A4-0198/97

Resolution on the Commission communication on a long term policy for China-Europe relations (COM(95)0279 - C4-0288/95)

The European Parliament,

- having regard to the Commission communication, COM(95)0279 - C4-0288/95,

- having regard to the Council Conclusions on this communication approved on 4 December 1995,

- having regard to the opinion of the Economic and Social Committee ((CES 327/97 of 19-20 March 1997.)),

- having regard to the discussions between its Delegation for relations with the People's Republic of China and the Delegation of the National People's Congress,

- having regard to its previous resolutions on China, Tibet, East Turkestan (Xinjiang), Taiwan, Hong Kong and Macao,

- having regard to its resolutions of 13 November 1996 on the World Trade Organization (WTO) ((OJ C 362, 2.12.1996, p. 152.)), 14 June 1995 on the communication from the Commission ¨Towards a new Asia Strategy' ((OJ C 166, 3.7.1995, p. 64.)), 9 February 1994 on relations between the European Union and the People's Republic of China ((OJ C 61, 28.2.1994, p. 71.)), 28 May 1993 on the inclusion of China and Taiwan in the General Agreement on Tariffs and Trade (GATT) ((OJ C 176, 28.6.1993, p. 221.)), and on GATT Membership for Taiwan ((OJ C 176, 28.6.1993, p. 224.)),

- having regard to the report of the Committee on Foreign Affairs, Security and Defence Policy and the opinion of the Committee on External Economic Relations (A4-0198/97),

A. whereas it is important for both the EU and China to have a cooperative rather than a confrontational relationship, developing mutual economic interests and encouraging China's fuller participation in dialogue based upon the principle of 'not just business as usual, but also politics as usual',

B. whereas the effects of developments in China over the long term either on its population of 1.2 billion, the EU or the world as a whole are unpredictable,

C. whereas the relationship with China must be based on the objectives of the common foreign and security policy as laid down in the Treaty on European Union, which include the development and consolidation of democracy and the rule of law, and respect for human rights and fundamental freedoms,

D. whereas this can in no way be interpreted as an act of interference in Chinese domestic affairs but rather as a positive action in support of universal values on which common international institutions have been founded,

E. whereas practically all government critics in China have been detained or jailed; whereas the human rights situation in general has shown no signs of improvement over the past years,

F. whereas the EU signed a five-year trade and cooperation agreement with the People's Republic of China in 1985 which has been tacitly renewed from year to year since 1990; whereas an arms embargo, still in force, and diplomatic isolation followed the brutal suppression of the democracy movement in 1989,

G. Noting the rapid rise in EU/China trade and also the limitations caused by China's fragmented internal trade, regional inequality, protectionism, arbitrary tolls and transit fees and poor communications infrastructure,

H. noting the results of the questionnaire of members of the Europe China Business Association 'Trading and Investing in China - China and the World Trade Organization' and its statement that 'China still has a long way to go to adopt commonly accepted practices of international trade, to open its markets, to allow foreign companies to operate freely and to create networks of distribution',

I. having regard to the experience of the European Union in creating a single market of 370 million people based on the harmonization of primarily commercial laws and standards, resulting in economic growth, its experience in assisting the adaptation to these standards of the former command economies of Central and Eastern Europe and the ex-Soviet Union, as well as the current development of a free trade area embracing 12 Mediterranean countries, resulting in an integrated market of some 700 million people,

J. whereas, because of the size of China, the manner in which China's economy develops will have a decisive impact not only on the environment in China itself but on the environment in the whole world and, hence, also in Europe; whereas if China were to reach Western levels of consumption and pollution this would require a more equitable sharing of the global environmental space which would give China more and the West, including the EU, less room for exploitation and pollution than today,

K. noting the political and economic guidelines which have, since 1978, transformed the internal and external position of China,

L. whereas China's impressive economic growth in recent years is creating a need for gradual political and institutional reform regulating in a more democratic way the fundamental rights and duties of both citizens and the machinery of government,

