Europe is at the heart of the Chinese investment, despite the division between its States members on the Asian participation. Tour of the Chinese Premier, Wen Jiabao, by five European Nations and in particular to Great Britain in recent days marked a struggle line observed in Europe over trade policy, they noted key British newspaper sources.
China’s investment, sign of confidence in Europe:
It is said that any sign of Chinese confidence in Europe, including the announcement of trade agreements with Great Britain (on the order of $ 2.2 billion), should be welcomed in times of crisis and excessive indebtedness. However, growing protectionist attitude in Europe. For example, The European Commission proposes the adoption and implementation of strict measures against Chinese in public procurement markets and restrictions on the export of minerals known with the name of rare earths.
In advance to visit, a spokesman for the Chinese Ministry of affairs, Hong Lei, stated that “China is willing to continue supporting the European countries so that they achieve stable economic growth through cooperation with key Nations”. However, the Chinese investment uneasy the Europeans in the sense that China intends to take advantage of their huge surpluses to buy European “jewels” at bargain prices.
The rebating of Europe:
The European Council for external relations (ECFR for its acronym in English), organization dedicated to economic and commercial, research named the rebating of Europe to a next document appear on china’s economic presence in Europe with new rules of the game. The allusion to the “African rebating” at the end of the 19th century is tendentious because it awakens the fear of Europeans on their own decline in the world and the emergence or rebirth of China.
The resemblance to Africa has nothing to do, of course. Europe has more resources and presents a major technological advance in comparison with China. No matter what they do in Europe, Chinese companies not are becoming junk to buy Volvo or MG, Swedish and British automotive plants, respectively. However, the idea that Europe has weakened so much that foreigners can buy almost everything, affects European morale.
China, lender with restricted access to their markets:
The study of the ECFR has not come to light yet, but a news development highlighted three areas important to consider:
* Diplomacy in bonds: The Chinese purchase of Spanish and Greek bonds over the past year and the recent promise to buy Hungarian bonds also became the Asian nation a bilateral lender of last resort for political in indebted countries. This raises serious implications on the ability of Europe to present a United Front against China on such matters as commercial reciprocity, climate change and human rights.
* Direct investment: Five years ago, China’s total direct investment amounted to $ 1.3 billion. In what has passed in the year 2011, only three agreements have exceeded that amount at the individual level.
* Open public procurement European market: Even if European companies are excluded from public procurement in China market, European taxpayers subsidize Chinese firms bidding for European contracts.
The Chinese money, but not in human rights abuses:
British Prime Minister David Cameron, dismissed such concerns. The protectionist fears have no basis and it would resist attempts to exclude China from those markets on public procurement in Europe no matter that China is not more open in this sector.
China’s investment, apparently of Cameron, is positive and not a reason to fear. Instead the emphasis on the issue of human rights is fundamental. Other European leaders remain silent on the issue of human rights abuses, but it is keen to protect their industries from the Chinese competition.
In that light, Wen Jiabao promised in Germany, the last item on their European, to persuade China to total democracy tour, but his statement was disavowed once they transcended recent documents of the Communist Party, in total disagreement with the current policy orientation of China, that handing the party to impose even stricter control over the territory.
In advance to the 90th anniversary of the party in power, has been a series of repressive measures against activists and lawyers who were jailed or simply “disappeared”.
Trade cooperation between China and Europe:
While the issue of human rights must be addressed extensively and separately, the conclusion of this visit in economic terms is not only trade and investment to favor to China, but main way to European States.
This is not to say that they should keep quiet about Chinese policies in trade, State subsidies and currency manipulation, and even human rights, but to start a trade war and close the doors to china’s investment is not recommended for achieving a strong growth in any way, according to the British position at the first Magistracy.
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