead with our
bilateral agenda. We must be inclusive and also strive to collaborate with and
benefit third countries in advancing global peace and development.
Ladies and gentlemen,
Let me conclude by stating that on this special occasion of the 30th anniversary of
our diplomatic ties, we should be proud of our accomplishments so far and look to
the future with confidence.
Both the EU and China face many internal challenges, but we have the will and
courage to tackle them. In doing so, we will earn our place as key players in the 21st
century.
History will judge us by the contribution we make towards world peace, prosperity,
progress and the respect and protection of the environment. Those young artists
who took part in the painting competition expect it from us, and we owe it to them
and to all our children. As the great Chinese Confucian philosopher Mencius said
nearly two and a half millennia ago: “The great man is he who does not lose his
child’s heart.”
Thank you.
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