EU-China summit : signs of an opening up of the market of the people's Republic of

Normally, in the run-up to the diplomatic summit meetings already for a long time, what is decided at the end. For diplomats and negotiators are meeting, often over months, to the common positions to work out, which can be decided at the conclusion of the summit of the rulers. It was also at the summit, the EU and China, which started on Tuesday in Brussels. However, it was extremely tight.

shortly before the beginning of reached a consensus on a final Declaration. This shows that The dispute between the EU and China to create a fair conditions of competition will be sharper.
President of the EU Commission Jean-Claude Juncker did not want his positions to move away. Shortly before the Meeting with China's head of government Li Keqiang, he called for fair conditions for European companies in China: it "should have the same rights as Chinese companies in Europe."

on the Friday, moreover, the EU had accused China, to make sufficient Commitments for market access and fair conditions of competition. And so it long remained unclear whether it would give at the end of the summit a joint Declaration of the EU and China.

Less technology outflow to China

Then, however, the agreement came in at the last second. But what has been agreed? According to the figures, China made in important areas, concessions, and agreed to about a tightening of the rules for subsidies of industrial goods in the framework of the world trade organization WTO. The draft of the final Declaration contained also a rejection of "forced technology transfers", it said. Chinese laws require foreign companies in case of mergers with Chinese companies to grant access to their technologies.

according to the diplomat, this year's summit Declaration will be, overall, "slightly more ambitious" than last year. In 2017, the EU-China summit without a final Declaration came to an end. The reason was a dispute over trade issues. The aim of the meeting in Brussels is also a common commitment to a multilateral world order with the UN as the core, as well as the Paris climate agreement. In terms of foreign policy, it was about the North Korea issue, the nuclear deal with Iran and the situation in Afghanistan, and Venezuela.

Only a few weeks ago, the EU had adopted a new mechanism for increased controls on foreign investment, which focuses in particular on Chinese investment activities. For the EU Council President Donald Tusk and Juncker took part, the EU heads of state and heads of government.

BASF as a key witness for the opening of the market

In the run-up to the summit, China had drawn attention to measures of the market opening. As a witness, the German Dax-listed companies, BASF. The Ludwigshafen group is considered to be the first company in the world, the need to arrive at a new Investment in China for the first time, not a forced Joint Venture with a Chinese company. BASF intends to invest in the next years, tens of billions of dollars in the province of Guandong in its second Chinese joint.

The production plant, and a "steam cracker" for the production of one Million tons of ethylene a year – will be the first to be fully owned by the German company. However, The Communist party of China is still one of the party. Every company with more than five employees in China must employ staff of the state party.

A chemical plant of BASF in China.Photo: picture-alliance/ dpa/dpaweb

Until recently, foreign investors in China are only active when you have entered into a Joint Venture with a Chinese company. Now, however, the law on foreign investment, which has recently been adopted in China, foreign investors are more freedoms. The Negative list of industries defined for foreign capital completely taboo, or where you a forced Joint Venture, has become considerably smaller.

the German car manufacturers are represented in China is massive and there for years doing good business benefit. As early as 2018, the requirement for joint ventures in the field of electric mobility. From 2020, the foreign manufacturer must be submitted also in the area of Nutfahrzeugen no Joint Ventures. And starting in 2022, the forced cooperation is also in the area of Cars. BMW has already announced to increase its stake in the Joint Venture in 2022 to 75 percent.

German car maker

benefit represented The German manufacturer in China since 2013, the largest market for passenger Cars and commercial vehicles in the world – with a strong presence. Both in the sale of vehicles as well as in the on-site production. As we hear, has established the cooperation with Chinese enterprises is also good. Since 2010, the German brands have quadrupled the number of factories from eight to 30.

in 2010, German manufacturers in China have made 1.8 million vehicles in 2018, there were 5.1 million pieces. The Chinese vehicle market is to grow within a scant decade, to more than double the number of pieces. In 2010, 11.3 million passenger Cars were sold in China in 2018, there were 23.3 million piece.

The industry Association VDA is expecting China to further liberalisation: "The greater Opening up of the markets must be implemented." Positive is in addition to the loosening in the Joint-Venture policy, the lowering of car duties. Need for action there is still a lot, such as the protection of intellectual property. The Association sees China on par with the developed States. "That's why we advertise that China is guided by internationally agreed rules of the global economy and more integrated."

The Asia-Pacific Committee of German business, since recently, Siemens boss Joe Kaeser, makes pressure for an investment agreement between the EU and China: in the course of this year there should be substantial progress. "Companies from the EU have to be given in China the same rights and obligations as well as Chinese companies in the EU." The EU Commission should Accept in their China policy a third way between the more confrontational containment and patient.

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people's Congress ends China promises further economic Opening-up

to show the chief of The Europe-Green and China-expert, Reinhard Bütikofer, calls on the EU, "cooperation, with a clear edge". There is no "special national paths should be" in the China policy, said Bütikofer, in terms of member States such as Greece, Hungary and Italy. "The EU must stand together, to play Chinese division policy sheet."