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EU-China Summit: Deepening the strategic global partnership

MD Staff

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The 20th Summit between the European Union and the People’s Republic of China held today in Beijing has underlined that this partnership has reached a new level of importance for our own citizens, for our respective neighbouring regions and for the international community more broadly.

President of the European Commission Jean-Claude Juncker and President of the European Council Donald Tusk represented the European Union at the Summit. The People’s Republic of China was represented by Premier Li Keqiang. European Commission Vice-President for Jobs, Growth, Investment and Competitiveness, Jyrki Katainen, Trade Commissioner Cecilia Malmström, and Transport Commissioner Violeta Bulc also attended the Summit. President Tusk and President Juncker also met with the President of the People’s Republic of China, Xi Jinping.

“I have always been a strong believer in the potential of the EU-China partnership. And in today’s world that partnership is more important than ever before. Our cooperation simply makes sense”, said the President of the European Commission, Jean-Claude Juncker. “Europe is China’s largest trading partner and China is our second largest. The trade in goods between us is worth over €1.5 billion every single day. But we also know that we can do so much more. This is why it is so important that today we have made progress on the Comprehensive Agreement on Investment through a first exchange of offers on market access, and towards an agreement on Geographical Indications. That shows that we want to create more opportunities for people in China and in Europe.”

The Joint Summit Statement agreed by the European Union and China illustrates the breadth and depth of the EU-China relationship and the positive impact that such a partnership can have, in particular when it comes to addressing global and regional challenges such as climate change, common security threats, the promotion of multilateralism, and the promotion of open and fair trade. The Summit follows the High-level Strategic Dialogue, co-chaired by the EU High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission, Federica Mogherini and Chinese State Counsellor, Wang Yi, in Brussels on 1 June, and the High-level Economic and Trade Dialogue, co-chaired by Vice-President Katainen and Chinese Vice-Premier, Liu He, in Beijing on 25 June.

This 20th Summit demonstrates the many ways in which the European Union and China are concretely strengthening what is already a comprehensive relationship. In addition to the Joint Statement, a number of other concrete deliverables were agreed, including:

Working together for a more sustainable planet

In the Leaders’ statement on climate change and clean energy, the European Union and China have committed to step up their cooperation towards low greenhouse gas emission economies and the implementation of the 2015 Paris Agreement on climate change. In doing so, the EU and China will intensify their political, technical, economic and scientific cooperation on climate change and clean energy.

Welcoming this commitment, President Juncker said: “We have underlined our joint, strong determination to fight climate change and demonstrate global leadership. It shows our commitment to multilateralism and recognises that climate change is a global challenge affecting all countries on earth. There is no time for us to sit back and watch passively. Now is the time for decisive action.”

Vice-President Katainen and the Chairman of the National Development and Reform Commission, He Lifeng,also signed the Memorandum of Understanding to Enhance Cooperation on Emissions Trading, which acknowledges the significant potential of emissions trading to contribute to a low carbon economy and further enhances the cooperation of the two largest emission trading systems of the world.

Building on the success of the 2017 EU-China Blue Year, the EU and China have also signed a Partnership Agreement on Oceans. Two of the world’s largest ocean economies will work together to improve the international governance of the oceans, including by combating illegal fishing and exploring potential business and research opportunities, based on clean technologies, in the maritime economy. The partnership contains clear commitments to protect the marine environment against pollution, including plastic litter; tackle climate change in accordance with the Paris Agreement and implement the 2030 Agenda for Sustainable Development, in particular Goal 14. The signature of this ocean partnership is the first of its kind and opens the door for future partnerships between the EU and other key ocean players.

Vice-President Katainen and Minister of Ecology and Environment, Li Ganjie, also signed the Memorandum of Understanding on Circular Economy Cooperation that will provide a framework for cooperation, including a high-level policy dialogue, to support the transition to a circular economy. Cooperation will cover strategies, legislation, policies and research in areas of mutual interest. It will address management systems and policy tools such as eco-design, eco-labelling, extended producer responsibility and green supply chains as well as financing of the circular economy. Both sides will exchange best practice in key fields such as industrial parks, chemicals, plastics and waste.

