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

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

An all-out fight for the EU budget

Germany to help China in trade disputes with Brussels

Novartis and Johnson & Johnson to deprive Europeans of their right to Health

Commission’s action plan: financial world mandatory links to environmental targets

European Business Summit 2014: The role of youth entrepreneurship education in EU’s Strategy for Competitiveness

Commission’s action against imports from China questioned

This is what countries are doing to fight plastic waste

Preparing the future today: World Health Organisation and young doctors

ITU Telecom World 2016: it’s all about working together

Global health challenges require global medical students

New VAT rules in the EU: how a digital sea could have become an ocean

Macro-Financial Assistance: Europe’s way to control Ukraine?

Can the banking union help Eurozone counter its imminent threats?

Why do medical students have to emigrate to become doctors in 2017?

Industrial producer prices on free fall and stagnant output

How smart tech helps cities fight terrorism and crime

Gender equality and medicine in the 21st century: an equity unachieved

Lessons from the Global Entrepreneurship Index

MEP Cristiana Muscardini @ European Business Summit 2014: International Trade in Europe

“One Belt One Road”: Its relevance to the European Companies


Re-thinking citizenship education: bringing young people back to the ballot box

European Commission determined to conclude EU-Mercosur trade deal this year despite French concerns

Eurozone: Even good statistics mean deeper recession

Do academia and banks favour a new Middle Ages period?

JADE Spring Meeting 2016 highlights

Juncker’s Investment Plan in desperate need for trust and funds from public and private investors

Eurozone: Bank resolution proposal gains wider interest

World Retail Congress Dubai 2016: Retail’s night of nights

EU unfolds strategy on the Egypt question

COP21 Breaking News: Conference of Youth Focuses on Hard Skills to Drive Greater Climate Action

Financial Transaction Tax: More money for future bank bailouts?

Are ECB’s €500 billion enough to revive Eurozone? Will the banks pass it to the real economy?

Has Germany rebuffed ECB on the banking union?

Pollinating insects: Commission proposes actions to stop their decline

A new proposal breaks the stalemate over the Banking Union

Global Citizen-Volunteer Internships

Will CETA be implemented after eight long years or it will be vetoed by the EU citizen?

The Peoples are missing from EU’s monetary union

GDPR and the World Cup have these 4 things in common

EU lawmakers vote to reintroduce visas for Americans over “reciprocity principle”

Russia and the West use the same tactics to dismember Ukraine

German opposition win in Lower Saxony felt all over Europe

The importance of exchanges for the medical students of the world

Greece returns to markets at a high cost to taxpayers, after four years out in the cold

A Sting Exclusive: “The Chinese economy is steady and moving in the right direction”, Ambassador Yang of the Chinese Mission to EU underscores from Brussels

Auditors say EU spending delivers limited value for money but the timing of their report poses questions

D-Day for Grexit is today and not Friday; Super Mario is likely to kill the Greek banks still today

EU plans to exploit the Mediterranean Sea and the wealth beneath it

How bad is the Eurozone economy? The ECB thinks too bad

A Brussels antithesis reveals where the EU is heading

Copyright: European Union , 2017; Source: EC - Audiovisual Service; Photo: Frank Molter

EU hits deadlock on the future of glyphosate a month before deadline

EU Commission: Once in every 20 beef meals you eat…horse probably with drugs in it

Investment, not debt, can kick-start an entrepreneurial Europe

From inconvenience to opportunity: the importance of international medical exchanges

Canada leading the way on women’s inclusion and empowerment, says OECD

EU-US resume trade negotiations under the spell of NSA surveillance

Trump stumbles badly on his Russian openings; Europeans wary of Putin

EU to pay a dear price if the next crisis catches Eurozone stagnant and deflationary; dire statistics from Eurostat

Ahead of State of the Union the European Youth Forum highlights lack of action on youth employment

A Sting Exclusive: “Youth voice must be heard in climate change negotiations!”, Bérénice Jond Board Member of European Youth Forum demands from Brussels

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 )

Google+ photo

You are commenting using your Google+ 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 )

w

Connecting to %s