Sunday 7 February 2010

INSIDE THE CHINESE DEFENSE INDUSTRY

INSIDE THE CHINESE DEFENSE INDUSTRY

Is Chinese Naval Doctrine Based On The Theories Of Admiral Mahan?

Admiral Alfred Thayer Mahan (1840-1914) was one of the greatest theorists of naval power. He conducted a cost benefit analysis of imperial expansion by integrating commercial, naval and political aspects. How does a nation expand its power at the lowest possible cost? He concluded that commerce was of paramount importance. War was to be a last resort, he stressed. In other words, the goal was expansion by stealth.There are two main schools of thought about naval power. One posits that the largest and most powerful navy should be assembled and then used to defend and expand power. Battleships and aircraft carriers are of key importance. The other regards the huge expenditure and servicing of such a navy as a needless waste of national resources. The main concern should be to protect and expand trade. This involves securing strategic bases in strategic regions. Do not develop a navy which is perceived as a growing threat to one’s neighbours and competitors. In other words, do not get involved in a naval arms race.

Mahan’s most famous work is The Influence of Sea Power Upon History 1660-1783, published in 1890. In it he attempted to elucidate the reasons for the rise and fall of empires and great states. He deduced that the secret of Great Britain’s success was sea power. This was the critical factor in the defeat of Napoleonic France when Britain was able to blockade French ports and hence neutralise the French navy. His other writings could not explain the rise of Bismarckian Germany. However, he was vindicated in 1918 when a major factor in the defeat of Kaiser Wilhelm II’s Germany was the weakness of its navy.

Mahan’s writings were closely studied by the Imperial Japanese Navy, amid many others. It would now appear that the People’s Republic of China is devoting intensive study to his publications. Nineteenth century America and present day China have much in common. How should Beijing expand its navy without provoking other powers to respond?
China’s demand for hydrocarbons and raw materials has forced it to sail the seven seas in pursuit of these sinews of industry. Almost accidentally it has acquired a worldwide reach. Since its imports are strategically important it needs a navy capable of protecting the sea lanes. The last time China had a navy which sailed into such distant waters was 600 years ago. It has a lot of catching up to do to become as professional as other navies.

Chinese naval writings emphasise the link between commerce and naval power. A goal is to command strategic passages, such as the Strait of Hormuz and the Strait of Malacca, vital to Chinese trade.

Of primary importance is Taiwan. If the Middle Kingdom were to take control over it, China would have a gateway to the western Pacific. The Chinese talk of the First Island Chain which runs from Japan to Indonesia. The declared goal is to expand to the Second Island Chain which would make China potentially master of the western Pacific. Hence Beijing will do its upmost to prevent Taiwan becoming independent. Should Taipei become independent Beijing’s dream of becoming a great Pacific and world sea power would never be realised.

The Chinese agree enthusiastically with Mahan’s claim that a nation cannot be great without sea power. China is perceived to be an ‘oceanic nation’ endowed with a long coastline, many islands and a huge sea area under its control. China is building aircraft carriers, probably because it can see how the U.S. uses them to project power.

However, Mahan warned that ‘commerce thrives by peace and suffers by war’. He claimed that peace was the ‘superior interest’ of seagoing powers. Hence he did not advocate a race to build the biggest battle fleet. Some Chinese writers appear to have taken this to heart and advocate restricting China’s sea power to the First Island Chain. China’s navy should not be seen as a threat to anyone and its function is to defend the national interest. Others, of course, would like China to expand its influence several hundred miles from its shoreline.

If the Chinese leadership decide to learn from Mahan the world will be a safer place.

China Boosts Military Spendings

China says it is increasing defense spending, this year, to raise the salaries of the world's largest standing army. The announcement Wednesday, came at a news conference to preview the annual legislative session, which begins Thursday.

Li Zhaoxing is the spokesman for China's parliament, the National People's Congress, not the spokesman for the Ministry of Defense.

But, in what has become a tradition in recent years, the NPC spokesman announced China's proposed military budget.

Li says the defense budget is included in the draft national budget that is submitted to the legislature for examination and approval.

