China seeks to enhance Asia-Europe connectivity

China is expected to contribute more to the Asia-Europe Meeting (ASEM) by promoting greater relations between the two regions at an upcoming summit.

Chinese Premier Li Keqiang will unveil new proposals in deepening cooperation between Asia and Europe during his first foreign visit this year.

Li will attend the 11th ASEM summit in Mongolian capital Ulan Bator from July 15 to 16, after an official visit to the country from July 13 to 14.

ASEM has provided an important platform for political dialogue, economic cooperation, and cultural and social exchange between Asia and Europe.

Launched in 1996, the biennial ASEM summit has served as a venue for dialogue between countries in Asia and Europe. ASEM now includes 53 Asian and European members. The 11th ASEM summit to be held in Mongolia marks the 20th anniversary of the group's founding.

Shada Islam, director of policy at the Brussels-based think-tank Friends of Europe, said that ASEM has performed well in terms of bringing together Asia and Europe.

"The revitalization of this important forum is to a large extent a consequence of the fact that China is very much engaged into it," said Shada Islam in a recent interview with Xinhua.

She explained that ASEM is very flexible but needs some fresh energy, and said she believes that discussions on connectivity will provide that kind of new dynamism.

"ASEM members are expecting more from China, the second largest economy in the world. It should show more courage and wisdom and allocate more resources in leading the interconnectivity between Asia and Europe," said Cui Hongjian, director of the Department for European Studies of the China Institute of International Studies.

Cui noted the importance of linking China's Belt and Road Initiative to existing ASEM projects such as the Asia-Europe continental bridge as well as to more new projects to boost their connectivity.

China attended all ASEM summits ever since its birth, and the proposals it made in the past 20 years have borne witness to its contributions to the platform.

The Mongolian summit is highly looked to as it will work out the plan for priorities in the next 10 years.

The ASEM faces the challenge to enhance its relevance in looking for more spots of common interests between Asia and Europe, said Ding Yifan, an economist with the Development Research Center of the Chinese State Council.

Ding suggested more cooperation between Asia and Europe in technology and environmental protection, as well as increased efforts in dealing with possible differences among Asian and European members.

Ding expects the Chinese premier will touch upon such topics during the summit in a bid to bring out more momentum from the ASEM in the next decade.

Meanwhile, Li is also likely to discuss with other Asian and European leaders the Brexit issue, the South China Sea arbitration unilaterally initiated by the Philippines, and other hot topics across the region.

The upcoming visit by Li is expected to seek more convergence between China's Belt and Road Initiative and Mongolia's Steppe Road program.

More cooperation in production capacity, major projects and finance is expected to inject more vitality in China-Mongolia ties.

There's opportunity for Mongolia's Steppe Road program to get aligned with the Belt and Road Initiative, which will greatly benefit the Mongolian economy as well as the construction of a tri-party economic corridor involving China, Mongolia and Russia, said Gao Shumao, the former Chinese ambassador to Mongolia.

On efforts to aligning the Belt and Road Initiative and the Steppe Road program, Gao said there is huge potential for the two sides to cooperate in rail and highway construction, clean energy, tourism, health care and people-to-people exchanges.

Chinese President Xi Jinping's visit to Mongolia in 2014 laid a sound foundation for China-Mongolia relations, and Li is expected to strengthen those ties during his trip, said Gao.

