China Monday mapped out in a diplomatic strategy document the objectives of its policy towards the European Union (EU).

The document, titled China's EU Policy Paper, is the first ever paper on the nation's policy towards the European Union.  According to the paper, China's EU policy objectives are:

• To promote a sound and steady development of China-EU political relations under the principles of mutual respect, mutual trust and seeking common ground while reserving differences, and contribute to world peace and stability;
• To deepen China-EU economic cooperation and trade under the principles of mutual benefit, reciprocity and consultation on an equal basis, and promote common development;
• To expand China-EU cultural and people-to-people exchanges under the principle of mutual emulation, common prosperity and complementarity, and promote cultural harmony and progress between the East and the West.

In retrospect, the paper says China and the European Economic Community established diplomatic relations in 1975, China and the EU launched their annual summit mechanism in 1998 and in 2001, the two sides established a full partnership.

It says China attaches importance to the role and influence of the EU in regional and international affairs.

Despite their twists and turns, China-EU relations as a whole have been growing stronger and more mature and are now on the track of a comprehensive and sound development, the paper says, noting that "China-EU relations now are better than any time in history."

"There is no fundamental conflict of interest between China and the EU and neither side poses a threat to the other," says the paper, adding that "the common ground between China and the EU far outweighs their disagreements."

The paper notes that both China and the EU stand for democracy in international relations and an enhanced role of the UN and both are committed to combating international terrorism and promoting sustainable development through poverty elimination and environmental protection endeavors.

It says China and the EU are highly complementary economically thanks to their respective advantages and both China and the EU member states have a long history and splendid culture each and stand for more cultural exchanges and mutual emulation.
 
EU urged to prudently handle Taiwan issues
 
In the document, China called upon the European Union (EU) to prudently handle Taiwan-related issues.

The document says China appreciates EU and its members' commitment to the one-China principle and hopes that the EU will continue to respect China's major concerns over the Taiwan question, guard against Taiwan authorities' attempt to create "two Chinas" or "one China, one Taiwan" and prudently handle Taiwan-related issues.

In this first-ever strategic paper on its policy towards the EU, China urges the EU to:

• Prohibit any visit by any Taiwan political figures to the EU or its member countries under whatever name or pretext; not to engage in any contact or exchange of an official or governmental nature with Taiwan authorities.
• Not to support Taiwan's accession to or participation in any international organization whose membership requires statehood. Taiwan's entry into the WTO in the name of "separate customs territory of Taiwan, Penghu, Jinmen, Mazu" (or Chinese Taipei for short) does not mean any change in Taiwan's status as part of China. EU exchanges with Taiwan must be strictly unofficial and non-governmental.
• Not to sell to Taiwan any weapon, equipment, goods, materials or technology that can be used for military purposes.

In the paper, the Chinese side also requests the EU side not to have any contact with the "Tibetan government in exile" or provide facilities to the separatist activities of the Dalai clique.

The paper said China encourages personages of various circles in the EU to visit Tibet and welcomes the support of the EU and its members to Tibet's economic, cultural, educational and social development and their cooperation with the autonomous region "subject to full respect of China's laws and regulations".

EU urged to lift ban on arms sales to China
 
In the document, China called upon the European Union (EU) to lift its ban on arms sales to China.

The document says the EU should lift its ban on arms sales to China at an early date so as to "remove barriers to greater bilateral cooperation on defense industry and technologies".

China and the EU will maintain high-level military-to-military exchanges, develop and improve, step by step, a strategic security consultation mechanism, exchange more missions of military experts, and expand exchanges in respect of military officers' training and defense studies, says the paper.
 
China expects EU to be largest trade partner
 
In the document, the Chinese government said it expects the European Union (EU) to become China's largest trading and investment partner.

China urges in the document the EU to properly address irrational restrictions and technical barriers, and ease restrictions on high-tech exports in line with the WTO rules.

China also calls upon the EU to grant it a "full market economy status" at an early date, reduce and abolish anti-dumping and other discriminatory policies and practices against China, and apply the Transitional Product-Specific Safeguard Mechanism (TPSSM) prudently.

Currently the EU is China's third biggest trading partner and vice versa. Statistics show the trade volume between China and the EU hit US$86.76 billion last year.

To achieve the objective of elevating into the largest trading and investment partner, the document lists up a number of measures for China-EU economic cooperation over the next five years:

• give play to the mechanism of the economic and trade joint committee and step up economic and trade regulatory policy dialogue; give attention to updating the Trade and Economic Cooperation Agreement Between China and the European Union at an appropriate time; and compensate the Chinese side for its economic and trade losses which may arise due to the EU enlargement.
• boost China-EU coordination and cooperation in the new round of WTO negotiations and work together for the success of the negotiations.
• strengthen dialogue on investment, promote the establishment of bilateral investment-promotion institutions, energetically encourage and guide mutual investments between enterprises of the two sides, and expand cooperation between their small- and medium-sized enterprises; develop processing trade, contractual projects and labor cooperation of various kinds and encourage transnational business operation and internationalized production.
• China welcomes more EU development aid, especially in such fields as the environmental protection, poverty-alleviation, public health and hygiene and education. China also welcomes a stronger and more active role of the EU in human resources development, in particular, personnel training for China's central and western regions and build-up of China's capacity of participating in multilateral trading regime.
• step up cooperation in the area of quality supervision, inspection and quarantine, establish appropriate consultation mechanisms and, subject to the principle of ensuring safety, security, hygiene, health and environmental protection, promptly address and resolve issues which may adversely affect market access of each other's products.
• boost the customs cooperation and conclude a China-EU Customs Agreement in due course.

In financial aspect, the paper says the Chinese side welcomes an expansion of China-related business by banks of the EU countries and hopes to see an appropriate settlement of the issue of Chinese financial institutions' access to the EU market.

The Chinese side will positively examine and consider applications of EU insurance institutions for business operation in China and improve its supervisory and regulatory regime in line with the Chinese insurance laws, regulations and statutes and China's WTO commitments, says the paper.

More EU securities institutions, fund management institutions and other institutional investors will be encouraged to enter into China's market, the paper adds.
 
(Source: Xinhua News Agency October 13, 2003)