Nothing exemplifies China’s growing economic and political clout like its current global market position where it is currently the third biggest economy after the US and the EU. China is also the EU’s second largest trade partner after the United States while the EU is China’s biggest export market. In 2003 China became a strategic partner of the EU and in the last 5 years trade between EU and China has grown at almost double the rate of growth between the EU and the rest of the world. However even though daily trade between the EU and China exceeds 1 billion dollars every day, China is still given developing country status in Brussels and subject to trade tariffs.

In September an EU-China summit, incidentally the last one to be attended by the current Chinese Prime Minister Wen Jiabao, ended with a sense of mixed feelings on both sides. Agreements were reached and signed on on innovation, competition, space and low carbon programmes. While discussions were held on human rights and international peace and security especially Syria and Iran Wen Jiabao promised more of China’s help with the economic crisis but complained bitterly about its unfair treatment by Europe especially with regard to the arms embargo in China since the end of the 80s and early 90s.

Looking below the surface however, trade between the EU and China is not uniform across the EU and Sino-European relations and views vary from member state to member state. There are some views that China might decide to pursue bilateral relations with individual member states with which it might have more trade and strategic relationships. This approach might be more cost effective and beneficial than one with the whole EU which might be too cumbersome to manage. However, counter opinions argue that it benefits China more in the long term to pursue a comprehensive EU-China relationship than with individual member states pitting them against each other. In truth, however, a combination of both strategies and a middle road might be the more realistic option and approach in the short and long term.

(Photo Credit - European Council)