EU & Asia (China)

1. EU & Asia (China) Alicia Garcia Herrero Carlos III 27 de marzo 2008

2. EU & Asia (China) Índice 01 Economic relations between EU & Asia 02 Economic relations between EU & China Trade FDI Policy Dialogue: ASEM & ASEAN 03 Conclusions

3. EU-ASIA TRADE & INVESTMENT RELATIONS • TRADE • -EU-Asia Trade = 5% Total World Trade • In 2006, overall trade with Asian partners = 30% UE total trade (ahead of North America, 20%). • Three Asian countries in the top six of EU major trading partners; China (2), Asean (5) and Japan (6). Source: Eurostat.2000

4. EU-ASIA TRADE & INVESTMENT RELATIONS • INVESTMENT • Third-largest regional destination for outward investment from the EU, 15% of the total EU outward FDI stock in 2004. • Total EU FDI flows to Asia in 1999 amounted to some €18.8 billion, though this was still a relatively limited proportion of global EU FDI (Asia accounted for 6.8% of total EU outward FDI in 1999, compared to 67.5% going to the NAFTA countries, 15.1% going to Central and South America, and 7.5% to Europe outside the EU.

5. EU & Asia (China) Índice 01 Economic relations between EU & Asia 02Economic relations between EU & China Trade FDI Policy Dialogue: ASEM & ASEAN 03 Conclusions

6. EU25 TRADE WITH CHINA Source: Eurostat.

7. EU25 TRADE WITH CHINA EU25 MERCHANDISE TRADE WITH CHINA EU25 TRADE IN SERVICES WITH CHINA Source: Eurostat.

8. CHINA TRADE WITH EU25 Source: Eurostat.

9. EU TRADE WITH MAIN PARTNERS Source: Eurostat.2006

10. EU TRADE WITH MAIN PARTNERS Source: Eurostat.2006

11. STRUCTURE OF IMPORTS (%) EU TO THE WORLD EU TO CHINA Source: Eurostat.

12. STRUCTURE OF IMPORTS (%) EU TO THE WORLD EU TO CHINA Source: Eurostat.

13. EU25 TRADE WITH CHINA Source: Eurostat.

14. EU25 FOREIGN DIRECT INVESTMENT WITH CHINA EU25 FDI WITH CHINA FLOWS EU25 FDI WITH CHINA STOCKS Source: Eurostat.

15. EU SUPPORT TO REGIONAL INTEGRATION ASEM ( ASIA-EUROPE MEETING) - Main multilateral instrument for the communication with Asia - Established in 1996 - EU27 AND thirteen Asian countries (India, Mongolia, Pakistan, Brunei, Burma/Myanmar, China, Cambodia, Indonesia, Japan, South Korea, Malaysia, Laos, the Philippines, Singapore, Thailand, and Vietnam) participate in the process. - ACTIVITIES: Biennial ASEM Summits, Mnisterial and working-level meetings, activies on political, aconomical and cultural subjects, Asia-Europe Foundation (ASEF) - MAIN CHARACTERISTICS Informal: Open Forum for policy makers and officials to discuss any issue, complementary to bilateral and multilateral for a. Multidimensional: Same Weight to Economic, Political and Cultural Issues Equal Partnership: Dialogue and cooperation, mutual respect and benefit. High Level (Heads of State or Government, Ministers and Senior Officials), fostering people-to-people contacts in all sectors of society.

16. EU SUPPORT TO REGIONAL INTEGRATION • ASEM ( ASIA-EUROPE MEETING) • Three main actions proposed • ASEM DIALOGUE FACILITY: Economic and Financial Matters, Employment and Social Policy, Environment, Cultural Diversity Promotion and Intercultural Dialogues. • ASEF PROGRAMME (Asia Europe Foundation) : Promote intellectual, cultural and people to people exchange focused on civil societies in Asia and Europe. • TEIN (Trans Eurasia Information Network Phase 3): Connect research networks in Asia and Europe by linking EU’s GEANT, the pan-european gigabit research network. It will promote information exchanges in research and development and education.

17. EU SUPPORT TO REGIONAL INTEGRATION • ASEAN ( Association of South-East Asian Nations ) • - Established in 1967. • - Member countries: Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Vietnam, Lao PDR, Myanmar and Cambodia • - Main Aims and Purposes of ASEAN: Accelerate economic growth, social progress and cultural development in the region and to promote regional peace and stability . • - EU encourage ASEAN’s integration and its efforts to involve other countries in dialogue and co-operation concentrated on three focal areas: • Regional Capacity Building and Region to Region Dialogues (trade, security, environment, energy…) • Statistical Cooperation • Cooperation and Policy Reform in the Field of Security

18. EU & Asia (China) Índice 01 Economic relations between EU & Asia 02 Economic relations between EU & China Trade FDI Policy Dialogue: ASEM & ASEAN 03 Conclusions

19. China is still not fully open to competition After 2001 admission to WTO, still some tariffs remain… • …but mainly non tariff barriers in China

20. This is costly for the rest of the world but also for China Cost of Non-Tariff Barriers 12.4 $Billion in traded goods 8.9 $Billion in services TOTAL = 21.4 $Billion • Looking at trade data, unbalanced trade may hurt China

21. CHINESE MARKET OBSTACLES CONSEQUENCES • Imbalances the Economy (distortion of prices, overproduction…) • Domestic Consumption depressed by lack of availability reasonably priced high quality foreign goods and services • Europe should engage China in improving quality standards and, more generally, complying with international rules

22. WIN-WIN APPROACH China needs sustainable growth - + Value Added Manufacturing - Services - SMEs/Private Sector - Restructuring Financial Sector - Higher Consumer Spending EU as a provider; EU exports more to Switzerland than to China (86bn vs 63bn in 2005) Long Term, reciprocal and mutually beneficial trade benefits

23. “ Muchas Gracias ” Lugar Fecha