New EU policy paper on China relations published

The first policy paper on EU-China relations adopted by the current European Commission was unveiled last Tuesday in Strasbourg, France.

The 10-page document entitled "EU-China: Closer partners, growing responsibilities," deals with the importance of improving bilateral relations and acknowledges China's emergence as a major power in the last decade. The paper noted that China has become the world's fourth largest economy and 3rd largest exporter.

According to the document, the EU's fundamental approach "must remain one of engagement and partnership." The paper also noted the importance of forming a dynamic relationship with China to tackle key challenges, such as migration, that the continent

A strategic partnership between China and EU was formed in 2003.

The paper characterized bilateral relations between the EU and China as "mature" and mutually beneficial. It said that while differences remain, these are being managed effectively and the relationship is becoming more "realistic."

The paper also mentioned that "China is the single most important challenge for EU trade policy." Trade between the EU and China have doubled between 2000 and 2005. Europe is also China's top export market, while China is Europe's biggest source of imports. The trade deficit, the EU policy paper said, has raised serious challenges for European manufacturers in some sectors.

In related news, Yahoo! reports that the European Commission Trade Commissioner Peter Mandelson warned that China could face a "political backlash" if China did not play by the rules of international trade.

Mandelson said that the EU wanted China to fulfill its obligations under the World Trade Organization (WTO), to continue to open its market and liberalise trade in services and investment. He also said that the European Commission will charge China at the WTO if future disputes could not be resolved through dialogue.