EU Tour – Director-General Mario Buti, DG Economic and Financial Affairs
2016-01-25 | Beijing
BdlN gave an overview of the PP, reform process and also focused economic diplomacy.
DG Buti emphasized the timely organisation of the EU tour. Cooperation and interaction with China in 2016 will be of extraordinary importance. Many issues will come to fruition and the political dimension is of paramount importance. For this reason, DG ECFIN is seeing what is happening and soon will publish the forecasts. Currently, DG ECFIN is doing research on what is happening to China, the different scenarios and what would be the impact for the EU and other countries. According to DG Buti, China is currently the biggest risk of all. DG ECFIN sees as the most probable scenario a slowdown of the Chinese economy, but not a collapse.
On G20, DG Buti informed that DG ECFIN and the Commission is working closely which China on the preparation of China’s presidency and the priorities, particularly in terms of global governance. DG Buti mentioned that China in this occasion is more open than previously.
On MES, he recognised that it will not be an easy decision.
China is reshaping the global governance (i.e. SDR, AIIB,…). This is a very important moment for global governance and China has a leading role.
In relation to the Junker’s Investment Plan, the EU and China have been discussing the participation of China in such plan and hopefully discussions could be finalised during Q1 of 2016. China wants to use this as a vehicle for investing in the EU and have a privilege channel. However, for the EU is a no go in the terms they are proposing.
DG ECFIN is coordination the whole participation in the G20 and besides this there will be also bilateral dialogues. DG ECFIN hopes to raise the issues of interest of the European Chamber during these talks.
DG Buti remarked that China, during the discussions, wants to remain at the general level; but, it’s necessary to go into more granular and concrete issues. For this purpose, the traffic light system of the Position Paper is very useful.
BdlN emphasized the opportunity that the G20 brings to push for the claims of European business and also the negotiations of the CAI. He also stressed the importance of pushing the agenda for European businesses through economic diplomacy.
BdlN on MES – it’s a political decision, but we should get something in return if granted. Although it’s a political decision, it’s still needs to be part of a negotiation.
BdlN mentioned the current regulatory environment in China and recent trends related to security, national protectionism and nationalism (i.e. NGO Law, National Security Law, CN 2025,…).
FE focused on the progress done in the certain areas of the economic and financial reforms, but he also pointed out the steps backwards there have been. He emphasized the need for the Chinese government to let the market play a bigger role and increasing transparency.
FE put also mentioned the case of the bond market in China and how it should be more developed. He highlighted the creation of the AIIB as a positive development that could help increasing standards.