China and India and the EU

China and the European Union

Outline

A historical review of EU-China relations

Achievement of EU-China relations

Examination of the overlapping and conflicting

interests between the EU and China

Analysis of the promises and problems of the

partnership

Conclusion

A historical review

Establishing diplomatic relations (1975)

Mutually disregard (1975-1994)

Mutually attraction (1995-2002)

Honeymoon (2003-2004)

Reflection and adjustment (2005-now)

Reflection and adjustment (2005-now)

The EUs rising trade deficit:

Chinas exports to the EU

US$19.09 billion in 1995 US$181.98 billion in 2006

Chinas imports from the EU

US$21.25 billion in 1995 US$90.32 billion in 2006

European Commission (2006):EU-China:

closer partners, growing responsibilities

European Commission (2006):the first policy

paper on EU-China trade and investment:
Competition and Partnership

Achievements of EU-China Cooperation

Institutionalized Cooperation
Trade
Safety

EU-China Dialogue

Trade

The EU and China enjoy one of the world's biggest trade

relationships. The EU is China's biggest trading partner while China
is the EU's second biggest after the United States. Trade in goods
was worth 467 billion in 2014, while trade in services reached 54
billion. EU-China trade and investment exchanges have become a
major source of wealth, jobs, development and innovation.

Trade

Trade

Foreign policy and Safety Issue

The EU and China share the common goal of improving international security, including
nuclear non-proliferation in the world. Cooperation in this first pillar is expanding, including in
successfully fighting piracy off the coast of Somalia or joining forces as part of the international
community efforts on the Iranian nuclear deal.

EU and Chinese maritime vessels are successfully cooperating in fighting piracy. Since
2011, Chinese vessels have escorted World Food Programme vessels in the Gulf of Aden,
burden-sharing with the EU. China expressed great appreciation for EUNAVFOR's involvement
in the liberation of hostages from a Panamanian-registered cargo ship in 2012. The EU also
assisted in freeing Chinese hostages from a Taiwanese-operated ship. In the last two years,
piracy off the coast of Somalia has decreased 95% thanks to such international efforts.

China is stepping up its support for peacekeeping operations, as evidenced also in President
Xi's pledge on peacekeeping at the United Nations last year. This increases potential for
cooperation also between China and the EU, as in Mali, where both are engaged. Consideration
of further cooperation in these areas is of importance given that today's major international
problems cannot be solved by acting individually.

Conflicts and Mutual Interests

Conflicts

The arms embargo issue(1989-)

Textiles conflicts(2005)
Anti-dumping

Mutual Interests
Multipolarity

The arms embargo issue

The issue before 2003

The issue between 2003 and 2005

The issue at current stage

The textile dispute

The abolishment of the 40-year-long

quota regime on Jan. 1, 2005
The surge of Chinese textile
products export to the EU
The agreement in June 2005
between the EU and China
The second agreement in September
2005

The textile dispute

Problems indicated:

The Community does not speak with one

voice.
Different groups have different interests.
Both the EU and China lack a necessary
understanding of each others market
development.

A joint monitoring system

introduced

Chinas understanding of building multipolarity before

2003

Multipolarity helps weaken and

curb hegemonism and power
politics, serves to bring about a just
and equitable order and contributes
to world peace and development.

Chinas understanding of multipolarity after 2003

Our efforts to promote the development of the

world towards multipolarization (multipolarity) are
not targeted at any particular country, nor are they
aimed at re-staging the old play of contention for
hegemony in history. Rather, these efforts are made
to boost the democratization of international
relations, help the various forces in the world, on
the basis of equality and mutual benefit, enhance
coordination and dialogue, refrain from
confrontation and preserve jointly world peace,
stability and development.

The EUs understanding of multilateralism

The end of the Cold War has left the United

States in a dominant position as a military actor.
However, no single country is able to tackle
todays complex problems on its own.

Europe should be ready to share in the

responsibility for global security and in building
a better world.

International cooperation is a necessity. We need

to pursue our objectives both through multilateral
cooperation in international organizations and
through partnerships with key actors.

Promises and difficulties

Shared long-term interest in achieving economic prosperity and
worldwide political influence:

EU-China 2020 Strategic Agenda for Cooperation

Difficulties:
(1)Differences in ideological and development stages of member states
(2)Chinas attitude towards EU:
Brussels is losing importance: we must go back to the capitals, who
make the decisions, speak to Member States, even on trade.
(3)The role of the US

Conclusion

The EU and China have both put forward strategic

development plans - China's two centenary goals and
the 12th Five Year Plan, the EU 2020 Strategy - which
present potential for synergies to enhance cooperation
for win-win results. The two sides are committed to
promoting the EU-China Comprehensive strategic
Partnership in the next decade.

The partnership may not be exempted from difficulties

and problems, but it needs to be maintained and
developed for the sake of mutual benefits.

