Europe eyes to replace US as China’s prime foreign partner

Last Tuesday in Washington United States Secretary of State Rex Tillerson (on the right) met with Chinese State Councilor Yang Jiechi, the top diplomat of his country. (Date: 28/2/2017. State Dept Image).

Last Tuesday in Washington United States Secretary of State Rex Tillerson (on the right) met with Chinese State Councilor Yang Jiechi, the top diplomat of his country. (Date: 28/2/2017. State Dept Image).

Last Tuesday, Rex Tillerson, the US Secretary of State, received in Washington the top Chinese diplomat Yang Jiechi , in an effort to establish a “regular high-level engagement” with China, after President Donald Trump has practically destroyed the until recently multiple channels of problem solving and interaction between the two super powers. Obviously, Tillerson felt he had to urgently invite State Councilor Yang to the US to sort out the mess between the two countries.

Reportedly, the American administration, but probably not their boss, are alarmed by the new free trade and otherwise cooperation openings the European Union is currently offering to China. No question that Europe is eager to replace, at least partially, the US as prime economic, financial and investment partner of the still super fast growing and most populous country of the world.

Brussels calls Beijing

It is very characteristic in this respect that Reuters, the prestigious news agency, published a telling story about the swift action of the European Commission, in her efforts to secure Beijing’s fullest possible cooperation in their bilateral relations. The Reuters report says that, “The European Union is preparing an early summit with China in April or May in Brussels, to promote free trade and international cooperation in the face of a more protectionist and inward-looking Washington, three EU officials said”.

On many occasions, the German Chancellor Angela Merkel and other important German decision makers have openly said or left to be understood that their country is eager of filling the gap the Americans are leaving in China in particular and South East Asia in general. Outspoken German Vice Chancellor, Sigmar Gabriel, until recently leader of the Socialist Party, said that Germany has to put together an economic plan to charm the Asians “should the new U.S. administration start a trade war with China”. Gabriel said that on 20 January, only hours after Donald Trump took the oath as the 45ht American President.
Germany is ready

However, Germany is a pivotal member state of the European Union and no country of the club is allowed to conduct her own foreign trade policy. So, it will be Brussels and the European Commission to undertake the task of opening new highways in the trade and financial relations between Europe and China.

Incidentally, last Monday, Cecilia Malstrӧm the Swedish EU Commissioner for Trade speaking at an EU-China relations forum in Brussels, said: “If others around the world want to use trade as a weapon, I want to use it as a tonic, a vital ingredient for prosperity and progress.” Of course, she didn’t explicitly referr to Donald Trunp’s threats about imposing extra tariffs on Chinese imports, but it was clear that she was backing China in the battle against Trump’s protectionism. She went even further and remembered that last January in Davos, the Chinese President Xi Jinping said that, his country is now the leader of the globalized world. She also offered her full backing to Xi’s conclusion, that the big global problems can only be solved with multilateral cooperation, not with threats of a trade war.

What is the EU ready to trade?

However, this tide of cooperation proposals emanating from Brussels and directed towards Beijing is not without problems. For years now, the European Commission has been punishing the Chinese exports of steel and steel products with extra duties, on the base of alleged dumping pricing or state subsidies to exporters. In reality, the European Union is not ready to open its internal market to China, and Malstrӧm clarified that “many barriers and irritants” are present in the economic relations between the two sides. Finally in her speech mentioned above, she added that trade between the EU and China is all but balanced.

Undoubtedly, Europe is eager to take advantage from the emerging clash between China and US. This doesn’t mean though that Brussels is ready to pay an unduly price for any Chinese concession. The opposite is rather true. The EU counts to profit from the conflict of other two. In any case, Europe will remain firm in protecting its internal market. Possibly then, some of those questions will be clarified in the forthcoming spring EU-China summit. The main target, though, of this summit is that, both sides want to appear defiant vis-à-vis Donald Trump’s threats about unleashing a trade war. China and Europe have both made clear at the highest level, that they will duly and immediately retaliate.

