The EU's strategic economic dialogue with China: A new chance for European trade policy

Hanns Günther Hilpert

No 16/2008, SWP Comments from Stiftung Wissenschaft und Politik (SWP), German Institute for International and Security Affairs

Abstract: With the rise of the European trade deficit the tone of European trade policy towards China has become noticeably more irritated. At the same time a protectionist attitude motivated by nationalist sentiments has taken hold in China. Nevertheless, rather than engaging in confrontation the two sides would like in future to resolve their trade disputes through dialogue. Hence the EU and China conducted their first High Level Economic and Trade Dialogue (HLM) in Peking at the end of April as they had resolved to do at the last bilateral summit. The European Commission hopes that this new forum will lead to closer co-operation on various issues, to the commitment of the Chinese state leadership in trade matters and ultimately to the Chinese taking greater account of European interests. The fact that the new forum was established on Peking's initiative has given rise to hopes that from now on Europe will have a better chance of influencing how China shapes its trade and economic policy. The new body will, however, only be able to help reduce tensions in relations between Europe and China if the talks yield substantial results

Date: 2008
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