June 19, 2008. Shanghai campus - Ambassador Serge Abou, Head of the Delegation of the European Commission to China, spoke on the EU-China partnership today during a visit to the CEIBS Shanghai campus. Addressing an audience of 200 MBA students, the ambassador delivered a speech entitled “The EU and China in the 21st Century,” then answered questions from students and media.

The ambassador began by commenting that both China and Europe are currently in a period of “rebirth,” making the bilateral relationship particularly important for both sides. Looking ahead, he stressed that 30 years from today, the United States is expected to decline in terms of relative global power while China is expected to continue rising in importance, particularly within Asia. Therefore, the ambassador predicted that the EU-China relationship will grow even more important over the coming decades.

Trade relations are also strengthening, Ambassador Abou stressed. He pointed out that the European Union is now China’s #1 trade partner, replacing the US, while China is #2 trade partner for the EU. In the coming several years, he expects trade between China and the EU to increase, saying: “In the future, the first trade link in the world will be the Europe-China trade link.”

Looking at investment, he emphasized that Europe is now the #1 investor into Greater China and is welcoming increased investment from China into the EU. “We are ready to work with Chinese investors and we want China to be a part of our growth and prosperity,” he said.

The ambassador also stressed growing research ties between China and the EU, pointing out that there are 300 joint research projects underway, many focused on the important sectors of biology, computer science, environmental protection, and energy saving. He added that the next EU-China Summit would address the promotion of clean energy. He commended China for current efforts to reduce energy usage and shift toward renewable energy by the year 2020. He also stressed the importance of  "people-to-people” exchanges, explaining that more than 150,000 Chinese students have travelled to Europe to study in recent years while 17,300 European students have come to China for study.

Looking at new initiatives, he expects China and Europe to cooperate in offering aid to Africa and emphasized the importance of working together to address climate change. He also emphasized the need for both sides to promote goodwill toward the other. In China, he hopes to dispel concerns that Europe is protectionist; in Europe, he hopes to dispel concerns that China poses a threat to job security. “Both sides need each other,” he said. “We are more and more interdependent; that’s why we have to take every opportunity to promote the idea of cooperation to all of our people. That is the most important challenge of the new period.”

The speech ended with a spirited Q&A session with students and then media covering such issues as Sino-French relations, and the failure of Ireland to pass the revised Lisbon Treaty. The Ambassador ended the event with a goodwill message for China’s hosting of the 2008 Olympics. “China has followed a long and difficult 30 years of reform and has made tremendous progress,” he said. “Now it is time to celebrate; I wish China every success during the Olympics.”