6D - CFSP Case Study: The EU & China Dinan 510, 515-516 &...

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The restlessness of globalization, resulting in greater competition not only from the United States but also China and India, has stirred protectionist impulses in the EU. With spectacular export-led economic growth and aggressive trade policy, China has replaced Japan as the EU’s economic bogeyman. 1975-1989: 1 st of 3 Phases in EU-China relationship - The EU China relationship goes back to the 1975 with a trade and economic cooperation agreement, updated in 1985. Two main reasons: o To gain market access to the newly opened Chinese market o Important strategic motive of security to contain the former Soviet Union during the Cold War - A stable relationship that fulfilled the interests of both parties 1989-1998: 2 nd phase - The relationship ends with the Tiananmen Square pro-democracy student demonstrations of 1989 that the Chinese government ruthlessly suppressed. - After the atrocities of Tiananmen Square the EU imposed an arms embargo and further economic sanctions - The European Council condemned China’s repression, suspended high level bilateral meetings, postponed new cooperation projects and cut existing programs - Gradually relations normalize, pragmatism triumphs over principle Since 1998: 3 rd phase - The conflict between upholding human rights and enhancing bilateral trade continue to trouble some of the member states’ national governments, especially over the issue of the arms embargo – a legacy of Tiananmen Square - The EU was one of the earliest major trading partners to grant China fully unconditional most-favored-nation status (nondiscriminatory tariff access for China’s goods and services - The EU is China’s biggest trading partner, China is the EU’s second largest trading partner The EU’s interest in China still encompasses humanitarian and more recently environmental and climate change concerns. The EU wants to help China:
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This note was uploaded on 12/17/2010 for the course IR 365 taught by Professor Staff during the Spring '08 term at USC.

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6D - CFSP Case Study: The EU & China Dinan 510, 515-516 &...

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