China-EU summit: What do you need to know?

Climate change and trade are set to lead the agenda at the 19th bilateral summit between China and the European Union, which takes place on June 1-2 in Brussels.

In the wake of US President Donald Trump's visit to Europe last week – during which he made sharp criticisms of EU members' trade policies and refused to commit to the Paris Agreement on climate change – the relationship between China and the EU has taken even greater international importance.

As the US withdraws from the global stage, China and the EU are poised to take an elevated role in global affairs, from promoting free trade to tackling climate change and cooperating on infrastructure investment.

China has strongly expressed its backing for European integration in the wake of Brexit, and the comprehensive strategic partners are expected to pursue a long negotiated investment agreement – which could one day result in a free trade deal. The EU was already China's biggest trading partner in 2016, and China was the EU's second largest trading partner.

What's on the agenda?

Climate change

Clean energy and climate change are expected to be the main talking points at the summit, with intense media speculation that the two sides will issue a statement on Friday afternoon local time reaffirming the importance of the Paris Agreement.

The deal, signed by 196 countries including China and the US, plus the European Union, aims to keep the global average rise in temperatures below two degrees Celsius by requiring all signatories to reduce their carbon emissions. However, the US – the world's second-largest polluter – is now wavering.

President Trump refused to join other G7 leaders in reaffirming commitment to the Paris Agreement last week, and is due to announce whether he will pull the United States out of the accord on Friday afternoon.

China and the EU are also expected to expand cooperation on developing carbon markets – emissions trading systems.

Trade and investment

China-EU trade relations is set to be the first formal issue under discussion. Premier Li Keqiang told German Chancellor Angela Merkel in Berlin on Wednesday that China and Germany should work together to promote trade liberalization amid rising protectionism, and that message is likely to be reiterated to the European bloc.

Negotiations towards accelerating a comprehensive investment agreement between China and the EU, which could one day be the basis for a broader free trade deal, are set to continue.

It is hoped an eventual agreement will improve market access opportunities, address regulatory challenges, offer protection to investors.

China is likely to seek progress on the EU recognizing the country as a market economy, and talks regarding the ongoing problem of global steel overcapacity are expected.

Infrastructure

The EU-China connectivity platform, a project which could help harness the joint power of China's Belt and Road Initiative and the EU's plans for massive infrastructure upgrades across the bloc, is also expected to be high on the agenda. The aim is to coordinate on transport policies and to identify projects of common interest.

At the sixth annual EU-China High-level Economic and Trade Dialogue in October 2016, both sides acknowledged progress on identifying an initial list of pilot projects and towards setting up an Expert Group on financing and investment. There was also agreement on exploring synergies between the Investment Plan for Europe and the Belt and Road Initiative.

Global affairs

Peacekeeping cooperation in Africa is expected to be at the forefront of discussions regarding security and defense, while cooperation on counter-terrorism and issues related to migration and refugees are also likely to be discussed.

A working lunch on June 2 will be dedicated to foreign and security policy, with discussions likely to range from Syria, Libya and Ukraine to the DPRK.

Other business

The China-EU Year of Tourism, scheduled to take place in 2018, is likely to be discussed.

Work on accelerating negotiations on geographical indications – the sourcing of products to their true origin – is expected, with a conclusion anticipated by the end of 2017.

The 12th EU-China business summit will take place on the margins of the summit.

Chinese Premier Li Keqiang will co-chair the 19th China-EU leaders' meeting with European Council President Donald Tusk and European Commission President Jean-Claude Juncker.

(CGTN)