By Serge Abou, the EU Ambassador to China
The upcoming China-EU Summit, to be held on 28th November, is of particular significance. Both sides are approaching the Summit with confidence. On the Chinese side, the successful convening of the Communist Party Congress, the intensity of its debates, the arrival of new talent in the leading circles, the adoption of the concept of "scientific development" and the further confirmation of the "opening up and reform" policy line are elements which have captivated international attention. On the European side, the unanimous adoption of the text of the new Treaty has given more impetus and efficiency to the European Union.
During the Summit, the European Union will be represented by the Portuguese Prime Minister Mr Socrates - who for this semester is presiding over the European Council - and by European Commission President Mr Barroso. This will be the third visit by Mr Barroso since he was elected President of the European Commission.
Mr. Serge Abou, the EU Ambassador to China.This year we will be holding our 10th Summit, an event that should give us the opportunity to review the achievements made in our Strategic Partnership and open up new paths to reinforce it. This Partnership has developed extremely well. Our bilateral trade has diversified to such a point that China is now our first supplier and we are China's first trade partner. European investment in China, our scientific cooperation with hundreds of projects bringing together European and Chinese researchers, the number of Chinese students studying in European universities (over 120 000), tourism and cultural exchanges, a multiplication of high level visits: all these elements come together to make the EU-China relationship a major factor on the international stage. But the greatest asset of our Strategic Partnership is the fact that it is wholly supported by our respective public opinions. China benefits from a positive image in Europe; and Europe, the European Union and each of its Member States are very high in the esteem of the Chinese public.
We are thus in a good position to outline plans for more intensive cooperation for the future. Among the theories developed during the 17th Party Congress, and particularly in the speech by President Hu Jintao, we have identified an extraordinary number of fields in which both sides would stand to gain from exchanging experience and know-how. Europe has several decades of experience in areas such as regional policy, rural and agricultural development policy, new and renewable sources of energy, the setting up of a social security system; experience both at the Union level itself as well as at the level of each Member State. Moreover, we can also learn from Chinese experience in these fields.
This 10th Summit therefore looks very promising. Debate will be intense and will cover all areas of the bilateral relationship, including difficult issues such as the arms embargo and Market Economy Status. The maintenance of stability across the Taiwan straits will also be discussed. However, there are two major issues which the EU will certainly raise during the Summit: the growing trade deficit which the EU has with China, and climate change.
In 2007, the EU trade deficit with China will probably reach 150-160 billion euro, or in other words, if calculated in terms of the average exchange rate this year, a sum greatly superior to 200 billion US dollars, a figure similar to that of the US trade deficit with China. The growth rate of the EU deficit has been of 30 to 35 billion euro per year over the past few years. No country can sustain such a trend in the long term. This is neither sustainable for Europe nor is it sustainable for China, which is accumulating foreign reserves in the People's Bank of China (PBOC) as a result of its trade surplus, while numerous internal development needs are not being met. We therefore need to identify a solution to solve this question, and I hope that it is a cooperative one. Protectionism is not a winning option. So let us unite our efforts to resist protectionist trends. The Commissioner for Trade, Mr Mandelson, will arrive a few days before the Summit to discuss these issues with the Chinese authorities. The highest leaders in Europe in charge of monetary and macroeconomic policy in the Eurozone will also come to China before the political summit, in order to prepare the latter with their Chinese counterparts within the government and the PBOC. This is proof of our will to achieve our objectives through dialogue and cooperation.
Climate change is another area where our interests converge. Numerous scientific reports by Chinese experts prepared over the last few years clearly show that China is already suffering the effects of climate change, and that this is also harmful to China's economic development. For a long time now, Europe has shared this conviction. We know that there is a price to pay in the fight against global warming, but we also know that the cost of inaction would be far greater, as we will have to face floods, droughts, cyclones, disruption of agricultural production, destruction of infrastructure, and more particularly the loss of human life in great numbers. We also know that far from going against economic growth, the fight against global warming, i.e. energy-saving and the use of less-polluting energy sources can on the contrary be a major source of investment, jobs and new technology, which will revive our growth, a growth that will be more scientific and sustainable.
I would also like to signal the fact that, according to tradition, the Political Summit will be preceded by a Business Summit which will be attended by hundreds of heads of companies from Europe and China. European companies recently expressed their concerns via the EU-China Chamber of Commerce on a number of issues, such as the treatment of foreign investment in China or the respect for intellectual property. European companies in China form a powerful link between Europe and China. They are actively supportive of China's economic and technological development, and they contribute to projecting a positive image of China in Europe. We should thus pay attention to their message and provide them with appropriate answers.
In conclusion, I would like to express the hope that the year 2008, the year of the Olympic Games in China, can also be the year in which we see new advances in the EU-China strategic partnership. Public opinion on both sides wishes this, and our leaders are working towards this goal.
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