JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Elements for a new EU strategy on China
Date: 2016-06-22
Institutions: European Commission, European External Action Service
Subjects: China, EU programme, EU relations, cooperation policy, economic situation, foreign policy, international human rights law

EN 

   EN 

   EUROPEAN COMMISSION HIGH REPRESENTATIVE OF THE UNION FOR FOREIGN AFFAIRS AND SECURITY POLICY Brussels, 22.6.2016  JOIN(2016) 30 final   JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Elements for a new EU strategy on China  
 
 
I. INTRODUCTION  

I.1 Executive summary 

This Joint Communication proposes elements for a new EU strategy on China. It is intended 
to  constitute  the  China  dimension  of  implementing  the  Juncker  Commission's  political 
guidelines, contributing to the jobs, growth and investment agenda and to reinforcing the EU 
as a global actor. It dovetails with the European Commission's "Trade for All" Strategy and 
takes into account the views of the European Parliament in its December 2015 report on the 
EU's  relations  with  China,  aiming  to  set  out  a  policy  framework  for  EU  engagement  with 
China for the next five years. 
The EU and China are two of the three largest economies and traders in the world1. Both have 
changed  considerably  since  the  Commission's  previous  Communication  on  China  a  decade 
ago2. The rise of China has happened with unprecedented scale and speed. Not only is China 
different  internally  than  it  was  before  the  current  leadership  took  over  in  2013,  but  China's 
increased weight and a renewed emphasis on "going global" mean that it is seeking a bigger 
role and exerting greater influence on an evolving system of global governance. 

The EU-China 2020 Strategic Agenda for Cooperation fulfils an important role as the highest-
level joint document guiding the EU-China Comprehensive Strategic Partnership.  But the EU 
needs  its  own  strategy,  one  which  puts  its  own  interests  at  the  forefront  in  the  new 
relationship;  which  promotes  universal  values;  which  recognises  the  need  for  and  helps  to 
define  an  increased  role  for  China  in  the  international  system;  and  is  based  on  a  positive 
agenda of partnership coupled with the constructive management of differences. 

This Communication proposes that the EU should: 

  Seize new openings to strengthen its relations with China. 

  Engage  China  in  its  reform  process  in  practical  ways  which  result  in mutual  benefits  for 
our relations in economic, trade and investment, social, environmental and other areas. 

  Promote  reciprocity,  a  level  playing  field  and  fair  competition  across  all  areas  of  co-

operation. 

  Push  for  the  timely  completion  of  negotiations  on  a  Comprehensive  Agreement  on 

Investment and an ambitious approach to opening up new market opportunities. 

  Drive  forward  infrastructure,  trading,  digital  and  people-to-people  connectivity  between 
Europe and China based on an open rules-based platform with benefits for all the countries 
along the proposed routes. 

  Promote  global  public  goods,  sustainable  development  and  international  security  in  line 

with our respective UN and G20 responsibilities. 

1 According to the World Bank, in 2014 the EU-28 accounted for 22.6 %, the US 22.3 % and China 13.3% (in 
total  58.2%)  of  global  GDP  measured  at  market  exchange  rates.  In  purchasing  power  parity  terms  the  EU 
accounted for 17.1% of global GDP in 2014, the US 15.9%, and China 16.6% (IMF World Economic Outlook, 
April 2016). According to Eurostat, in 2014 the EU-28 accounted for 15.5% of world imports and exports, the 
United States 16.6%, and China 13.5%, making together 45.6% of world trade. 
2  European  Commission  Communication  of  October  2006:  "EU-China:  closer  partners,  growing 
responsibilities". 

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  Promote respect for the rule of law and human rights within China and internationally. 

  Maximise EU cohesion and effectiveness in its dealings with China. 

I.2 The China context 

China  is  at  a  critical  juncture.  It  has  declared  its  old  economic  and  social  model  to  be 
"unsustainable", and aims to shift to a more balanced pattern of development which requires a 
strengthening of the institutional basis  required for a market-led economy. This transition is 
complex  and  may  not  always  be  smooth.  Moreover,  economic  reform  has  to  take  place 
against  the  background  of  competing  political  and  economic  interests.  At  the  same  time, 
stable  economic  growth  and  employment  creation  are  important  for  domestic  political 
legitimacy. China is witnessing rapid ageing of the population and rising regional and socio-
economic disparities which create domestic tensions. 

Internal  change  in  China  has  external  impact.  Economically  and  financially,  in  trade  and 
investment  flows,  strategically,  increasingly  militarily  and  in  other  areas,  China  is  seeking 
space and a voice. As a consequence, the decisions China makes about its political, economic 
and social development matter to the EU more than ever. 

The EU will have to deal with a number of emerging trends: 

  China's policy of "going global" is accelerating. Its companies are being encouraged to 
trade, invest abroad, and find resources as never before. China's growing connection to 
global capital markets can generate benefits for all, provided that the right framework 
conditions are in place. 

  China's growing global influence and interests  lead to a corresponding demand for a 
greater  say  in  global  economic  governance.    In  international  relations,  China  is  also 
engaging  more  (e.g.  on  development,  climate  action,  and  international  security 
hotspots). In its region, it is becoming more assertive. 

  China  is  facing  a  structural  economic  slowdown  that  will  generate  challenges  and 
opportunities both  within and outside China. China's  transition to  a  more sustainable 
pattern of development is complex and may lead to bouts of turbulence within China 
and more widely. 

  The  latest  Five  Year  Plan  is  designed  to  accelerate  economic,  social  and 
environmental  re-balancing  and  a  shift  to  consumption-driven  growth,  as  well  as 
continuing rule of law reform and anti-corruption efforts. 

  There  has  been  a  lack  of  progress  in  giving  the  market  a  more  decisive  role  in  the 
economy  in  the  key  areas  of  concern  to  the  EU.  Recent  legislative  initiatives  have 
introduced  new  restrictions  on  foreign  operators  in  China,  which  go  against  market 
opening  and  the  principles  of  equal  treatment  and  a  level  playing  field.  They  also 
deprive China of the best solutions to enhance economic activity.   

  At  the  same  time,  China's  authoritarian  response  to  domestic  dissent  is  undermining 
efforts to establish the rule of law and to put the rights of the individual on a sounder 
footing.  

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II. PRINCIPLES OF ENGAGEMENT 

Given  the  rapid  pace  of  change  in  the  EU  and  China  over  the  past  decade,  it  is  time  to  re-
assess and reaffirm the principles underlying the relationship. 

The EU expects its relationship with China to be one of reciprocal benefit in both political 
and  economic  terms.  There  should  be  genuine  implementation  of  the  Chinese  slogan  "win-
win  co-operation".  The  EU  also  expects  China  to  assume  responsibilities  in  line  with  the 
benefits it draws from the rules-based international order. 

The  EU  must  project  a  strong,  clear  and  unified  voice  in  its  approach  to  China.  When 
Member States conduct their bilateral relations with China – whether one-on-one or as groups 
of countries such as the 16+1 format – they should cooperate with the Commission, the EEAS 
and other Member States to help ensure that aspects relevant to the EU are in line with EU 
law, rules and policies, and that the overall outcome is beneficial for the EU as a whole. 

