More opportunities for Sino-EU cooperation

Though the specter of a Greek default and a weak euro continues to loom over Europe, Chinese Premier Wen Jiabao's three-nation visit starting this week is likely to create more opportunities for cooperation. Wen's visit to Hungary, Britain and Germany is also being viewed as important in economic circles as a struggling Europe is now increasingly looking to Beijing to play an important role.

Though China has in the past indicated its willingness to help European economies overcome their debt-driven crises, there are indications that the nation may want more assurances for future cooperation and asset security before it starts buying more European debt.

"The Greece issue will figure prominently on Wen's agenda," says Men Jing, a professor at the College of Europe in Belgium. Wen's European trip incidentally coincides with the two-day EU summit that aims to find a solution to the eurozone debt crisis.

China has been buying bonds from Spain and other European nations since 2009 when the debt crisis started in Europe, says a recent statement from the commerce ministry.

With hardly any signs of the debt crisis ending or the investment climate improving, analysts have often indicated that China should tread the European path cautiously especially as the default risks are high.China's sovereign wealth fund, the China Investment Corporation, also holds a bearish outlook on the European economy. But the fund indicated in April this year that it would continue to invest in Europe.  "I think he (Wen) will be more concerned about the sovereign debt crisis in Europe and especially the risk of a Greek default as it could also affect the future of the euro and the European economy," says Hugh Miall, professor of international relations at the University of Kent."China already has sizable holdings of US debt and now looks keen to add European debt," he says. Gu Junli, a scholar on European studies with the Chinese Academy of Social Sciences, says that though Beijing is not sure where the European debt crisis is heading, it appears keen on helping find a solution. "China has made it clear that it wants to see a strong euro," Gu says, partly because it also wants to balance the role of the US dollar. But the real fulcrum on which China is basing its European strategy is to forge stronger linkages, he says.

Men says that Wen will also use the trip to push for a lifting of the arms embargo and granting China market-economy status. The Chinese foreign ministry has however played down both these issues when it announced Wen's visit last week. Deputy Foreign Minister Fu Ying recently indicated that China will get the market-economy status automatically in 2016 according to WTO regulations and hence Beijing's current bid for the status is mainly to seek fair treatment.

Hungary holds the current EU presidency, while the UK and Germany are key EU members. Wen is also likely to discuss challenges facing North African and Western Asian nations during his visit, Men says.

China has of late been bolstering its relations with Europe with frequent high-level dialogues and visits. Wen is the fourth Chinese leader to visit Europe in the last six months.

President Hu Jintao recently wrapped up a visit to Russia and Ukraine and will visit France in November to attend the G20 summit. Vice-President Xi Jinping visited Italy earlier this month while in January this year Vice-Premier Li Keqiang visited Spain, UK and Germany.

"I have never seen such a high frequency of top-level visits from China to Europe before," says Monika Hohlmeier, a member of the European Parliament. China's active approach indicates its confidence in playing a bigger role in solving the tough global challenges and also the country's sincerity in deepening relations with Europe, she says. Hohlmeier says China has been participating in the changing global financial market and these interactions will help improve global financial governance. "China's growing role in the governance framework and internationalization of the renminbi should be one of the most exciting things we can see in the next 10-20 years," she says. "It is a challenge for China and for the world as well." Zhong Nan contributed to this story.

China Daily Europe

Understanding China.

China is one of the largest and most challenging economies in the world. It represents a huge economic potential, but also poses a number of difficulties for EU businesses - especially SMEs - trying to enter the market.

A better knowledge and greater understanding of China are crucial to increasing Europe's competitiveness and enhancing Europeans' capacity to take advantage of the potential of its market.

Understanding China addresses these needs by creating a new business dialogue on China-related issues. The ultimate goal of the Understanding China programme is to improve the knowledge on China in European businesses, especially SMEs. A range of tools has been developed to achieve this goal as effectively and widely as possible.

More info: Understanding China

How does the Chinese Communist Party Work?

Friday 24 June 2011, Brussels

This seminar aims at clarifying the structure and working system of the Chinese Communist Party. How does the CCP work out the general directions it means to impart to Chinese society, and how does it balance them with the flexibility needed in their implementation at local and provincial levels? How does the Party structure interact with the government at central, provincial and local levels? How are leaders at central, provincial and local levels selected and trained and what are the accountability mechanisms in place? What is the exact role of the Party within corporate sector boards, especially in the banking sector? What will the 2012 leadership succession show in terms of changes within China’s political elites and of China’s future directions? Are any political reforms envisaged in the coming years?

The seminar will provide an opportunity of exchange between high-level representatives of the CCP and experts on Chinese politics, aiming to shed light on the decision making process in China and on the impact of the CCP’s role in China’s economic and political structures.

With Wang Hongjian, Chinese Mission to the EU, Li Junru, former Deputy President of the Central Party School and Member of the CPPCC, Kerry Brown, Chatham House, Jing Men, College of Europe, Thomas Heberer, Institute for East Asian Studies - University of Duisburg-Essen, Eric Florence, Institute of Human and Social Sciences - Universiy of Liège, Tian Peiyan, Deputy Director General, Bureau of Party Construction, and Frank Pieke, Faculty of Oriental Studies - University of Oxford.