Closer Sino-EU ties may heighten US attention

With a record number of top-level visits between China and Europe in recent months, Washington is most likely to be focusing greater attention on military and economic issues, say experts in the United States.

In February, European leaders held their annual summit with Beijing. In April, Premier Wen Jiabao took a trip to Iceland, Sweden, Poland and attended an industrial expo in Germany, followed by Vice Premier Li Keqiang's recent tour to Russia, Hungary, Belgium and the European Union headquarters.

This latest round of visits comes when Europe needs good relations with China, much more than it did 10 years ago, due to its own economic downturn. It also takes place in a year when little is happening regarding China-US relations because of the US presidential election, according to some analysts.

"Historically, Europe - especially Germany, France and Britain - tends to look at China's rise more sympathetically than Americans do," said Matthias Matthijs, assistant professor of global political economy at the American University in Washington DC.

"Americans think China is a rival. Europeans think of China as economic partner."

On closer Sino-EU ties, he said: "Americans might look at it with some suspicion, especially on some sensitive issues, such as arms sales and military technology."

Though the professor did not expect the EU to relax the ban on arms sales to China this year, he said if the fiscal crisis gets worse in Europe, the Chinese might use the opportunity to ask Europe to sell them more advanced technology.

"That's something Americans will be very closely watching if there is closer cooperation on military issues or arms sales," he said.

For most Europeans, however, closer ties with China do not mean less close ones with the US, he added.

"Every country wants to have strategic ties with China, which is the major player in Asia," he said. "This is not something that will split the West."

On the trade side, Washington will see how Chinese investment in Europe, through direct investment and buying bonds, will affect industry in the US as well as European financial market, said Ting Xu, senior project manager at the German think tank Bertelsmann Foundation's Washington office.

Xu is the leading author of a comparative report on Chinese investment in the US and in Germany, which was released in April.

In February, leaders from China and EU pledged to discuss several significant issues, such as investment pacts and granting China market economy status. More trade deals were also signed during Wen and Li's trips.

"How much China will get involved in the European sovereign debt crisis will affect the position of US dollar, the stability of the European financial crisis and the recovery of the European economy," she said.

"As China and Europe are forging strong economic ties, we should not forget that the transatlantic relationship is still very strong in this aspect."

EU is China's largest trading partner, while China is EU's second-largest trading partner after the US.

tanyingzi@chinadailyusa.com

(China Daily 05/07/2012 page3)