In the context of the EU’s International Urban Cooperation programme, in the margins of the Summit, Commissioner Creţu witnessed the signature of a joint declaration between Chinese and European cities: Kunming and Granada (ES); Haikou and Nice (FR); Yantai and Rome (IT); Liuzhou and Barnsley (UK) and Weinan and Reggio Emilia (IT). These partnerships will facilitate exchanges to examine and develop local action plans reflecting the EU’s integrated approach to sustainable urban development while addressing social, economic, demographic and environmental challenges.

Putting the international rules-based system at the centre of open and fair trade

“I am more convinced than ever that, in the era of globalisation and of interdependence, multilateralism must be at the heart of what we do. We expect all our partners to respect international rules and commitments that they have taken, notably within the framework of the World Trade Organisation”, said President Jean-Claude Juncker in his keynote speech at the EU-China Business Roundtable in Beijing, which provided an opportunity for EU and Chinese leaders to exchange views with representatives of the business community. “At the same time, it is true that the existing WTO rules do not allow unfair practices to be dealt with in the most effective way, but instead of throwing the baby out with the bathwater, we must all preserve the multilateral system and improve it from within.” President Juncker’s full speech is available online. Commissioner Malmström also intervened at the event.

At the Summit, the EU and China confirmed their firm support to the rules-based, transparent, non-discriminatory, open and inclusive multilateral trading system with the WTO as its core and committed to complying with existing WTO rules. They also committed to co-operating on the reform of the WTO to help it meet new challenges, and established a joint working group on WTO reform, chaired at Vice-Ministerial level, to this end.

Good progress was made on the ongoing Investment Agreement negotiations, which is a top priority and a key project towards establishing and maintaining an open, predictable, fair and transparent business environment for European and Chinese investors. The EU and China exchanged market access offers, moving the negotiations into a new phase, in which work can be accelerated on the offers and other key aspects of the negotiations. The European Investment Fund (EIF), part of the European Investment Bank Group, and China’s Silk Road Fund (SRF) have signed a Memorandum of Understanding with the aim of confirming the first co-investment carried out under the recently established China-EU Co-Investment Fund (“CECIF”) that promotes investment cooperation between the European Union and China and the development of synergies between China’s Belt and Road Initiative and the Investment Plan for Europe.

Regarding steel, both sides agreed to strengthen their cooperation in the Global Forum on Steel Excess Capacity and committed, in accordance with the decisions of the 2016 Hangzhou and 2017 Hamburg Summits, as well as with the 2017 Ministerial decisions, to the goal of implementing the agreed political recommendations.

The EU and China also agreed to conclude the negotiations on an Agreement on cooperation on, and protection from imitation for distinctive food and drink products, so-called Geographical Indications before the end of October – if possible. An agreement in this area would result in a high level of protection of our respective Geographical Indications, which represent important traditions and rich resources for both the EU and China.

In the area of food safety, the EU and China agreed to promote the highest food safety standards, and are ready to take the regionalisation principle into account, and committed to expanding market access for food products.

The EU and China have also signed the Action Plan Concerning China-EU Customs Cooperation on Intellectual Property Rights (2018-2020), with the aim of strengthening customs enforcement to combat counterfeiting and piracy in the trade between the two. The Action Plan will also promote cooperation between customs and other law enforcement agencies and authorities in order to stop production and wind up distribution networks.

The European Anti-Fraud Office (OLAF) and the General Administration of China Customs signed a Strategic Administrative Cooperation Arrangement and an Action Plan (2018-2020) on strengthening the cooperation in combatting customs fraud in particular in the field of transhipment fraud, illicit traffic of waste and undervaluation fraud.

At the third meeting of the EU-China Connectivity Platform, held in the margins of the Summit and chaired for the EU by Commissioner Violeta Bulc, the two parties reaffirmed their commitment to transport connectivity on the basis of respective policy priorities, sustainability, market rules and international coordination.

The exchanges focused on:

  • the policy cooperation based on the Trans-European Transport Network (TEN-T) framework and the Belt and Road initiative, involving relevant third countries between EU and China;
  • cooperation on Transport decarbonisation and digitalisation, including in international fora such as the International Civil Aviation Organisation (ICAO) and the International Maritime Organisation (IMO)
  • cooperation on investment projects based on sustainability criteria, transparency and level-playing field to foster investment in transport between EU and China.

The joint agreed minutes of the Chairs’ meeting are available online, along with the list of European transport projectspresented under the EU-China Connectivity Platform.

