ELIAMEP, in light of China emerging as a global geopolitical and economic power, organized a bilateral open meeting with the  Shanghai Institute for International Studies (SIIS) on “China-EU Relations”.

Read the interview with Professor Ye Jiang, Director of European Studies of the SIIS.

ELIAMEP: China-EU High-Level Economic and Trade Dialogue is an important platform aimed at promoting and developing economic cooperation. Similar mechanisms exist between China and the US, China and Japan. Given the fact that the EU is the biggest trading partner of China, do you think this EU-China mechanism should be reinforced in order to include in-depth discussion on social and environmental matters?

Prof. Ye Jiang: Yes actually, just now you mentioned EU is China’s largest  trade partner and I think China is EU’s second or third largest trade partner in terms. Actually, I think there is a very good mechanism between China and the EU in terms of trade policy. On the other hand, we also need to promote dialogue specifically when the political climate is not that good. So we still need to try to enhance the relation between China and the EU and its member states. Since 2006, I think that China and EU relations are not so good as before. China and Greece relations, not only economically but also in the political fields are pretty good. But still we need to enhance economic dialogue. And on the other hand, climate change issues and environmental issues are quite important for both sides. So when we talk about the trade issue we need to know that actually both sides should try to promote prevention mechanisms and cooperation in terms of corporate responsibility on climate change and environment issues and so forth. So that’s quite important for us.

ELIAMEP: It is said that, in the context of the current global crisis, European economies are increasingly feeling the “China factor”: high unemployment rates in several European countries, hollowed-out tertiary industries in the Mediterranean countries and relative lack of competitiveness in the “new” Central European member states. In result, voices of concern and protectionism can be heard across the continent. How should we deal with this kind of concerns?

Prof. Ye Jiang: Firstly, we should fight against the protectionism because this is the best way of coping with the financial and economic crisis all over the world. But if every country try just to protect itself and carry out the “buy neighbours policy” it would cause the whole world turn down. So, currently, China tries to promote free trade. And we really don’t think that trying to protect your own market can really help. Maybe for the short-term, to some extent maybe it works but for the long term it won’t work. And for example during the last century, 1929-1939, in that period when those countries not only in Europe but also the United States tried to carry out the “buy the neighbours policy” and to protect their market but it led of course to the Second World War. But in the current situation, that’s not the right way to deal with problems for the entire world; specifically because China and the EU are comprehensive strategic partners and if we are partners we need to deal with the economic difficulties with open mind and open our markets. And of course, fair competition is very important for both sides. On the other hand, we have a huge foreign currency reserve and we also try to set our strategic derogations to purchase bilaterally to those European countries like Germany, UK so on so forth. China and EU are economically complementary; this means that we need each other. As mentioned aforehead, the EU is China’s first and largest trade partner and largest provider for  technology in the Chinese market; this means that both economies are complementary and EU and China relations highlight interdependence: we can use our labour forces where you can use your technology. In economic terms, China and Greece can be viewed as complementary. So, the EU should not turn into protectionnism when we try to open up; this will harden bilateral and multilateral cooperation. China has already carried out the opening up policy for thirty years. We have experienced, we have been better off through the opening up so I think at the same time, the European countries, the EU can also be better off through opening up to the world and also to Chinese market.

ELIAMEP: It is often said that the existing global political and financial institutions are no longer effective in an era where non-Western powers are rising fast at the regional and global context. Is there an urgent need for reform of those institutions and what should be the direction for such change?

Prof. Ye Jiang: First of all, I think that United States is still dominant. Although they are facing the financial crisis and at the same time I think that international financial mechanisms are not that suitable for the new challenges both of us are facing. And actually I think that emerging powers as well as European Union should have greater voice in the management of international financial and monetary affairs. But we still have a long way to go. We cannot change the mechanism abruptly or overnight. And that means, on the one hand that United States should try to listen to the other partners like European Union or China and other emerging powers like Brazil, India and even South Africa and so on so fourth. And on the other hand, European Union as well as China and other emerging powers also should be a little bit patient because to some extent I think that this international financial mechanism needs to be reformed, but we cannot try to change it wholly and totally. So, that’s the good way for us to cope with the financial crisis.

ELIAMEP: Greece and China are countries with ancient civilizations but otherwise very different in terms of size, influence, foreign policy priorities, political system, culture, etc. What values and interests do two countries share? What are the possible areas for cooperation?

Prof. Ye Jiang: I think that common origin and features, ancient culture and old traditions are shared by China and Greece. And both countries appreciate their own culture as well as they appreciate each others traditional culture. And that’s the commonality. At the same time both countries really consider that peace, development and cooperation remain the main themes in this world. So, we need to cooperate with each other in order to promote world peace, enhanced cooperation and try to promote development. But of course, at the same time are different. Actually, I think the common grounds between us far overweight those differences. And the world is a world with cultural diversity and in this sense, our histories are quite different between China and Greece. Nevertheless, the most important is that we can understand each other, because we have long history, so we are very patient with each other and we can cooperate successfully with each other. Concerning human rights and democracy issues and so on so forth maybe we have different opinion about how to deal with, but both countries really want to lead their citizens,  people to be better off. And both countries protect their own citizens’ farewell, maybe with different ways but as mentioned aforehead both countries consider that peace, development and cooperation are very important for both sides. So this is a promising prospect for our deepening cooperation. Firstly, we have the history, long history, secondly, we have common values like peace, development and cooperation and thirdly we have a complementary economic relationship with each other. I can just give you the example of Olympic Games 2004, you organized very successful Games, and then in 2008 I should say that we also organised very successful Games after we learnt a lot from you. And actually, your president as well as our president visited both countries last year and enhanced bilateral relations. This is the right way for mutual progress, by promoting a relationship based on cooperation, peace and development.