The EU's external action is governed by the principles which have inspired its own creation: 
democracy, the rule of law, human rights and respect for the principles of the UN Charter and 
international  law.  These  principles  are  reflected  in  the  Chinese  constitution  and  in  the 
international instruments that China has signed. The protection of human rights will continue 
to  be  a  core  part  of  the  EU's  engagement  with  China.  The  EU  believes  that  treating  human 
beings  with  dignity  and  respect  is  essential  if  citizens  are  to  fulfil  themselves  and  flourish 
creatively, and is good for the stability and security of Chinese society and the world order.  

China's  crackdown  on  defence  lawyers,  labour  rights  advocates,  publishers,  journalists  and 
others  for  the  peaceful  exercise  of  their  rights,  with  a  new  and  worrying  extraterritorial 
dimension, calls into question China's stated commitment to the rule of law and its respect for 
international obligations. The recent adoption of a number of restrictive national security laws 
and regulations is also a matter of concern. The EU is particularly worried that China’s newly 
promulgated  Law  on  the  Management  of  Foreign  Non-Governmental  Organisations’ 
Activities could hamper the development of civil society in China and have a negative impact 
on people-to-people exchanges between the EU and China. 

The EU and  its Member States will continue to work with China and its people to promote 
human rights and to foster the rule of law, civil society, political accountability and freedom 
of  expression,  association  and  religion.  This  will  require  the  full  range  of  diplomatic, 
advocacy and other tools at both bilateral and multilateral level. The EU should also continue 
to  urge  China  to  release  political  prisoners,  ensure  fair  trial,  and  fulfil  its  international 
commitments in terms of protecting the rights of people belonging to minorities, not least in 
Tibet and Xinjiang. 

The EU confirms its "One China" policy.  

The  EU  commits  itself  to  maintaining  its  strong  links  with  Hong  Kong  and  Macao  and  to 
promoting respect for the Basic Law and the "One Country, Two Systems" principle.  

The EU confirms its commitment to continuing to develop its relations with  Taiwan and to 
supporting the shared values underpinning its system of governance. The EU should continue 
to support the constructive development of cross-Strait relations as part of keeping the Asia-
Pacific  region  at  peace.  Accordingly,  the  EU  will  use  every  available  channel  to  encourage 
initiatives  aimed  at  promoting  dialogue,  co-operation  and  confidence-building  between  the 
two sides of the Taiwan Strait. The EU should promote practical solutions regarding Taiwan's 
participation  in  international  frameworks,  wherever  this  is  consistent  with  the  EU's  "One 
China" policy and the EU's policy objectives. 

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EU policy-making on China should take place in the context of a broad and rounded policy 
approach to the Asia-Pacific region, taking full advantage and full account of the EU's close 
relationships with partners such as Japan, Korea, the ASEAN countries, Australia and others. 
Above all, given the fundamental importance of transatlantic links, EU-US co-operation and 
co-ordination in this regard should be reinforced.  

  The fundamental principle of the EU's relationship with China is that it should be based on 

reciprocal benefit in both political and economic terms. 

  The  EU's  engagement  with  China  should  be  principled,  practical  and  pragmatic,  staying 
true  to  its  interests  and  values.  It  will  continue  to  be  based  on  a  positive  agenda  of 
partnership coupled with the constructive management of differences. 

  EU Member States' engagement with China must comply with EU laws, rules and policies. 

  The EU expects China to assume responsibilities in line with the benefits it draws from the 

rules-based international order. 

  The promotion of human rights will continue to be a core part of the EU's engagement with 
China, with the well-being of citizens and respect for international obligations at the centre 
of its approach. The EU will hold China to account for its human rights record.  

  The EU confirms its "One China" policy. 

  The  EU  should  continue  to  develop  its  relations  with  Taiwan  and  to  support  the 

constructive development of cross-Strait relations. 

  The EU should support the continued implementation of "One Country, Two Systems" in 

Hong Kong and Macao. 

  EU policy-making on China should take full account of the EU's close relationships with 

the US and other partners.  

III. 

THE PROSPERITY AND REFORM AGENDA 

At China's Party Plenum in 2013, President Xi Jinping announced a comprehensive reform of 
China's economic and social model by 2020. These longer term objectives have run up against 
short term worries over GDP growth, employment and stability, slowing the pace of reform, 
possibly  to  the  detriment  of  longer  term  economic  health.  Chinese  priorities  create 
opportunities for the EU, for example greater potential for co-operation and exports in priority 
fields such as the environment and service industries.  Yet "opening up" is focussed more on 
helping  Chinese  companies  go  abroad  than  improving  access  to  China's  market.  There  are 
also challenges, for example intensified direct competition in some sectors or in third country 
markets  where  China  hopes  to  establish  its  State-owned  Enterprises  (SOEs)  as  global 
champions.  The  EU  wants  a  China  which  is  economically  more  open  and  stable,  with 
significantly  improved  market  access  for  foreign  companies  as  well  as  a  level  playing  field 
and  fair  competition  for  business  and  investment,  benchmarked  at  the  level  of  openness 
provided for all companies operating in the EU market. 

III.1 The EU as a partner in China's reforms 

The  EU's  prosperity  is  linked  to  sustainable  growth  in  China.  The  EU  therefore  has  a 
significant  stake  in  the  success  of  China's  economic  and  governance  reforms.  As  China's 
biggest trading partner, representing about 15% of China's trade, and an attractive and secure 
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destination for its outward direct investment, China needs the EU as much as the EU needs 
China. 

China  is  managing  a  difficult  structural  transition  towards  a  lower  but  more  sustainable 
growth rate. This adjustment is essential to China's long term growth prospects but may itself 
generate short term volatility and risks. China has made significant strides in areas such as tax 
reform, broadening social security coverage, and reform of financial markets. In other areas, 
such as reform of the state owned sector or service sector opening, progress has been slower.  

A top EU priority is to promote  reform and innovation in support of transforming China's 
growth  model  into  a  more  sustainable  one,  based  on  greater  domestic  consumption,  an 
expanded  service  sector,  and  openness  to  foreign  investment,  products  and  services.  This 
should be on the basis of mutual benefits and transparency, including safeguarding intellectual 
property.  The  EU's  economic  strengths  are  complementary  to  the  priorities  of  China's  13th 
Five  Year  Plan,  such  as  innovation,  services,  green  growth  and  balancing  urban  and  rural 
development. It is also in the EU's interest to support China's transition to a more sustainable 
and  inclusive  social  and  economic  model  by  promoting  core  labour  standards  and  decent 
work, welfare reform, and a shared commitment to responsible global supply chains. 

As  China  takes  steps to  try  to  avoid  the  middle  income  trap  by  moving  up  the  value  chain, 
Chinese firms will continue to become stronger competitors in cutting-edge sectors. Indeed, 
the  Chinese  Government's  industrial  policies  aim  to  create  national  champions  able  to 
compete globally in sectors such as civil aircraft, new materials, the digital economy, banking, 
energy and infrastructure. It is important for the EU to work with China to promote open and 
fair  competition  in  each  other's  markets  and  to  discourage  China  from  underwriting  its 
companies' competitiveness through subsidisation or the protection of domestic markets. 