China-Europe: a curious conversation

Early April in Beijing and the sky is unusually clear and blue, cherry blossoms are in full bloom and the roads are eerily quiet. It’s “tomb sweeping” day and most of my Chinese friends and colleagues are on holiday, commemorating their ancestors.I’m in Beijing for meetings on EU-China relations. I need to get my thoughts together, write up my talking points for the upcoming seminars. But I can’t concentrate. And since all offices and shops are shut, it’s the perfect moment to visit the Great Wall.And so here I am, climbing up the long and winding road that takes me to the bus stop that takes me to the cable car that takes me — finally — to one small but majestic portion of the Great Wall.It’s breath-taking. All the pictures I’ve seen do not prepare me for the magnificent reality. Like everyone else I’ve looked up the impressive facts and figures. The Wall is old, long and high — and every stone, every inch has an interesting story to tell. But seeing is believing, and the Wall, with its majestic vistas and amazing construction, does not disappoint.I like the legends and the history. But I’m more focused on modern-day China and the enormous challenge of economic transformation that President Xi Jinping has embarked on. I’m also watching my fellow tourists who are slowly wheezing up the steep slope with me.We are a motley bunch. Chinese grandmas and grandpas with toddlers in tow, young lovers out on a date, foreign tourists from India, Indonesia and the Philippines and an attractive blonde woman on her own who stops every two minutes or so to take a selfie with the Wall as a backdrop. Who needs friends when you have a smartphone?The return journey to Beijing is complicated as the roads clog up with traffic and our driver struggles to find ingenious back roads to get us to the hotel. We get to see more cherry blossoms on the side roads, small carts full of fruit, strawberries for sale in tiny stalls. It’s like going back in time.Tomorrow Beijing will be back to normal, our driver warns. Beware of pollution and traffic jams, he says. Be prepared.I am. And not just for the congested roads and stinging eyes. I’m all geared up for some interesting discussions with Chinese academics and think tank representatives on relations between China and Europe.I’ve been tracking the ups and down of relations between Europe and China for many years and the EU-China “strategic partnership” continues to fascinate and intrigue me.Unlike the US, Europe doesn’t see China as a rival or competitor. Never having achieved the “super power” status, Europe isn’t too wary of the changed world order and the rise of China — and India, Asean and others.Europe isn’t an Asian power but an Asian partner, EU policymakers insist. There is much that the EU and China can do together on the bilateral level and on the global stage. Europe is a strong supporter of China’s new economic transformation agenda. Its mutual say Chinese officials who insist that Beijing wants a stronger and more integrated Europe.Both sides are cooperating on a range of issues, including China’s plans to build a “One Belt, One Road” connectivity network linking Europe and Asia. There is heady talk of an EU-China partnership on urbanisation, building 5G technology and warmer people-to-people relations.This is heartening — but its only part of the story. In the public discussions in Beijing, Chinese academics make no secret of their anger at Europe’s stance on two key issues: the EU’s reluctance to grant China “market economy status” and Europe’s failure to lift the arms embargo imposed on Beijing after the Tiananmen Square clampdown in 1989.There are accusations that Europe is too easily swayed by American pressure to take a tougher stance against China. And since it is not a “hard” security actor, some Chinese colleagues insist that the EU has no business making statements on rising tensions in the South China Seas.Europeans, for their part, complain about market access restrictions facing European exporters and investors, the slow pace of economic reform in China and worry about the country’s increased assertiveness on the regional stage. There are worries about China’s overcapacity in sectors such as steel which is making life difficult for Europe’s steelmakers.But while the talk sometimes gets tough, it’s clear that Europe and China need each other. Trade between the two sides is worth about 1.5 billion euros a day. An estimated three million jobs in Europe depend on relations with China. Beijing needs Europe’s intellectual expertise, technology and experience.Both sides face the challenge of ensuring growth and jobs, looking after their ageing population while also providing hope and employment for young people. There is talk of synergies between the EU 2020 agenda for growth and jobs and China’s plans for a “new normal” of lower but high-quality, sustainable and inclusive growth.As European and Chinese leaders prepare to meet in Beijing in July for their 18th summit, it is clear that EU-China relations have grown and matured over the years. Brussels and Beijing talk to each other on multiple topics and in multiple fora.There are disagreements and occasional bitterness and sparring. But the conversation is intense, much more so than the EU’s relations with other Asian nations. There is mutual curiosity. And the beginnings of a mutual understanding.In a world marked by inter-state rivalries, power struggles and competition between nations, can anyone really — and realistically — ask for more?

View from abroad: Free trade and the new world order (Originally published 01/08/2015 at Dawn.com)

