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New realities in China-UK relations

By John Ross
0 Comment(s)Print E-mail China.org.cn, October 18, 2013
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This U.K. experience is part of a general trend in Europe in the last five years. Some European countries, notably Germany, have pursued continuously good relations with China and strongly benefitted economically as a result. But others had to go through the same learning curve as the U.K. Conservatives.

Five years ago, in the run up to the Beijing Olympics 2008, French President Sarkozy threatened not to attend the opening ceremony. By November 2010, when President Hu Jintao visited France, President Sarkozy did him the special courtesy of meeting him personally at the airport.

In early 2008, a poll in the Irish Times showed a campaign for an Olympic boycott, promoted by figures from most Irish political parties, had the support of 43 percent of Ireland's population – compared to 57 percent favoring participation. In 2012, during Xi Jinping's visit to Ireland as vice president, every major party and newspaper spoke in favor of closer links with China.

Since 2008, in addition to the negative effects of the European economic crisis, China's investments in Europe have moved beyond bond purchases to major deals – particularly in infrastructure. The recent agreements with the U.K. followed after China's three gorges corporation bought a 21 percent stake of EDP-Energias de Portugal SA for $3.5 billion, and China Investment Corporation, China's sovereign wealth fund, bought a 9 percent stake in the holding company of the U.K.'s Thames Water.

There had been a strong debate in the U.K. media on relations with China. For example the Daily Telegraph carried a headline regarding Xi Jinping's visit to the U.S. before he became president that "China's upcoming leader Xi Jinping has been wined, dined... and warned." In contrast the UK's Guardian newspaper recently carried an editorial headlined "Chinese economy: headaches to die for" arguing: "Any appraisal of China's prospects must begin by admitting that the Middle Kingdom is the most astonishing development success story in the world today." Even a tabloid newspaper, such as the U.K.'s Daily Mirror, carried a major story emphasizing the positive role of U.K. trade relations with China.

Not merely the substantive agreements but also the political tone of leading U.K. politician's visits to China shows that this dispute has been decided in favor of those who want good relations with China. This is a development which benefits both sides. While the Chinese government's firm attitude to the U.K., after the Conservative led government's provocative approach to China, clearly showed it was willing to subordinate other considerations to defending the country's core interests, China nevertheless would evidently prefer and benefit from better relations with the U.K. In addition to investment in the U.K. economy, London is Europe's financial capital and the world's most important center for foreign exchange dealing – a matter of considerable interest to China as it proceeds with RMB internationalization.

The U.K. government wasted time earlier with its futile policy towards China and it is good to see from the outcome of Osborne's visit that dealings have returned to a rational path. The sharp reversal of the U.K. government's approach showed that it suffered much more than China from its earlier policy but a "win-win" approach is much more beneficial for everyone concerned.

The author is a columnist with China.org.cn. For more information please visit:

http://m.keyanhelp.cn/opinion/johnross.htm

Opinion articles reflect the views of their authors, not necessarily those of China.org.cn

 

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