KNOWING REAL CHINA

European Institute of Asian Studies (EIAS)

« We identify new potentials, develop them and implement them »

This year marks the 45th anniversary of diplomatic relations between the EU and China, EIAS CEO Mr Axel Goethals discusses and reflects on the current state of affairs, challenges and opportunities between the two regions during an interview with LHCH

LHCH : Can you tell us about the EIAS and the work that you do?

Axel Goethals: The EIAS has been founded in 1989 as a policy research institute. Our staff include a number of people who have been involved with Asia for many years and in different regions: East Asia, South East Asia, South Asia and Central Asia. Our work is particularly interesting because we consider that a think tank should be ‘pioneering’, that means, identifying new and long-term opportunities for cooperation in EU-Asia relations. Moreover, not only are we identifying new these new opportunities, but we are also developing and implementing them. We do believe a think tank should be both pioneering in terms of ideas and practically implementing them, otherwise it becomes a ‘talk shop’.The EIAS has always had a focus on East Asia and also on China. In fact, a lot of people active in EIAS have been involved with Asia since the 1960s and 1970s (myself included). My first time in China was in the 70s, and I have been visiting the region very frequently ever since. I must say that we have observed tremendous achievement in China for the past 50 years. Obviously, nothing is perfect and there is still space for a lot of improvement, but this is equally true for Europe.

LHCH: How do you see the EU-China relationship?

Axel Goethals: I think many parallels can be drawn between the EU and China. The EU in itself represents a very good initiative, but we have also a long way to go. But there is always a tendency in the EU towards telling other countries how they should behave or how they should do better. I believe we have enough issues at home that should be dealt with in priority. Therefore, we should focus on ourselves first, such as the good functioning of the EU, as well political, social as economical, before telling others what they should do. As for China, the country has a different approach and a different system. A main observation is that we have seen in the last 50 years a great uplifting of the whole society. Much work remains to be done but the results are quite impressive. In the face of increasingly tense US-China relations, it is not up for the EU to choose for one specific country over another. We should develop our own European approach in our relationship with China, and should not forget that the EU remains both the biggest market and trading partner for Beijing.The fact that the EU is composed of 27 different member states – with each their own voices while acting as a united bloc – can look rather confusing or weak vis-à-vis other global major players. However, this diversity of voices can represent a strength as well. In dealing with the EU, China should be especially careful to engage with the EU as a block and not make the mistake of dealing with member states individually. Doing so potentially creates a bad perception in Brussels, where China can be seen as playing a different game. As is the case of the EU, which does not try to conclude agreements with respective Chinese provinces instead of the central government, and as such it asks for the same reciprocity. If China wants to deal with the EU, it is important that it keeps its focus on the EU.

LHCH : What do you think are the priorities of EU-CHINA relations during the German Presidency of the Council of the European Union?

Axel Goethals : The EU-China summit in Leipzig has been postponed and a virtual meeting has taken place on Monday 14 September instead. But a virtual meeting on this level can never replace a real physical meeting and we hope that a summit in person in Leipzig could still take place during this German Presidency Although the presidency in the second half of the year is always bit shorter than the first (due to summer break and Christmas holidays), the German agenda holds some important items regarding China:1) The need to finalise the EU-China Comprehensive Agreement on Investment (CAI). It would be a very important step if the CAI could be concluded during the German presidency as it represents a significant agreement for both sides.2) Advance on the EU-China Agenda 2025: this strategy focuses on the longer term and deals with topics such as good governance, transparency, fair competition, reciprocity, etc.Due to the new US-China tensions arising, there is an opportunity for concluding EU-China agreements aimed at providing a solid framework upon which the business world can rely on. When doing business, China’s economic model, mindset and approach are different than the one in the EU. It is therefore important that as Europeans we seek to understand the Chinese way of functioning, instead of blaming it or shaming it. Overall, if the German Presidency can successfully complete these two main items cited above, it would already represent a great achievement. Should the EU separate economic and political issues when dealing with China?I think the EU should focus on its own agenda, as the United States have their own agenda. We are strong enough as a block, economically wise, and as such we do not need to be afraid of ourselves. We should separate political and economic issues when dealing with China, while considering the domestic achievements we have made since 1945 – on both sides. The EU and China are natural partners, and as such we should focus on the positive and constructive sides.

LHCH : Should the EU separate economic and political issues when dealing with China?

Axel Goethals: I think the EU should focus on its own agenda, as the United States have their own agenda. We are strong enough as a block, economically wise, and as such we do not need to be afraid of ourselves. We should separate political and economic issues when dealing with China, while considering the domestic achievements we have made since 1945 – on both sides. The EU and China are natural partners, and as such we should focus on the positive and constructive sides.

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