Under the strategic guidance of the two heads of state, China-France economic and trade relations have shown great resilience and sound momentum of development. Given the potential positive impact that China-France cooperation may have on China-EU cooperation, it is hoped that France will bring a rational voice to the EU’s economic and trade policy toward China at a time when the talk of “de-risking” trade with China is rampant in the EU.

There is no denying that how to “de-risk” from China has become a frequent topic among some European politicians since Ursula von der Leyen, president of the European Commission, introduced the “de-risking” rhetoric in a March speech, which is considered to be an alternative to the US policy of “decoupling.”

While the “de-risking” rhetoric sounds milder compared with “decoupling” as the former is mainly concerned with security and still allows for normal exchanges and cooperation in areas that do not involve security issues, the real meaning of the term and its actual impact on the EU’s economic and trade policy toward China remain blurred. Such vagueness and flexibility may be just what the EU wants, in order to obscure the pan-security operations in its economic policy toward China.

The reason why the “de-risking” rhetoric has become so popular may be because it seems to respond to Western “concerns” about dependence on Chinese supply chains and security issues. But these so-called concerns are largely exaggerated or distorted by malicious forces. This is also why it actually brings more trouble and friction into bilateral economic relations if the EU arbitrarily sees trade with China as a threat or risk.

The logic of antagonizing economic relations based on political hype is not conducive to the establishment of mutual trust needed for future cooperation. What’s worrying is that since there is no consensus within the bloc as to what exactly constitutes economic security risks that need “de-risking,” it is very likely that some politicians may simply label the entire China-EU trade relationship as needing “de-risking” by overstating the risks and abusing their political tools, which could lead to more daunting challenges to bilateral economic relations.

How could the EU take a fair, reasonable, realistic and rational attitude toward Chinese imports and companies’ competition if it sees China as a source of risk? What we are concerned about now is that if the EU continues to insist on this approach of “de-risking” in resisting Chinese manufacturing, technology, as well as investment, as sources and producers of risk, it may eventually lead to the EU following the US strategy, which will undermine mutual trust and ultimately push China into complete opposition.

The crux of China-EU cooperation is to answer the question as to how the EU should view competition with China. It is true there is competition, but more importantly, there is more cooperation, which is especially needed under the current circumstances. If the EU unreasonably views imports of Chinese-made goods, technology and investment as risks, it would be impossible for both sides to deepen cooperation.

Needless to say, such an approach runs counter to what the EU’s development needs now. In many areas such as automobiles, communication and green energy, EU-China cooperation is essential for both sides to accelerate development.

The EU is one of China’s most important trading partners, and there is no fundamental political conflict of interest between China and the EU. Also, the two sides are highly complementary economically, sharing common concerns in addressing climate change, protecting biodiversity and maintaining effective multilateralism.

The fruitful achievements made by China and the EU in the past are sufficient to show that it is in the interests of both sides to maintain close communication and deepen practical cooperation, which will not increase risks to each other, but will inject more certainty into the volatile world economy and help reduce risks. And it is hoped that dialogues between China and EU countries, such as the China-France High Level Economic and Financial Dialogue, can address mutual concerns and build trust for greater cooperation.

Source: Global Times

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First of all I would like to thank President Xi for hosting us in China today. And I would like to  present to the people of China my sincere condolences for the death of your former President Jiang Zemin.

The EU promotes its interests and its values in the world. I have come to Beijing to engage in a candid, in-depth, and face-to-face dialogue with China’s leadership. Today’s meeting with President Xi Jinping took some three hours. I also met with Prime minister Li Keqiang and the chairman of the National People’s Congress, Li Zhanshu. It’s our first in-person meeting since I took office, due to COVID. My last visit to China was as Belgian Prime Minister in November 2016.

A few weeks ago, I put a discussion on the EU-China relationship on the agenda of the European Council. The 27 leaders agreed on the critical importance of the EU-China relationship. We discussed how to best manage it in Europe’s interest but also in the global interest.