M. noting the reliance of China's rulers on the People's Liberation Army (PLA) in maintaining the political status quo; nevertheless recognizing that, through its pervasive financial, commercial and industrial operations, unique to China's 'socialist market economy', the PLA has also become an agent and beneficiary of economic transition; noting also that the PLA will, owing to its concentration of power, impede the transition to a market economy and democracy until it relinquishes that role,

N. noting with disquiet the increases in Chinese defence spending, with the establishment of a blue-water navy and the modernization of its nuclear forces, increases which have encouraged higher defence spending throughout the region and increased risks of conflict,

O. noting that in 1996 the Criminal Procedure Law and the Administrative Punishment Law were revised; noting however that these laws fall short of international fair trial standards and are partly countered by other laws promulgated since the late 1980s, including the Martial Law adopted in 1996, which criminalize a broad range of activities seen as a threat to the established political, economic and social order,

P. whereas widespread illegal practices by law enforcers, the lack of independence of the judiciary and the arbitrary application of law cause numerous human rights violations and although efforts are apparently being made to curb some of these practices, there is still serious cause for concern about the human rights situation in China,

Q. whereas, as a result of remaining legislation which conflicts with international standards and of the inadequate implementation of modernized laws, there are still serious and systematic human rights violations in China, with increasing and large-scale use of the death penalty even for minor crimes and with a large number of people detained for the peaceful expression of political or religious views, many in labour camps producing goods which may be exported to the EU, violating the provisions of the Generalized System of Preferences,

R. having regard to the continuing repression of ethnic and religious groups, and in particular the Tibetan, Uighur and Mongolian peoples, and the increasing colonization of their territories,

S. deploring strongly the fact that, contrary to the wish expressed in Parliament's resolution of 20 February 1997 on the 53rd session of the UN Commission on Human Rights (( OJ C 85, 17.3.1997, p. 143.)), the Council and Commission were unable to defend a joint position on the issue of serious human rights violations in China at the meeting of the UN Human Rights Commission in Geneva,

T. having regard to the award of its Sakharov Prize for freedom of expression for 1996 to Wei Jingsheng,

U. convinced that human rights tend to be better understood and better protected in societies open to the free flow of trade, investment, people and ideas,

V. whereas the Sino-British Joint Declaration of 1984 states that 'the provisions of the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights as applied to Hong Kong shall remain in force¨, with Article 39 of the Basic Law adding that they 'shall be implemented through the laws of the Hong Kong Special Administrative Region¨,

W. whereas the application of the same international covenants to Macao was negotiated and agreed in a Memorandum of Understanding in October 1992 between Portugal and China, which voiced no reservations whatsoever; whereas Article 40 of the Basic Law states that the provisions in question shall be implemented through the laws of the Macao Special Administrative Region,

X. whereas the trade and cooperation agreement between Macao and the EC contains a clause under which democratic principles and human rights are regarded as a prerequisite for cooperation,

I. Cooperation

1. Welcomes the Commission's communication; endorses its strategy and programme of activities in China including tackling poverty, the welfare of children, environmental and agricultural reform, business and cultural links and most particularly the development of civil society, democracy and the rule of law, and calls for the necessary financial and human resources to make them fully effective;

2. Recognizes the importance of promoting the People's Republic of China's full involvement in the system of international political, economic and commercial relations and calls for consideration to be given to holding regular summit meetings between the EU and China;

3. Invites the National People's Congress to join in a reconciliation based on the recognition of historic misunderstandings and to move forward to an agenda of shared experience for the fulfilment of the hopes and needs of the people of China and Europe;

4. Is convinced that better mutual understanding between Europe and the People's Republic of China also depends on closer interparliamentary relations; to this end, invites the National People's Congress and its interparliamentary delegation to step up its contacts and meetings in order to promote dialogue and exchanges of views;

5. Calls on the Council and Commission to enter into direct negotiations with the authorities of the People's Republic of China as soon as possible with a view to signature of a framework economic and trade cooperation agreement at a level that reflects the potential of relations between the European Union and the People's Republic of China; draws attention to the fact that in its external economic and trade relations the Union also attaches importance to human rights and the relevant human rights clause, which must include the possibility of suspending the agreement in the event of serious, widespread and persistent human rights violations;

