Advancing With the Times

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  In the long history of their relationship, China and Europe experienced both friendly exchanges as evidenced by the 13th century travelogue, The Travels of Marco Polo, and tragic memories such as the Opium Wars in the mid-19th century. The time-honored relationship has gone through dramatic changes over the past several decades. While China forges ahead with its reform and opening-up program, European integration is creating a new Europe.
  Given their geographic distance, there are no direct geopolitical conflicts between China and Europe. Moreover, flourishing economic and trade relations and strategic cooperation have made them increasingly interdependent. These characteristics have shaped past and current Sino-EU relations, and will continue to shape the relations in the future.
  Evolving perceptions
  China’s policy on Europe is based on its judgment of the overall international situation and its perception of Europe. In Chairman Mao Zedong’s theory, Europe was seen as part of the Second World, while the two superpowers, the United States and the Soviet Union, were called the First World. The Chinese Government regarded Europe as a major role model when it adopted the reform and opening-up policy in the late 1970s. At the beginning of the 21st century, China and the EU established a strategic partnership. Europe has constantly held an important position in China’s foreign relations.
  But due to differences between China and Europe in terms of the level of development and the deep-rooted superiority complex stemming from Eurocentrism, some European politicians and opinion leaders have long regarded China as problematic. As a result, problems caused by misunderstandings between the two sides concerning trade, market access, intellectual property rights protection, human rights and Tibet often take a toll on Sino-European relations. Critics from both sides said the Sino-EU strategic partnership is neither strategic nor a partnership. Under such circumstances, China has consistently adhered to a policy of increasing mutual trust with Europe. It has ensured the stable development of Sino-EU relations as it pursues equal dialogue and mutually beneficial cooperation with European countries.
  With the steady rise of China’s national strength and international influence, especially in the context of the severe global financial crisis and European debt crisis, the basis of SinoEuropean relations is changing gradually. In the meantime, changes are taking place in Europe’s perception of China. As European scholars said, it was totally unimaginable to expect China to bail out Europe five years ago. But now, Europe has begun to believe China is a responsible strategic partner and an important problem-solver. China and Europe are opening a new chapter in their cooperation and dialogue.
  New start
  The flow of capital, technology and industry brought by globalization has resulted in high interdependence between China and Europe. There is no doubt that the intimate economic and trade relationship is the basis and impetus of Sino-European relations. Due to the complimentary nature of their industrial structures, China and Europe find the most common interests in economic and trade cooperation.
  In the early stages of China’s reform and opening up, China adopted policies to open markets for developed European countries in return for advanced technology. The rapid development of the German automobile sector in the Chinese market is a typical example of previous SinoEuropean economic relations. However, the Chinese economy needs to follow an innovative development road through industrial upgrading and restructuring. The transformation of Chinese products to the high end of the value chain has presented new challenges for the Sino-European economic relations.
  In recent years, Europe has felt increasing competition from China. Also, the debt crisis has damaged its sense of superiority. The voice of protectionism is rising within Europe, putting pressure on the governments of European countries. Far-sighted European observers, however, pointed out that Europe faces a structural problem: The rising cost of its own economy has led to the decline of its competitiveness. Therefore, they advocate innovation and the adjustment of the European economy rather than resorting to protectionism. Their views accord with China’s policy of boosting win-win economic cooperation with Europe.
  Also, research on the synergy of China’s 12th Five-Year Plan (2011-15) and the Europe 2020 development strategy has shown that the two sides’ enhancing coordination on macroeconomic policies could raise economic and trade relations to a new high.
  “When ‘designed in Europe’ is combined with ‘made in China’ and when European technologies are applied in the Chinese market, there will be amazing results,” said Chinese Vice Premier Li Keqiang during his recent trip to Europe. As long as Europe persists with technological innovation, Sino-European economic relations will continue to advance.
  Comprehensive relations
  It seems that the European public has not fully prepared for changing Sino-EU relations. Sensational public claims that China will buy out Europe are occasionally heard. Thus a healthy Sino-EU relationship relies on not only governmental consensus, but also sup- port from people of both sides. To this end, the two sides launched a high-level dialogue mechanism for social and cultural exchanges in April, trying to build a “third pillar” for strengthening relations in addition to the strategic and economic dialogues. All this shows that China’s Europe policy is not based on short-term benefits, but on long-term common interests of both sides.
  Europe is a unique actor in the international community. Apart from sovereign states, Europe has a highly integrated regional organization —the EU, which is made up of 27 developed economies. There are not only big world powers such as Britain, France and Germany, but also small and medium-sized countries. There are well-off countries with relatively sound institutions as well as less prosperous countries still undergoing social and economic transition. China has kept a balanced relationship with European countries with different development levels and in different parts of Europe.
  Against the backdrop of the EU debt crisis, Europe displays a more complicated diversity. Therefore, a more systematic and balanced European policy is needed when China is enhancing its European investment and market integration. The frequent visits of high-level Chinese officials to European countries in recent months with the aim of increasing political, economic and cultural exchanges are a demonstration of China’s balanced Europe policy.
  No matter who will dominate China’s Europe policy, cooperation and common development will be the theme of SinoEuropean relations, a positive signal that China has sent to Europe since the European debt crisis. In the changing world today, working together for common development should be the mainstream of the international community. Good relations among major international actors could help stabilize complicated international relations. With a shared commitment to development and a multipolar world, China and Europe appear poised to set an example for international cooperation in the 21st century.
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