Li says China's military spending in 2009 will increase nearly 15 percent, to $70 billion.

The spokesman describes the increase as "modest" and said the double-digit growth will not pose a threat to any other country. He says much of the extra money will go to salaries for China's more than two-million troops and be spent on raising capabilities in what he described as "non-warfare military operations."

Li also said the additional spending is needed to maintain China's sovereignty and territorial integrity.

China has maintained its threat to use military force against Taiwan, if Taipei declares formal independence. Beijing considers the separately-governed island a renegade province.

The spokesman says China's military expenditures are no secret. He says, since 2007, China has submitted annual military expense reports to the United Nations.

Li says there is no such thing as "hidden military expenditure" in China.

The United States, Japan and other countries have long expressed concern about China's military build-up.

In just concluded Sino-American military talks last week, U.S. Defense Department official David Sedney told reporters Washington sees nothing wrong with China modernizing its military. At the same time, he said the U.S. government just wants more clarity about the Chinese government's intentions.

Wednesday 16 December 2009

China And Brazil: A Burgeoning Relationship

Brazil is one of the largest developing countries in the world and China is THE largest developing country. They are members of BRIC (Brazil, Russia, India and China) which is regarded as the future powerhouse of the world economy. Brazil and China are members of the G20 and normally participate as observers in G8 summits. The G20 has now emerged as the pacesetter for the transformation of financial relations between the developed and developing countries. President Luiz Inacio Lula da Silva of Brazil is now on his second official visit to China.Relations between the two countries go back to the 1840s when several hundred Chinese tea growers were shipped out to Brazil. Entrepreneurs were keen to find a substitute for the emancipated slaves. In 1880 a treaty was signed which established diplomatic relations and the free flow of trade.

Brazil and China established diplomatic relations in 1974. The first visit to China by a Brazilian President took place a decade later. Deng Xiaoping, China’s paramount leader, stressed the need to reduce the gap between the developed and developing world. A strategic partnership was then agreed.

The two economies complement one another. China has a voracious appetite for natural resources and Brazil needs electronics and other consumer goods. Brazil has almost every raw material needed by industry (bauxite, gold, iron ore, manganese, nickel, phosphates, platinum, etc.). For instance, iron ore reserves in Brazil amount to 22.5 per cent of world reserves.

Brazil has embarked on an ambitious upgrading of its infrastructure and since China is doing the same Beijing is in a strong position to help. For instance new Chinese roads and highways are world class and their new railways and rolling stock are of high quality. Brazil’s population of 192 million and GDP of $1.66 trillion make it a very attractive market for Chinese goods. China’s 1.3 billion population and GDP of over $4 trillion GDP make it an even more seductive market for Brazil.
Trade turnover between the two countries in 2007 almost reached $50 billion. Brazil is now exporting more to China than to the US. The good news for Brasilia is that Beijing runs a trade deficit with it. In 2008 it reached almost $9.3 billion. In 2001 it was only $1 billion. Almost all Brazilian exports are raw materials and commodities. China exports mainly electronics and textiles.

China is investing in downstream production. For instance, it is involved in a $3 billion steel plant in southern Brazil. Chinese companies also have stakes in the production of aircraft, compressors, automobile parts and hydroelectric equipment. During Vice President Xi Jinping’s visit in February 2009 an agreement was reached whereby the China Development Bank will lend Brazil $10 billion to explore and exploit huge hydrocarbon reserves off Brazil’s south east coast. Brasilia will supply Beijing with 100,000 barrels of oil a day until the loan is repaid.

However, not everything in the garden is rosy. Inevitably Chinese goods compete successfully with domestically produced products. This is a common problem in the developing world. Brazil’s solution has been to accuse China of dumping and impose tariffs. Regulations are in place to restrict the import of Chinese consumer goods until 2013. Criticism of Chinese practices is strongest in São Paulo, the heartland of Brazilian industry.

China and Brazil agree on the origins of the present world crisis: unregulated financial markets. Both countries want the developing world to have a greater say in framing the new world financial architecture. This has led to more and more cooperation between the two states.
Brazil has realised that it can benefit considerably from a closer relationship with China during the present world economic downturn. The future looks bright for Sino-Brazilian relations.