  The EU should continue actively to support and encourage  economic, environmental and 
social reforms in China towards a more open, sustainable and inclusive growth model. 

III.2 Boosting trade and investment  

A  Comprehensive  Agreement  on  Investment  is  the  EU's  immediate  priority  towards  the 
objective of deepening and rebalancing our relationship with China. The conclusion of such 
an  agreement,  as  well  as  progress  in  China's  reforms  towards  liberalising  its  economy  and 
therefore creating a level-playing field for business, would open new market opportunities and 
allow both sides to envisage broader ambitions such as a Free Trade Agreement.  

Any  future  FTA  should  be  deep  and  comprehensive  and  aspire  to  a  high  level  of  ambition 
based  on  the  benchmarks  set  by  the  EU's  negotiations  with  partners  such  as  Canada,  Japan 
and  the  United  States.  Furthermore,  with  a  view  to  helping  EU  investors  operating  in  an 
increasingly integrated regional supply  chain, the EU should  envisage a  broader network of 
investment agreements in the region. Building on the investment provisions under negotiation 
with China, the EU will explore launching negotiations on investment with Hong Kong and 
Taiwan.  

Geographical  indications  also  matter  economically  and  culturally  as  they  create  value  for 
local  communities.  Both  sides  would  benefit  from  the  conclusion  of  an  agreement  on 
geographical indications based on the highest international standards of protection. 

Deepening cooperation on customs and trade facilitation, over and above the commitments 
taken under the WTO Trade Facilitation Agreement, would be beneficial to both the EU and 

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China and should cover risk management and the security of supply chains, as well as border 
enforcement of intellectual property rights.  

The EU welcomes  productive Chinese  investment in  Europe  provided it is  in  line with  EU 
law  and  regulations.  We  expect  EU  investment  in  China  to  be  equally  welcome.  Mutually 
beneficial co-operation on all aspects of investment should be increased, including by finding 
practical ways for China to contribute to the Investment Plan for Europe. China should limit 
the  scope  of  security-related  reviews  of  EU  investments  in  China  solely  to  issues  that 
constitute legitimate national security concerns. Similarly, the EU expects Chinese Overseas 
Direct Investment in Europe to be based on free market principles, and will use all the means 
at  its  disposal  to  address  the  potential  market  distortions  and  other  risks  of  investment  by 
enterprises which benefit from subsidies or regulatory advantages provided by the state. The 
possibility of establishing a common minimum definition of what constitutes critical national 
infrastructure  in  the  context  of  inward  investment  in  the  EU  should  be  examined  in 
conjunction with Member States. 

Reform  of  China's  financial  system  is  critical  to  China's  economic  transformation.  As  its 
capital  markets  become  increasingly  open,  China's  influence  on  the  global  economy  will 
increase further. This growing interdependence has been demonstrated by the spill-over from 
Chinese  stock  market  volatility  to  world  markets,  and  puts  a  premium  on  co-ordinated  and 
transparent  economic  and  monetary  policies.  Since  the  risks  arising  in  Chinese  financial 
markets may become systemically important, the EU has a strong interest in maintaining and 
developing positive and effective cooperation with China in the area of financial regulation. 

A  more  globally  integrated  Chinese  economy  should  also  mean  that  China  acknowledges 
interdependence  and  adheres  to  domestic  economic  policies  that  do  not  distort  international 
markets and trade relations. The EU is seriously concerned about industrial over-capacity in 
a  number  of  industrial  sectors  in  China,  notably  steel  production.  If  the  problem  is  not 
properly  remedied,  trade  defence  measures  may  proliferate,  spreading  beyond  steel  to  other 
sectors such as aluminium, ceramics and wood-based products.   

Although this problem is being given increasing political attention in China, the scale of the 
challenge remains considerable. Overcapacity in China's steel industry has been estimated at 
around 350 million tonnes, almost double the EU's annual production. While China's aim to 
cut  100-150  million  tonnes  of  crude  steel  production  by  2020  is  welcome,  it  should  engage 
constructively  with  its  trading  partners  at  international  level  (e.g.  via  the  OECD  Steel 
Committee) and put in place a more ambitious, measurable and transparent restructuring plan 
to  reduce  capacity.  Subsidies  and  other  government  support  measures  that  contribute  to 
expanding  or  exporting  steel  capacity  or  to  maintaining  structurally  loss-making  operations 
should be eliminated as soon as possible. China should also honour its WTO commitment to 
notify  subsidies,  starting  with  those  granted  to  the  steel  sector.  In  the  medium  term,  China 
needs to reform its state-led economy and let market forces naturally address the problem. 

In the light of the upcoming expiry of certain provisions in China's Protocol of Accession to 
the  WTO,  the  Commission  is  analysing  whether,  and  if  so  how,  the  EU  should  change  the 
treatment of China in anti-dumping investigations after December 2016, and will revert to this 
issue  in  the  second  half  of  2016.  Further  strengthening  the  effectiveness  of  the  EU's  Trade 
Defence Instruments notably through the swift adoption of the Commission's Trade Defence 
Instruments modernisation proposal of April 2013 is key. A global approach to addressing the 
underlying causes of over-capacity will be essential. 

Legal  reform  and  strengthening  the  rule  of  law  in  China  are  preconditions  for  the  overall 
success of China's reforms. A transparent and impartial legal system is an essential part of the 
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institutional bedrock for a market-based economy and would provide effective guarantees for 
EU and Chinese businesses alike. The EU should build on the launch of the new Legal Affairs 
Dialogue  which  first  took  place  in  June  2016  focussing  on  e-commerce  and  consumer 
protection online. 

The  EU  should  continue  to  pursue  dialogues  with  China  on  standards,  regulation  and 
conformity assessment procedures in key sectors in order to reduce costs and entry barriers, 
and  to  promote  the  primacy  of  international  standards  in  areas  such  as  health  and  safety, 
pharmaceuticals, environmental protection, food and consumer product safety, climate action 
and  data  protection.  Co-operative  research  can  be  deployed  to  promote  the  use  of  common 
standards in the future. In the sanitary and phytosanitary field the EU is committed to working 
with China to promote the highest food safety standards.  The modernisation of China’s food 
safety  model  currently  underway  will,  if  implemented  in  a  proportionate  and  transparent 
manner, make it more compatible with that of the EU. This in turn will increase opportunities 
for  growth  and  jobs  in  both  the  EU  and  China,  create  mutual  benefits  for  consumers,  and 
improve market access for agricultural commodities. To this end, the EU encourages China to 
adhere  to  international  scientific  standards  and  to  act  reciprocally  to  recognise  the  EU  as  a 
single entity.  

While  strengthening  the  EU-China  partnership,  the  EU  should  continue  to  deepen  its 
engagement  in  Asia  and  elsewhere  with  a  view  to  multiplying  and  diversifying  economic 
opportunities and sources of growth. 

  The EU aims to ensure reciprocity and a level playing field in all aspects of its trade and 
investment relationship with China. To that end, it will step up its monitoring of access to 
Chinese markets and to China's R&D support schemes by European companies.   

