EU & Asia (China)

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Economic Research Department. Hong Kong Branch.

Carlos III 27 de marzo 2008

EU & Asia (China)

Alicia Garcia Herrero

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01 Economic relations between EU & Asia

02 Economic relations between EU & China

Trade

FDI

Policy Dialogue: ASEM & ASEAN

03 Conclusions

EU & Asia (China)

Índice

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EU-ASIA TRADE & INVESTMENT RELATIONSTRADE

-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

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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.

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Trade

FDI


03 Conclusions

EU & Asia (China)

Índice

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EU25 TRADE WITH CHINA

Source: Eurostat.

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Source: Eurostat.

EU25 MERCHANDISE TRADE WITH CHINA

EU25 TRADE IN SERVICES WITH CHINA


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CHINA TRADE WITH EU25

Source: Eurostat.

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EU TRADE WITH MAIN PARTNERS


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EU TRADE WITH MAIN PARTNERS

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STRUCTURE OF IMPORTS (%)

EU TO THE WORLD

EU TO CHINA

Source: Eurostat.

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STRUCTURE OF IMPORTS (%)

EU TO THE WORLD

EU TO CHINA

Source: Eurostat.

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Source: Eurostat.

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EU25 FOREIGN DIRECT INVESTMENT WITH CHINA

EU25 FDI WITH CHINA FLOWS

EU25 FDI WITH CHINA STOCKS

Source: Eurostat.

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EU SUPPORT TO REGIONAL INTEGRATIONASEM ( 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.

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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.

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EU SUPPORT TO REGIONAL INTEGRATIONASEAN ( 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:

1. Regional Capacity Building and Region to Region Dialogues (trade, security, environment, energy…)

2. Statistical Cooperation

3. Cooperation and Policy Reform in the Field of Security

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Trade

FDI


03 Conclusions

EU & Asia (China)

Índice

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China is still not fully open to competition

After 2001 admission to

WTO, still some tariffs remain…

…but mainly non tariff barriers in

China

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This is costly for the rest of the world but also for

ChinaCost 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

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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

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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

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Fecha

“ Muchas Gracias ”

Lugar

Documents

EU & Asia (China)