The ‘China Honeymoon’ is Over – David Shambaugh

In the International Herald Tribune, David Shambaugh writes about the causes of growing tensions between China and the European Union:

Tensions have grown over the past year, for a number of reasons. In particular, there has been a changed mood in about China. This is evident on a number of levels – public, corporate and governmental.

Positive public perceptions of China have dropped dramatically over the past year, dipping 15 to 20 percent in public surveys in , Germany, Italy, Spain and Britain. This is primarily the result of job outsourcing and the ballooning trade deficit with China, which is growing at €15 million per hour and likely to rise from €128 billion in 2006 to more than €170 billion in 2007. [Full text]

Yet, according to a report also in the IHT, China and France seem to be getting along just fine during President Sarkozy’s visit to the country:

The aircraft maker Airbus and the French nuclear company Areva were among a half-dozen companies to sign roughly $30 billion worth of contracts with Chinese partners on Monday, giving further proof of the growing value of China as a market for European technology despite mounting tension over trade and the environment.

The deals, signed during a three-day visit by President Nicolas Sarkozy of France, also included a vow by Airbus to award at least 5 percent of the supply contracts for its next-generation widebody jet, the A350-XWB, to Chinese companies. [Full text]

November 26, 2007 12:29 PM
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