  A Comprehensive Agreement on Investment is the EU's immediate priority towards the 

objective of deepening and rebalancing our economic relationship with China. 

  The  EU  puts  a  high  priority  on  the  rapid  conclusion  of  an  agreement  with  China  on 
Geographical  Indications  for  the  protection  of  food  names,  based  on  the  highest 
international standards. 

  The EU is developing a new generation of modern, high standard trade agreements, and 
could  consider  broader  ambitions  such  as  a  deep  and  comprehensive  FTA  with  China, 
when  the  conditions  –  including  implementation  of  the  necessary  economic  reforms  in 
China – are right. 

  The EU expects China to make significant and verifiable cuts in industrial over-capacity 
based on a clear timeline of commitments and an independent monitoring mechanism. 

  The  EU  welcomes  productive  Chinese  investment  in  Europe  provided  it  is  in  line  with 
EU  law  and  regulations.  In  return,  the  EU  expects  improved  market  access  for  foreign 
companies in China and a level playing field for business and investment. China should 
reduce the number of protected sectors and minimise national security reviews. 

  Co-operation on the rule of law, competition enforcement, as well as standards, rules and 

regulations in key sectors, should be reinforced. 

III.3 Research, innovation and the digital economy 

China is moving fast towards a knowledge-based and innovation-driven economy. The EU, 
as  a  world  leader  in  this  area,  has  a  strong  interest  in  working  with  China  to  achieve  EU 
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objectives  in  line  with  the  Digital  Single  Market  strategy.  Co-operation  on  the  digital 
economy should harness growth through open markets, common standards and joint research 
on  the  basis  of  reciprocity  in  areas  such  as  5G  mobile  communications  and  the  Internet  of 
Things. 

Ambitious initiatives such as "Made-in-China 2025" and the related "Internet +" action plan 
underline  the  importance  that  China  attaches  to  the  digital  economy  as  well  as  its 
transformative  potential  for  sectors  such  as  manufacturing.  However,  Chinese  policy  and 
regulation  have  increasingly  been  marked  by  protectionism.  European  information  and 
communications  technology  companies  face  market  access  problems  all  along  the  value 
chain, including technologically biased standards, complex and discriminatory licensing and 
from  security-related 
certification 
legislation, lack of fair access to standardisation bodies, and closed public procurement. The 
EU  should  redouble  its  efforts  to  improve  access  to  China's  growing  market  for  digital 
products  and  services,  and  to  achieve  a  level  playing  field.  The  EU  should  also  promote 
stronger privacy and data protection rights in China, and insist that EU data protection rules 
be respected in all personal data exchanges with China. 

requirements,  disproportionate 

restrictions  arising 

Protection  and  enforcement  of  intellectual  property  rights  (IPR)  are  crucial  for  the 
promotion  of  innovation.  Relevant  dialogue  and  cooperation  should  intensify  and  address 
growing  challenges,  such  as  online  counterfeiting  and  piracy.  While  recognising  that 
governments have a legitimate interest in the security of the digital market, the EU opposes 
generally  applicable  policies  that  require  access  to  or  transfer  of  software  source  code  as  a 
precondition  for  market  access.  The  EU  should  seek  a  political  agreement  with  China  on 
combatting cyber-enabled theft of IPR and trade secrets. 

The EU stands to gain from strengthening research and innovation cooperation with China 
by jointly developing knowledge and technology, tapping into China's talent pool, promoting 
the EU as an attractive location for research and innovation, and finding solutions to shared 
social  and  environmental  challenges.  Ensuring  a  level  playing  field  for  research  and 
innovation, including reciprocal access to research and innovation programmes and resources, 
remains  essential.  Cooperation  through  the  EU's  Horizon  2020  and  Euratom  programmes 
should be further developed and expanded on that basis. Co-funding mechanisms and flagship 
initiatives in the context of Horizon 2020, as well as agreements between respective research 
institutes, should help develop long-term partnerships in science and technology. 

  Mutually beneficial co-operation on research and innovation should be strengthened, while 

ensuring a level playing field. 

  Co-operation on the digital economy can bring benefits to both the EU and China. It should 
harness growth through common standards and joint research on the basis of reciprocity. 

  The  EU  should  intensify  co-operation  with  China  on  the  protection  and  enforcement  of 
intellectual  property  rights.  The  EU  should  reinforce  measures  to  counter  cyber-enabled 
theft of intellectual property and trade secrets. 

III.4 Connectivity and people-to-people links 

Improving  infrastructure  links  between  the  EU  and  China  would  boost  the  economic 
prospects  for  all  concerned.  The  EU-China  Connectivity  Platform  should  create  synergies 
between  EU  policies  and  projects  and  China's  "One  Belt  One  Road"  initiative,  as  well  as 

9 

 
 
 
 
 
 
 
between  respective  sources  of  funding,  in  the  field  of  transport  and  other  kinds  of 
infrastructure. 

China  will  need  to  fulfil  its  declared  aim  of  making  its  "One  Belt,  One  Road"  initiative  an 
open  platform  which  adheres  to  market  rules  and  international  norms  in  order to  deliver 
benefits  for  all  and  to  encourage  responsible  economic  behaviour  in  third  countries.  Co-
operation  in  this  field  should  be  based  on  full  respect  for  relevant  policies,  and  applicable 
regulations and standards, including with regard to public procurement, and guarantee a level 
playing  field  for  economic  operators  from  both  sides.  This  should  also  apply  to  those 
countries  outside  the  EU  which  have  pledged  to  apply  EU  standards.  The  aim  should  be  to 
help build sustainable and inter-operable cross-border infrastructure networks in countries and 
regions between the EU and China.  Joint work on a pipeline of priority investment projects 
should  involve  close  co-ordination  with  the  countries  concerned,  not  least  to  ensure 
compatibility with their fiscal constraints. EU-China co-operation on connectivity should fully 
benefit  Asian  partners,  including  Afghanistan,  Pakistan  and  countries  in  Central  Asia,  by 
contributing to their integration in international trade flows. 

People-to-people  engagement  should  support  opportunities  for  EU  sectors  such  as  higher 
education,  creative  and  cultural  industries,  and  tourism.  This  would  also  contribute  to 
inter-cultural  dialogue  and  promoting  cultural  diversity  and  civil  society 
fostering 
participation.  People-to-people  contacts  should  be  mainstreamed  throughout  EU-China 
relations.  Full  use  of  existing  channels  for  legal  migration  in  the  EU  and  China  should  be 
encouraged.  Once  the  first  steps  to  facilitate  mobility  and  combat  illegal  migration  have 
successfully been taken, the EU-China Migration and Mobility Dialogue should move ahead 
with negotiating agreements on visa facilitation and co-operation against illegal migration. 

  The  EU  should  use  the EU-China  Connectivity Platform  as  its  main  vehicle  for  working 
with  China  to  connect  the  Eurasian  continent  via  a  physical  and  digital  network  through 
which trade, investment and people-to-people contacts can flow. 

  Co-operation  with  China  on  its  "One  Belt,  One  Road"  initiative  should  be  dependent  on 
China  fulfilling  its  declared  aim  of  making  it  an  open  platform  which  adheres  to  market 
rules and international norms in order to deliver benefits for all. 

