China-Europe Relations

Perceptions, Policies and Prospects

David Shambaugh, Eberhard Sandschneider, Zhou Hong, David Shambaugh, Eberhard Sandschneider, Zhou Hong

• Publisher: Routledge
• Year: 2007
• ISBN:
  9781134082704
• Edition: 1
• Topic: Volkswirtschaftslehre
• Subtopic: Internationale Wirtschaftswissenschaften

The fast-developing relationship between China and Europe has become one of the most important in international affairs. China-Europe Relations takes an innovative and insightful look at this phenomenon, examining:

• the state of Chinese studies in Europe and European studies in China

• 
  
  

• the decision-making behind the EU's China policy, and what the Chinese perceptions and assessments are of Europe that shape China's Europe policy

• 
  
  

• the recent rapid growth of bilateral commercial and technological relations

• 
  
  

• the global context of the bilateral Sino-European relationship, in particular the interaction of China, the EU, and the United States

• 
  
  

• prospects for the future evolution of these relationships.

The most systematic and comprehensive study on the subject to date, written by a stellar team of international contributors from China, Europe and the US, China-Europe Relations will appeal to students, academics and policy makers alike who are interested in international relations, comparative foreign policy and Chinese and European politics.

Part I
Introduction

1 Introduction

Assessing the China–Europe relationship

David Shambaugh, Eberhard Sandschneider and Zhou Hong

The development of China over the past thirty years is fascinating and is arguably the most important international development of our era. China – it seems to many Western observers – is on its way to becoming a new superpower with the potential to threaten the dominant position of the United States, not only in the Pacific theatre but maybe also in the whole world. It is not surprising, therefore, that the rise of China and its implications for the world’s only superpower are portrayed and discussed widely within the political and academic community both inside and outside the United States. An overwhelming array of books and articles has been published on these issues, and numerous conferences are convened to analyse the implications.

However, this is not the case when it comes to relations between China and Europe. These relations have been discussed to a much lesser degree. Only one edited book has appeared on the subject in recent years,¹ although the periodical literature is a bit more plentiful. While the Sino-European relationship has blossomed – even boomed – since the mid-1990s, the academic world has failed to keep up with it. This volume is intended as a significant effort to fill this void in the literature and to bring to bear on the burgeoning Sino-European relationship some of the best minds and analysis from China, Europe, and the United States. It is truly a trilateral partnership, among the fifteen contributors, the three co-editors and their respective institutions – the China Policy Program of the Elliott School of International Affairs at the George Washington University, the German Council on Foreign Relations (DGAP), and the Institute of European Studies of the Chinese Academy of Social Sciences (CASS). Both the editors and the contributors of this book are convinced that the publication of this volume is important at this point in time for several reasons.

First, it provides a comprehensive assessment of the current state of, and the prospects for, China–Europe relations. The fifteen chapters herein cover a wide range of topics, assessing the Sino-European relationship from a number of angles. The subtitle of the volume – Perceptions, policies and prospects – illustrates the emphasis in the pages to come. It provides historical perspective on the relationship; it assesses the state of Chinese studies in Europe and European studies in China; it explores how the European Union goes about making its China policy and what the Chinese perceptions and assessments are of Europe that shape China’s Europe policy; it exposes the significant bilateral commercial and technological relationship that has grown apace in recent years; it places the bilateral Sino-European relationship in a global context and particularly looks at the interaction of China, the EU, and the United States; and it assesses the prospects for the future evolution of these relationships. It is the most systematic and comprehensive study on the subject to be published to date.

Second, this volume is important because it fills a gap in Western debates about how to manage China’s rise. With this book, we hope to fuel academic and political discussions and highlight several issues and topics that have not been deeply discussed up to this point. In particular, the study exposes the alternative ways in which the European Union states think about and deal with China – in contrast with the United States. This volume illustrates the very different philosophical, political, and strategic perspectives that exist with respect to China on the two sides of the Atlantic Ocean.

Thirdly, the volume provides insight into Chinese thinking about Europe and – to a lesser extent – the United States. While there is a robust community of “Europe Watchers” active in China today (as Dai Bingran’s chapter reveals), the views and writings of this community are virtually unknown outside China (and not even that widely within China’s broader international relations community). Thus, really for the first time, this volume gives voice to some of China’s leading Europe specialists, illuminates their domestic discourse, and makes their views known to the wider world.

