| Publication |
2008.
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| Summary/Abstract |
Europe-China relationships have gone from praise to disappointment, from talk about lifting the European arms embargo to worries about trade deficit, monetary undervaluation and investment. A strategic partnership has never been fully achieved. The relationship is important in some areas, such as trade and finance; in others, it remains lightweight. The European Union has become China's first market abroad, while China is moving rapidly to the position of first supplier. China needs to maintain access to the European market, while Europe struggles for a share of the Chinese market. Europe is not a major strategic actor in Asia-Pacific security issues, and has been thought to exercise a soft influence that would complement the Sino-American strategic relationship. European leverage is actually quite limited. The causes within the European institutional setup include complex policymaking at the European level and competition among national leaders, particularly those of France, Germany and the UK. The European market itself provides some leverage, limited by the fact that Chinese exports include many parts from other Asian producers. Europe should reinforce policy coordination and transatlantic dialogue, including economic issues; attract Chinese investment to balance trade; and forge ties with the fast-growing Asian democracies. Interdependence with a rising China is a common interest, but its terms should strengthen the rules and values of the international system.
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