  People-to-people dialogue should be broadened in scope, and new initiatives identified to 
in  contacts.  People-to-people  contacts  should  be 
encourage  a  greater  pluralism 
mainstreamed throughout EU-China relations and the dialogue on mobility and migration 
should be strengthened. 

IV. FINDING COMMON INTERESTS ON FOREIGN POLICY AND SECURITY 

China sees itself as emerging from its past passive participation to take on a leading role in 
global affairs consonant with its economic size.  In line with its expanding interests, China's 
horizons have broadened from its neighbourhood. A concentration on the US still looms large.  
There  is  a  renewed  interest  in  the  EU  as  a  more  balanced  partner  in  a  multipolar  world, 
although  regional  security  in  the  Asia-Pacific  region  will  remain  a  challenge  in  the  light  of 
China's increasing assertiveness.  Behind the major "One Belt, One Road" initiative lie largely 
economic  and  domestic  considerations,  but  there  will  be  major  geostrategic  consequences.  
China now has good reason for more active participation in global governance, security and 
defence  issues.    The  challenge  and  the  opportunity  for  the  EU  is  to  channel  China's 

10 

 
 
 
 
 
 
 
 
participation into positive areas such as co-operation on peace in Africa, and fulfilment of the 
duties  which  come  with  being  a  global  power  (e.g.  in  the  Middle  East).  A  deeper  dialogue 
with China on investment co-operation in countries of common interest would reflect China's 
growing financial involvement in many countries which are also partners of the EU. 

IV.1 Reinforcing co-operation with China on foreign policy 

China's growth  has  led its  interests to  expand  far beyond its immediate neighbourhood, and 
boosted its commercial, financial, diplomatic, and even military presence in the world, with 
increasing numbers of Chinese nationals living abroad. This too increases China's reliance on 
international  peace  and  security.  It  has  led  China  to  take  a  more  proactive  approach  to 
peacebuilding  and  neighbourhood  processes  in  countries  such  as  South  Sudan  and 
Afghanistan. 

The EU should seek a broader shared foreign policy agenda with China based on encouraging 
China's  constructive  and  active  participation  in  providing  security  as  a  global  public  good. 
China  should  be  encouraged  to  participate  consistently  in  international  conflict  resolution 
processes  in  fulfilment  of  its  responsibilities  as  a  permanent  member  of  the  UN  Security 
Council. Building on China's constructive engagement during the negotiation of the Iran deal, 
the EU should seek active co-operation with China in areas such as Afghanistan, Syria, Libya, 
the  migration  challenge,  and  the  overall  settlement  in  the  Middle  East.  What  is  often 
perceived  in  Africa  as  EU-China  competition  should  be  turned  into  greater  cooperation  on 
crisis  settlement  (be  it  locally  or  in  multilateral  fora  such  as  the  UNSC),  building  African 
peace and security capacities, fostering an improved economic environment, as well as on the 
global  commons,  notably  the  environment  and  the  oceans.  The  EU  should  also  work  with 
China to improve due diligence for minerals from areas affected by conflict and other risks. 

One of China's foreign policy priorities is to develop its links with Europe, and it is allocating 
significant financial and diplomatic resources to achieving this goal. It is in the EU's interest 
to  work  with  China  to  ensure  that  any  Chinese  involvement  in  the  EU's  Eastern  and 
Southern neighbourhoods helps reinforce rules-based governance and regional security. The 
EU  stands  firm  in  upholding  Ukraine's  sovereignty,  independence  and  territorial  integrity, 
principles to which China also subscribes. The EU wants China to be a partner in investing in 
the long-term viability and prosperity of Ukraine and in ensuring a stable and peaceful region 
to  the  benefit  of  all  sides.  Further  afield,  the  EU's  strategy  on  Central  Asia  also  provides 
opportunities  to  step  up  co-operation  with  China  in  areas  such  as  security,  connectivity, 
development assistance, and the sustainable use of water and energy resources. 

The EU should continue to contribute actively to regional security in the Asia-Pacific through 
diplomatic and economic means while further developing its partnerships in the region. The 
EU  remains  concerned  about  the  situation  in  the  East  and  South  China  Seas,  and  should 
continue  to  emphasise  the  importance  of  peaceful  settlement  of  disputes  and  to  oppose 
unilateral  actions  that  could  alter  the  status  quo  and  increase  tensions.  The  EU  upholds  its 
position  on  compliance  with  international  law  by  China  and  others  in  the  context  of  their 
claims  in  the  South  China  Sea.  The  large  volume  of  international  maritime  trade  passing 
through that area means that freedom of navigation and overflight are of prime importance to 
the  EU.  The  EU  should  encourage  China  to  contribute  constructively  to  regional  stability 
through  confidence-building  measures  and  support  for  the  rules-based  international  order, 
especially respect for the UN Convention on the Law of the Sea and its arbitration procedures, 
and the rapid conclusion of the ASEAN-China negotiations on a "Code of Conduct".  

The EU should seek a regular and substantial dialogue with China across the whole spectrum 
of export control, disarmament and non-proliferation issues, including regional challenges 
11 

 
 
 
 
 
 
 
such as the policies and actions of the DPRK.  Specifically, the EU should encourage China to 
ratify the Comprehensive Nuclear Test Ban Treaty, to accede to the Arms Trade Treaty,  to 
join  the  Hague  Code  of  Conduct  on  Ballistic  Missiles,  and  to  adhere  to  the  export  control 
standards  for  arms  and  dual  use  goods  which  apply  under  the  relevant  international  export 
control regimes. EU exports to China are governed by the arms embargo established by the 
European  Council  Conclusions  of  1989  and  the  eight  criteria  established  under  the  Council 
Common Position on exports of military technology and equipment (2008/944/CFSP). 

In view of the increasingly acute global terrorist threat, the EU should be open to co-operation 
with China on counter-terrorism subject to mutually agreed terms including a robust rule of 
law and human rights component. The focus should be on international efforts to address root 
causes,  on  cutting  off  sources  of  terrorist  finance  (including  in  the  context  of  the  Financial 
Action Task Force), and on preventing and countering radicalisation. 

In  its  international  cyberspace  policy,  the  EU  promotes  the  openness  and  freedom  of  the 
Internet and encourages efforts to develop agreed norms of state behaviour. China's restrictive 
approach  to  internet  governance  risks  fragmenting  the  internet  to  the  detriment  of  global 
stakeholders  and  with  negative  economic  and  human  rights  consequences.  The  EU  should 
continue  to  urge  China  to  make  a  greater  contribution  to  developing  responsible  norms  of 
behaviour and applying existing international law in cyberspace, including promoting further 
global  agreement  on  protecting  critical  cyber  assets.  Relevant  aspects  of  the  recent  Joint 
Communication  on  countering  hybrid  threats,  notably  with  regard  to  cyber-security  and 
protecting critical infrastructure, should also be taken into account. 

  Recognition  of  China's  greater  role  in  international  relations  and  governance  should  be 

linked to greater adherence by China to international rules and standards. 