A people’s partnership

The European Union and China are putting their respective citizens at the heart of the strategic partnership. There were good discussions on foreign and security cooperation and the situation in their respective neighbourhoods. At the Summit, EU and Chinese Leaders discussed ways to support a peaceful solution on the Korean Peninsula; their commitment to the continued, full and effective implementation of the Joint Comprehensive Plan of Action – the Iran nuclear deal; joint, coordinated work on the peace process in Afghanistan; and the situation in eastern Ukraine and the illegal annexation of Crimea and Sevastopol. They also discussed other foreign and security challenges, such as in the Middle East, Libya, and Africa, as well as their joint commitment to multilateralism and the rules-based international order with the United Nations at its core.

Many successful activities have already been held within the framework of the 2018 China-EU Tourism Year, designed to promote lesser-known destinations, improve travel and tourism experiences, and provide opportunities to increase economic cooperation. At the Summit, Leaders committed to further advancing relevant activities, facilitating tourism cooperation and contacts between people.

With the protection and improvement of human rights at the very core of the European Union and its global partnerships, Leaders also addressed issues relating to human rights, a week after the EU and China held their latest Human Rights Dialogue.

Both parties confirmed that they will press ahead with the parallel negotiations on the second phase of the EU-China Mobility and Migration Dialogue roadmap, namely on an agreement on visa facilitation and an agreement on cooperation in addressing irregular migration.

The EU and China also agreed to launch new dialogues covering drug-related issues and on humanitarian assistance.

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Complicated puzzle in the UK

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Britain’s withdrawal from the European Union has become a major riddle in the country. Many English citizens do not have a complete understanding of the EU, the British government and the UK Parliament’s move to leave the European Union. However, the British authorities seem to have planned a tentative game.

Recently, some western news sources are speaking of an issue called “repeating the Brexit referendum”, and name it as a possible option! An option that had been previously denied by British authorities, including Theresa May, the Prime Minister of the country. According to the France news agency, regarding the increasing doubt about the British Prime Minister’s efforts to conclude an agreement with United Europe, the possibility of holding a second referendum on Brexit has multiplied.

However, one of the goals of the English authorities is to complicate the exit process of the European Union. Accordingly, “Brexit” continues to be an implicit term in Britain’s political equations. the British government, with its widespread negative propaganda against the Brexit, is seeking to re-arrange a referendum. In other words, the European authorities are trying to direct the public opinion about the Brexit.

It should not be forgotten that both Labor and Conservative parties in the UK in the 2016 referendum were opposed to withdrawal from the European Union. The negative propaganda of Theresa May’s government against the Bexit since 2016 is known to everyone. After the British citizens voted to leave the European Union in 2016, the two Labor and Conservative parties (as UK’s two traditional parties) tried their best to change the general vote on this issue.

 The active role played by people like former British Prime Minister Tony Blair can well indicate the dissatisfaction among British authorities over the Brexit. Although it seems that Theresa May is trying to convince legislators to give a positive vote to this agreement, not only members of the Labor Party, but also some members of the Conservative Party are opposing it. The MPs argue that Brexit is basically contrary to the interests of the UK.

 Meanwhile, supporters of the “People’s Vote” campaign, who is now very active in England, believe that the parliament’s negative vote will pave the way for a new referendum on the Brexit. This issue is no way contrary to the demands of Theresa May and the Conservative Party, but it’s secretly supported by them. 

Puzzles in the UK over the country’s exit from the European Union are becoming more and more complex. The European Union is also keen on the continuation of this complicated game. However, it is still not clear if England will eventually leave the European Union. As mentioned, the two traditional British parties were both opponents of leaving Europe.

Labor Party officials led by Jeremy Corbin have also agreed to vote again on the Brexit, and have officially backed this issue. The fact that Britain’s two rival parties have come to an agreement on holding a new referendum has provided the ground for its ultimate realization.

First published in our partner MNA

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Rift deepens between US and EU over Iran

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Munich Security Conference 2019: A view of the main conference hall, Image source: MSC / Kuhlmann

Recent days have been witness to two important events: the Middle East Conference in Warsaw (co-hosted by Poland and the US State Department from February 13-14, 2019) and the Munich Conference. Differences between the EU and US over dealing with challenges in the Middle East, especially concerning Iran, were primary during both events.