China's growing thirst for African oil

China has dangled a near open cheque book to Africa's major oil producers in a bid to guarantee supplies for decades to come.

It has offered 30 billion dollars to Nigeria and is negotiating for stakes in oil fields in Ghana and Angola and companies that exploit the fields throughout Africa.

China's thirst for oil is expected to be a major topic at the Forum on China-Africa Cooperation, when Chinese Premier Wen Jiabao meets African leaders and ministers in the Egyptian resort of Sharm el-Sheikh from Sunday.

Nigeria, the world's eighth largest producer, appears to be resisting China's approach to buy one sixth of its proven reserves.

Nigeria already supplies about one fifth of the United States's oil needs. President Umaru Yar'Adua recently told Peter Voser, chief executive of Royal Dutch Shell, the biggest investor in Nigeria's oil sector, that his country still wants to maintain ties with its "old" partners.

Shell, ExxonMobil, Chevron and Total, which have been in Nigeria for decades, are in intensive talks with authorities who want to change oil laws, notably the tax regime.

Industry sources say the companies are looking at investing around 23 billion dollars (15.6 billion euros) in Nigeria over the next five years.

But through its state-run China National Offshore Oil Corporation (CNOOC), Beijing is dangling the prospect of 30 billion dollars for a guaranteed six billion barrels of Nigerian oil.

Licences on some of the Nigerian oil blocks are close to expiring but the government has renewed them for one more year.

The weak link is the state-run Nigerian National Petroleum Corporation (NNPC) which the government wants to turn into a financially independent and profitable entity.

NNPC, which has been bedevilled by corruption, relies on state money to finance its operations in joint ventures with foreign oil companies. Chinese entities have made big offers.

"The Chinese have made a proposal which we are considering," junior oil minister Odein Ajumogobia recently told AFP.

"They are asking for six billion barrels of oil from our reserves, but I can tell you that we are not going to give them all of that," he added.

More recently Ajumogobia said NNPC could sell some of its blocks to the Chinese firms. "Why not, if the offer is very good? The NNPC has a right to do what it wants with its assets."

In Ghana, CNOOC is discussing with the state-owned Ghana National Petroleum Corporation (GNPC) the purchase of 23.5 percent of US-based Kosmos Energy's stake in the Jubilee oil fields, one of the largest oil finds in west Africa in the past decade.

Chinese firm SINOPEC recently bought the Canadian oil firm Addax which operates in Nigeria and west Africa, for a mere five billion euros.

CNOOC and Sinopec said in July they have agreed to buy a 20 percent stake in an offshore oil block in Angola from US oil company Marathon Oil Corp.

"The strength of the Chinese is that they are ready to put lots of cash on the table," said a senior executive in Africa with one international oil firm on condition of anonymity.

"So they want to come and work here, there is no problem, there is room for everyone, but not on blocks that are not free," said the oil chief.

Shell financial director Simon Henry recently said: "One thing you probably will have seen, and can be sure of, is that both ourselves and the industry will defend our interests."

Many African leaders have welcomed China's huge investment in the continent, but some officials have also expressed fears that China is buying diplomatic power that could turn into neo-colonialism.

Nine Chinese workers were killed when rebels attacked a SINOPEC oil facility in the Ogaden region of Ethiopia in 2007. Chinese workers have also been kidnapped in Nigeria's troubled Delta oil region.

Friday 11 December 2009

China's EU Policy Paper

Foreword



The international situation has been undergoing profound changes since the advent of the new century. The trend towards world multipolarity and economic globalization is developing amid twists and turns. Peace and development remain the themes of our era. The world is hardly a tranquil place and mankind is still confronted with many serious challenges. However, preserving world peace, promoting development and strengthening cooperation, which is vital to the well-being of all nations, represents the common aspiration of all peoples and is an irreversible trend of history.

