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The European Union Ambassador to China, Mr. Serge Abou, met with China.org.cn for an exclusive interview (watch video) in Beijing on Tuesday to discuss issues of trade, cooperation, and cultural exchange.

On China's rapid growth, Mr. Abou said, "We have to adapt, to adjust our economy and our society to the Chinese rise."  He explained that the country's power in a multitude of areas, including industry, finance, and resources, makes it a top competitor in the global market.

He acknowledged that there has been and will continue to be a certain strain on European businesses, but dismissed the idea of a "China threat," saying, "We are ready in Europe, we are used to work in a competitive world. Competition is our oxygen."

"Life is a challenge, is an opportunity, and China has added some spice to our life," he quipped.

Mr. Abou  praised recent negotiations on the new Partnership and Cooperation Agreement between the EU and China as a vehicle to bolster bilateral relations.  "This year will be a very important year, a cornerstone in our cooperation," he said, adding that he particularly hopes to work together in the areas of energy and environment.

When asked about the possibility of granting China market economy status, he cited an EU report issued two years ago that stated the country "had a long way to go to obtain this qualification." Mr. Abou went on to say that a new report, due to be released soon, praises China's excellent progress, particularly the most recent laws adopted by the National People's Congress (NPC) on property, accountancy and bankruptcy.

"There are plenty of laws, plenty of gestures which have been made by the legislative bodies of China. The only problem that we meet is the level of implementation of these laws. So, I would say we reserve our diagnostic for the time being, while we will see how all these laws are implemented," he explained.

He went on to say that while the opening-up of China provides more opportunities for foreign investment, in order to better develop these relationships the country must work to instill a respect for Intellectual Property Rights (IPRs). "For small and medium-sized companies, bringing their technology to a foreign country is a risk," he said. "Because if your technology is stolen you have lost everything."

"In order to encourage these companies to come to China, we must offer to them a very good level of protection of their Intellectual Property Rights," he added.

Mr. Abou also spoke briefly on the request for the EU to lift its longstanding arms embargo for military trade with China. "Public opinion in Europe is passifistic," he explained, so it is difficult to obtain public support for what is a widely unpopular form of business.  He believed plans for military trade with any country would be met with the same opposition.

"When China asked for the embargo to be lifted, I think it's not because they want to buy more arms from Europe or because we want to sell more arms to China," he said. "I think it's to put an end to a situation which is not very comfortable for China, as being a little bit pointed at."

Mr. Abou also touched on the upcoming Beijing Olympic Games as an "important moment of brotherhood, of friendship." He said he feels one important aspect of the games is the enjoyment of the Chinese people.  "They build their future with a lot of courage," he said, and he believes they deserve a chance to really take in the moment.

On the other hand, he also thinks the games will be an important opportunity for Chinese people to share their customs with foreign guests.  In Europe, "there is a great attraction to learning about Chinese culture," he said, noting the large number of European youth studying Chinese as evidence of this fact.  He also listed the rapidly expanding network of Confucius Institutes as an important tool in educating people about China.

The best way for anyone to experience China, according to Mr. Abou, is to visit the country and see its growth firsthand.  "China itself is really a miracle," he beamed. "How you manage to have such development is simply impressive."

(China.org.cn by Natalie Litofsky, May 30, 2007)