The Middle East Conference in Warsaw somewhat lacked legitimacy as a number of important individuals were not present. Some of the notable absentees were the EU Foreign Policy Chief, Federica Mogherini, and the Foreign Ministers of Germany, France, and Italy. Significantly, on February 14, Iranian President Hassan Rouhani, Russian President Vladimir Putin, and Turkish President Recep Tayyip Erdogan met in Sochi, Russia to discuss the latest developments in Syria and how the three countries could work together.

The personalized aspect of Trump’s diplomacy

In addition to the dissonance between the EU and US over handling Iran, the dependence of Trump upon his coterie, as well as his overly-personalized diplomacy, was clearly evident. Trump’s son-in-law and senior advisor, Jared Kushner, spoke about the Middle East peace plan at the Warsaw Conference, which Trump will make public, after elections are held in Israel in April 2019. The fact that Netanyahu may form a coalition with religious right-wingers could of course be a major challenge to Trump’s peace plan. But given his style of functioning and excessive dependence upon a few exclusive members within his team who lack diplomatic and political experience, this was somewhat expected.

EU and US differences over Iran

While Israel, the US, and Arabs seem to have identified Iran as the main regional threat, the European Union, while acknowledging the threat emanating from Iran, made it amply clear that it disagreed with the US method for dealing with Iran unilaterally and was against any sort of additional sanctions. US Secretary of State, Mike Pompeo, even went so far as to state that the goal of stability in the Middle East could only be attained if Iran was ‘confronted’. The EU, unlike the US, is opposed to the US decision to get out of the Joint Comprehensive Plan of Action (JCPOA).

At the Warsaw Conference, Vice President Mike Pence criticized European Union member countries for trying to circumvent sanctions which were imposed by the US. Pence was referring to the SPV (Special Purpose Vehicle) launched by Germany, France, and Britain which de facto undermine US sanctions against Iran. The US Vice President stated that the SPV would not just embolden Iran but could also have a detrimental impact on US-EU relations.  

Differences at Munich Conference

The differences between the US and EU over Iran were also visible at the Munich Conference. While Angela Merkel disagreed with Washington’s approach to the Nuclear Deal, she agreed on the threat emanating from Iran, but was unequivocal about her commitment to the JCPOA. While commenting on the importance of the Nuclear Agreement, the German Chancellor said:

“Do we help our common cause…of containing the damaging or difficult development of Iran, by withdrawing from the one remaining agreement? Or do we help it more by keeping the small anchor we have in order maybe to exert pressure in other areas?”

But it was at the Munich Conference that the US Vice President clearly flagged Iran as the biggest security threat to the Middle East. Pence accused Iran of ‘fueling conflict’ in Syria and Yemen, and of continuously backing Hezbollah and Hamas.

GCC Countries at the Warsaw Conference

It is not just the US and Israel, but even representatives of GCC Countries took a firm stand against Iran. A video leaked by Israeli Prime Minister Benjamin Netanyahu revealed this.

Bahraini Foreign Minister Khaled bin Ahmed Khalifa stated that it was not the Israeli-Palestinian Conflict but the threat from Iran which posed the gravest threat in the Middle East.  Like some of the other delegates present at the Warsaw Conference, the Bahraini Foreign Minister accused Iran of providing logistical and financial support to militant groups in the region. Similarly, another clip showed the Saudi Minister of State for Foreign Affairs, Adel Al Jubeir, saying that Iran was assisting and abetting terrorist organisations by providing them with ballistic missiles.

Iran was quick to dismiss the Middle East Conference in Warsaw and questioned not just its legitimacy but also the desired outcome. Iranian President Hassan Rouhani stated that the conference produced an ‘empty result’.

US allies and their close ties with Iran

First, the US cannot overlook the business interests of its partners not just in Europe, but also in Asia, such as Japan, Korea, and India. India is not just dependent upon Iran for oil, but has significantly invested in development of the Chabahar Port. This will be its new modern gateway to Afghanistan and Central Asia. New Delhi in fact took over operations of the Chabahar Port in December 2018. On December 24, 2018 a meeting – the Chabahar Trilateral Agreement — was held and representatives from Afghanistan, Iran, and India jointly inaugurated the office of the India Ports Global Chabahar Free Zone (IPGCFZ).