Today, we know that the world faces multiple crises. The war in Ukraine, the energy and food crises, and the slow-down of the global economy. On top of climate change and global health. These global issues require dialogue and action. We need to discuss where we can work better together, but also to discuss and manage our differences. I believe in the power of dialogue.

Both the EU and China have an interest in a rules-based world with the UN Charter at its core.

We had the occasion to discuss Russia’s war against Ukraine. China is a global player and a Permanent Member of the UN Security Council. We all share the responsibility to work for peace and for the respect of the fundamental principles of the United Nations Charter. I urged President Xi — as we did at our EU-China Summit in April — to use his influence on Russia to respect the UN charter.

The Kremlin’s attack on a sovereign nation blatantly violates international law. President Xi and I agreed that nuclear threats are not acceptable and highly dangerous, and endanger the international community.

I also raised the issue of human rights, fundamental freedoms and the rights of minorities.

Human rights are universal. I welcome the readiness to resume the EU-China Human Rights Dialogue. We will follow up on this commitment. This format has not convened for more than three years.  So, this is an important signal. The Dialogue will allow us to focus on wider human rights policy issues and on individual cases. The right of peaceful assembly is a fundamental right enshrined both in the Universal Declaration of Human Rights and in national constitutions.

I also raised the situation of minorities. We discussed for instance at length the situation in Xinjiang. This is not about interfering with internal affairs. It’s about upholding the principles agreed by the UN for decades and this also applies to Hong Kong. It’s essential that we continue to talk.

We also discussed issues related to the wider Asian region. The EU will have a summit with the ASEAN countries in two weeks. We are deeply connected with our ASEAN partners. We are committed to a peaceful Indo-Pacific and Southeast China Sea. We recall the importance of de-escalating tensions in the region. We need to maintain freedom of navigation and overflight in the region and beyond.

We also discussed Taiwan. The EU is committed to and maintains its One China Policy. I repeated the longstanding position of the EU on Taiwan and the Taiwan strait.

The EU has a strong interest in peace and stability across the Taiwan Strait: 40% of our trade passes through it. It is important to promote stability and prosperity in East Asia. We also discussed the situation in the DPRK and Myanmar.

We also had the occasion to address both bilateral and global economic issues, a key topic of my visit here today in China. European leaders insisted on this point.

China is our top trading partner in goods amounting to almost EUR 2 billion every day and China accounts for over 22% of European imports. China’s growth in recent decades has benefited both China and the EU and has contributed substantially to China’s dramatic economic transformation.

But I also set out the difficulties faced by EU companies and investors. On the European side, market access remains very open, while in China several sectors remain much more closed. We need greater reciprocity, we need a more balanced relationship with no overdependencies, a real level-playing field for our companies. We need to strike the right balance. A shift into ‘self-reliance’ carries dangers not only for China and the EU but also for the world.

We believe in free trade, in cooperation; but we need balance and fairness. So, we need to work more on the issues hampering our broad trade relationship and there are channels for that. We believe that trade and investment must be governed by rules, by a reformed World Trade Organization.

We also discussed global issues — such as climate change, health, and the Sustainable Development Goals. We can only meet the challenges of climate change globally and this cannot be done without China. 

On health, we are cooperating on the initiative for a Pandemic Treaty. This is a concrete example of international cooperation.

Finally, China has a key role to play in issues of common interest, especially for developing countries. For example, on debt reduction, food, and energy issues.

We also exchanged views about the COVID situation. The recovery from the COVID pandemic remains a shared priority. I stressed that, in Europe, vaccines have proved especially effective in reducing the number of severe COVID cases and fatalities.

Today I conveyed key messages on geopolitical, economic, and global issues. We need to make sure that communication channels remain open and that they are used effectively.

With China, engaging openly on all aspects of our relationship is the only way forward. We agreed to continue our exchanges in light of the next EU-China Summit in 2023. Thank you.

Source: Consilium.Europa.Eu

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