After reportedly more than 50 hours of negotiations, China and the European Union (EU) finally agreed on a joint statement as Chinese Premier Li Keqiang met European Council President Donald Tusk and European Commission President Jean-Claude Juncker in Brussels on April 9 for the 21st China-EU leaders’ meeting.
In the run-up to the annual summit, tensions between the two sides over various trade issues had been running high. Western media had reported that the gap between both sides was so large that a joint statement was unlikely. However, many analysts were not surprised by the consensus, as China and the EU share common ground.
The agreement between the two sides reflects their strong determination to uphold multilateralism against the Trump administration’s America First agenda. Over the past year, China has been entangled in a trade war with the US, while the EU’s resistance to a unilateral US approach has resulted in escalating trans-Atlantic trade tensions.
Moreover, the Trump administration’s withdrawal from the Paris Agreement, a landmark international accord to address climate change, undermines the United Nations (UN) on various issues, and its threat to withdraw from the World Trade Organization (WTO) has been resisted by both the EU and China.
In the joint statement, China and the EU emphasized the importance and central role of multilateral platforms and reiterated their commitment to “multilateralism and respect for international law and for fundamental norms governing international relations, with the UN at its core.”
The two sides vowed to “firmly support the rules-based multilateral trading system with the WTO at its core, fight against unilateralism and protectionism, and commit to complying with WTO rules.” They also reiterated the importance of the G20 in “continuing to play an active role as the premier forum for international economic and financial cooperation.”
On non-trade issues, China and the EU reiterated their commitment to the Paris Agreement and the Montreal Protocol, and pledged to intensify their cooperation in green finance and a variety of environmental initiatives. During the G20 summit held in December, the US stood alone as 19 other countries pledged to fight climate change and fight protectionism in the group’s final joint statement.
On Iran, the two sides again recognized that Iran has fulfilled its nuclear-related commitments under the Iran nuclear deal reached through a UN Security Council resolution, calling for its “continued, full and effective implementation.”
While the joint statement does not directly mention the US, the message is quite clear. In a regular press conference on April 10, Lu Kang, China’s Foreign Ministry spokesperson, said that the significance of the joint statement “goes beyond the bilateral scope.”
“In the context of the complex and volatile international situation, it demonstrates China and the EU’s commitment to solidarity and cooperation in the face of the challenges to multilateralism,” Lu said.
Besides upholding multilateralism, both sides also made compromises and reached consensus on previous sticking points. In past months, the EU hardened its criticism of China’s trade practices, including allegations of forced technology transfers, industrial subsidies and limiting European investment in the Chinese market.
During the summit, Chinese Premier Li Keqiang pledged that China would not discriminate against EU companies, adding the policy should be reciprocated.
In the press conference following the talks, Li said China would further shorten its negative list for foreign investment in June and grant foreign companies’ greater access to the Chinese market.
In the final joint statement, the two sides committed to building their economic relationship “on openness, non-discrimination and fair competition, ensure a level playing field and transparency based on mutual benefits.” “Both sides agree that there should not be forced transfer of technology,” the statement read.
More specifically, the two sides pledged to achieve “decisive progress” in 2019 for “the conclusion of an ambitious EU-China Comprehensive Investment Agreement in 2020” with “substantially improved market access, the elimination of discriminatory requirements and practices affecting foreign investors, the establishment of a balanced investment protection framework and the inclusion of provisions on investment and sustainable development.”
“Both sides agree to establish a political mechanism to monitor the progress in the negotiations and to report to leaders by the end of the year on the progress made,” the statement read. In the past 12 months, China has sought to sign a free trade agreement with the EU, but the EU insisted that the two sides should first agree on an investment pact.
Chinese Premier Li Keqiang (right) visits the construction site of the Peljesac Bridge, which is being built by a Chinese consortium, with his Croatian counterpart Andrej Plenkovic on the Peljesac Peninsula in southern Croatia, April 11, 2019
With its timetable and pledge to set up a monitoring mechanism, many EU officials hailed the agreement as a “breakthrough” in China addressing the EU’s grievances. “For the first time, China has agreed to engage with Europe on this key WTO reform,” European Council President Donald Tusk said after the talks.
Chinese officials also hailed the summit as a major success. Calling it a “fruitful” and “substantial” document, Premier Li Keqiang said the statement differs from an ordinary document that only states each other’s position, and offers shared prospects for future cooperation.
Following the summit, China’s Foreign Ministry also reiterated “China stands ready to work with the EU in implementing the consensus reached at the meeting to advance China-EU cooperation to a higher level.”
From China’s perspective, the EU has made compromises on pressing issues such as agreeing to “continue to forge synergies between the EU strategies on Connecting Europe and Asia as well as the EU Trans-European Transport Networks and China’s Belt and Road Initiative.”
Regarding 5G technology, an area where European countries are under intense pressure to join the US in banning Chinese telecom giant Huawei from their networks, the statement affirms that the two sides “welcome progress and further exchange” on technological cooperation between their respective business communities in the 5G field.
According to Wang Yiwei, a professor of international relations at the Renmin University of China in Beijing, although the statement does not mention Huawei directly, the rhetoric suggests the EU will not boycott Chinese companies in the development of its 5G networks. “The two sides could work together to set up industrial standards for 5G in the future,” Wang told NewsChina.
While the two sides are still a long way from working out the details of their agreement, analysts believe that the summit, along with the joint statement, set a positive tone for the next two years of China-EU relations.
“In the past weeks, there has been heated debate within the EU on its approach to China. The joint statement could be seen as a conclusion to that debate, as well as an authoritative assessment of the status of China-EU relations,” Ruan Zongze, vice president of the China Institute of International Studies, told NewsChina.
As the two sides follow through on their commitments, this could serve as a successful case of major countries addressing their disputes and achieving a win-win through mutual respect and mutual benefits, Ruan added.
Old Version
