Another breakthrough in bilateral relations is believed to have materialized when Chinese and European Union (EU) leaders agreed to start negotiations on a new partnership agreement.
　　The consensus was reached among Chinese Premier Wen Jiabao, Finnish Prime Minister Matti Vanhanen, whose country currently holds the rotating EU presidency, and European Commission President Jose Manuel Barroso at this year’s China-EU Summit held in the Finnish capital of Helsinki September 9. Some Chinese experts have hailed the decision as the substantial achievement of the summit.
　　“In order to reflect the full breadth and depth of today’s comprehensive strategic partnership between the EU and China, the two sides agreed to launch negotiations on a Partnership and Cooperation Agreement, which will encompass the full scope of their bilateral relationship, including enhanced cooperation in political matters,” said the joint statement issued after the summit.
　　Wen, on a seven-day tour of Finland, Britain, Germany and Tajikistan, commented that the early signing of the agreement would be helpful to push forward comprehensive cooperation in various fields such as politics, the economy, science and technology, culture, education and security.
　　
　　Good momentum
　　
　　Feng Zhongping, Director of the Institute of European Studies at the China Institutes of Contemporary International Relations (CICIR), said the start of the negotiations on a new partnership agreement is of “groundbreaking significance.” He noted that many people were pessimistic about it before the summit, assuming the chances of making progress in this regard were rather slim. In light of this pessimism, he believes it was the most important achievement of the summit.
　　He said the EU had been advocating a single, all-inclusive agreement, but it might make some compromise after the summit, as the negotiations might provide a separate solution to the trade issues between China and the EU.
　　According to the joint statement, the negotiations will update the 1985 EEC [European Economic Community]-China Trade and Economic Cooperation Agreement, and will be administered in a relatively independent manner.
　　According to Hu Dawei, an expert on West European studies at the China Institute of International Studies (CIIS), the agreement signed in 1985 can no longer cover the current strategic partnership between China and the EU; therefore, it is necessary to negotiate a new document to lay a legal groundwork for China-EU relations. He said the consensus reached at the China-EU Summit to launch negotiations will give a political boost to bilateral relations. However, he believes the negotiations are likely to involve a long process.
　　While affirming that the start of the negotiations indicates the breadth of future China-EU cooperation, Feng of the CICIR said their outcome is still uncertain.
　　According to Hu, China-EU relations have moved into a period of healthy and stable development with a good momentum. 　　
　　During Wen’s visits to Finland, Britain and Germany, a series of cooperation agreements were signed. They are expected to cement relations between China and these countries.
　　“A prominent feature of China-Europe relations is that China develops relations with the EU and its members along parallel lines,” said Hu. “The two lines of relations are mutually reinforcing. The relations between China and the EU members lay a solid foundation for China-EU relations, while the rapidly developing China-EU relations inject vigor into bilateral relations between China and the EU members.”
　　Hu is fully aware of the progress made since the last China-EU Summit held in September 2005 in Beijing. He particularly mentioned the vice ministerial strategic dialogue mechanism agreed upon at last year’s summit, in an interview with Beijing Review. To date, two such dialogues have been held: one in September last year in London and the other in June this year in Vienna, occasions that served as a new channel for building China-EU political trust. At the same time, he noted that the two parties signed memorandums of understanding on strategic dialogues in the fields of energy and transportation, while vowing to establish a partnership on dealing with climate change.
　　Over the past year, high-level exchanges of visits between China and Europe have been frequent. President Hu Jintao and Premier Wen visited Europe in October and December last year, respectively. Newly elected German Chancellor Angela Merkel visited China in May. Over half of the commissioners of the European Commission have been to China. Most notably, five out of the seven party groups of the European Parliament visited China, as well as President Josep Borrell Fontelles, the first visit to China paid by the president of the European Parliament in 13 years.
　　In terms of trade, the EU has maintained the status of being China’s largest trading partner for the second consecutive year. In the first half of this year, bilateral trade volume reached $120.9 billion, up 20.8 percent year on year.
