Xi visit cements ties with EU

President Xi Jinping returned to Beijing on April 1 after spending more than a week in the European Union meeting with royalty, heads of state and government, business leaders, students - he even found time for a quick visit to see Hao Hao and Xing Hui, the two pandas that China presented to Belgium last year.

Xi started his visit in the Netherlands, where he signed a comprehensive partnership agreement with the Dutch Premier Mark Rutte aimed at deepening ties between the Netherlands and China. He also attended the Nuclear Safety Summit, an important meeting that allowed a number of bilateral sideline meetings, including one with US President Barack Obama, where the two leaders discussed current tensions in Ukraine and Northeast Asia. Xi also used the summit to call for restarting Six-Party Talks on the nuclear program of the Democratic People's Republic of Korea.

The next stop on his trip was France, which was designed to mark the 50th anniversary of diplomatic ties between Paris and Beijing. French President Francois Hollande, unpopular at home due to poor economic growth, was pleased to announce that contracts had been signed for deals worth 18 billion euros ($24.83 billion) including 70 Airbus planes. Airbus Helicopters and China's Avicopter also agreed to jointly produce 1,000 civilian helicopters over 20 years. Other deals covered the nuclear, financial, agricultural and automotive sectors.

There were also many business deals signed when Xi visited Germany, which accounts for just under half of all EU exports to China. Of special note was automobile giant Daimler announcing a production deal, worth 1 billion euros, with Beijing Automotive Industry Cooperation. The Bundesbank and China's central bank also agreed a declaration of intent to set up a yuan clearing and settlement center in Frankfurt, Germany's financial center and home of the European Central Bank.

On the political side, German Chancellor Angela Merkel and Xi said they were committed to deepening ties and increasing coordination in the United Nations, G20 and other international bodies. On Ukraine, Merkel said that Germany stood for the observance of territorial integrity and international law. For his part, Xi said China sought to stay out of the internal affairs of other states and respected all nations' integrity and sovereignty. He added that China supported the constructive efforts the international community was making to reduce tensions.

Xi also met with German President Joachim Gauck who welcomed China's reform course and urged China to continue its push towards more liberal markets and a system of justice "in which nobody is to stand above the law".

Before leaving Germany, Xi visited a logistics center at the inland port in Duisburg, linked with China by the world's longest rail freight transport line.

The final stop on Xi's European tour was Belgium, where he had talks with Premier Di Rupo and attended lavish state banquet offered by King Philippe.

In Brussels, Xi also paid the first ever visit by a Chinese president to the EU headquarters where he met with European Council President Herman Van Rompuy, European Commission President Jose Manuel Barroso and European Parliament President Martin Schulz.

The EU is China's largest trading partner, with two-way trade at more than a billion euros a day, so naturally economic issues were high on the agenda. A number of trade disputes had been resolved before Xi's visit, so the talks were centered on future cooperation, especially the likely impact of the investment treaty that is under negotiation. The Chinese side made clear their faith in Europe's economic recovery and said China wanted to double its investments in the EU in the next five years. There was also a pointer to an eventual future free trade area.

On the political side there were discussions about regional hot spots and an agreement to intensify cooperation on foreign and security policy. Herman Van Rompuy pointed to the recent joint naval exercise in the Gulf of Aden as an example of how the two sides could cooperate in the future. Africa was also singled out as a region where the two sides should deepen cooperation. There was also agreement to intensify the dialogues on human rights and the rule of law.

The final event was a speech on EU-China relations in the historic city of Bruges. President Xi praised the achievements of the EU and described the process of European integration as a major contribution to world peace. He cited the 2020 Strategic Agenda, agreed at the last summit in Beijing, as the basic building block to continue the EU-China strategic partnership into its second decade.

In addition to the many trade deals and new political agreements signed, Xi's visit will have given him first-hand experience of four important EU member states as well as the EU institutions. Xi will also have cemented his contacts with European leaders, which will be important for future relations. China has described 2014 as "the year of Europe." President Xi's visit has ensured that it will be a successful year in EU-China relations.

The author is director of the EU-Asia Centre in Brussels.

(China Daily 04/08/2014 page9)