Time for EU to relax control on dual-use exports

Chinese President Xi Jinping (C) meets with European Council President Herman Van Rompuy (L) and European Commission President Jose Manuel Barroso, who are here for the 16th China-EU Summit, in Beijing, capital of China, Nov 20, 2013. [Photo/Xinhua]

Brussels recently entrusted a think tank to seek concrete recommendations on how to develop dual-use technologies to retain Europe's influence and promote its competitiveness.

The European Union has long transferred high-tech applications to China and this has helped the EU benefit from expanded market access as well. But Brussels has kept tight control over exports of civil products that can also have military applications. This control is among the major downsides of the relationship between China and the EU.

Brussels followed Washington's lead in 1989 by introducing economic sanctions against Beijing, and it still refuses to lift its arms embargo despite the normalization of diplomatic relations in 1992. To make matters worse, some European countries have ignored Beijing's objections and exported arms to Taiwan.

Over the years there have been repeated calls for the EU to relax its controls on dual-use exports. With the leaders of both sides expected to meet at the end of this month, Brussels will have another opportunity to return Beijing a favor.

For the EU, the control is its leverage in international politics and efforts to manage the bilateral relationship. It also seeks to use political and diplomatic means as a component of its power on the global stage - for example by allowing arms sales to Taiwan.

But treating Beijing in such a way simply does not reflect the strategic partnership that Brussels and Beijing have built over the years.

Brussels needs to bring its controls on dual-use exports in line with bilateral agreements and international regulations. China's shifting of part of its military production capacities into civil use offers an example for Brussels on restructuring dual-use manufacturing industries. Since the collapse of the Soviet Union, Beijing has greatly reduced its military capacities and transferred military factories to the civil sector under modern corporate governance - some of them are listed on the stock market.

As Beijing and Brussels are both major forces of global peace, the two sides should share their experiences in this field and let production capacities improve the living standards for people both in Europe and China.

And the time has passed for EU decision-makers to use such controls over dual-use technologies as a way to gain global influence or leverage them as a way to gain advantage in the bloc's relationship with China.

The EU also says that its dual-use export controls over the R&D, production and trade of high-tech, advanced products in a range of industries including energy, aerospace, security, lasers and navigation, telecommunications, life sciences, chemical and pharmaceutical industries, and electronics are crucial to the EU's innovation capabilities.

But overprotection of such capabilities could boomerang. At a recent seminar held in Brussels, some China observers cautioned Brussels that China has already gained the upper hand in some sectors. For example, Chinese businesses in the telecom sector are now investing in Europe. The EU needs to adapt to the times and realize that China is raising its economy to a higher level.

Easing the controls on the exports of dual-use products to Beijing would boost trade and create high-value jobs in the EU and giving China access to some advanced technology it needs can successfully transform its economy away from carbon-dioxide-spewing industries and eventually benefit the world.

The author is deputy chief of China Daily European Union Bureau. fujing@chinadaily.com.cn

(China Daily 06/13/2015 page5)