One of the most important, yet least appreciated
developments in world affairs in recent
years has been the dramatic growth in ties
between China and Europe. Not only are all European
nations individually deepening their links with
China, but the European Union is itself collectively
engaging the People's Republic. The EU has taken the
lead in conceptualizing and implementing a broadbased
strategy to further ties and cooperate in a wide
range of areas. The breadth and depth of Europe-
China relations are impressive, and the global importance
of the relationship ranks it as an emerging axis
in world affairs. While this is appreciated in Asia and
Europe, the United States has been slow to recognize
what is transpiring in the EU-China relationship and
its significance in the emerging global order.
TOWARD STRATEGIC PARTNERSHIP
The burgeoning growth in European-Chinese relations
is apparent in many spheres, and in recent years
has developed into a comprehensive and multidimensional
relationship—even strategic partnership.
If current trade growth continues for the second
half of the year, the EU and China will become each
other's leading trading partner in 2004. The 44 percent
growth in trade for the first half of 2004 stunningly
surpassed the impressive 25 percent rate
achieved in 2003. In 2003 Chinese customs statistics
indicate total trade of $125 billion, while EU figures
are higher at 135 billion euros (?) (or $165 billion at
year-end exchange rates). Since 1978, when economic
reforms began in China, China-Europe trade
has grown fortyfold. According to Chinese statistics,
the EU is also the largest foreign supplier of technology
and equipment to China, and one of the top foreign
direct investors in China. The EU estimates that
the total stock of European foreign direct investment
in China amounts to more than $35 billion to date.
China and the EU also participate in a number of joint
technology projects, including the European Galileo
satellite navigation program and the world's largest
cooperative science and technology research project,
the EU-China Framework Program.
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