China is the first non-EU country to invest in Europe’s €315 billion Plan

Jyrki Katainen, Vice-President of the European Commission in charge of Jobs, Growth, Investment and Competitiveness (on the left) went to Beijing and was received by the Chinese Premier of the State Council Li Keqiang (on the right). Katainen traveled to Beijing to participate in the EU/China High Level Economic and Trade Dialogue, together with Günther Oettinger, Member of the Commission in charge of Digital Economy and Society, and Violeta Bulc, Member of the EC in charge of Transport. Jyrki Katainen and Ma Kai, Chinese Vice-Premier, then gave a joint press conference. (EC Audiovisual Services, 28/09/2015, Location: Beijing – Zhongnanhai).

Jyrki Katainen, Vice-President of the European Commission in charge of Jobs, Growth, Investment and Competitiveness (on the left) went to Beijing and was received by the Chinese Premier of the State Council Li Keqiang (on the right). Katainen traveled to Beijing to participate in the EU/China High Level Economic and Trade Dialogue, together with Günther Oettinger, Member of the Commission in charge of Digital Economy and Society, and Violeta Bulc, Member of the EC in charge of Transport. Jyrki Katainen and Ma Kai, Chinese Vice-Premier, then gave a joint press conference. (EC Audiovisual Services, 28/09/2015, Location: Beijing – Zhongnanhai).

China is the first non-EU country to contribute to the Juncker Commission’s €315 billion Investment Plan. Until today only nine out of the 28 EU countries have announced their participation in this major project aimed at reviving the sluggish European economy. Beijing has not yet specified the amount to be invested in the Plan but it is expected to be in the regions of euro billion. The nine EU Member States which have to date confirmed their contribution are Germany (€8 billion), Spain (€1.5bn), France (€8bn), Italy (€8bn), Luxembourg (€80 million), Poland (€8bn), Slovakia (€400 million), Bulgaria (€100 million) and Britain (£6bn/ €8.5bn).

The announcement was made last Monday 28 September at the highest level by the Chinese Vice-Premier Ma Kai. The Chinese dignitary and the Commission Vice-President Jyrki Katainen participated at the High Level Economic and Trade Dialogue (HLM) in Beijing. On the same occasion the two sides signed a Memorandum of Understanding on the “EU-China Connectivity Platform to enhance synergies between China’s “One Belt One Road” initiative and the EU’s connectivity initiatives such as the Trans-European Transport Network policy”.

Addressing imbalances

The HLM is a Chinese initiative, and was agreed at the November 2007 Summit by the then EU Commission President José Manuel Barroso and the then Chinese Premier Wen Jiabao, in order to address the imbalance in trade flows between the EU and China. The Dialog procedure was conceived to examine strategic bilateral trade and investment related issues, innovation, technology and intellectual property and of course the broad EU-China economic cooperation.

The mechanism has functioned as a complement and reinforcement to the otherwise established EU-China dialogues. This is a time-honored bilateral trade and investment mechanism having been used successfully to promote and clarify related issues between the two sides. This time it will be used to connect three major sources of investment finance. It will comprise China’s Silk Road Fund, the Commission’s €315bn Plan and the European Investment Bank (EIB). A joint working group will be set up to boost cooperation between the EU and China on all aspects of investment.

Creating irrevocable ties

Obviously, the common aim is to interconnect the two major investment initiatives of EU and China, namely the €315bn Investment Plan and the Silk Road Fund. Reportedly, some major infrastructure projects can serve both sides and can be co-financed. That’s why EU and China agreed ‘to promote connectivity’ between their major initiatives, in order to facilitate the projects that can be financed and realized in common.

This was visible in the text of the Press release issued last Monday after the Dialog in Beijin. It says “the two sides agreed to set up a joint working group to increase cooperation between the EU and China on all aspects of investment. The working group will include experts from China’s Silk Road Fund, the Commission, and the European Investment Bank (EIB)”.

Planning also for the 5G

After Monday’s Dialog the EU-China cooperation in investment projects of common interest has been greatly enhanced. In Beijing, Vice-President Katainen was joined by Günther Oettinger, European Commissioner in charge of Digital Economy and Society, who concluded a new agreement on 5G. EU Commissioner for Transport Violeta Bulc also participated in the Beijing Dialog and held talks on transport infrastructure investment cooperation.