The signal for exporting nations is clear: if you count — or want to count — in the new world order, make sure you join a regional free trade agreement.That’s the message that many global trading nations will be taking home if — as expected — the US-led Trans-Pacific Partnership (TPP) free trade deal is finalised this weekend in Hawaii.Certainly, most nations still pay lip service to the multilateral trading system symbolised by the World Trade Organisation (WTO). And yes, there is also a focus on bilateral free trade agreements as well as plurilateral deals.But once, again, loudly and clearly: the trend towards mega-regionals is unstoppable and that’s where savvy nations are headed.As described by one newspaper, FTAs are “the new Great Game at the dawn of the 21st century”.The TPP is about trade and commercial interests, certainly. It’s about creating growth and jobs. But it is about more than that: it’s also about overarching strategy and geopolitics and just which nation will emerge as the primary power in the Asia-Pacific region.So let’s be clear: the TPP is US-led and China — along with India and Indonesia — is excluded. Still, the TPP would create a 12-nation grouping including five countries in the Americas (Canada, the US, Chile, Mexico and Peru); five in Asia (Brunei, Japan, Malaysia, Singapore and Vietnam); and New Zealand. South Korea, the Philippines and Taiwan have voiced interest in joining.Once signed, the TPP will form a free trade area with a population of 800 million, which accounts for 30 per cent of global trade turnover and nearly 40 per cent of global output.That is impressive. And clearly those outside the TPP are worried. And are not sitting still.First, China. Convinced that TPP is meant to “contain” China’s regional and global outreach, Beijing is working on several fronts to counter the US led initiative.Beijing is actively promoting the Regional Comprehensive Economic Partnership (RCEP) which would include members of the Association of Southeast Asian Nations (ASEAN) as well as India.China is also taking up the Free Trade Area of the Asia-Pacific (FTAAP) which would bring together members of the Asia Pacific Economic Cooperation (APEC) forum.Most significantly, China’s President Xi Jinping has come up with the ambitious ‘One Belt, One Road’ initiative to connect an array of Asian and European nations through transport, infrastructure and ICT links — and ultimately through unfettered trade.India’s actions may not be that visible but Delhi is creating stronger trade links with Southeast Asian nations while also seeking to negotiate a free trade agreement with the European Union. The EU-India negotiations are in an impasse at the moment — but both sides are trying to inject much-needed momentum into the talks.Which brings us to the EU. European trade officials did not, at first, take the TPP very seriously. As the deal looks set to be signed, attitudes appear to be changing.The EU is negotiating FTAs with a number of Asian nations — Japan, Vietnam and Malaysia — which are also members of TPP. A free trade deal with New Zealand and Australia has not been ruled out. And Singapore has already signed a free trade pact with the EU.And, significantly, for the EU, China is demanding exploratory talks on the pros and cons of an EU-China FTA. Brussels has so far filibustered by insisting that it first wants to conclude ongoing negotiations on an EU-China Bilateral Investment Treaty (BIT) before considering a free trade deal. But sooner rather than later, the EU will have to acquiesce.The EU has of course responded by trying to hammer out its own Transatlantic Trade and Investment Partnership (TTIP) with Washington. But those negotiations have run afoul of civil society groups which fear that TTIP will lower EU health, food and other standards.In Asia, however, if it is to compete with the US and China, the EU needs to start FTA negotiations with the 10-member Association of Southeast Asian Nations (ASEAN). Europe could be even more ambitious and seek a trade deal which covers ASEAN as well as New Zealand and Australia.More ambitious still would be a trade agreement which would cover all 51 countries which have signed up for ASEM, the Asia Europe partnership.Clearly, therefore, trade agreements these days are about commercial and economic interests but also geopolitical outcomes.US President Barack Obama has no doubts that “if we don’t write the rules for free trade around the world, guess what, China will … and they’ll write those rules in a way that gives Chinese workers and Chinese businesses the upper hand.”Make no mistake: the TPP and other FTAs of its kind are not easy to negotiate. The scope of such deals is enormous — covering questions ranging from copyright law to labour and immigration issues, as well as more standard trade talk of import tariffs and exceptions for sensitive commodities.It is crucial that TPP — and the transatlantic TTIP if it is ever completed — keep the doors open, with no discriminatory terms set for newcomers.Finally, while it is understandable that countries, frustrated by the long-stalled Doha round of global trade talks, have turned their attention to various initiatives to set up regional FTAs, they should try to maintain the WTO’s central role in global trade liberalisation.The TPP process itself is an admission that the consensus-driven WTO is too cumbersome a venue for so-called “high-standard” trade deals. But it would be counterproductive and harmful to give up on the WTO and its ability to create a “level playing field” for all trading nations, big or small, rich or poor.

Europeans eager to trade, do business with Iran (Originally published 18/07/2015 at Dawn.com)

Suddenly last week, after weeks of acrimony, arguments and threats, the dark clouds over the European Union appeared to clear slightly.