According to Washington’s progressively greater clarification, whether, during the coming weeks, Trump’s trade war threats are to shape official policies or, on the contrary, policy is to take a different turn, the EU-China summit will produce diametrically different results. Despite all that, the EU and the US are still together in blocking China’s efforts in the World Trade Organization to be recognized as ‘a market economy’, an issue of paramount importance in world trade. No surprises, then, if the  US-China-EU triangle continues to be shaped under the same world geometry, as was the case during the past many years.

 

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

Trump systematically upsets global order and trade: Where does this end?

Europe moulds global defense and security chart given US new inward vision

JADE Spring Meeting 2017– day 1: Excellence awards, panel discussion, keynote speeches

Trade deals’ pure realism: it may take 10 years for a post-Brexit agreement

Israel @ MWC14: Israel The Start App Nation

Germany rules the banking industry of Eurozone

Social Committee teaches Van Rompuy a lesson

Five cities short-listed to become the European Youth Capital 2017

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

IMF: Sorry Greece it was a mistake of 11% of your GDP

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

MWC 2016 LIVE: Ingenu steps up efforts to build LPWA networks across the globe

EU Summit’s major takeaway: a handkerchief cannot save Greece from austerity

Jade Spring Meeting 2017 – day 2: Coporate workshops, general assembly and magna moment

Young people are Europe’s biggest value and hope

Industrial price dive may lead to point of no return

The European Parliament x-rays the troika’s doings

How can entrepreneurship tackle the migration crisis in the EU?

Preparing for developing countries the ‘Greek cure’

The 28 EU leaders don’t touch the thorny issues

Dreaming of China

Can the US deal a blow to EU and Russia together over Ukraine?

The EU Commission predicts a decimated growth in the next years

EU: Divided they stand on immigration and Trump hurricanes

Internet of Things: a Force for Good or Evil?

A Sting Exclusive: “Leading by example! EU must push for UN deal to avoid dangerous climate change”, European Parliament Vice-President Ulrike Lunacek cries out from Brussels

G20 LIVE: G20 Leaders’ Communiqué Antalya Summit, 15-16 November 2015

EU Youth Conference in Riga concludes with recommendations for ministers

Why the ECB suddenly decided to flood banks with money?

Did Draghi ask the Germans to accept a drastic change of austerity policies?

IMF’s Lagarde to Peoples of the world: You have to work more for the banks!

South Eurozone countries threatened by rising borrowing cost and expensive euro

More taxpayers’ money for the banks

Eurozone: Uncertain future with unemployment ravaging the South

London to say hello or goodbye to Brussels this week

Facts and prejudices about work

18th EU Eco-Innovation Forum in Barcelona shows the way for Europe’s new Environmental policy

Towards a seamless internal EU market for industrial goods

Europe’s richest regions actively seek investment from China’s biggest banks

Theresa May in search of a magic plan to invoke Article 50 and start Brexit negotiations now

WEF Davos 2016 LIVE: “European unity and cooperation is being called on question”, Vice President Joe Biden criticizes from Davos

Brussels enraged with Swiss referendum result to keep out EU citizens

“Access denied”: the Greek health system under pressure

Can the world take the risk of a new financial armageddon so that IMF doesn’t lose face towards Tsipras?

Refugee crisis update: Commission still in panic while Turkey is to be added in the equation

What lessons to draw from the destruction of Syria

Teamgum @ TheNextWeb 2014

Draghi cuts the Gordian knot of the Banking Union

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

MasterCard @ MWC14: Innovation in times of regulatory uncertainty

Infinite Oath

In China things are moving in the right direction

Ukraine turns again to the EU for more money

COP21 Breaking News_09 December: List of Recent Climate Funding Announcements

Dealing with stress among healthcare professionals: are we missing the elephant in the room?

Elections in Europe: No risks for the EU, leaders readying to face Trump-Brexit

Investing in working conditions and quality jobs

EU-China relations under investigation?

A Sting Exclusive: “There can be no global deal on emissions without China and the USA”, Conservative MEP Ian Duncan stresses from Brussels

Sustainable Development Goals: making the world a better place

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