China is committed to turning herself into a well-off society in an all-round way and aspires for a favorable international climate. China will continue to pursue its independent foreign policy of peace and work closely with other countries for the establishment of a new international political and economic order that is fair and equitable, and based on the Five Principles of Peaceful Co-existence. China will, as always, respect diversity in the world and promote democracy in international relations in the interest of world peace and common development.
The European Union (EU) is a major force in the world. The Chinese Government appreciates the importance the EU and its members attach to developing relations with China. The present EU Policy Paper of the Chinese Government is the first of its kind and aims to highlight the objectives of China's EU policy, and outline the areas and plans of cooperation and related measures in the next five years so as to enhance China-EU all-round cooperation and promote a long-term and stable development of China-EU relations.
Part One: Status and Role of the European Union



The creation and development of the European Union is an event of far-reaching significance following World War II. Since the launch of the European Coal and Steel Community in 1952, the EU has become what it is today through the stages of the Tax and Customs Union, the Single Market and the Economic and Monetary Union. Its integration in the foreign policy, defence and social fields has made headway. The Euro has been put to circulation successfully and a single area of justice is taking shape. The EU is now a strong and the most integrated community in the world, taking up 25 and 35 percent of the world's economy and trade respectively and ranking high on the world's list of per capita income and foreign investment.

In 2004, the EU will be enlarged to a total membership of 25. The new European Union would then cover much of Eastern and Western Europe with an area of four million square kilometers, a population of 450 million and a GDP of over 10 trillion US Dollars.
Despite its difficulties and challenges ahead, the European integration process is irreversible and the EU will play an increasingly important role in both regional and international affairs.

Part Two: China's EU Policy



China attaches importance to the role and influence of the EU in regional and international affairs. History proves that the establishment of diplomatic relations between China and the European Economic Community in 1975 has served the interests of both sides. Despite their twists and turns, China-EU relations as a whole have been growing stronger and more mature and are now on the track of a comprehensive and sound development. In 1998 China and the EU launched their annual summit mechanism. In 2001, the two sides established a full partnership. China and the EU have developed an ever closer consultation and fruitful cooperation in the political, economic, trade, scientific, cultural and educational fields. China-EU relations now are better than any time in history.

There is no fundamental conflict of interest between China and the EU and neither side poses a threat to the other. However, given their differences in historical background, cultural heritage, political system and economic development level, it is natural that the two sides have different views or even disagree on some issues. Nevertheless China-EU relations of mutual trust and mutual benefit cannot and will not be affected if the two sides address their disagreements in a spirit of equality and mutual respect.

The common ground between China and the EU far outweighs their disagreements. Both China and the EU stand for democracy in international relations and an enhanced role of the UN. Both are committed to combating international terrorism and promoting sustainable development through poverty elimination and environmental protection endeavors. China and the EU are highly complementary economically thanks to their respective advantages. The EU has a developed economy, advanced technologies and strong financial resources while China boasts steady economic growth, a huge market and abundant labor force. There is a broad prospect for bilateral trade and economic and technological cooperation. Both China and the EU member states have a long history and splendid culture each and stand for more cultural exchanges and mutual emulation. The political, economic and cultural common understanding and interaction between China and the EU offer a solid foundation for the continued growth of China-EU relations.

To strengthen and enhance China-EU relations is an important component of China's foreign policy. China is committed to a long-term, stable and full partnership with the EU. China's EU policy objectives are:

-- To promote a sound and steady development of China-EU political relations under the principles of mutual respect, mutual trust and seeking common ground while reserving differences, and contribute to world peace and stability;

-- To deepen China-EU economic cooperation and trade under the principles of mutual benefit, reciprocity and consultation on an equal basis, and promote common development;
-- To expand China-EU cultural and people-to-people exchanges under the principle of mutual emulation, common prosperity and complementarity, and promote cultural harmony and progress between the East and the West.

Part Three: Strengthen China-EU Cooperation in All Fields
I. The Political Aspect



1. Strengthen the exchange of high-level visits and political dialogue

-- Maintain close contacts and timely communication between the two sides at high levels through various means.

-- Give full play to the functions of the China-EU annual summit by substantiating its content, stressing its practical results and strengthening bilateral coordination.

-- Implement in real earnest China-EU agreement on political dialogue and constantly improve and strengthen mechanisms of regular and irregular consultations at all levels.

