Europe - China forum 2015: Video
Trade and business have long been the backbone of EU-China relations. But as both Europe and China expand their regional and global presence, there are an increasing number of areas where EU-China cooperation and consultation have become a compelling necessity. Building on successful efforts to work together in anti-piracy operations in the Gulf of Aden, Beijing and Brussels are interested in further developing their security and defence cooperation.
China’s economic transformation continues to intrigue and mesmerise – and create immense business opportunities – for a closely-watching world. The coming decade promises to be even more transformative as China shifts the focus to sustainable, green, high-quality growth, the development of the service sector and speeds up efforts to build a digital economy. China's start-up scene is abuzz with new products, new ideas and new investments. With access to some 640 million Chinese netizens, including 530 million mobile internet users, China now boasts a new class of internet companies which are creating their own business models, becoming increasingly innovative and extending their outreach in rural as well as in urban areas.
[embed]https://vimeo.com/112476744[/embed]
In part 1, Friends of Europe Secretary General, Giles Merritt, moderates the discussion. The panel includes Shada Islam, Director of Policy at Friends of Europe; Chi Fulin, President of the China Institute for Reform and Development (CIRD); Linda Corugedo Steneberg, Principal Adviser at the European Commission Directorate General for Communications Networks, Content and Technology (DG CONNECT); Luigi Gambardella, President of China-EU; Jeongmin Seong, Senior Fellow at the McKinsey Global Institute (MGI) and co-author of the MGI report: “China’s digital transformation: The Internet’s impact on productivity and growth”;and Guo Wei, Chairman and Executive Director of Digital China
The disussion focusing on what are the key challenges facing “Digital China”? How do China’s ambitions fit in with Europe’s own efforts to create a more competitive “Digital Europe”? What is the significance of China’s “Internet Plus” plan and 5G cooperation between the EU and China? Does China’s service-led economic transformation create new opportunities for EU-China innovation cooperation? What new investment opportunities will be opening up in China’s services sector in areas such as transport, communications, finance and health care?
[embed]https://vimeo.com/112487949[/embed]
In part 2, the panel discuss strengthening connections: “One Belt, One Road”, trade and investments. President Xi Jinping’s plans for the Silk Road Economic Belt and a 21st Century Maritime Silk Road (termed together “One Belt, One Road”) aimed at building two economic corridors with important development implications for many nations. China has set aside 40 billion dollars for the Silk Road Fund and another 100 billion dollars are being invested in the Asian Infrastructure Investment Bank (AIIB).
How will Europe benefit from the construction of the Silk Road Economic Belt? What is the potential for synergies between the Chinese and European infrastructure and connectivity policies? Which sectors are likely to benefit most from such cooperation? What will be the role of the Asian Infrastructure Investment Bank in financing the “One Belt, One Road” initiative? Can the EU and China work together to build and improve the decision-making and governance mechanisms of the AIIB? How are negotiations proceeding on an EU-China Bilateral Investment Treaty? How will the Transatlantic Trade and Investment Partnership (TTIP) and the Trans-Pacific Partnership (TPP) impact on China? Could the successful negotiation of the investment accord pave the way for talks on an EU-China free trade agreement?
Introductory remarks are made by Lv Fengding, Vice President of the China Public Diplomacy Association (CPDA) and Former Chinese Ambassador to Sweden. Speakers in part to include Jo Leinen, Chair of the European Parliament Delegation for Relations with the People’s Republic of China; Mario Esteban, Senior Analyst at the Real Instituto Elcano; Yonghui Li, President of the International Relations Institute, Beijing Foreign Studies University; Haiyan Zhang, Director of NEOMA Confucius Institute for Business at the NEOMA Business School and Professor of Asia/China Business Strategy and Management at Antwerp Management School; André Loesekrug-Pietri, Founder & Managing Partner, A CAPITAL, Finance committee board member, Friends of Europe and Liqin He / General Manager of Bank of China (Luxembourg), S.A. Brussels Branch.
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.
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.
