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 Europe 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 France, Germany, Italy, Spain and Britain. This is primarily the result of job outsourcing and the ballooning EU 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]

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