  The EU encourages China to mobilise its diplomatic and other resources towards providing 

security as a global public good, including engagement on Afghanistan and Syria. 

  The EU has a stake in Asian security and will continue to reinforce its positive contribution 
in  that  regard.  Similarly,  the  EU  encourages  China  to  contribute  actively  to  peace  and 
security in the EU's neighbourhood in line with international law. 

  The  EU  wants  to  see  freedom  of  navigation  and  overflight  upheld  in  the  East  and  South 
China Seas. Disputes should be settled peacefully based on the rule of law and unilateral 
provocations avoided. 

  EU dialogue with China to seek more common ground on disarmament, non-proliferation, 

counter-terrorism and cyberspace should be reinforced.  

IV. 2. The security and defence dimension 

In  recent  years,  the  EU  has  increasingly  deployed  civilian  and  military  crisis  missions 
overseas, notably in Africa. Likewise, recognising its growing global responsibilities, China is 
making  a  growing  contribution  to  peacekeeping  and  counter-piracy  operations,  and  has 
increased its military assistance to the African Union. 

Africa  in  particular  offers  significant  potential  for  the  EU  to  co-operate  with  China  where 
interests  are  shared,  including  extending  the  successful  EU-China  offshore  co-operation  on 
counter-piracy  to  peacekeeping  and  capacity-building  onshore.  Co-ordination  on  counter-
piracy under the auspices of the Shared Awareness and De-confliction Mechanism has helped 

12 

 
 
 
 
 
 
 
to  foster  co-operative  instincts  while  burden-sharing  in  escorting  World  Food  Programme 
shipments has shown the added value of such co-operation.  

Building on the outcome of successive EU-China security and defence consultations, the EU 
should engage with  relevant Chinese actors  on the ground  (for  example, Chinese  embassies 
and peacekeeping contingents in countries such as Mali and Somalia) to explore practical co-
operation, and support Chinese efforts to fund the African Peace and Security Architecture. 
Other  areas  of  potential  shared  interest  include  co-operation  on  the  police  dimension  of 
peacekeeping  operations,  and  arrangements  for  the  protection  and  evacuation  of  EU  and 
Chinese nationals. 

  The  EU  should  ensure  that  it  has  a  clear  understanding  of  China's  defence  and  security 

policies in order to inform its engagement with China. 

  Africa offers the best opportunity for EU-China security co-operation, both at sea and on 

land. Anti-piracy co-operation off the Horn of Africa should continue. 

  The EU should seek opportunities for practical co-operation and co-ordination with China 
on issues such  as  capacity-building and supporting African peacekeeping efforts, making 
full use of both sides' diplomatic and security assets on the ground. 

V.  GLOBAL  GOVERNANCE  AND  WORKING  TOGETHER 
MULTILATERAL CONTEXT 

IN  THE 

China  wants  a  say  in  global  governance,  both  political  and  economic,  in  line  with  its 
importance.  The EU should build on this, while promoting multilateralism and encouraging 
China to support global standards and institutions.  Part of the equation is also successfully to 
handle differences over respect for the international order, law and human rights, especially in 
the light of increased Chinese external assertiveness  and internal repression. Many areas are 
ripe  for  promoting  dialogue  and  co-operation,  in  particular  climate  change,  energy,  oceans 
and  resource  efficiency,  as  well  as  helping  to  resolve  China's  immense  environmental 
problems  (whose  effects  will  be  felt  by  the  EU).  Equally,  there  is  much  to  be  gained  from 
working  together  on  development,  global  health,  peacekeeping,  humanitarian  affairs,  and 
disaster  risk  management.  Here,  China's  increased  global  presence  and  interests  present  the 
EU with an opportunity to marry our experience with China's resources. 

V.I Promoting effective multilateralism 

The  EU  is  committed  to  supporting effective  multilateralism,  with  the United  Nations  at  its 
core. Like the EU, China has been a beneficiary of the rules-based international order. In 
2015,  the  70th  anniversary  of  the  UN's  foundation,  China  recommitted  itself,  as  one  of  the 
original  signatories,  to  the  principles  of  the  UN  Charter.  It  has  become  one  of  the  biggest 
contributors to the UN budget and is an increasing contributor of troops to UN peacekeeping 
operations.  

As  a  permanent  member  of  the  UN  Security  Council  and  a  member  of  the  Human  Rights 
Council,  China  has  a  particular  duty  to  support  the  three  pillars  of  the  UN,  namely  Human 
Rights,  Peace  and  Security,  and  Development.  The  EU  should  work  with  China  towards 
consolidating global governance. As global institutions gradually evolve, this means giving 
the proper weight to China's voice concomitant with the contribution that it is ready to make, 
while  insisting  on  the  universality  of  the  international  law,  rules  and  principles  which  lie 
behind  the  international  order.  In  the  same  spirit,  China  should  be  encouraged  to  support 

13 

 
 
 
 
 
 
 
 
aspects  of  UN  reform  and  improving  the  global  governance  framework  which  would  bring 
wider benefits for the international community. 

Through  constructive  engagement,  the  EU  should  work  with  China  to  find  solutions  within 
the existing global governance structures wherever possible, and above all to ensure that new 
initiatives  meet  global  standards  and  are  complementary  to  the  existing  international 
institutions.  Multilateral  decision-making  should  be  inclusive  and  involve  all  relevant 
stakeholders. 

The growing importance of the G20 in the wake of the global economic crisis demonstrates 
the  need  to  work  effectively  with  emerging  market  economies  to  find  solutions  to  global 
challenges. Building on the results of China's G20 Presidency and close co-operation on the 
G20  finance  track,  the EU  should  look  for  a  common  platform  with  China  in  such  areas  as 
growth  strategies,  investment  in  interconnected  infrastructure,  climate  finance,  and  global 
anti-corruption  standards.  China  has  also  stepped  up  engagement  with  the  Bretton  Woods 
institutions.  The  EU  should  build  on  this  enhanced  commitment  to  foster  stronger,  more 
sustainable  and  balanced  global  growth,  ensure  a  strong  and  adequately  financed  IMF,  and 
strengthen the Global Financial Safety Net. 

The EU should encourage China to play a more engaged and active part at the World Trade 
Organisation  (WTO)  and  in  multilateral  and  plurilateral  trade  and  investment  initiatives, 
assuming responsibilities in line with the benefits it draws from an open trading system and 
strengthening  the  ambition  of  these  initiatives,  such  as  the  negotiations  on  environmental 
goods.  The  EU  expects  China  to  submit  a  Government  Procurement  Agreement  (GPA) 
accession offer which matches the importance of the Chinese market. The EU also encourages 
China to engage in a meaningful and substantive way in the International Working Group on 
export  credits.  In  the  G20  context, the  EU  should  encourage  China  to  engage  further  in  the 
reform of international investment rules, in particular the work towards creating a multilateral 
investment court. 

Additional  areas  where  the  EU  should  seek  common  ground  with  China  include 
peacekeeping,  conflict  prevention  and  early  warning,  peaceful  settlement  of  disputes, 
humanitarian  affairs,  disaster  risk management,  economic  and  social  rights,  and  health.  The 
EU  should encourage China  to  increase  its  contribution  to  international  efforts  to  tackle the 
ongoing refugee and migration crisis.  