As things stand now the EU and China are clearly stating their willingness to interconnect their major infrastructure investment initiatives. The connectivity will be sought in both the financial aspect of the projects and their actual construction. The financial side will be served under China’s Silk Road Fund, EU’s €315 billion Investment Plan and the EIB. To this effect, Monday’s agreements have now linked their available financial schemes. On the actual construction facet the two sides have interconnected the platforms on which those major projects are to be realized. This last binding will be achieved by linking the ‘One Belt One Road’ initiative and the ‘Trans-European Transport Network’ policy.

Declaring their intentions in earnest

At first reading all the above mentioned initiatives and the grandiose projects to be undertaken in common are still in the sphere of wishful thinking. The truth is however that the two sides have both the financial resources and the expertise to plan and realize such giant infrastructure investment ventures. Now the EU and China state their willingness to realize the schemes in question and irrevocably bind two major economies of the world. Such a prospect even at the moment of its very first announcement as a declaration of intentions plays a key geostrategic role and comes at a moment when the political geography of the planet is redrawn.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

Ukraine takes EU money and runs to sign with Russia

The three sins the EU committed in 2015

Bank resolutions to remain a politically influenced affair

Eurozone: How can 200 banks find €400 billion?

Responsible Artificial Intelligence

Will Merkel ever steer the EU migration Titanic and restore her power in Germany?

A Sting Exclusive: EU Commission’s Vice President Šefčovič accentuates the importance of innovation to EU’s Energy Union

EU out to conquer African Union summit

Bundestag kick starts the next episode of the Greek tragedy

European Youth Forum and youngest MEPs call on President Juncker to keep his promise to Europe’s youth

It’s EU vs. Google for real: the time is now, the case is open

Refugee crisis update: EU fails to relocate immigrants from Greece and Italy

A Sting Exclusive: “Doing ourselves a favour”, Vice President Dombrovskis underscores that this time growth has to come from within the EU

The Swiss will pay dearly for voting out fellow Europeans

Vulnerable young people must not be blamed & stigmatised for violent radicalisation

COP21 Breaking News_10 December:#ParisAgreement: Points that remain in suspense

Light at the end of the Eurozone tunnel

Draghi tells the Parliament the ECB to use all its weaponry; euro slides to parity with the dollar

Four things Turkey did for business in the G20

The Commission tries to stop the ‘party’ with the structural funds

A shortened EU Summit admits failures, makes risky promises

The European Parliament double-checks the EU 2014-2020 budget

EU leads the torn away South Sudan to a new bloody civil war

Dutch voters reject EU-Ukraine partnership and open a new pandora’s box for the EU

Global Citizen-Volunteer Internships

Eurostat: Real unemployment double than the official rate

‘Two pack’ austerity package in force but with less vigor

Opening Remarks by H.E. Ambassador Yang Yanyi, Head of the Chinese Mission to the EU at the Chinese Fashion Night

The EU Consumer Policy on the Digital Market: A Behavioral Economics View

Drowning in the Mediterranean this summer? Many happy returns

Russia and the EU ‘trade’ natural gas supplies and commercial concessions in and out of Ukraine

MWC 2016 LIVE: Telenor CEO calls on operators to embrace Mobile Connect initiative

European Youth Forum welcomes establishment of new Youth Intergroup in the European Parliament

An Easter Special: Social protection of migrants in Europe as seen through the eyes of European youth

France fails again the exams. Kindly requested to sit in on Commission’s class

Brussels to tear down the trade wall with Mexico as opposed to Trump’s “walls”

Five-year low inflation for Eurozone and now Mario has to finally wake up the Germans

Greece lost a month that cannot be found neither in “mini Summits” nor in Berlin

EU Commission indifferent on Court of Auditors’ recommendations

Long live Eurozone’s bank supervisor down with the EU budget supremo

On Youth Participation: Are we active citizens?

Germany and OSCE support an east-west dialogue in Ukraine without exclusions

Scotland and First Minister Salmond enter the most challenging battlefield for independence: Europe

Banks suffocate the real economy by denying loans

The US repelled EU proposals on common rules for banks

IMF: Sorry Greece, Ireland, Portugal we were wrong!

Eurozone guarantees all banks with…taxpayers’ money

Greece did it again

Everybody against Japan over yen’s devaluation

EU finally agrees on target for 40% greenhouse emission cuts ahead of Paris climate talks

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s