The editors and contributors of this volume are, of course, well aware of the challenges that the publication of such a book poses. Everybody involved in the project has done their best in order to make this a high-quality publication, which will prove to be useful for both students and scholars of international relations, as well as the interested public who want to know more about the current state of Chinese–European relations and their prospects for the future. The study took shape over a three-year period, beginning in 2004 with several reflective and probing discussions among the editors. In 2005 the decision was made to formally collaborate and commission a number of papers to be included in the volume. These first drafts were written and first presented at a three-day conference “China and Europe: Integrating Continental Powers,” held at the DGAP in Berlin in July 2006 (in the midst of the World Cup!). This conference was notable particularly for its collegiality and the spirit of partnership among all the contributors, but it was also characterized by intensive discussion of each of the draft chapters – illustrating the best of the “peer review” (tonghang pingyi in Chinese) process. This experience revealed just how far Chinese scholarship in international relations has come and how comfortable and confident Chinese scholars are today interacting with their Western counterparts in serious scholarly settings. Following the conference, and based on detailed suggestions from the editors and a second set of peer reviewers arranged by Routledge Press, all chapters were revised (often several times) for publication. Thus, the publication of this volume in 2007 reflects three years of hard work, but also tremendous collegiality.

Highlights of the volume

Michael Yahuda of George Washington University opens the discussion with a wide-ranging and thoughtful historical retrospective on the evolution of the Sino-European “encounter.” His skilful overview identifies two main factors that have shaped these relations from the outset. The first is the geographic circumstances of both continents, which he describes as “the tyranny of distance.” Physical distance has contributed to perceptual distance in Yahuda’s view, as Chinese and Europeans have misunderstood each other for a very long time. The second major influence, he suggests, is the importance that trade had as the main conduit for and substance of relations between the two for almost two thousand years. Despite the importance of distance and trade, China and Europe mutually influenced each other in other fields as well, especially after the Middle Ages in Europe. Yahuda expertly demonstrates the impact that European thought had on successive generations of Chinese intellectuals, from the Enlightenment to the present – but he also shows that such ideational and cultural influences have flowed in reverse as well, as generations of Europeans have been fascinated by things Chinese. Yahuda does not confine himself solely to the relations between China and Europe, but also shows the effects that relations between China, the United States, and the former Soviet Union had on Sino-European relations during the Cold War. He argues that, during this long period, China and Europe were never really able to develop their own autonomous ties, independent of the superpowers – and it was not until the end of the Cold War that the relationship could really begin to develop on its own.

The third section of the volume focuses on European perceptions of and approaches to China. Kjeld Erik Brødsgaard of Copenhagen Business School opens with a comprehensive analysis of Chinese studies in Europe. This is a very ambitious undertaking since, as noted above, every European country has its own approach and policy towards China. Therefore, it is not surprising that the landscape of China studies in Europe is equally diverse. Brødsgaard’s chapter is fully up to the challenge, though, as he has authored one of best studies ever undertaken on the subject.² He starts with an overview of the historical evolution of Sinology in Western Europe. He notes the famous figures in the development of the field in England, France, Germany, Holland, and Scandinavia. The study of Chinese philology, philosophy, religon, ancient literature, archaeology, and ancient history dominated the discipline – and consequently made it difficult for the social sciences to become established and shift focus to the study of contemporary China. This Sinological tradition continues to cast a long shadow over European China studies to this day. However, Brødsgaard traces the development of the study of contemporary (post-1949) China from the late 1970s. He shows how the field grew fairly rapidly in Scandinavia, Germany, and the UK – although this was really due to a handful of key scholars, such as Jürgen Domes, Stuart Schram, Kenneth Walker, Christopher Howe, Oskar Weggel, Brunhild Staiger, Marie Claire Bergere and Lucien Bianco. With this cohort, however, social science analysis of China commenced in Europe. Brødsgaard then goes on to detail the current state of contemporary China studies and he describes considerable growth in individuals and institutions. He also discusses pan-regional organizations such as ECAN (the European China Academic Network) and EACS (the European Association of Chinese Studies) that link scholars together. Finally, he provides a lengthy and fascinating description of the types of subjects that European scholars have focused on – in the process tracing the evolution of three generations of scholars and scholarship.