View From Abroad: Getting connected — the secret to reviving Asia-Europe ties (Originally published 16/05/2015 at dawn.com)
To count in an increasingly complex and interdependent world, you have to be connected. This is true for individuals, institutions, companies, continents, regions and countries. The growth of social media sites is testimony to the increased connectivity of individuals and groups.No connections translate into lack of influence. It means no voice, no role and no chance to make an impact. What’s true for individuals is also true for countries. The nations which have clout in this rapidly-changing 21st century are those that are connected to the rest of the world.That’s why the European Union is busy breaking down internal barriers to trade, services and the movement of goods among its 28-member states. It is also the reason that the EU and the United States are negotiating an ambitious and trade-boosting Transatlantic Trade and Investment Partnership (TTIP) and it is also why the US is also hoping to conclude the Trans-Pacific Partnership (TTP) negotiations by the end of the year.Asians are embarked on a headline-grabbing connectivity agenda of their own. The Connectivity Masterplan drawn up by Asean (Association of South-East Asian Nations) is impressive in its scope and content. And of course China’s “One Belt, One Road” initiative is making waves worldwide.As these different initiatives illustrate, connectivity can and does take many forms. The first focus is clearly on transport — building roads, bridges, railways as well as maritime and air routes. There are also digital networks.Connectivity is also about building networks that connect people, schools and colleges, media, civil society organisations, businesses, policymakers and institutions.Being connected is good for the economy by helping to boost trade and investments and creating jobs. It is good for creativity and innovation. It is good for fostering mutual understanding. And, of course, it is very good for peace and stability.And that’s why is encouraging to see the attention now being paid to Asia-Europe connectivity. The topic is high on the agenda of Asem (Asia Europe Meetings) and is being widely recognised as a vital element in the efforts to revive Asem for its third decade.Certainly, compared to 1996 when Asem was first launched in Bangkok in 1996 or even 10 years ago, there is now a stronger EU-Asian conversation on trade, business, security and culture. As Asem celebrates its 20th anniversary in Mongolia next year, connectivity is expected to be an important driver for further Asia-Europe cooperation.Asia-Europe economic connectivity has grown. With total Asia-Europe trade in 2012 estimated at 1.37 trillion euros, Asia has become the EU’s main trading partner, accounting for a third of total trade and surpassing the North American Free Trade Agreement (Nafta). More than a quarter of European outward investments head for Asia while Asia’s emerging global players are seeking out business deals in Europe.The increased connectivity is reflected in the mutual Asia-Europe quest to negotiate Free Trade Agreements and investment accords. The EU and China are currently negotiating a bilateral investment agreement. The FTAs concluded by the EU with South Korea and Singapore and similar deals under negotiation with Japan, India and individual Asean countries are important in consolidating EU-Asia relations.Beyond trade and economics, Asia and Europe are linked through an array of cooperation accords. Discussions on climate change, pandemics, illegal immigration, maritime security, urbanisation and green growth, among others, are frequent between multiple government ministries and agencies in both regions, reflecting a growing recognition that 21st century challenges can only be tackled through improved global governance and, failing that, through “patchwork governance” involving cross-border and cross-regional alliances.Importantly, connectivity is the new Asem buzzword. The significance of Asia-Europe connectivity — including digital connectivity — was underscored by the Asem summit in Milan last year, with leaders underlining the contribution increased ties could make to economic prosperity and sustainable development and to promoting free and seamless movement of people, trade, investment, energy, information, knowledge and ideas and greater institutional linkages.The summit urged the establishment of an integrated, sustainable, secure, efficient and convenient air, maritime and land transportation system, including intermodal solutions, in and between Asia and Europe. It also noted the usefulness of an exchange of best practices and experiences on areas of common interest, relating for example to the governance of the EU Single Market and the implementation of the Master Plan on Asean Connectivity.A meeting of Asem summit in Milan transport ministers held in Riga discussed a common vision for the development of transport networks between Asia and Europe and emphasised the significance of connectivity between the two regions for achieving economic prosperity and sustainable development. The importance of railway links was especially underlined.Certainly, much of the talk on Asia-Europe connectivity is centred on Chinese President Xi Jinping’s plans for the Silk Road Economic Belt and a 21st century maritime Silk Road (termed together “One Belt, One Road”) aimed at building two economic corridors with important development implications for many nations, creates new opportunities for further China-EU cooperation in areas such as infrastructure, trade and investment as well as energy and resources.The initiative raises many questions: how will Europe benefit from the construction of the Silk Road Economic Belt? What is the potential for synergies between the Chinese and European infrastructure and connectivity policies? Which sectors are likely to benefit most from such cooperation? What will be the role of the Asian Infrastructure Investment Bank in financing the “One Belt, One Road” initiative? What is the role of youth and women in the drive to connect Asia and Europe?Is it only about infrastructure or can Asem also encourage institutional and people-to-people connectivity? The answer was given at a meeting of Asem education ministers — also in Riga — which highlighted the importance Asia-Europe cooperation in areas like mobility of students, teachers, researchers, ideas and knowledge. Finally, while increased connectivity would offer opportunities for business and trade, the darker security implications linked to the cross-border movement of arms, drugs and terrorists also need to be addressed.