  The EU and China share a common interest in supporting multilateralism. The EU should 

work with China towards consolidating rules-based global governance. 

  The EU should seek a common platform with China on key G20 priorities. 

  The EU should encourage China to play a more active and engaged role in the WTO and in 
multilateral  and  plurilateral  trade  and  investment  initiatives,  assuming  responsibilities  in 
line with the benefits it draws from an open trading system and strengthening the ambition 
of these initiatives. The EU expects China to submit a GPA accession offer which matches 
the importance of the Chinese market. 

  The  EU  should  work  more  closely  with  China  on  disaster  management,  humanitarian 

crises and migration. 

14 

 
 
 
 
 
 
 
 
V.2 Respect for international law and universal values 

A  rules-based  international  order  based  on  respect  for  international  law,  including 
international  humanitarian  and  human  rights  law,  is  a  fundamental  prerequisite  for  securing 
international peace, security, and sustainable development. Accordingly, the EU should work 
with China to promote the universal advancement of human rights, in particular compliance 
with international human rights standards at home and abroad. Examples include supporting 
the  implementation  of  the  obligations  contained  in  human  rights  treaties  already  ratified  by 
China,  and  promoting  the  ratification  of  the  International  Covenant  on  Civil  and  Political 
Rights  (ICCPR),  which  China  signed  in  1998.  The  EU  should  also  continue  to  encourage 
China to ratify further UN and ILO instruments, for instance the two conventions on forced 
labour and the two on freedom of association and collective bargaining. 

China's  progress  over  recent  decades,  for  example  with  regard  to  realising  economic  and 
social  rights,  may  provide  entry  points  to  build  up  EU-China  cooperation  in  such  areas  as 
women's rights, labour rights, social standards, business and human rights, and cultural rights. 

  The  EU  should  continue  to  insist  that  China  complies  with  its  international  legal  and 
human  rights  obligations,  both  within  China  and  abroad,  and  should  work  with  China  to 
this end. 

 V.3 Global challenges and global public goods 

In recent years, China has made a growing contribution to setting more ambitious global goals 
with regard to sustainable development including climate change, health and education. It has 
become a donor of global stature and is working on new and more sustainable development 
concepts. The EU should work closely with China across these areas of common interest. 

The 2030 Agenda for Sustainable Development is universal in application and requires all 
countries to implement it domestically as well as to contribute to the global effort. It gives the 
EU and China a common stake in delivering poverty eradication and sustainable development 
for all through effective institutions, good governance, the rule of law and peaceful societies. 
The EU should engage China in regular dialogue on the implementation of the 2030 Agenda 
and its Sustainable Development Goals. 

China plays an increasingly important role in  international development co-operation and 
has  increasing  impact  on  development  processes  in  third  countries.  It  is  therefore  important 
that the EU and  China have  channels to  discuss their respective approaches  to  development 
co-operation. The prominence given by China to the 2030 Agenda during its Presidency of the 
G20  provides  an  opportunity  to  step  up  engagement  to  work  together  with  developing 
countries.  The  EU  should  advance  bilateral  and  multilateral  cooperation  on  development  to 
support the implementation of the 2030 Agenda with the aim of establishing a donor-to-donor 
partnership with  China in  such  areas  as  development effectiveness  and donor  co-ordination, 
and promote practical engagement both in multilateral fora and on the ground, for example in 
Africa and Asia. The EU should encourage China to act in line with the principles endorsed 
by both parties at the Busan High Level Forum on Aid Effectiveness, and to participate in the 
Global Partnership for Effective Development Co-operation. Relevant EU institutions, as well 
as EU Member States, should continue to support the development of the Asia Infrastructure 
Investment  Bank,  and  engage  in  dialogue  with  the  New  Development  Bank,  so  as  to 
strengthen good governance  and the multilateral system.   In  addition, the EU should  seek a 
dialogue  with  China  on  best  practice  in  terms  of  lending  to  developing  countries,  including 

15 

 
 
 
 
 
 
 
aspects such as debt sustainability, environmental and labour standards, and fighting bribery 
and corruption. 

The EU welcomes the leading role played by China, which accounts for about a quarter of the 
world's  greenhouse  gas  emissions,  in  the  negotiation  and  early  ratification  of  the  Paris 
agreement on  climate change. Based on the results of  UNFCCC COP21 and the  2015  EU-
China  joint  statement  on  climate  change,  the  EU  should  boost  its  co-operation  with  China 
both  bilaterally  and  internationally.  The  EU  should  work  with  China  based  on  the  shared 
commitment  to  accelerate  transition  to  a  low  carbon/carbon  neutral  economy.  Joint 
approaches  should  be  pursued  to  speed  up  the  implementation  of  the  Paris  agreement 
wherever  possible,  including  the  implementation  of  Nationally  Determined  Contributions. 
Outreach  to  China  through  EU  climate  diplomacy  should  include  issues  related  to  the 
Montreal Protocol (global phasedown of hydrofluorocarbons), the International Civil Aviation 
Organisation  (global  market-based  measure  on  aviation  emissions)  and  the  International 
Maritime  Organization  (curbing  maritime  emissions).  The  EU  should  continue  to  support 
China  on  emissions  trading  in  view  of  its  plans  to  roll  out  a  nation-wide  system  in  2017. 
Enhanced  dialogue  should  be  sought  in  areas  such  as  climate  policy-making  and  emissions 
modelling,  low-carbon  cities,  low  carbon  technologies,  carbon  capture  and  storage, 
adaptation,  and  climate  resilient  investments.  The  innovative  recommendations  of  the  G20 
Green Finance Working Group should be implemented wherever possible. 

The EU and China are both net energy importers and have a common interest in transparent, 
well-regulated and open energy markets to ensure improved energy security. To this end, the 
EU should work together with China towards a more modern, inclusive and effective global 
energy  architecture,  and  continue  to  support  increased  engagement  by  the  International 
Energy Agency with China with a view to promoting collaboration on energy security, energy 
data  and  statistics,  and  energy  policy  analysis.  The  EU  should  also  seek  to  co-operate  with 
China on transparency, standards and regulation in the energy sector, including with regard to 
energy  infrastructure  projects  in  third  countries,  and  support  domestic  energy  reforms 
including  energy  efficiency,  energy  sustainability  and  resource  efficiency.  Opportunities  for 
joint research and development of clean energy technologies should be pursued. 

China faces huge environmental challenges in terms of air, soil and water pollution. For the 
sake  of  its  own  interests,  in  particular  to  reduce  problems  from  China's  massive  and 
unsustainable  resources  use,  EU  know-how  can  help  support  China's  efforts  to  develop  the 
appropriate  policies  and  regulatory  frameworks  to  move  towards  a  green,  low  carbon  and 
circular  economy.  This  will  involve  applying  green  scientific  and  technological  solutions 
which help to bring environmental and economic benefits to both sides.  The EU should share 
best practices on environmental governance, the management of air, water and soil resources, 
waste  management,  and  the  phasing  out  of  dangerous  chemicals,  as  well  as  on  the 
implementation  of  international  environmental  agreements  and  standards.  Co-operation  on 
water issues, not least through the EU-China Water Platform, should be reinforced.  The EU 
should  strengthen  co-operation  with  China  to  tackle  global  concerns  such  as  deforestation, 
illegal logging,  and  wildlife  trafficking  which,  through its  links  to  corruption  and organised 
crime, undermines sustainable development, biodiversity and good governance. 