-- Deepen relations with all EU members, including its new ones so as to maintain stability and continuity in the overall relationship between China and EU.

2. Strictly abide by the one-China principle

The one-China principle is an important political cornerstone underpinning China-EU relations. The proper handling of the Taiwan question is essential for a steady growth of China-EU relations. China appreciates EU and its members' commitment to the one-China principle and hopes that the EU will continue to respect China's major concerns over the Taiwan question, guard against Taiwan authorities' attempt to create "two Chinas" or "one China, one Taiwan" and prudently handle Taiwan-related issues. In this connection, it is important that the EU

-- Prohibit any visit by any Taiwan political figures to the EU or its member countries under whatever name or pretext; not to engage in any contact or exchange of an official or governmental nature with Taiwan authorities.

-- Not to support Taiwan's accession to or participation in any international organization whose membership requires statehood. Taiwan's entry into the WTO in the name of "separate customs territory of Taiwan, 'Penghu, Jinmen, Mazu" (or Chinese Taipei for short) does not mean any change in Taiwan's status as part of China. EU exchanges with Taiwan must be strictly unofficial and non-governmental.

-- Not to sell to Taiwan any weapon, equipment, goods, materials or technology that can be used for military purposes.

3. Encourage Hong Kong and Macao's cooperation with EU

The Central Government of China supports and encourages the Hong Kong and Macao Special Administrative Regions in developing friendly relations and cooperation with the EU in accordance with the principle of "one country, two systems" and the provisions of the two Basic Laws and on the basis of equality and mutual benefit.

4. Promote the EU's understanding of Tibet

China encourages personages of various circles in the EU to visit Tibet and welcomes the support of the EU and its members to Tibet's economic, cultural, educational and social development and their cooperation with the autonomous region subject to full respect of China's laws and regulations. The Chinese side requests the EU side not to have any contact with the "Tibetan government in exile" or provide facilities to the separatist activities of the Dalai clique.

5. Continue the human rights dialogue

There are both consensus and disagreements between China and the EU on the question of human rights. The Chinese side appreciates the EU's persistent position for dialogue and against confrontation and stands ready to continue dialogue, exchange and cooperation on human rights with the EU on the basis of equality and mutual respect so as to share information, enhance mutual understanding and deepen cooperation in protecting, inter alia, citizens' social and cultural rights and the rights of the disadvantaged.

6. Strengthen international cooperation

-- Enhance China-EU consultation and coordination on major international and regional hotspot issues.

-- Strengthen China-EU cooperation at the UN and work together to uphold the UN's authority, promote its leading role in safeguarding world peace and facilitating economic and social development, particularly in helping developing countries eliminate poverty, improving global environment and drug control, and support UN's reform.

-- Advance the process of Asia-Europe cooperation. China and the EU should work together to make ASEM a role model for inter-continental cooperation on the basis of equality, a channel for exchange between the oriental and occidental civilizations and a driving force behind the establishment of a new international political and economic order.

-- Jointly combat terrorism. Both China and the EU are victims of terrorism and are strongly opposed to all forms of terrorism. Both sides are also opposed to any linkage between terrorism and any particular country, nation, ethnic group or religion. China and the EU should keep in close touch and cooperation on counter-terrorism.

-- Jointly safeguard the international arms control, disarmament and non-proliferation regimes and step up consultation and coordination on the basis of mutual respect; strengthen exchange and cooperation on non-proliferation and export control and the prevention of weaponization of and arms race in outer space; jointly contribute to the resolution of the issue of anti-personnel landmines and explosive remnants of war; and enhance cooperation in implementing the international arms control treaties.

7. Enhance mutual understanding between Chinese and European legislative organs

The relations between the National People's Congress of China and the parliaments of EU member countries and the European Parliament are an important link in China-EU ties. The Chinese Government welcomes and supports the enhancement of exchange and dialogue between Chinese and European legislatures on the basis of mutual respect, deeper understanding, seeking common ground while shelving differences and developing cooperation.