EU leaders fought off fears of a Greek exit from the Eurozone by hammering out a deal to bail out the devastated Greek economy. And finally following years of hard bargaining, international negotiators, including EU officials, clinched an agreement on curbing Iran’s nuclear programme.Europeans’ response to the two breakthrough accords has been quite different. The deal on Greece has left a sour taste, with Europeans divided on just how much more economic pain the Greeks can and should be forced to take. In contrast, there is no rift in Europe over the accord with Iran. European governments, business and public opinion have been largely positive about prospects of a normalisation of relations with Tehran.In fact they want more than normalisation. As was the case two years ago when Myanmar finally opened up, Europeans are anxious and eager to make their mark in Iran as quickly as possible, before the competition heats up.European foreign ministries want to re-establish diplomatic relations with Tehran, the EU plans to open its own office, and European business leaders and investors can’t wait to enter the Iranian market.On the geostrategic front, there are hopes that an end to Iranian isolation will change the political landscape in the Middle East by reducing power and influence of Saudi Arabia and the Gulf States.True, there is also wariness of Tehran’s ambitions and role in Syria, Yemen and Iraq. But few in Europe give credence to Israeli Prime Minister Benjamin Netanyahu’s quasi-hysterical rants against Tehran. And unlike in the United States, there are no major European political parties who oppose the re-establishment of relations with Iran.The race to be the first one to visit the country has already begun. A procession of high-ranking visitors is expected to head to Tehran, with French Foreign Minister Laurent Fabius already saying he will go soon.British Foreign Secretary Philip Hammond has said he hopes the UK and Iran can fully reopen their respective embassies by year end. Ties between the UK and Iran had plunged after the 2011 storming of the British embassy in Tehran.And European Union foreign policy chief Federica Mogherini, who presided over the nuclear negotiations, also wants to open the first EU mission in Tehran in 2016 as part of what she hopes will be a “new chapter” in relations.The focus is very much on the Iranian market and the country’s appetite for European exports, investments, technology and know-how after years of life under sanctions.Europe’s interest in Iran’s oil and gas sector is high as EU nations seek to reduce their dependence on imports of Russian gas. But Europe faces tough competition from American companies, Russia and China.Chinese analysts are already predicting a surge in trade and business flows between China and Iran and point to the contribution Beijing can make to upgrade and build Iranian infrastructure.Iran is also widely expected to become a key participant in China’s ambitious ‘One Belt, One Road’ connectivity network linking China to other parts of Asia and Europe.In contrast to China, EU policymakers, focused almost completely on the nuclear issue, have not yet given serious consideration to ways of upgrading ties with Tehran.EU foreign policy chief Mogherini talks ambitiously of bringing together all key Middle East countries, including Iran, “to see if some form of regional cooperation is possible”.While the vision of Middle East regional cooperation is noble, there is, of course, very little hope that — at least in the short to medium-term — Iran, Saudi Arabia and the Gulf countries will be able to sit at the same table, much less work together.The EU could, however, insist that Iran should be allowed to participate in the Geneva talks on ending the civil war in Syria. Tehran could also be helpful in EU efforts to build a strategy to counter the self-styled Islamic State.Given the EU’s demands that Iran reduce the rate of executions and eradicate torture, discussions on human rights are likely to be difficult.EU-Iran cooperation is likely to be most buoyant if the focus is on practical questions such as environmental protection, water management, infrastructure development, technology transfer, and academic and cultural exchanges.Europe’s normalisation of relations with Iran is likely to be slow and steady as European governments and Tehran get to know each other again and step by step build trust.Ironically, in fact, today there seems to be more trust between the EU and Iran than between Greeks and their fellow Europeans.

View from Abroad: Europe and the new world order (Originally published 11/07/2015 at dawn.com)