EU-India relations

Historical Evidence
Historically, EU countries have had interest in India
English, French, Dutch, Portuguese have all had colonised India
in the past
Silk route, though India - biggest factor in development of
civilisations in India
In addition to economic trade, the Silk Route served as ways of
carrying out cultural trade between the networking civilisations

Chronology
1962: India establishes diplomatic relations with EEC
1971: EU provides trade support through the Geberalised System of
Preferences (GSP)
1973: The EU and India sign a Commercial Cooperation Agreement for
marketing support to several sectors of Indian industry with export potential
1991: India and the EU sign a Commercial and Economic Cooperation
Agreement
1983: The EU sets up a Delegation in India
1988: The first meeting of the EU-India Joint Commission
1989: Scientific cooperation between Indian and the EU set up in fundamental
as well as applied research

Chronology
1992: European and Indian industry establish a Joint Business Forum to
promote trade and investment.
1993: The first sector cooperation programme is launched in primary
education with EU support of 150 mn. to the Indian Government's
District Primary Education Programme(DPEP)
1994: EU-India Cooperation Agreement on Partnership and
Development upgrades relationship
1996: A second sector cooperation programme is launched in the area of
health with a grant of 200 mn.
2000: The first EU-India summit is held in Lisbon, 200 mn. support to
India's Sarva Shiksha Abhiyan

Chronology
2001: The EU and India sign an agreement on Science and Technology
Cooperation
2004: A Strategic Partnership is launched
2005: A Joint Action Plan to implement the Strategic Partnership is
agreed to strengthen dialogue and consultation mechanisms, bring together
people and cultures, enhance economic policy dialogue and develop trade
and investment
2006; 160 mn. State Partnership Programme is launched with Rajasthan
and Chhattisgarh
2008: A Joint Declaration on Education is signed to facilitate cooperation
in higher education

Chronology
2009: A Joint Declaration on Multilingualism is singed between the EU
and India
2011: The European Investment Bank provides a framework loan of
200 mn. to finance projects in the renewable energy sector. The EU and
India sign a Joint Declaration on Culture
2012: Adopted at the EU-India Summit, a Joint Declaration on Energy
foresees cooperation on smart grids, clean coal technologies, nuclear
safety and security, biofuels and renewable energy
2012: The EU-India Skills Development Project is launched for
vocational education and training

Trade and Economic Cooperation

EU is India's largest trading partner

The bilateral relationship is reviewed annually by India - EU

Summit at the level of Indian PM and the Presidency of the EU

Announcement of Strategic Partnership was made at 5th IndiaEU Summit held in Hague in November 2004

Investment and Economic Cooperation

To promote business and research cooperation in the key sectors of

energy, environment, biotechnology and transport, the EU has
supported the creation of the European Business and Technology
Centre(EBTC)

Over many years, the EU has also offered targeted trade-related

assistance to boost India's competitiveness so it can take greater
advantage of the opportunities that the European market represents

The scope and potential gains of the EU-India partnership are enormous

Free Trade Agreement

In the short run alone, India is expected to gain 5 bn. and the EU over 4 bn.

The FTA vies for stricter enforcement of Intellectual Property(IPR) and would
largely eliminate import duties on both sides. This means, for example, that
clothing exported from India to the EU would no longer pay the current
applicable tariff of 9.6%.

Indian agricultural products such as rice would also gain significantly improved
market access.

On the other hand European products like machinery, transport equipment or

other industrial products would get better access to the Indian market.

The EU-India FTA would be one of the most significant trade agreements ever,
touching the lives of 1.7 billion people.

Economic Sectoral Dialogues and Co-operation

Under the Economic Policy Dialogue and Co-operation section of the Action
Plan, enhanced cooperation and dialogue is envisaged in the following sectors:

Trade, Transport, Environment, Energy

Science and Technology, Space Technology

Information Society, Pharmaceuticals and Biotechnology, Industrial Policy,

Customs Co-operation

Dialogue on Economic and Financial Matters

Employment and Social Policy

Agriculture and Business Dialogue & Co-operation

Economic Policy Cooperation

The proposed initiatives for Economic Policy Cooperation include the
following actions:

Trade, Industry, and Business Co-operation

Transport

Energy

Environment

Multi-sector Policy Dialogue Support Facility

Financial support provided to the other sectors of the Action Plan enable the
progressive development of enhanced cooperation in these areas.

These sectors will receive funding either through the 7th Framework
Programme or will be included in the multi-sector Policy Dialogue Support
Facility.

Some of them will also receive funding through the respective thematic
programmes for external action.

Depending on the progress made in the period of the first MIP (Multi
Annual Investment Policy) (2007-2010), some of these sectors could be
considered for more substantial Economic Policy Co-operation actions in
the second MIP (2010-2013)

Thank you for your attention!