New EU team must quickly engage with Beijing as China shifts its economic and political focus

The European Union's new leaders must waste no time in engaging China. Urgent matters at home and in Europe's troubled neighborhood command immediate attention. But upgrading and reinforcing ties with the world's second largest - and fastest growing - economy must also be a priority.

After a few troubled years, Europe-China ties are now sound. Although trade frictions are unlikely to disappear, major trade quarrels have been settled. As such, the new EU team inherits a relatively solid EU-China work agenda. It must use this to further shape and update relations to fit a complex and rapidly changing environment, both at home and in China.

Promises and commitments must be implemented. In a world in constant flux, EU policy toward China must at the same time be constant and flexible, realistic and ambitious. There should be a mix of short-term responses and medium- to longer-term reflection. Relations must be strong enough to cope with inevitable trade spats, foreign policy differences and disagreements over human rights.

As China and the EU prepare to celebrate the 40th anniversary of their partnership next year, the relationship must be made more resilient, robust and mutually respectful.

This requires sustained engagement at all levels. All eyes are on Federica Mogherini, the new EU foreign policy chief. Much will also depend on Jean-Claude Juncker, the new European Commission president, and members of his team who, among other things, deal with economic and monetary affairs, agriculture, industry, environment, energy, research and innovation, urbanization, transport and culture.

Trade Commissioner Cecilia Malmstrom will play a leading role as the EU and China step up negotiations on a first-ever bilateral investment agreement - and possibly begin the groundwork on an EU-China free trade deal. European Council President Donald Tusk and European Parliament counterpart Martin Schulz will be pivotal in determining the future direction of EU-China relations.

The new EU team would be well-advised to work closely with member states - such as Germany - that have increasingly robust ties with China. Berlin's privileged ties with Beijing can and should be made to work in the EU's favor. Intra-EU rivalries over China are damaging. But they are also unlikely to disappear given member states' national histories and current economic interests and priorities. Competition between EU institutions and national governments, such as those generated over China's "16+1" dialogue with Central and Eastern European states, must, however, be avoided.

More interaction is needed with European business leaders, including the European Union Chamber of Commerce in China, whose knowledge and experience of working in China provides useful insight into the national economic reform agenda. Think tanks, academics and journalists with an inside track on China's economic, social and political evolution also make important policy contributions and can help to keep the China-EU dialogue fresh and up-to-date.

It is worth repeating: Europe and China need each other, not least for economic reasons. Its growth rates may be slowing down but China's appetite for European goods and investments continues to be crucial in determining the pace and success of Europe's economic recovery. China's economic transformation - and plans for more change in the coming years - demands that it have access to European know-how, experience and technology. China's reform agenda also gives European companies myriad opportunities for enhanced trade and investments.

A deeper EU-China relationship is important in order to polish Europe's foreign policy credentials - in Washington, Moscow and in many Asian capitals. Asian countries, including Japan, Vietnam and the Philippines, which are locked in territorial quarrels with Beijing in the East and South China Seas, believe Europeans can temper Beijing's assertiveness on the issue and use its experience in managing cross-border challenges to ensure stability in the region.

While Europe's one-time dream of ensuring that China become a "responsible" international stakeholder now appears out-of-date given Beijing's increasing global outreach and self-confidence in world affairs, there is no doubt that the EU needs to engage with China on a range of urgent foreign and security policy issues, including relations with Russia, Iran's nuclear plans, policy toward the so-called Islamic State, fighting Ebola and combating climate change.

There is still much more to discuss and discover. China is in the midst of massive change as the focus shifts to boosting consumer demand and away from an excessive reliance on investments and exports. The emphasis is also on fighting pollution, ensuring sustainable urbanization and implementing other aspects of last year's massive national reform agenda agreed at the Third Plenum.

More recently, China's Fourth Plenum shifted the focus to the rule of law, governance and legal reform. President Xi Jinping, widely regarded as China's most powerful leader in recent decades, is stepping up his anti-corruption campaign. More information is needed about the strengths and weaknesses of the Shanghai Free Trade Zone and its ambitious goals for economic and financial reforms.

Following the decision earlier this year to set up a BRICS bank, China has spearheaded the 21-Asian nation agreement to set up a $50 billion Asian Infrastructure Investment Bank, a move that further bolsters Beijing's vision of boosting trade across the continent by building a Silk Road economic belt and a modern Maritime Silk Road. Given Asia's desperate need for better infrastructure, the "One Belt and One Road" initiative has been gaining traction across the continent.

With the groundwork for a strengthened EU-China relationship more or less in place, the focus must now turn to deepening and widening the dialogue and to turning words into action. To do so, the EU needs to keep constant tabs on the multiple and rapid changes taking place in China and articulate European policy responses.

Beijing has been true to its word in making 2014 "the year for Europe", with both Xi and Premier Li Keqiang traveling to key European capitals, including Brussels. The EU's new leaders must reciprocate quickly through visits, the convening of an EU-China summit early next year and by sending an immediate and strong signal of continuing - and upgraded - engagement.

The author is policy director of the Brussels-based think tank Friends of Europe. The views do not necessarily reflect those of China Daily.

(China Daily European Weekly 11/14/2014 page12)