“It’s the system that matters,” argues Franco Algieri of the University of Munich. He explains in his chapter how the European Union bureaucracy in Brussels goes about making its policy towards China. The EU, particularly its executive arm the European Commission, has been among the most active of all governmental institutions across Europe in fashioning and articulating a strategy and policy towards China. While attention has been paid to the output of Commission policy, Algieri is really the first to focus on the input side of the equation. A specialist in the EU institutional architecture, he understands better than most the arcane and complex bureaucratic machinery operating in Brussels. In this chapter he brings his knowledge to bear on China policy. In focusing on how the EU’s institutional structure influences the shaping and conduct of its relationship with China, he focuses on four key areas of cooperation: the political dialogue, trade policy, human rights policy, and the arms embargo. Algieri suggests that the EU’s China policy is fashioned between the various institutions in Brussels, the capabilities that can be used for effective policy-making, and the interests of individual European member states. In some areas policy coherence has come at the cost of competition among various bureaucratic interests and countries. Particularly in the field of human rights, these systemic aspects threaten the coherence and credibility of European China policy.

In his chapter Jean-Pierre Cabestan of Hong Kong Baptist University and formerly the French National Centre for Scientific Research, explores the role of Taiwan in European relations with China, but he also details the nature and dynamics of European relations with the island in the economic, educational, cultural, and political realms. This is probably the most thorough summary of European–Taiwan ties available. His analysis shows how EU–Taiwan relations have afflicted European policy towards the People’s Republic of China over time, although not nearly to the same extent as in the United States. As Cabestan describes, Taiwan has never had the presence or lobbying impact in European capitals that it has had in Washington – although he describes earnest efforts by the Taiwan government in recent years to lobby the European Parliament in Brussels and to establish a better beachhead in the main European capitals. He also notes that the expansion of the EU to incorporate the new twelve members from the former communist states in Eastern Europe has proven beneficial for Taipei, as a number of them (particularly the Czech Republic and Poland) are politically sympathetic to Taiwan’s anti-communist cause. Arguing that Taiwan has proved to be “more an irritant than leverage” for the EU in its relations with China, he also addresses the question of whether the EU might adopt a more active role in the future settlement of the political impasse across the Taiwan Strait.

In Section IV of the volume, Fudan University Professor Dai Bingran turns the tables by taking a look at European studies in China. At first, he reflects on the development of European studies in China, which began only during the 1970s, in which he was personally involved at Fudan University. Europe, in those days, was seen as part of the “second world” – to be mobilized in a common united front against the former Soviet Union. The other prism through which Chinese analysts looked at Europe then was as a “state-monopoly capitalist” system. But specific knowledge of European societies, economies, and politics was minimal. The field only really began to develop in the 1990s, and largely as a result of three factors. The first was the building of an independent relationship between the two sides after the Cold War – and the Chinese government had need for more expertise and information about the EU. The second factor was the impetus provided by the European Commission Delegation in China that provided funding for the creation of European studies centres across China. A third factor that Dai identifies has to do with the Chinese desire to learn from and adapt various aspects of the “European model” that may be of use to China’s reform process. Finally, Dai discusses the government and private sector “consumers” of research produced by China’s Europe Watchers. His chapter also includes comprehensive appendices that catalogue all the main European studies centres in China, as well as the main journals published in the field.

The next chapter by George Washington University Professor David Shambaugh also focuses on China’s Europe Watchers, as he undertakes a systematic analysis of the content of books and articles written since 2001 about Europe’s and the EU’s role in world affairs. Shambaugh notes that to date in the West much more has been written about European views of China than vice versa, and his chapter (as well as the following ones by Zhu Liqun, Song Xinning, and Ruan Zongze) begin to rectify this deficit. Shambaugh delves into more than twenty Chinese journals and a number of books to elucidate Chinese perceptions of Europe in three areas: Europe’s role in world affairs and the EU as an international actor; China–Europe relations; and the EU–US–China “triangle.” In all three areas, but particularly the first, Shambaugh finds a high degree of what he describes as “cognitive dissonance,” i.e. Chinese analysts have a strong propensity to project their own ambitions and preferences onto Europe and European actions. Chinese (like others) have certain core beliefs about world affairs and the kind of international order they would like to see emerge – as a result, they are quick (and often overly quick) to find confirmation of their inclinations in European actions. Thus, for example, there is a strong proclivity to view Europe as a “pole” in the emerging multipolar global order that China seeks. When it comes to assessing China–Europe relations, China’s Europe Watchers are almost uniformly upbeat and optimistic. They praise EU policy as being enlightened and farsighted (in contrast to the “hedging” or alleged neo-containment policies of the United States) – and they take great satisfaction in the China–EU “comprehensive strategic partnership” (proclaimed in 2003). Nonetheless Chinese analysts (like the Chinese government) remain dissatisfied with the EU arms embargo and failure to grant China Market Economy Status. In terms of the so-called China–Europe–US “triangle,” Chinese analysts are constantly looking for faultlines across the Atlantic, which can possibly be exploited by China. Some see numerous such transatlantic tensions, while other analysts identify greater solidity of ties. Some see the US and EU trying to collectively manipulate or pressure China – for example, on questions of human rights, trade policy, political liberalization, and civil society development. Others, though, view the triangle in more positive-sum terms. In sum, while there are differences of opinion within China’s Europe watching community, there remains a high degree of agreement on many issues. Also, despite a tendency towards cognitive dissonance, one is struck by the depth of understanding of the EU and European affairs, as well as the straightforward, non-ideological nature of Chinese analyses.

