Toespraak van eurocommissaris De Gucht over de economische banden met China (en)

First of all, I would like to thank Business Europe and the European Policy Centre for the invitation today. China is in many ways defining the economic age we live in, and it is extremely important that our understanding of the business relationship with China is well-founded and nuanced.

Also many thanks to President Thumann for the very interesting presentation. I think it is a very good report you are putting forward -- solid and insightful. Listening to your presentation and views, I think it gives the Commission a very important platform for our work on China.

Let me give a few remarks on the report and President Thumann’s presentation:

First and foremost, I would like to say that I agree with most of what has been put forward. It is interesting that we heard many of the same viewpoints in a report last month from the European Chamber of Commerce in China: That on the one hand, China is driving global growth at a difficult time for the international economy, and that the business potential in China remains exciting. That China is our fastest growing export market, and that it is essential for European businesses to be part of the future economic development there.

However, on the other hand, there is a general feeling in Europe that economic openness in China is not improving. When I listen to President Thumann, I think the report puts a line under some of our concerns regarding the challenges when trading with China -- from WTO compliance, implementation of competition rules, market access, to innovation and intellectual property rights. One telling example is of course the issue of access to raw materials and rare earths. I am also worried when I read that European companies fear retaliation in China. That is disconcerting and must be addressed; by us in our dialogue with China, and, of course, by China itself.

The report also stresses China's increasing competitiveness both within the EU and in third markets. In this respect, the report points to factors such as China’s size, the role of the state, and industrial policy in sectors such as chemicals, engineering industries, where the EU is also prominent. Competition on a level playing field is healthy. Where ever that is the case, we welcome it.

Allow me to also comment on a couple of the more specific policy recommendations in the report:

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  Investment: I agree with President Thumann that there is a vast untapped potential here between the EU and China. Important sectors in China remain capped or closed for foreign investment. The fundamental imbalance between our openness and China's restrictiveness plays into the hands of those in Europe who see Chinese investments as a threat and argue that we should therefore selectively screen Chinese investments into the EU. Still, I believe that Europe’s open investment regime remains our strongest argument for others to grant us similar access. For the EU to engage further and consider a bilateral investment agreement we need to be firmly convinced that this will produce real added value for EU companies, both in terms of access to the Chinese market and the way their investments are treated in China.

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  Intellectual property rights: I think the report is correct in pointing out that infringements undermine not only European investments and technology transfer to China, but just as much China's ambitions to become an innovative economy. We should redouble our efforts to find ways forward on the situation of the intellectual property rights in China, and we will use the recommendations in the report as a guide on the way.

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  Procurement: I agree with what is put forward that there is too little access to the market in China. The problem is not so much what is foreseen in Chinese regulations, but that foreign actors are simply not winning contracts unless it is in China’s interest. This situation has been a driver of our calls to China to shift our relationship towards greater reciprocity. It also underlines why it is important to keep pushing for China’s accession to the WTO agreement on procurement with substantial obligations.

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  Subsidies and State Owned Enterprises: I fully share the views of President Thumann and the report that the EU and China should engage in stronger bilateral cooperation. There is a need to build up mutual confidence in the area of subsidies, and it all starts with improved transparency on what is going on the ground. We continue to encourage China to engage in a dialogue on subsidies with the EU and other WTO members. This is an increasingly important issue that go to the core of the Chinese economic model.

Finally, I think it is important that the report also points to a path forward. Even if our long-term visions for the strategic partnership with China can come under pressure from the many day-to-day issues that we need to deal with, it is important to keep in mind the vast potential that China represents for our economy and European businesses.

It is only natural that China moves up the value chain, and a as a result it will increasingly become a competitor for EU companies in third markets, but also at home. We should not see competition with China as a zero-sum game - and neither should China. This is a normal process that on balance - if it occurs on a level playing field - will be beneficial to both sides.

President Thuman points to our flagship dialogue with China - The High-Level Economic and Trade Dialogue - as an essential instrument in pursuing our strategic vision on China on a wide range of economic issues. I agree. It is an important vehicle for pursuing both our current offensive interests and our long-term agenda with China. The next meeting will be held in a month's time, and many issues highlighted in your report will also appear on the agenda.

Thank you for your attention.