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US and Europe scrambling to adjust to changing world order

By Yu Xiang
0 CommentsPrint E-mail China Daily, February 25, 2010
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China is an ideal country for the US and European countries to shift their domestic dissatisfactions. China's domestic policies, from its financial and monetary policy, to its exchange rate of the currency, and its trade strategy have been blamed for the snail's pace of recovery for the US and European countries. This explains why the US and European countries have used protectionism in recent months against China. On Jan 18, Herman Van Rompuy, the EU president, emphasized that a no-lower-than 2 percent average economic growth should be the bloc's top priority. In his State of the Union address on Jan 27, Obama said his focus was to increase jobs, pursue development and reduce the deficit this year. It is expected that a series of export-oriented measures by the US and European countries will likely increase trade frictions with China.

Pressuring China is also taken by the US as an effective way to ease growing pressures at home. Obama's "smart diplomacy" has allegedly failed to bring American people changes promised during his election campaign. Public dismay toward Obama has contributed to the drastic decline of the president's approval ratings. In the UK, France and Germany and countries beyond, large-scale anti-government protests have erupted.

In the eyes of European countries, building an allied front against China is in the continent's interests. Since the global financial crisis, talks of G2 (China and the US) have been spreading throughout the international community.

The idea, although it has failed to be accepted by China or the US, has clipped the nerve of Europe. Becoming closer to the US, in Europe's eyes, will help foil the possible US and China governance of global affairs.

In the past year, European think tanks and media have reflected on Europe's China policy, holding that the EU's orientation of China as a responsible shareholder is wrong. With the ratification of the Treaty of Lisbon - the EU constitution - the bloc is under more pressure to have a unified voice and a tougher image to present to the outside world.

At a Jan 11 hearing, EU foreign policy chief Catherine Ashton claimed the community should establish new foreign policies to deal with the rise of emerging countries led by China and be well prepared for a new international order. The changing domestic political landscape in Europe is likely to prompt the EU to adopt a tougher approach in dealing with the Asian nation. That will be a test for China's diplomatic will and skill.

The author is a researcher with the China Institutes of Contemporary International Relations.

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