July 9, 2015
The European Union and China
On June 29, 2015 the European Union (EU) and the
Council; Jean-Claude Juncker, President of the European
People’s Republic of China held their 17th annual leader’s
Commission; and Federica Mogherini, High Representative
summit in Brussels. The summit also commemorated the
for Common Foreign and Security Policy, as well as other
40th anniversary of the establishment of formal relations
key European Commissioners.
between what is now the EU and China.
The first EU-China Summit took place in 1998, in London.
EU - China
Since then, these summits have been held on an annual
* EU: 28 member states
basis, alternating between China and Brussels, with the
* Population: EU: 505 million; China: 1.3 billion
exception of 2008, when China postponed the summit (two
summits were held in 2009). The 2015 summit was the
* European Union GDP (2014): approx. €14.0 trillion
latest example of the EU’s long-term interest in, and
* China GDP (2013); approx. $10 trillion
maintenance of, its political and economic relations with
* China is now the EU’s 2nd trading partner behind the United
China.
States, and the EU is China's biggest trading partner.
Background
* EU goods exports to China 2014: €165 billion; EU goods
imports from China 2014 €302.5 billion. EU services exports to
The predecessor to the EU, the European Economic
China 2013: €32.2 billion; EU services imports from China 2013:
Community (EEC), and China established diplomatic
€20 billion.
relations on May 6, 1975. The 40-year-old EU-China
* Neither the EU nor China are major investors in each other,
relationship initially evolved from a framework of
though China’s investment in Europe is growing rapidly. EU
economic cooperation when an EEC-China agreement on
foreign direct investment (FDI) in China was approximately €6.8
trade and economic cooperation was adopted in 1985.
billion in 2014, while China’s investment in the EU amounted to
€9.8 billion in 2014.
Since 2003, the two sides have described themselves as
Source: European Commission, Eurostat.
engaged in a “Comprehensive Strategic Partnership,” which
Exchange: €1 = $1.1
has continued to evolve and diversify. A High Level
Economic and Trade Dialogue established in 2009 further
consolidated economic cooperation. The economic
According to its leadership, the commitment of the EU to
relationship was complemented in 2010 by an enhanced
the strengthening of its political dialogue with China
political dialogue on both bilateral and global issues: the
reflects Europe's recognition that China, as a growing
High Level Strategic Dialogue. Beginning in 2012,
economic and political power and an increasingly active
dialogues and cooperation mechanisms were established
member of the international community, can exert a
covering issues such as foreign policy, security and defense,
significant influence on a wide array of issues of global
high-tech innovation, tourism, energy, and the environment.
concern. In a world increasingly bound together by the
At the 16th EU-China Summit held in November 2013, the
forces of globalization, cooperation with China, bilaterally
EU and China launched the EU-China Strategic 2020
or within multilateral structures, has been defined as crucial
Agenda for Cooperation (http://eeas.europa.eu/china/docs/
to achieve progress in any number of important areas of
20131123_agenda_2020__en.pdf), which established the
mutual interest. These points were highlighted in the EU-
framework intended to guide EU-China relations until
China joint summit declaration.
2020.
The EU’s main approach is to engage China both bilaterally
Today, according to the EU, the EU and China have over
and on the world stage, through an upgraded political
70 high-level and senior-level dialogues, working groups,
dialogue; to promote China’s transition to an open society
and steering committees reflecting the wide-ranging scope
based upon the rule of law and respect for human rights; to
of the relationship. The EU and China have apparently also
encourage the integration of China in the world economy
agreed to further develop exchanges on legal affairs and
and support the process of economic and social reform; and
digital connectivity, which could lead to the establishment
to raise the EU’s profile in China.
of new dialogue mechanisms.
The main goal of the 2015 EU-China summit was to take
Political Dimension
stock of the progress achieved thus far in implementing the
Strategic 2020 Agenda through the three pillars of the EU-
The 2015 EU-China summit was attended by Chinese
China relationship: the High Level Strategic Dialogue, the
Premier Li Keqiang and other Ministers. The EU was
High Level Economic and Trade Dialogue, and the
represented by Donald Tusk, President of the European
biannual People-to-People Dialogue established in 2012.