In the next chapter, Zhu Liqun of China’s Foreign Affairs University carries forward the analysis of the previous chapter by examining Chinese perceptions of the EU and Europe on two levels. First she examines scholarly journals and the assessments provided by Chinese scholars. She also finds China’s Europe Watchers to be generally positive about Europe’s role in world affairs – particularly as a normative model for multilateralism and non-coercive behaviour. In fact, she notices a recent shift in Chinese assessments away from the previous realist school that emphasized Europe as a pole in an emerging multipolar world, towards viewing Europe more as a “civilian and normative power.” She also finds that Chinese scholars believe that there is substantial convergence between China and the EU in their respective views of global governance, which bodes well for future cooperation. The second half of Zhu’s chapter reports the findings of a survey of Chinese university students’ perceptions of various aspects of the EU and Europe. This survey data is some of the first to be systematically undertaken in China, and is therefore most interesting – even if it is impressionistic and problematic in methodological terms. Overall, one sees many positive perceptions.

The last chapter in this section, by Song Xinning of Renmin University in Beijing, examines Chinese views specifically of European integration and enlargement processes. Chinese analysts have followed these twin processes very carefully over the years. Generally speaking, he finds surprise among European analysts concerning the pooling of sovereignty and the scope and pace of EU integration. Given the high premium that Chinese place on sovereignty, this is not surprising. Yet Chinese analysts have also been interested in these processes as a possible model for Asian integration. He also notes various aspects of the “European Model” that have intrigued Chinese analysts. Finally, he notes that the incorporation of twelve new East European states into the EU may cause more problems than opportunities for China – in both political and commercial terms.

Section V of the volume turns to the commercial, economic, and technological domain – containing twin chapters by a European and a Chinese contributor. Robert Ash of the University of London’s School of Oriental and African Studies examines Europe’s commercial relations with China, while Zhang Zuqian of the Shanghai Institute for East Asian Studies does so in reverse.

Ash’s chapter is a tour de force. It is probably the best single assessment of the Europe–China economic relationship in print. It begins with a discussion of the evolution of the EU’s economic strategy towards China since 1978, tracing the shifts and growth in the bilateral trade and investment relationship. Next, Ash focuses closely on the FDI inflows and outflows to/from China, and exposes some very interesting patterns from unique data not previously examined. This is followed by a careful study of the bilateral trade patterns between China and the EU. Finally, Ash goes “beyond the numbers” by drawing attention to the European corporate experience in China. Again, this is not something that has been written about previously, and his discussion adds some interesting comparisons to the American and Asian experiences.

Zhang Zuqian next looks at the bilateral trade and investment relationship from China’s perspective. He provides a number of case studies of successful European joint ventures in China and indicates general Chinese satisfaction with European investment. Zhang then looks at Chinese investment in the EU, a subject about which not much is known. He provides a number of interesting examples of successful Chinese firms operating in Europe. He also looks at technology transfer from Europe to China. Finally, Zhang lists a number of difficulties and problems China has had with Europe in the trade realm, notably anti-dumping duties and the failure to grant China Market Economy Status.

The final section of the volume places the China–Europe relationship in global context, and does so in three particular ways. First, Volker Stanzel (former German Ambassador to China) examines the interaction of the two sides in terms of global governance, largely in the international institutions. He argues that the post-Cold War order has opened up a Pandora’s Box of pressing and complicated issues on the international agenda – many of which require Sino-European efforts to effectively address them. Much of the remainder of his contribution examines the degree to which Chinese and European orientations are or are not compatible on a range of global governance issues. Not surprisingly, he finds some overlap – but the differences he exposes are not to be trivialized or ignored, as they fester beneath the surface of the relationship and will act to limit cooperation in certain areas. But on big issues, like strengthening the United Nations and upholding international law, Stanzel finds considerable congruence. Energy policy may be another such commonality. He concludes with a list of important global issues that the two sides will confront in the years to come – but he remains somewhat agnostic ab...