6. Confirms its wish to see China as a full member of the World Trade Organization, on the basis of the conditions already set down;

7. Calls on the Commission and the Council Presidency, under Article J.7 of the EU Treaty, given the importance of China as a partner, to provide a six-monthly assessment of discussions with China following the human rights dialogue, of the state of mutual trade and China's compliance with international instruments, including steps towards WTO and OECD membership;

8. Insists on the need for the EU and its Member States to closely coordinate both their political and economic policies on China, in particular in the United Nations and other international organizations; underlines moreover the need to coordinate EU policy with the United States and Japan;

9. Considers that the role of non-governmental organizations should be developed to complement and support EU and other projects in China, and asks China to legislate on their right of establishment and allow the expansion of their efforts in the country;

10. Calls for the application on a wide scale of EU expertise in remedying environmental degradation resulting from industrial expansion and its consequent pollution, and calls for China's full support for international environmental initiatives;

11. Calls on the Commission and Member States to develop special programmes for environmental cooperation in order to shape the process of economic, and especially industrial, development in such a way that the environment - air, water and soil - is polluted to the minimum; in so doing, account should also be taken of special financial conditions (liabilities and guarantees) for environmental investments, such as the transfer of know-how and the development of environmentally-friendly model factories in sympathy with the local economy;

12. Considers that the EU should continue and expand its programmes of human resources development in China, including action in the field of legal cooperation such as the training of lawyers and judges and work in the field of trade and commercial law, and intensify its programme of educational and cultural exchanges;

13. Asks the Commission to establish training schemes for professional qualifications in areas where European standards provide a model of global validity, such as compliance with environmental norms, information technology, accountancy, law, insurance, banking and securities market skills;

14. Requests the Commission and the Member States to support the establishment in Beijing of an office representing the commercial interests of the EU, and urges the development of a code of conduct, covering economic and social aspects, for EU companies doing business in China;

15. Calls on the Commission to offer its expertise, together with that of the Member States and their relevant professional, commercial and labour organizations, in a task force to assist in the development of China's internal market, according to the principle of sustainable development;

16. Notes that the EU-supported China Europe International Business School in Shanghai has proved to be a highly successful venture which is strengthening business links between the EU and China;

17. Invites the National People's Congress gradually to undertake a programme of legislative reform compatible with the development of a market economy comprising the freedom of movement within China of persons, capital, goods and services, and providing specific guarantees for the rights and activities of foreign investors;

18. Endorses the principle of 'one country, two systems'; but urges China nevertheless to accept the stimulus which should be provided by Hong Kong's model of free trade and the rule of law;

19. Urges the introduction of constitutional democracy in China on the basis of universal principles including the rule of law, freedom of opinion, freedom of association, respect for and protection of privacy, integrity of the person, the right to a fair trial, the right to own, fructify and dispose of property of all kinds and the extension of full private property rights to agricultural holdings to ensure optimum investment and efficiency;

II. International issues

20. Is convinced of the need for the EU to take full advantage of its opportunities for fruitful dialogue with China, as in the ASEAN Regional Forum and ASEM (the Asia-Europe Meeting);

21. Welcomes China's adhesion to the Nuclear Non-Proliferation Treaty, the Comprehensive Test Ban Treaty and the Convention on Chemical Weapons;

22. Deplores the role played by China in the development of nuclear arms in Pakistan, and in other territories, and in the supply of chemical weapons and missiles to Iran;

23. Calls on China to cease its political, military and economic support for the Burmese military junta;

24. Welcomes the agreements between China and its neighbours regarding frontier disputes but notes with disquiet that the 'Strategic Alliance' with Russia may lead to unprecedented arms sales to China;

25. Sees no justification for the lifting of the EU arms embargo imposed on China in 1989 and calls on the Council to ascertain from Member States the extent to which it is being respected, and report thereon to the Parliament;

26. Calls on China to adopt a total ban on anti-personnel mines, and to take part in the Ottawa process aimed at speedily concluding an international treaty on this issue;

