Building Bridges to the East: An EU Perspective on Asia's Place in the Global Economy

Abstract

This paper sets out both the opportunities and challenges that the rapid pace of economic development presents for the European Union and for the global economy. It argues that there are important parallels between European attitudes towards Japan in the 1980s and those towards China today, but also highlights the overall importance of Asian growth for Europe's long-term success. It also examines the significant challenges posed by China's return to the centre of the economic stage and makes the case for open markets in both China and Europe. Finally, the paper sets out the EU's emerging response to globalisation, highlighting in the trade area the European Union's new 'global Europe' strategy. This strategy, while giving priority to the multilateral system and to the success of global trade talks, complements that approach with new, deeper bilateral relationships with Asia, as well as with cross-cutting policy action to ensure that the EU is equipped to compete in the global economy.