Complementarity and rivalry in EU - China economic relations in the twenty-first century

European Foreign Affairs Review

Volumn 12, Issue 1, 2007, Pages 13-38

  Andreosso O'Callaghan, Bernadette ^a   Nicolas, Françoise ^b,c  

^a UNIVERSITY OF LIMERICK   (Ireland)

^b French Institute of International Relations (Paris)   (France)

^c UNIVERSITÉ GUSTAVE EIFFEL   (France)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 37149002670     PISSN: 13846299     EISSN: 18758223     Source Type: Journal    
DOI: 10.54648/eerr2007003     Document Type: Article

References (26)

1. Available at .
2. CEC (2003) Commission's Policy Paper on China: A Maturing partnership: shared interests and challenges in EU-China relations? Commission of European Communities, Brussels, COM (2003) 533/final.
3. See 'Joint Statement of the 8th EU-China Summit', Brussels, 5 September 2005, IP/05/1091.
4. st Century Order', CEIBS Research Paper, No. 142/2005, November.
5. R. Wong, 'Towards a Common European Policy on China? - Economic, Diplomatic and Human Rights Trends since 1985' (Mimeo, National University of Singapore, 2005).
6. Gordon Crawford, 'European Union development co-operation and the promotion of democracy' in Peter Brunel (ed.), Democracy Assistance: International Cooperation for Democratisation (Frank Cass, London, 2000), pp. 90-127
7. C. Santiso, 'Promoting Democracy by Conditioning Aid?' (2002) 3 International Politics and Society, pp. 107-133.
8. European Commission, European Competitiveness Report, Commission Staff working document, Sec (2004) 1397.
9. Guillaume Gaulier, Françoise Lemoine and Deniz Unal-Kesenci, 'China's Integration in East Asia: Production Sharing, FDI and High-Tech Trade' (2005) CEPII Working Paper, No. 2005-09, Paris, France.
10. This hypothesis states that intra-industry trade is more likely to occur between trading countries that present a small difference in their factor composition and size. See E. Helpman, 'Imperfect Competition and International Trade: Evidence from Fourteen Industrial Countries' (1987) 1 Journal of the Japanese and International Economies, pp. 62-81.
11. R. Wakasugi, 'Missing Factors in Intra-industry Trade: Some Empirical Evidence based on Japan' (1997) 9 Japan and the World Economy, pp. 353-362
12. Ronald Jones, Henryk Kierzkowski and Chen Lurong, 'What Does Evidence Tell Us About Fragmentation and Outsourcing?' (2005) 14/3 International Review of Economics and Finance, pp. 305-316. By contrast to 'standard' IIT, trade in middle products involves both developing and industrial economies. This is because developing countries can at a minimum capture production of certain segments and components, although they may not be in a position to supply competitively a whole product.
13. Françoise Lemoine, 'FDI and the Opening-Up of China's Economy' (2000) CEPII Working Paper, No. 00-11, Paris, France.
14. B. Andreosso-O'Callaghan and W. Qian, 'EU-China Trade and Investment Relations: Complementarities in the Textile and Clothing Filière' (1997) 9/6 International Journal of Clothing Science and Technology, pp. 47-49.
15. Frédérique Sachwald, 'The Integration of China and East European Countries in Global Production Networks' (2004) Les Etudes de l'Ifri, No. 2, Ifri, Paris.
16. Xiaojung Wei, EU FDI to China: Locational Determinants and Lessons from an Enlarged European Union, PhD Thesis, University of Limerick, June 2006.
17. Luolin Wang (ed.), Report on Foreign Direct Investment in China (China Finance and Economics Publishing House, Beijing, 2000).
18. 'China's trade laws and regulations are often secretly formulated, unpublished, unevenly enforced, and may vary across provinces', San Diego World Trade Center, available under .
19. People's Daily Online, 5 May 2005, available under .
20. See .
21. This is also reflected in the upward trend of trade intensity indices among the East Asian economies. See M. Ando and F. Kimura, 'The Formation of International Production and Distribution Networks in East Asia' (2003) NBER Working Paper, No. 10167, Cambridge, USA.
22. On the export side, the so-called processing trade accounts for the bulk of China's trade. In the electronics and IT industry, processing trade has accounted for approximately 90 per cent of China's total exports since 1995. See T. Rumbaugh and N. Blancher, 'China: International Trade and WTO Accession' (2004) IMF Working Paper, No. 04/36, Washington, D.C., USA.
23. Sven Arndt and Henryk Kierkowski, Fragmentation: New Production and Trade Patterns in the World Economy (Oxford University Press, Oxford, 2001).
24. With the enlargement to EU-25, the pattern of intra-industry trade is likely to evolve, with a rise in the fragmentation of the production process. As Arndt aptly puts it: 'the major gains from entry will not come from freer trade along established patterns but from the reorganization of production and the consequent integration of those economies into the production networks of the EU.' See S. Arndt, 'Regional Enterprise in Preference Areas' (2001) Working Paper, No. 02, Lowe Institute of Political Economy, Claremont McKenna College, p. 14.
25. This situation is not alarming per se. What is striking is that the EU suffers from a critical lack of adequate policies (such as training and R & D) that are necessary to accompany structural change and that are essential to smooth out the negative impact of relocation. See J.F. Kirkegaard, 'Outsourcing and Offshoring: Pushing the European Model Over the Hill, Rather than Off the Cliff!' (2005) IIE Working Paper Series, No. 05-1, Washington, D.C., USA.
26. This section draws on: Francois Godement, Francoise Nicolas and Taizo Yakushiji (eds), Asia and Europe: Cooperating for Energy Security (Japan Centre for International Exchange, Japan, 2004).