　　China imported technologies worth $4.6 billion last year, accounting for 42 percent of the country’s total technology imports. China signed a series of contracts with the EU on projects for developing the Galileo satellite navigation program last year. In May, China signed a historic deal with the EU and other countries to build the International Thermonuclear Experimental Reactor, the world’s biggest experimental nuclear fusion reactor. The China-EU Science and Technology Year, which has been under preparation for a year, is expected to be unveiled in October.
　　Most of the EU members have become destinations for Chinese outbound tourists, activating the people-to-people linkage between the two sides. Last year, Chinese tourists paid 1 million trips to Europe, while European tourists made 3 million trips to China.
　　Hu of the CIIS noted that there are few unsubstantial points in the China-EU joint statement released after the Helsinki summit. Apart from statements on major international issues, the document is replete with detailed plans for cooperation, he added. 　　
　　However, the relationship is not flawless. Trade disputes between China and Europe crop up from time to time, from last year’s battle over China’s textile exports to this year’s anti-dumping duties against Chinese shoes. In addition to trade frictions, Hu cited such contentious issues as the EU arms embargo against China and China’s market economy status as stumbling blocks in bilateral relations.
　　“The most effective way to eradicate these barriers is to recognize the gaps between China and Europe and the historical and cultural background that has given rise to the gaps,” he said. “Meanwhile, dialogue should be strengthened in the spirit of seeking common ground.” He asserted that to overcome these partial problems, it is imperative to view the China-EU relationship as a developing relationship from a strategic perspective.
　　
　　Proposals raised
　　
　　After the China-EU Summit, Premier Wen joined leaders of Asian and European countries and representatives of the European Commission at the sixth Asia-Europe Meeting (ASEM). On the agenda of the two-day summit were topics based on the theme of “Global Challenges---Joint Responses” such as strengthening multilateralism, handling security threats, facing globalization and competitiveness, keeping sustainable development and launching intercultural and interfaith dialogue.
　　Hu of the CIIS noted that this year marks the 10th anniversary of the founding of the ASEM, an informal process of dialogue and cooperation addressing political, cultural and economic issues. He commented that the ASEM has helped promote Asia-Europe relations since its inception.
　　As a founding member of the ASEM, China plays a distinctive role in the Asia-Europe dialogue, he said, adding that the country has taken an active part in various cooperative mechanisms within the framework of the ASEM.
　　At the summit, Wen delivered a speech titled “Deepening Asia-Europe Cooperation to Jointly Meet Challenges,” in which he put forward eight proposals to consolidate the partnership between the two continents: enhancing political dialogue and better responding to security threats, deepening cultural exchanges to promote harmonious coexistence, intensifying financial cooperation to promote balanced economic development, expanding dialogue and cooperation to ensure energy security, supporting the multilateral trading system for common development, encouraging business partnerships and expanding channels of cooperation, addressing non-traditional security issues, effectively preventing and controlling avian influenza and narrowing the urban-rural gap to realize balanced economic development.
　　Of the eight points, Hu identified energy security as China’s major concern. He told Beijing Review that although China is a large importer of energy and raw materials, it does not have a major say in the trade of these commodities, especially in their pricing. It has to passively accept the prices set by other countries, something that he believes is not compatible with its status in the international energy market. 　　He pointed out that the supply and demand of commodities such as oil and natural gas tend to have a crucial bearing on international relations. Fluctuations can easily lead to frictions and conflicts. “It is notable that China made an initiative in this regard on a multilateral occasion,” he said. “It speaks of China’s eagerness to coordinate the interests of different countries to establish a better order in the energy market.”
　　“We should ensure a sound political environment for energy security and stability. Geopolitical disputes should not stand in the way of the global energy supply and energy issues should not be politicized,” Wen said in the speech, while calling on the ASEM to hold more dialogues on energy security.
　　The combined population of Asia and Europe exceeds 2.5 billion, accounting for two fifths of the world total. The combined gross domestic product takes up more than half of the world total. Given these statistics, Hu believes the potential for cooperation is huge, and the ASEM stands to boost this promising cooperation as a “direct link” between the two influential continents.
　　He observed that the EU has adopted a positive attitude toward economic and trade cooperation with China and China’s rapid development, believing China is a focal point in the Asian policy of the EU and its member countries. “With the economic and trade cooperation between China and Europe deepening, China will present great opportunities to Europe with its huge market and quality products,” he said.

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