Economic turmoil dominates EU-China summit


By Martin Banks
- 14th February 2012
China is unlikely to drop its strong opposition to the EU's emission trading scheme

Shada Islam

A top Asian expert says no "headline-grabbing breakthroughs" should be expected at this week's China-EU summit in Beijing.

The warning, from Shada Islam, comes as senior EU and Chinese officials confirmed their determination to move relations forward as Europe tries to tackle its debt crisis.

European council president Herman Van Rompuy and commission president José Manuel Barroso were meeting Chinese premier Wen Jiabao in Beijing on Tuesday.

The summit, in the Great Hall of the People, was delayed since late last year as European leaders struggled to deal with an escalating debt crisis.

The EU has become China's biggest trading partner since the launch of their strategic partnership in 2003, and China is getting closer to becoming the EU largest trading partner.

Speaking ahead of the summit, Islam, head of policy at the leading Brussels-based think tank, Friends of Europe, gave an assessment of what she expects to emerge from the high-level meeting.

She said, "China is unlikely to drop its strong opposition to the EU's emission trading scheme (ETS), there will be no spectacular China-funded rescue package to ease the Eurozone sovereign debt crisis and Beijing will remain outside the international consensus on sanctions against Syria and Iran."

She added, "Europe needs to press for an equally open Chinese market both as regards European investments and European exports."

Speaking on Tuesday, Van Rompuy said, "The EU and China, as two major economic partners, share a responsibility for addressing the challenges of our time. By working more closely together, the EU and China can make a difference and reap mutual benefits for our economies and address the needs of our peoples."

Van Rompuy said that he was looking forward to having in-depth discussion with Wen on "bilateral cooperation and on global and international issues" on which they need to "engage actively" with one another.

Wen said China was willing to "increase its involvement" in attempts to stabilise the eurozone.

"China is firm in supporting the EU side in dealing with the debt problems. We match our words with our actions," he said.

"We are willing to conduct close communication and cooperation with the EU side."

He reiterated that China supported the EU and hoped the EU would continue to "send clear, strong and positive messages" about stability.

Aside from economic matters, the summit is also expected to focus on European concerns about alleged human rights violations in China and the EU-China partnership on 'urbanisation'.

The two sides also want to promote 'people to people' contacts and raise awareness of the EU-China Year of intercultural dialogue, launched on 1 February.

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