27. Welcomes the constructive role played by China in finding agreement on North Korea's nuclear programme and urges China, the United States, South Korea and North Korea to achieve a formal peace agreement; asks China to increase its pressure on North Korea to ensure that it undertakes political and economic reforms at a very early date since they alone can save it from the spiral of destitution in which it currently finds itself;

28. Calls on China, as a member of the UN Security Council, to have recourse to the mechanisms of the UN to resolve regional territorial and sovereignty questions;

III. Human rights

29. Welcomes the revision of certain laws, such as the Criminal Procedure Law and the Administrative Punishment Law, but considers them insufficient to establish full respect for human rights in China;

30. Calls on China to sign and ratify without reservations the International Covenant on Civil and Political Rights, and its two optional protocols, and the International Covenant on Economic, Social and Cultural Rights, and welcomes its stated intention to sign the latter;

31. Calls on China to abolish the death penalty, and to that end asks it to proclaim forthwith a moratorium on executions;

32. Considers that the twice-yearly human rights EU-China dialogue, established in 1995, should be maintained; requests that the Commission inform Parliament before each meeting of the issues to be discussed and afterwards on the outcome;

33. Calls on the Chinese Government to release all those imprisoned or otherwise detained for the peaceful expression of cultural, political or religious views;

34. Calls on the Chinese Government to allow Wei Jingsheng, the winner of the Sakharov Prize, to be received by the European Parliament;

35. Calls on the National People's Congress to repeal its laws that are incompatible with the development of a genuine state governed by the rule of law that respects individual rights, and urges it to reform new provisions on 'endangering state security' to bring them into conformity with international standards, as well as to repeal laws on state security and state secrets, and to ensure protection against arbitrary detention, unfair trial and torture;

36. Calls on the Chinese Government to set up an independent review commission to assess the cases of some 2,700 persons convicted under the laws on 'counterrevolution', now repealed;

37. Calls on China to follow international practice in allowing humanitarian organizations regular and confidential access to those held in prisons, detention centres and labour camps and to guarantee adequate medical care for all detainees;

38. Calls on China to expand cooperation with international human rights mechanisms, especially the UN special rapporteurs, and to allow regular access to Tibet, East Turkestan (Xinjiang) and Inner Mongolia by foreign observers;

39. Condemns China's occupation of Tibet and calls on the Chinese Government to accept the Dalai Lama's proposal which, without raising independence as a preliminary issue, calls for the resumption of negotiations on the basis of recognition of the cultural and religious autonomy of the Tibetan people and its right to self-government;

40. Welcomes the open invitation given to members of European Parliament by representatives of the National People's Congress to visit Tibet and 'see for themselves¨;

41. Calls on the authorities of the People's Republic of China to open a political dialogue with all interested parties which will enable the conditions to be created for a peaceful resolution of the problems in East Turkestan (Xinjiang) and Inner Mongolia;

42. Calls for an improvement of China's labour standards with a phased achievement of international norms, partly in consultation with independent trade unions to be established, possibly linked to membership of the OECD, and, in particular, for EU and other non-Chinese partners in joint ventures to fulfil the international standards for working conditions;

43. Calls on the Commission to open investigations into forced labour and prison labour in China, pursuant to Articles 9, 10 and 11 of Council Regulations on the Generalized System of Preferences, No 3281/94 and 1256/96;

44. Condemns the reaction to the sponsors of a resolution in the UN Human Rights sub-committee in 1997 critical of China's record and asks other Member states to show solidarity with Denmark, Ireland and the Netherlands, which have been threatened with sanctions by the Chinese Government;

IV. Hong Kong, Macao and Taiwan

45. Considers that the future of Hong Kong and Macao and the maintenance of their political, social and economic freedom is a matter of determining importance for the EU, having regard to the Sino-British Declaration of 1984 and the Sino- Portuguese Declaration of 1987;

46. Recalls the undertaking given in the Sino-British Declaration that 'the Hong Kong Special Administrative Region will enjoy a high degree of autonomy, except in foreign and defence affairs¨ for a period of 50 years;

