EU-China Cooperation Indicates Greater Economic Ties and Possible Resolution to International Issues

The EU and China have been increasing their ties in the wake of Brexit woes and the falling out of the United States with both trading partners. Source

As China’s economy and international influence continue to grow, the European Union seeks to improve its trade relationship with the emerging superpower, while balancing its reservations concerning China’s human rights violations. On September 14th, representatives from the EU, namely the President of the European Council, Charles Michel, the President of the European Commission, Ursula von der Leyen, and the Federal Chancellor of Germany, Angela Merkel, met over video conference with the President of China, Xi Jinping, to discuss the relationship between the EU and China and various international issues, including climate change, economic and trade issues, international affairs and human rights, and COVID-19 and economic recovery. 

A primary topic of discussion centered around the development of the EU-China Comprehensive Agreement on Investment, or CAI, an initiative on which negotiations began in 2014, and which will, through a position paper published by the European Commission,  “improve market access opportunities by establishing a genuine right to invest and by protecting investors against discrimination, uncompensated expropriation and unfair treatment while preserving the host states' right to regulate,” and lessening trade barriers between the EU and China

This agreement would act as a huge signal of cooperation between the EU and China, as China, already the second largest economy of the world behind the US, recognizes the EU as its primary trading partner, with over one billion euros in circulation between the two on a daily basis. The agreement could have potential significant gains for both parties, as, concluded in a Sustainability Impact Assessment conducted by the EU, the agreement could potentially increase the EU’s foriegn direct stock in China by 1.9%, and China’s foreign direct stock in the EU by 0.9%, while also encouraging Chinese and EU investors to enter into the markets through greater transparency and legal certainty.

The trading relationship is hindered by China’s relatively closed market compared to that of the EU, an issue that was addressed by President of the European Council, Charles Michel in his post-meeting remarks. “We want more fairness.  We want a more balanced relationship.  That also means reciprocity and a level playing field,” also adding that “Trade can energise our economic recovery”  from the economic crisis brought on by the Covid-19 epidemic. Yet, as stated by European Commission President Ursula von der Leyen, "Engagement at the highest level with China is crucial if we are to promote European economic interests, protect our climate and defend fundamental values and rights."   

The “fundamental values and rights” that President Leyen speaks of refers to the ongoing human rights crises in China that have continued to act as barriers to cooperation between China and the West. Constant reports of  “genocide, forced sterilization and the mass detention” of minorities, specifically Muslim Uighurs, within China’s borders have been a source of concern and debate among China’s trading partners, reports that the Chinese government continue to deny. These issues were brought up by the EU representatives, with Charles Michel stating, “We reiterated our concerns over China’s treatment of minorities in Xinjiang and Tibet, and the treatment of human rights defenders and journalists” while also asking for independent observers to be allowed into the areas from which the reports originated and stating that an agreement had been reached to discuss these allegations at the Human Rights Dialogue in Beijing later this year. 

This meeting between the leaders of the EU and China illustrate the ideological debates that Western countries must face when considering their economic and political relationship with China. The EU must seek to reconcile their ideological values of human rights and personal liberties with their conflicting economic interests and the benefits of a close trading relationship with China. Only further meetings with Beijing will reveal China’s willingness to adhere to the human rights and economic transparency and openness requests of the EU and determine the relationship of the EU and China going forward. If these issues can be resolved with further cooperation, and the EU-China Comprehensive Agreement on Investment can be brought to fruition, closer economic ties between the EU and China could be incredibly beneficial to both parties in the long run.