The EU should also work with China to improve ocean governance, not least by combatting 
illegal, unreported and unregulated fishing, and should encourage China to ratify the UN Fish 
Stocks Agreement and the FAO Port State Measures Agreement. 

16 

 
 
 
 
 
 
 
The EU should also encourage China to play a more engaged and active role in developing 
policies  to  fight  the  spread  of  antimicrobial  resistance  and  to  support  a  global  strategy  to 
tackle this serious health threat. 

  An enhanced EU-China development dialogue should be launched. 

  The EU should capitalise on China's commitment to tackling climate change by reinforcing 

partnership in this field at both bilateral and multilateral level. 

  The  environment  is  now  a  top  Chinese  policy  priority,  as  recognised  by  the  latest  Five 
Year Plan.  The EU should build on this to create a positive common agenda in areas such 
as tackling air, water and soil pollution, the circular economy, sustainable management of 
ocean resources, and fighting threats to habitats and biodiversity. 

  The EU should seek to work more closely with China on fighting antimicrobial resistance. 

VI. A MORE JOINED-UP APPROACH TOWARDS CHINA 

Dealing  with  such  a  comprehensive  strategic  partner  as  China  requires  a  "whole-of-EU" 
approach which links up the activities of the Commission, EEAS and other EU institutions in 
a  coherent  way  with  what  EU  Member  States  are  doing.  Member  States  should  reinforce 
agreed  EU  positions  in  their  bilateral  relations  with  China,  while  the  Commission  and  the 
EEAS  should  ensure  that  Member  States  are  made  aware  when  EU  interests  need  to  be 
safeguarded.  The  Commission  and  the  EEAS  should  work  closely  with  the  European 
Parliament,  which  has  shown  itself  to  be  a  strong  advocate  of  effective  EU  policy-making 
towards China. 

The EU should pursue an ambitious agenda of co-operation with China. Mutual economic and 
commercial interests are strong but should not prevent the EU from upholding its values in its 
relations with China.  China's needs are as  great as  ours and  failure  to  cooperate also brings 
adverse consequences for China. 

The  EU  must  therefore  project  a  strong,  clear  and  unified  voice.  EU  coherence  and 
cohesiveness  is  vital  on  the  big  policy  choices  and  on  the  maintenance  of  the  rules-based 
international order. The EU should seek to build trust and co-operation with China based on 
shared interests. However, EU-China relations must also deal with the reality that China is a 
one-party system with a state-dominated model of capitalism.  

The EU should work to find linkages across different policy areas and sectors in order to exert 
more  leverage  in  pursuit  of  its  objectives.  Good  cross-sectoral  co-ordination  is  required  in 
order to ensure that immediate sectoral interests are put behind the greater good. 

EU-China Summits and the EU-China High-Level Strategic Dialogue, High-Level Economic 
and  Trade  Dialogue  and  High-Level  People-to-People  Dialogue  should  be  used  to  their  full 
potential as platforms to deliver cross-cutting strategic orientation on political, economic and 
trade issues, to encourage greater pluralism in contacts, and to facilitate synergies and trade-
offs between the many facets of the EU-China relationship at the highest level. 

Active use should be made of the available EU co-ordination mechanisms, both in Brussels 
and locally in Beijing. As a complement to work on reinforcing the EU-China partnership, the 
Commission  services,  EEAS  and  Member  States  should  also  strengthen  scenario-based 
planning in order to act in a quicker and more cohesive manner when required.  

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The number and variety of EU-China dialogues is a sign of the diversity and vitality of EU-
China relations, but carries the risk that efforts may be fragmented or dissipated. The EU and 
China are engaged in almost one hundred dialogues and workshops in a typical year.  A more 
rigorous prioritisation is required and resources should be concentrated in the first instance on 
top order priorities. The EU should regularly review the outcomes of these dialogues in order 
to  ensure  that  they  contribute  effectively  to  the  EU's  overall  objectives  and  are  streamlined 
where necessary. Priorities such as achieving a level playing field should be mainstreamed. 

The first joint assessment of the implementation of the EU-China 2020 Agenda took place in 
Beijing  in  April  2016.  Yearly  implementation  reviews  should  continue  at  senior  officials' 
level, with a reporting link to the EU-China summit.    

The  EU's  Partnership  Instrument,  Development  Co-operation  Instrument,  Horizon  2020, 
"Erasmus +" and other relevant sources of EU funding should be used more strategically to 
promote  EU  interests  concerning  China.  Public  diplomacy  should  be  boosted  line  with  EU 
priorities. Cultural exchanges and co-operation should also be further encouraged.  

The  EU  should  network  its  analytical  resources  so  as  correctly  to  assess  the  motivations  of 
Chinese  policy  and  capitalize  on  opportunities  to  strengthen  EU-China  relations.  Current 
contacts  with  China  at  all  levels,  Party,  government,  legislators  and  society,  should  be 
improved,  as  well  as  reaching  out  via  the  full  panoply  of  21st  century  media  to  future 
generations of Chinese leaders in all fields. 

  Dealing with China requires a comprehensive approach to ensure maximum impact. 

  Member States should reinforce agreed EU positions in their bilateral relations with China, 
while the Commission and EEAS should ensure that Member States are made aware when 
EU interests need to be safeguarded.    

  Annual EU-China summits and high-level dialogues will set the objectives and priorities to 
implement the common strategic agenda. Yearly implementation reviews of the EU-China 
2020 Agenda should take place at senior officials' level, with a reporting link to the EU-
China summit.    

  The EU will work with China to assess the effectiveness of the many joint dialogues and 

seek to streamline them where necessary in line with EU priorities. 

  Active  use  should  be  made  of  the  available  EU  co-ordination  mechanisms  in  order  to 

promote EU unity.  

  The  EU  should  continue  to  improve  its  analytical  capacity  on  China  and  to  reach  out  to 

future generations of Chinese leaders in all fields. 

  The implementation of the EU's strategy on China should be reviewed at regular intervals 
in  the  appropriate  formations  of  the  Council.  The  EU  should  be  prepared  to  update  its 
approach as and when the underlying assumptions change. 

VII. NEXT STEPS  

The  Council  is  invited  to  endorse  the  elements  proposed  in  this  Communication.  Specific 
recommendations for follow-up will be made in the following areas: 

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 

Improving the preparation and follow-up of EU-China Summits and other high-level 
meetings  as  well  as  their  coherence  with  Member  States'  high-level  contacts  with 
China; 

  Proposing common policy frameworks in specific areas (e.g. connectivity); 

  Mainstreaming  key  themes  and  objectives  across  all  EU-China  dialogues  and 
concentrating  resources  on  a  smaller  number  of  priorities  where  the  EU  has  the 
greatest added value. 

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