47. Notes that Article 14 of the Basic Law of the Hong Kong Special Administrative Region states that 'military forces stationed by the Central People's Government in the Hong Kong Special Administrative Region for defence shall not interfere in the local affairs of the Region¨;

48. Notes that, under Article 14 of the Basic Law of Macao, the central government is responsible for defence, which does not entail the stationing of troops, as the Government of the Macao Special Administrative Region is responsible for maintaining law and order;

49. Welcomes the Chinese Government's undertaking not to seek to introduce the death penalty in Hong Kong or Macao;

50. Insists on the full implementation of bilateral agreements on Hong Kong and Macao;

51. Condemns the Chinese Government's decision to dissolve Hong Kong's elected Legislative Council, and repudiates the legitimacy of the Provisional Legislative Council;

52. Notes the assurance given by the Chinese minister responsible for Hong Kong and Macao, Lu Ping, in the European Parliament, that there will be free, multi- party elections in Hong Kong during the first part of 1998 with no restrictions on the participation of any political party;

53. Highlights the provision in the Macao Basic Law for the Legislative Assembly, which has been elected by majority voting by direct and indirect suffrage since 1976, to remain in office as the first assembly after the transfer of sovereignty, and notes the undertakings given by the Chinese authorities in this connection;

54. Regrets the decision of the Standing Committee of the National People's Congress to introduce laws restricting freedom of assembly and limiting political freedoms and to repeal parts of the Hong Kong Bill of Rights Ordinance 1991, in contravention of the Basic Law;

55. Voices serious concern at the anti-democratic nature of China's legislation on security and at the provision banning political associations and organizations from having international links which, under Article 23 of its Basic Law, the Macao Special Administrative Region must draw up following the transfer of sovereignty;

56. Resolves to monitor closely the situation in Hong Kong and Macao, given the international importance involved, after the handovers, and in particular the following points:

- independence of the judiciary,

- rapid progress to elect the first Legislative Council of the Hong Kong Special Administrative Region,

- continuation of the elected Legislative Assembly of Macao and the reinforcement of its democratic character,

- continuation of the practice of making regular and timely reports under the International Covenant on Civil and Political Rights and under the International Covenant for Economic, Social and Cultural Rights to the relevant UN bodies,

- preservation of and compliance with the current rules on freedom of speech, freedom of the press, the right of assembly, the right to demonstrate and freedom for political parties and associations to operate internally and externally,

- guaranteed freedom of action for humanitarian and human rights organizations,

- a ban on the death penalty and on extradition to countries which impose the death penalty or life imprisonment,

- no discrimination among residents on grounds of nationality, ethnic origin, language or any other factor,

- continuation of an independent civil service appointed on merit,

- completion of the process of enshrining in local Macao law the Portuguese legal system and the international conventions and regulations in force in the Territory, and its translation into Chinese,

- independence of the Macao judicial system and training and completion of a local staff of judges, public prosecutors and civil servants with a knowledge of Chinese and Portuguese;

57. Calls on the Commission to produce an annual report covering political and economic developments in Hong Kong and Macao, and welcomes its Declaration on Hong Kong of April 1997;

58. Resolves to liaise closely with the United States Congress, further to the 1992 US Hong Kong Act, and urges the Commission to coordinate its external trade policy with the US Administration in the light of developments in Hong Kong;

59. Calls on Member States to admit with the right of permanent residence those at risk from political discrimination in Hong Kong;

60. Notes the commitment of Beijing and Taipei to eventual reunification but also declares that pressing this at present would lead to conflict;

61. Urges China to develop peaceful relations with the 22 million inhabitants of Taiwan so as to promote stability in the region and calls on it to give a public undertaking that it will not under any circumstances resort to force in its disputes with Taiwan;

62. Calls on the Council to exert pressure on the People's Republic of China so that it acknowledges Taiwan's need to achieve better representation within international organizations in the fields of human and labour rights, economic affairs, the environment and development cooperation;

63. Requests the Commission to open an information office in Taipei in line with Parliament's resolution;

64. Instructs its President to forward this resolution to the Council, the Commission, the governments of the Member States, the Government of the People's Republic of China and the Chinese National People's Congress.