EU must gain confidence in its own reform to actualize hopes of better Beijing ties

By Song Shengxia Source:Global Times Published: 2016/6/24 0:28:00

Ahead of Britain's referendum on whether or not to stay in the EU, the European Commission on Wednesday adopted a policy document that aims to frame the bloc's relationship with China for the next five years. 

Ten years after the EU adopted its last China strategy paper, the latest document - which includes "an ambitious investment agreement between the two sides" and raises the possibility of a free trade agreement - is crucial to forging closer, forward-looking China-EU relations as the EU grapples with a series of issues such as the Ukraine crisis, terrorism, refugees, competing national interests among its members and the more immediate threat of Brexit.

But it remains more urgent for the EU to reform its institutions, regain its confidence and focus more on pragmatic engagement with China if it wants to advance relations with Beijing to another level.

Britain's referendum vote on whether to remain part of the EU, which has divided the nation and has been closely watched throughout the world, deals a blow to EU integration and puts it in a deadlock no matter the outcome, increasing the urgency of the pursuit of change within the EU.

Despite a tentative recovery in the first quarter, doubts about sluggish overall growth in the EU still persist as the bloc remains baffled by weak inflation, a high unemployment rate and debts that continue to mount eight years after the outbreak of the financial crisis.

The economic woes have fanned trade protectionism within the bloc, with China being constantly targeted by anti-dumping and countervailing investigations.

Against this backdrop, it is indeed encouraging to see the release of the latest document on a new EU strategy for China relations, which includes the possibility of a free trade deal worth several billions of dollars between the two largest trading partners.

But it is certainly not enough for the EU to simply pin its hopes of elevating relations with China on a policy paper. The key to avoiding turning the bloc's vision for better relations with China into empty slogans is the EU finding its confidence again, and confidence in dealing with a stronger China will come from the bloc's commitment to reforming its own institutional system and improving governance.

The trade protectionism currently prevalent among EU members and the refusal to recognize China's market economy status in the name of pursuing narrowly defined national interests reflect some EU members' lack of confidence in dealing with and competing with a stronger China.

A closer relationship with China does not necessarily require either party to make concessions. In a multipolar world, China will be happier and more comfortable to engage with an EU that is confident in dealing with its own internal politics and advancing its own integration process.

An EU that sees retrograde integration is also likely to render China less confident in dealing with the EU. Given this fact, the EU's vision for a "closer, improved, and better-defined EU-China relationship" should not merely remain on paper but should also translate into real actions.

Most importantly, the EU should show greater courage and confidence in its own reform and shake off protectionism to embrace free trade to give its relations with China the substance they need.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn



Posted in: Eye on The Economy

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