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The European Union and China
Through these dialogues, the EU and China have
Another aspect of this dialogue is designed to promote
committed to enhancing direct contact and coordination in
intellectual exchanges between major cultural, scientific
order to meet regional and global challenges together,
and educational institutions. As part of this dialogue, the
particularly in the areas of defense and security, cyber,
China-Europe International Business School and the EU-
transnational crime, economics, and the implementation of
China School of Law have, for years, successfully trained
effective international climate change measures. An EU-
businessmen and legal experts to promote exchanges
China Business Summit, an Urbanization Forum, and a new
between China and Europe. More than 280,000 Chinese
Innovation Dialogue also took place on the margins of the
nationals are studying in Europe, while some 45,000 EU
2015 summit.
citizens are studying in China. At the 2015 summit, the EU
and China agreed to launch a new research initiative
Economic Dimension
(http://erc.europa.eu/sites/default/files/press_release/files/
erc_pr_2015_China_agreement.pdf) to facilitate young
The European Union and China are two of the biggest
Chinese scientists to join projects funded by the European
traders in the world, with EU-China trade increasing
Research Council (ERC, http://erc.europa.eu/). The
dramatically in recent years. China and Europe now trade
agreement is expected to lead to the first scientific
an average of well over €1 billion each day. Bilateral trade
exchanges later this year.
represents approximately 3.3% of the EU’s GDP and close
to 6% of China’s GDP, underlining the large
China’s Perspective
interdependence of China and the EU in terms of trade.
In June 2015 remarks to the China-EU Business Summit,
In the economic dialogue of the summit, both the EU and
Chinese Premier Li Kequian described the EU as “a major
China, despite differences over market access, state-owned
pole on the global political arena” and declared that “no
enterprises, and technology transfer practices, reaffirmed
geopolitical conflicts or clash of fundamental interests”
the importance of the annual High Level Economic and
exist between the EU and China. Li credited the EU for
Trade Dialogue. Both sides view the dialogue as an
offering “many advanced technologies to help China’s
essential forum for planning and guiding the development
modernization” and promised that China would continue to
of EU-China economic and trade relations as well as taking
support “a united European Union and a strong Euro.”
strategic decisions on important trade, investment and
economic issues. During the summit, the leaders of both
Looking Ahead
sides reconfirmed their commitment to reinforcing
cooperation on the protection and enforcement of
In March 2014, President Xi Jinping of the People’s
intellectual property (IP) rights (http://trade.ec.europa.eu/
Republic of China visited the European Union in Brussels,
doclib/docs/2015/june/tradoc_153582.pdf).
marking a historic first visit by the Chinese President to the
European Union and highlighting a significant
At the 16th EU-China Summit held in November 2013, both
strengthening of bilateral ties between the EU and China.
sides announced the launch of negotiations of the
The EU’s relations with China are predominantly focused
Comprehensive EU-China Agreement on Investment. The
on strengthening economic ties, through two-way
Agreement would provide for progressive liberalization of
investment flows and trade, while maintaining a political
investment and the elimination of restrictions for investors
dialogue on critical global issues. With the anticipated
to each other’s market. The 2015 summit reaffirmed the
signing of a new Transpacific Partnership (TPP) agreement
intentions of both sides to continue negotiating for this
between the United States and several Asian nations, the
agreement. Other issues within the economic dialogue
EU has recognized a need to strengthen its overall bilateral
include measures to strengthen policy exchanges, to
relations with China. In addition to activities mentioned
facilitate industrial products trade, and to design concrete
above, the EU has suggested that negotiations on a Free
projects, for example, in ensuring food security and safety.
Trade Agreement begin. The EU has also expressed interest
in China’s “One Belt One Road” version of a revitalized
In a recent publication by the European Parliament
“Silk Road” reconnecting Asia, the Middle East, Africa,
Research Service, it was noted that the EU will soon
and Europe through trade as well as energy, transport, and
conclude its debate on the European Fund for Strategic
communications. Although the EU cannot compete with
Investment (ESFI) regulation, which is expected to generate
China politically or economically in Asia nor complement
public and private strategic investment of roughly €315
the United States as an Asian power, it does appear that at
billion in transport, communication, and energy
least on the economic and trade front, the EU is determined
infrastructure during the 2015-17 time period. China has
to become an influence in Asia particularly through its
made public its interest in participating in the EFSI with a
evolving relations with China.
particular emphasis on the digital economy.
Vincent L. Morelli, vmorelli@crs.loc.gov, 7-8051
Through the people-to-people exchange, both sides have

committed to the continued development of sustainable
tourism. Tourism between the EU and China is booming.
IF10252
There are already 70 direct flights daily between European
and Chinese cities. Approximately four million Chinese
travelled to Europe in 2013.
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