China and Europe are two of the world's most ancient civilisations. They will be two of the most important international actors shaping the 21st century. Of the world population of 6.7 billion people, China accounts for 1.3 billion and the EU 0.5 billion. With India (1.1 billion) and the United States (0.3 billion) the four entities account for just under half of all mankind. The EU's single market is the largest economy in the world. China's economy is number three, but has been growing at a rate of some 10% a year. The US economy is second. China's largest trading partner is the EU. China, the United States and the EU together account for 55% of global emissions of carbon dioxide. The eastern hemisphere is growing faster in terms of economy, population and emissions than the west. As was shown at the Copenhagen climate change conference in 2009, the balance of global power is moving strongly eastwards and southwards. We are moving rapidly towards a multi-polar world, but with key players. Though it will not compete with the US in hard power, the EU aspires to be one of them. That was part of the rationale for the Lisbon Treaty. Without resolving its relationship with China, the EU cannot achieve its aims.

Inquiry conducted by Sub-committee C (Foreign Affairs, Defence and Development Policy)

Government and Commission responses Session 2009-10 : 4th report of Session 2010-11

As the European Union grapples with the sovereign debt crisis, other actors are observing its search for solutions. China, one of the EU's most important strategic partners, is watching developments in the eurozone and the EU with great interest. This essay gives an overview of China's perceptions of the EU and the protection of Chinese investments in Europe since the outbreak of the European sovereign debt crisis, especially since the more concrete talks in late 2011 on possible financial support from China. Although the top leadership of the communist party of China (CPC) changed in its recent--once-in-a-decade--handover, the perceptions described in this paper are likely to remain the same, just as the main tenets of China's foreign policy are unlikely to change in the near future. The essay argues that while the EU's image has suffered greatly from the sovereign debt crisis and the way it has been handled, there is room to improve China's view of Europe and for the EU to maintain a relatively strong negotiation position towards China.

Today, as China's influence in the world grows and as the European Union moves to strengthen its position in international affairs, it is all the more critical for U.S. policy leaders to take careful stock of China-Europe relations and their implications for U.S. interests. Europe-China relations have become increasingly regularized, institutionalized, and mutually beneficial, encompassing a broadening range of political, economic, military, scientific, technological, educational, and cultural ties. The China question has arisen as an area of potential transatlantic disagreement, especially over the arm embargo issue, but also on broader concerns of global order, multipolarity, balancing U.S. power, and economic competition. Given the political, economic and security-related importance of China and Europe to the United States, improving China-Europe relations pose important challenges and opportunities for U.S. interests. These developments may not only challenge the U.S. position vis-à-vis China and Europe; they also could contribute to an increasingly competitive, confrontational, and ultimately detrimental deterioration in traditionally strong transatlantic relations, while also further exacerbating persistent mistrust in U.S.-China ties. Were U.S.-Europe-China relations to deteriorate, Washington could lose out on the enormous strategic opportunities that would encourage positive political, economic, and security-related outcomes in China, which favor U.S., European, and Chinese interests over the longer term.

Any analysis of the current state of international affairs would require devoting a great deal of its efforts to the examination of the People’s Republic of China,its policies, its capabilities, its approaches, as well as its position regarding a wide range of issues. Not in vain, the People’s Republic of China is a rising power whose attitudes and policies will have a direct impact on the future development of the international system and the international relations within. Thus, the importance of the People’s Republic of China status as a permanent member of the United Nations Security Council, the impressive growth of both its GDP and its Defence Budget over the last few years and its relatively good performance through the global financial and economic crisis are all factors that might recommend to pay attention to the evolution of this country.