The recent terror attacks in Iran as well as India have paved the way for New Delhi and Tehran to find common ground against terror emanating from Pakistan. On February 14, 2019, over 40 of India’s paramilitary personnel were killed in Pulawama (Kashmir) when a suicide bomber attacked a convoy of Central Reserve Police Personnel (CRPF). The attack is one of the worst in recent years. The terror group Jaish-E-Muhammad claimed responsibility. On February 13, 2019, 27 members of Iran’s elite Revolutionary Guards were killed in a suicide attack in the Sistan-Baluchistan province which shares a border with Pakistan. Iran stated the attack was carried out by a Pakistani national with the support of the Pakistani state.

In the aftermath, the Indian Foreign Minister, Sushma Swaraj, met with Iranian Deputy Foreign Minister Seyed Abbas Aragchchi en route to Bulgaria. In a tweet the Iranian Deputy Foreign Minister stated that both sides had decided to strengthen cooperation to counter terrorism, remarking that ‘enough is enough’. This partnership is likely to evolve further. In fact, many strategic commentators in India are pitching for an India-Afghanistan-Iran security trilateral agreement to deal with terrorism.

Conclusion

 So far, Trump’s Middle Eastern Policy has focused on Iran and his approach suits both Saudi Arabia and Israel but it is opposed by a number of significant US allies. As a result of the recent terror attack in Pulwama, geopolitical developments within South Asia are extremely important. Thus, the US and GCC countries need to keep a close watch on developments in South Asia and how India-Pakistan ties pan out over the next few weeks. If Iran strengthens ties with India, and given the fact that it already has Russian support, achieving its isolation will be tough for America. New Delhi may have no option but to enhance links with Tehran given its own national security interests in the region. Trump needs to be more pragmatic towards Iran and should think of an approach acceptable to all, and not just the small cabal within his Cabinet that view the region from an anti-modern perspective.

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Montenegrin political earthquake

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In mid-January, across Montenegro, one video clip caused a real political storm. For the first time it was seen how a businessman close to the government gives 97,000 euros to Slavoljub Stijepovic, former mayor of capital Podgorica and senior official of the rulling Democratic Party of Socialists (DPS), to fund the election campaign. It all happened ahead of the parliamentary elections in 2016. Dusko Knezevic, chairman of the Montenegro-based Atlas Group, meanwhile suspected of money laundering and other financial malversations, explained that this was just one in series of multi-million donations to the DPS of President Milo Djukanovic, during which time the DPS has never been out of power. This video clip was the first concreate confirmation of something that has long been an open secret in Montenegro.

Ten days after the release of the video Djukanovic confirmed that Knezevic was a donor, but not in the figures stated by Knezevic. The Prosecution Office needed three days to make a statement after Knezevic’s video, which shocked most of the public. Also, it was shocking how the Prosecution Office led the investigation. Thus, after the audio recording as part of the affair Atlas, the former Vice Governor of the Central Bank Velibor Milosevic was arrested expressly, because of the suspicion of being part of a criminal organization, for whose boss is marked Dusko Knezevic. Milosevic was detained for up to 30 days, due to possible influence on witnesses. On the other hand, the video from the beginning of the story was not a sufficient reason to treat Slavoljub Stijepovic in the same way. He was interviewed only 20 days after the appearance of the video, as a citizen. Unlike Velibor Milosevic, who was detained by the prosecutor with handcuffs and in front of television cameras, Stijepovic had the privilege to come to the Prosecutor’s office through the premises of the Ministry of Justice and to come out unnoticed.

The Prosecution Office decided to suspect Stijepovic for the criminal offense of Money Laundering by helping, but Prosecution Office in his case, as in the case of Velibor Milosevic, did not see a threat to the influence of witnesses or the need for detention. According to some media reports, Stijepovic took the guilty upon himself, which is why the Prosecution assessed that there was no need for the hearing of Milo Djukanovic, president of Democratric Party of Socialists and Montenegro. Stijepovic also reportedly told the Prosecution Office the names of DPS activists from the Zeta region who received money. More than 20 were heard in the Prosecutor’s Office, no detention was ordered.

