| Abstract: | Global economic slowdown, among OECD’s countries including EU, the
main partner for trade and FDI in the USA before the financial crisis with
consecutive depression by US Wall street and Real Estate market ( EU in 2005
has invested 470 Billion euro, representing 75% of the inflow liquidities in the
US treasuries, government bonds and US equities funds) EU is going through
its worst financial crisis since World War II with only 0.5% growth (last Nov.13,
2009) and high unemployment rate (more than 10% during past year and
contained to 9.7% last November to 13 months length). Facing their weakened
Economy, EU Governments had to contract debts for the long run. Eastern
European countries, just recovering might be suffering more than the Western
countries scoring with the lowest economic growth apart for Poland, Czech
Republic and Slovakia. Overall the fragility of the economy is worrying, as few
Mediterranean countries like Greece, recent bankruptcy. Growths are limited
and resulting from Governments stimuli (injection of billions of Euro in their
markets as well as some temporary inventory effects). At the same time, USA
and Japan has been gaining back as per last end of year economic report,
while EU economy still at their bottoms, German progress is helping the
community then the “Household spend” that constitute a major influence, has
kept very prudent and short, since this year Euro currency difficulties in Greece
and worrying debts of few member states. Europe has become the largest
partner for China, EU become more and more dependant for its manufactured
products , textile and steel the past decade.
Europe (EC/EU) have started officially, diplomatic relations with China for more than 30 years, through bilateral or multilateral cooperation between
China and State members, and have to await till 1985 (May 21) to agree with
Bilateral Treaty replacing the previous Trade Agreement (March 4 1978).
Lisbon treaty process will inevitably replace individual Member states former
Agreements with China under EU new President of the Council and its Foreign
affairs Minister.
Asia represents for EU an attractive economic growth and market with
low labor costs. While China stands for a prominent role in the East Asian
economic development. EU has been the largest trading partner in China,
China representing the largest supplier for EU with prominent figures. In the
global recession, China plays a leading position in the world economy with a
+/- double digit economic growth rate willing to consolidate a fragile economy
recovery. |