Entangled in the Greek debt crisis, few European policymakers had the time or interest this week to pay attention to the summit talks in the Russian city of Ufa between the leaders of Brazil, Russia, India, China and South Africa (BRICS).True, Europe has its hands full with Greece and the looming possibility of a Greek exit from the Eurozone. But the world doesn’t stop for Europe. And pretending that the BRICS and their self-confident leaders don’t matter — or matter little — is not an option.Discussions about the rapidly-transforming world, the role and influence of the BRICS and Europe’s relations with the emerging powers appear to be off the European Union agenda. For now, the focus is rightly on the existential threat posed by Grexit, the acrimony the Greek crisis has triggered across the EU and the worsening relationship among Eurozone leaders.Solving the Greek problem should of course take priority. But Europeans know that more is at stake. Italy’s Prime Minister Matteo Renzi has so far been most vocal in signalling his fears that the fury unleashed by the difficulties in Greece is damaging the very existence of the EU. But this thought is also in many other minds. If Europe can’t get its house in order, it really does run the risk of becoming irrelevant on an increasingly crowded global stage.For the moment, most Europeans seem to fall into two categories: those who fear the rapidly-changing world order and the increasingly long list of nations clamouring for a stronger role on the world stage and those who hope that if they look the other way, firm up their bonds with the United States, the world won’t change too much and the BRICS will gradually fade away.There are some, wiser, people in the middle: they may not be enthusiastic about the changes being made to the global status quo; but they also know that times are changing fast and that Europe needs to adapt, adjust and accommodate.It was on the advice of such people that despite strong pressure from the US not to do so, several EU countries decided to join the Asian Infrastructure Investment Bank (AIIB) set up by China.While many Europeans voice fear that China is “buying up” European assets, cooler heads are urging the EU to join forces with China’s ambitious ‘One Belt, One Road’ transport networks to boost domestic growth and jobs.Similar arguments for and against cooperating with emerging nations are likely to come to the fore as Europeans discuss membership of the New Development Bank (NDB) being set up by the BRICS to fund projects in member countries.Headquartered in Shanghai, the bank is expected to be operational by end of 2015. Once fully operational, it will become an alternative financing source for the BRICS nations and other emerging markets.Like the head of the AIIB, the first chief of the BRICS bank, India’s K. V. Kamath has been quoted as saying that the NDB sees other multilateral lending institutions such as the International Monetary Fund (IMF), World Bank and Asian Development Bank (ADB) as partners rather than rivals.And yet many continue to be suspicious. The US and Japan have not yet joined the AIIB and many EU policymakers continue to voice fears that the new banks will fall short of high Western standards of transparency and accountability.The BRICS have made clear that they don’t really care. The Old Guard is welcome to come on board, but the world is moving on and they won’t stop for the laggards.Russia, given its tense relations with the West following the crisis in Ukraine and the annexation of Crimea, has taken the toughest line in its dealing with Europe and America. As Foreign Minister Sergei Lavrov underlined in Ufa, emerging nations represent a “new polycentric system of international relations” and demonstrate new global centres of power.As he shook hands with his Chinese, Indian, South African and Brazilian counterparts, a beaming Russian President Vladimir Putin made clear that he was far from the sad and isolated man that the West wants him to be.And it’s not just about the BRICS. An array of newly-empowered nations and groupings are challenging Europe and America’s dominance of the post World War II order. Mexico, Indonesia, Korea, Turkey and Australia are part of MIKTA which claims to act as a bridge between old and new powers.New Zealand says it is the champion of “small nations” without whose support nothing can be achieved on the global stage. The Group of 20 remains relevant as a forum which brings together industrialised and emerging countries.And then there is also the Shanghai Cooperation Organisation (SCO) which EU and Nato policymakers also tend to shrug off as an impotent “paper tiger”.They shouldn’t. As India and Pakistan set out on the road to membership of the SCO, it is clear that while the security organisation does not see itself as a rival to Nato, it does intend to make its voice heard on global security challenges.Underlining just how significantly the world has changed, the five BRICS countries and the six SCO members which include China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan — joined by India, Pakistan, Afghanistan, Iran and Mongolia which have observer status — held a joint summit in Ufa.The Greek crisis was on the BRICS agenda of course. While Europe may not like the new world out there, emerging nations know that in an interconnected and interdependent world, what happens in Europe affects them. And that a failed Europe is in nobody’s interest.

View from Abroad: All aboard the Silk Road express (Originally published 27/06/2015 at dawn.com)