Reaction

On the same day when he was charged with a criminal offense, Stijepovic  came to the session of the Presidency of the Democratic Party of Socialists, where “traditional centers of destruction”, media and other circles, were blamed for current affair, aimed at destabilizing the country. Milo Djukanovic, according to a tried-and-tested model, tried to show that behind this affair are centers of power from Russia. So his media machine was trying to show that Dusko Knezevic is in Moscow and that he work at the orders of the Russian intelligence services. However, it soon became clear that Dusko Knezevic is in London. In an interview with Al Jazeera Balkans in London, Dusko Knezevic presented new accusations against Milo Djukanovic. Dusko Knezevic stated that he has a lot of videos that shows how he personally gives money to Djukanovic. He keeps these videos for the finals of the affair, when he says, will completely reveal the criminal octopus of Milo Djukanovic.

This criminal affair encouraged people to action. Soon protests were organized. The first protests were held on February 2. The protest was organized by a group of citizens who claimed that they started “civil struggle” against the regime in Montenegro, and that behind them stands no organization. With whistles and sirens, the demonstrators scandalized the “Street of Freedom”, “Rise Up, People”, “We Want Justice”, after which they left 97 envelopes in front of the building of the Supreme State Prosecutor’s Office, on which they wrote “1,000 Euros” on the one hand, and on the other some of the long-standing unsolved affairs that the Prosecution should solve. On Saturday, February 16th, second large gathering was held in the capital of Montenegro, where the demands to the Protesters Office were presented. From the protest gathering, held under the slogan “97,000 Resist”, urgent and irrevocable resignations were sought from the president of the state and the government, Milo Djukanovic and Dusko Markovic, Supreme State Prosecutor (VDT) Ivica Stankovic, Special State Prosecutor (SDT) Milivoje Katnic and Director of the Agency for the Prevention of Corruption (ASK) Sreten Radonjic. Since Dusko Knezevic has said that there is a part that is not corrupt in the Democratic Party of Socialists, the protestants decisively denied that. The current events with the new affair of Milo Djukanovic were also used by Albanians from the United States. A truck with the inscription “Meet the Montenegrin president – a man of organized crime in the year 2015” was parked near the White House, the Congress, the State Department, the Montenegrin and the EU Embassy in Washington. On the truck also stood the message “Stop the discrimination of Albanians in Montenegro”.

Conclusion

Montenegro, which is, a NATO member since July 2017 and a candidate for EU membership, is often accused of not doing enough to tackle organized crime and corruption. EU has demanded more concrete results in the fight against corruption at a high political level as one of the main conditions for its making progress towards joining the EU. The entire rule of Milo Djukanovic is marked by affairs, but what this sets out is the fact that Dusko Knezevic is an insider, a man who took part in many important tasks. In addition to his testimonies, Dusko Knezevic also presents video recordings as well as documents. What many analysts spoke and warned about long time ago, now is documented. This affair also clearly demonstrated that all institutions in Montenegro are under the control of Milo Djukanovic. Initially, the scandalous silence of the Prosecution Office after the outbreak of the affair, the subsequent refusal to execute detention measures for Stijepovic, but above all the absence of a hearing of Djukanovic despite the unquestionable evidence of his involvement in illegal work, is in favor of the long-held thesis that these institutions are an integral part of the regime. Judicial institutions do not even try to show that they are independent. There is no doubt that the affair initiated by Montenegrin businessman Dusko Knezevic seriously shaken Milo Djukanovic and his party. It is still early to predict how the affair will culminate because all the evidence Knezevic announces has not yet been published. However, this is clear indication that the West has decided to significantly weak Djukanovic. An attempt by the media machine of Mila Djukanovic to connect Dusko Knezevic with Russian intelligence services, is not accepted in the West. Dusko Knezevic clearly shows that he is doing all the attacks on Djukanovic from London, where he currently lives. The fact that some political parties that are close to the Western Embassies support street protests, which was not the case before, speaks enough. One of the reasons why Milo Djukanovic has been ruling for almost three decades is complete obedience to the West. However, Djukanovic did all the tasks that the West needed, the separation of Montenegro from Serbia, the recognition of Kosovo’s independence, and finally the violent entry of Montenegro into NATO. Now with his biography, which is full of affairs, he is only a burden to the West. In any case, this affair will either take Djukanovic out of power or send him a clear message that it is time for political retirement.

First published in our partner International Affairs

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