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

Advertising

Advertising

Advertising

Featured Stings

Europe provides financial support to African countries while Turkey denies to change terrorism laws jeopardising the EU deal

“Be aware where you put your I Agree signature on and something else”; now Facebook by default opts you in an unseen private data bazar

Ukrainian civil war: Is this the beginning of the end or the end of the beginning?

Will the French let Macron destroy their party political system?

MWC 2016 LIVE: Stripe gives payments leg-up to startups in emerging markets

Zhua Zhou: Choosing The Future

Merkel’s triumph will make Berlin more unbending

“Hasta la vista” Google says to Spain and now Europe is next?

Alexis Tsipras ready to test Eurozone’s political sturdiness; Up to what point?

Press coverage of migration crisis in Europe: a call for collaborative action

G20 LIVE: The European Sting covers online world news and the latest developments at G20 from Antalya Turkey

Mario Draghi didn’t do it but Kim Jong-un did

The EU Commission by serving the banks offers poor support to European mainstream political parties

What options the new President of Ukraine has?

EU Parliament says ‘no’ to austerity budget

Parliament toughens its position on banking union

Alexandre in Czech Republic

EU Commission: a rise in wages and salaries may help create more jobs

American negotiators can’t pay for their trip to Brussels, EU-US trade agreement freezes

The European Commission cuts roaming charges. But “it’s not enough”…

Can one FTA and 110 lobby meetings make the dirty oil clean in Europe?

A day that Berlin and Brussels would remember for a long time

Who is responsible for public health? The tendencies and its benefits –or not– on Health Education around the world

China’s stock markets show recovery signs while EU is closely watching in anticipation of the €10bn investment

Europe must regain its place as world leader in digital technology

EU: Protecting victims’ rights from cartels and market abuses

Not much of a help the new EU Directive on pensions

Merry Christmas from Erdogan, Putin, Mogherini and the Polish firefighter

Quality Education on the table at the European Parliament

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

Global Citizen-Volunteer Internships

The Franco-German axis considers that all EU needs now is more armaments

Eurozone dignitaries play with people’s life savings

Access to healthcare: what do we lack?

Advocate General ‘outlaws’ Data Retention Directive

The EU slowly exits from “Excessive Deficit Procedure” and hopefully from ‘Excessive Austerity Procedure’ too

The MWC14 Sting Special Edition

Catalan Pro-Independence vote: how many hits can Brussels sustain at the same time?

Lithuania should find its own way in the EU

IFMSA and IPSF on the Health of Migrants and Refugees

EU’s Mogherini visits Turkey “to step up engagement” and highlight interests

EU Parliament: It takes real banks to fight unemployment and recession

What the US and the world can expect from the 8 November election?

Hardened creditors drive Greece to dire straits; Tsipras desperate for an agreement

Let’s Learn

Only the Americans are unhappy with the ceasefire agreement in eastern Ukraine

Landmark EU Parliament – ECB agreement on bank supervision

A young student discusses the determinants of migration in the European Union

Breaking news on European Youth Employment: European Youth Forum Guide tackles poor quality internships!

Can China deal with climate change without the U.S.?

Solitary Britain sides with US aggressing Russia and chooses hard Brexit

A Year in China

The Banking Union divides deeply the European Union

EU threatens Japan to suspend FTA negotiations if…

The EU Parliament endorses tax on financial transactions

France and Poland to block David Cameron’s plans on immigration

How to provide health education and thus create better health systems

ECOFIN: Protecting bankers and tax-evaders

Bureaucracy in the member states again the obstacle for long due strong European Hedge Funds

Why France, Italy and the US press Germany to accept a cheaper euro and pay for Greece

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