Europe has been slow in its response to China’s ‘One Belt, One Road’ initiative. This may be about to change. If both sides play their cards right, the EU-China Summit on June 29 could kick-start a much-needed conversation on synergies between China’s ambitious vision of an interconnected world and Europe’s mega investment plan to boost jobs and growth.The rewards of such cooperation could be enormous. Increased EU-China connectivity will increase bilateral trade between the two partners, create new business opportunities for European and Chinese enterprises, and boost employment, growth and development in Europe and China — and in countries along the routes.To start the dialogue, Europeans will have to take the long view. With the possibility of a Greek exit from the Eurozone getting ever closer, Britain’s plans for a referendum on its EU membership becoming more strident and growing discord over how to deal with the refugee crisis, European policymakers are thinking local, not global.It’s not just about domestic difficulties; Europe’s neighbourhood is also on fire.And yet, if Europe is to fulfil its ambitions of becoming a global actor while also meeting the domestic imperative of generating stronger economic growth and creating jobs, the EU policymakers must look beyond current emergencies to Europe’s medium-to-long-term needs.This is the logic behind the $315bn investment plan drawn up by European Commission President Jean Claude Juncker to modernise Europe’s infrastructure. With its focus on investments in energy, digital, transport and innovation, the blueprint has the potential to revitalise European economies over the next decade.But Europe can’t possibly do it alone. This is why it is important that EU governments, business leaders and academics start paying more attention to China’s headline-grabbing ‘One Belt, One Road’ initiative — and ways in which this could fit in with the EU’s own investment masterplan.After months of staying relatively silent on the subject, the EU policymakers are beginning to talk about — and explore — the advantages of synergies between the Juncker plan and the ‘One Belt, One Road’ initiative.Clearly, joining forces will unleash more resources. Implementing the EU investment plan will require the mobilisation of billions of euros of private and public funds as well as capital from the European Investment Bank (EIB). As European Commission Vice-President Jyrki Katainen said recently, the EU is hoping to attract Chinese investors to stump up some of the capital for the Juncker plan. The point has also been made by European Trade Commissioner Cecilia Malmstrom as well as by the European Commission president himself.The hope is clearly that the EU connectivity projects will be able to interest both the Silk Road Fund and the Asian Infrastructure Investment Bank (AIIB). The EU is particularly interested in meeting the long-term infrastructure needs in southern, eastern and central European countries and in the Balkan states. Greece as well as some members of the so-called ‘16+1’ group of central and eastern European countries have already indicated their strong interest in such Chinese investments. If all goes according to plan, the eastern part of Europe could connect seamlessly with the western projects on the new Silk Road.As the different ‘One Belt, One Road’ projects come on stream, business opportunities will open up for construction, transport and logistical companies — including European enterprises — across the route. EU-China trade is likely to get an important boost from the expected reduction in transport time and costs while EU exporters and investors will gain access to new growth markets in inland China and Central Asia. Such a development would give an added fillip to the current EU-China negotiations on a bilateral investment treaty.As it passes through often-volatile and less-developed countries and regions, the ‘One Belt, One Road’ has the potential to unleash economic potential across the way, bringing stability as well as growth to Europe — and China’s — neighbourhood. Such a conversation could be especially useful within the 53-member Asia Europe Meeting (ASEM) where connectivity is also climbing up the agenda.It’s not just about money, technology and goodwill, however. The EU insists that investment projects selected for financing under the ‘One Belt, One Road’ initiative must meet strict governance, environmental and technical standards, and result in sustainable development.Moving from dialogue to action will require time and effort — and willingness to compromise. China has taken its time in putting flesh on the bones of the project and in explaining its many facets to a closely-watching world. A more detailed dialogue is now necessary before the EU and China get down to identifying and working on the nuts and bolts of their cooperation. Given their different working methods and cultures, European and Chinese policymakers, bankers and business leaders won’t find it easy to work together.The devil will certainly be in the detail. Expectations will have to be managed on both sides. Selecting projects will be difficult and time-consuming. And there will be no quick results.But in a world desperate for money, jobs and modern infrastructure, China has once again shown its capacity to surprise and to think big. Europeans must come on board the Silk Road ‘express’, not just watch it from the sidelines.

Shada Islam quoted in 'Upcoming EU-China summit to take relationship to new level' (Xinhua 27/6/2015)

At the first official meeting between the European Union and China since the new EU leadership in December 2014, scheduled for later this month, director of policy at Friends of Europe, Shada Islam, said the summit would take the relationship to a new level.In a recent interview with Xinhua, Islam said there were possible synergies between the EU and China on building a digital economy and cooperation in EU-China connectivity, which would provide opportunities for both sides to work together on the "Belt and Road" transportation initiative.Moreover, she said the European side was "expecting China to confirm its participation in the EU's investment plan for creating jobs and growth.""These two developments will really inject more energy and more stability into the relationship, taking it to a new level," said Islam.She said both China and Europe have two key imperatives: jobs and growth. They need to create jobs for new entrants in the labor market and they need growth to ensure continued prosperity. In politics and security, they both need to build a more stable and prosperous world, and especially a more prosperous neighborhood. In trade, both want further trade liberalization, and know how important it is to keep away from protectionism."These are signs that the relationship is becoming more diverse and also more focused on practical questions where both sides can work together and learn from each other," she said.Noting that discord over trade questions would crop up from time to time, Islam said what was important was that these questions could be resolved in a "timely and non-confrontational" manner.Concerning global issues, Islam said the world needed to work together to ensure peace and that meant working with China."If there is a good chemistry, the upcoming summit will set the tone for EU-China relations for the next few years," she said.Chinese Premier Li Keqiang will attend the 17th China-EU leaders' meeting here. Apart from the meeting, Li will also visit Belgium and pay an official visit to France, including a visit to the headquarters of the Organization of Economic Cooperation and Development (OECD) in Paris.