Strategic aspects of EU-China commercial and monetary relations 

The paper, entitled 'The Strategic Aspects of EU-China Commercial and Monetary Relations,' highlights a number of issues that need to be tackled to develop and balance trade relations between the European Union and China since the EU is now "China's main trade partner". 

To discuss these, Lisbonne-de Vergeron suggests the block should set up a mechanism of high level macro-economic dialogue with the Chinese. 

She highlights the following as the main issues which need to be discussed: 

• The EU's access to Chinese markets remains restricted in certain key sectors, as Chinese regulations impose technical barriers and unequal treatment of foreign companies. 
• Defending European norms and protecting intellectual property rights is essential for the EU, as in 2006 83% of counterfeit products that entered the block were imported from China. 
• Banking reform and the development of a real market for consumer credit are also necessary. 

One of the determining factors of a better trade balance is the future development of China's consumer society, says the author. She highlights the "decisive role" played by the increase in domestic demand and the pursuit of economic reforms in favour of a more competitive and balanced market, reducing the bilateral deficit.

The high-level EU-China mechanism will address the euro/renminbi exchange rate issue by re-valuing the Chinese currency, she predicts. Experts suggest appreciating the renminbi as a means of fighting inflationist pressure, she points out.

This would also tackle the euro's status as an international reserve currency, the study argues. Considering the dollar's weakness, it has been suggested that Chinese reserves should opt for the euro as an alternative to the dollar to ensure better international stability in the medium term, the author explains.

Given that the EU has no well-defined common foreign policy when dealing with China, experts are calling for the EU to establish a high level macro-economic dialogue with the Chinese by the end of April 2008, she adds.

This time they agreed to create this high level dialogue mechanism to be continued under the French presidency, the study explains. 

At the last EU-China summit, the Eurogroup President together with EU officials negotiated with a single voice in the name of the European Union on monetary and commercial issues, the author recalls.