8. Increase exchanges between political parties in China and the EU
The Chinese Government wishes to see an increase of exchange and cooperation between the Communist Party of China and all major EU political parties, parliamentary party groups and regional organizations of political parties on the basis of independence, complete equality, mutual respect and non-interference in each other's internal affairs.

Part Three: Strengthen China-EU Cooperation in All Fields
II. The Economic Aspect



1. Economic Cooperation and Trade

China is committed to developing dynamic, long-term and stable economic cooperation and trade with the EU and expects the latter to become China's largest trading and investment partner.

To this end, it is important to:

-- Give play to the mechanism of the economic and trade joint committee and step up economic and trade regulatory policy dialogue; give attention to updating the Trade and Economic Cooperation Agreement Between China and the European Union at an appropriate time; properly address irrational restrictions and technical barriers, ease restrictions on high-tech exports and tap the enormous potential of technological cooperation and trade in line with the WTO rules; grant China a full market economy status at an early date, reduce and abolish anti-dumping and other discriminatory policies and practices against China, and apply the Transitional Product-Specific Safeguard Mechanism (TPSSM) prudently; and compensate the Chinese side for its economic and trade losses which may arise due to the EU enlargement.

-- Boost China-EU coordination and cooperation in the new round of WTO negotiations and work together for the success of the negotiations.

-- Strengthen dialogue on investment, promote the establishment of bilateral investment-promotion institutions, energetically encourage and guide mutual investments between enterprises of the two sides, and expand cooperation between their small- and medium-sized enterprises; develop processing trade, contractual projects and labor cooperation of various kinds and encourage transnational business operation and internationalized production.

-- China welcomes more EU development aid, especially in such fields as the environmental protection, poverty-alleviation, public health and hygiene and education. China also welcomes a stronger and more active role of the EU in human resources development, in particular, personnel training for China's central and western regions and build-up of China's capacity of participating in multilateral trading regime.

-- Step up cooperation in the area of quality supervision, inspection and quarantine, establish appropriate consultation mechanisms and, subject to the principle of ensuring safety, security, hygiene, health and environmental protection, promptly address and resolve issues which may adversely affect market access of each other's products.

-- Boost the customs cooperation and conclude a China-EU Customs Agreement in due course.

2. Financial Cooperation

China and the EU should launch a high-level financial dialogue mechanism, expand exchanges between their central banks on policies and deepen cooperation in preventing and managing financial crises and combating the financing of terrorism and money laundering. The Chinese side welcomes an expansion of China-related business by banks of the EU countries and hopes to see an appropriate settlement of the issue of Chinese financial institutions' access to the EU market.

The Chinese side will positively examine and consider applications of EU insurance institutions for business operation in China and improve its supervisory and regulatory regime in line with the Chinese insurance laws, regulations and statutes and China's WTO commitments.

Cooperation in securities legislation, market supervision and regulation, and investment operation will be strengthened and more EU securities institutions, fund management institutions and other institutional investors will be encouraged to enter into China's market. Chinese securities institutions will be encouraged to enter into the EU's securities market when conditions are ripe. In the meantime, Chinese enterprises will be strongly supported to raise funds in the EU's securities market.

3. Agricultural Cooperation

Exchanges between China and the EU in such fields as agricultural production, processing technology of agricultural produce and sustainable development will be intensified. The mechanism of the agricultural working group should be given a role to play. Bilateral cooperation between agricultural research institutes, universities and colleges as well as enterprises should be pushed forward. EU Enterprises are encouraged to take an active part in agricultural development in China's central and western regions and invest in such fields as agricultural high and new technologies, intensive processing of agricultural produce and development of agricultural infrastructure.

4. Environmental Cooperation

China-EU communication and cooperation in environmental protection should be stimulated and a mechanism of dialogue between the Chinese and EU environmental ministers launched. Framework documents on environmental cooperation should be formulated, and discussions held on the establishment of information network on environmental cooperation. Bilateral cooperation should be strengthened on such issues as environmental legislation and management, climate change, bio-diversity protection, bio-safety management, and trade and environment. Efforts should be made to jointly promote the implementation of the follow-up actions of the World Summit on Sustainable Development in Johannesburg. Non-governmental environmental protection organizations are encouraged to develop mutual exchanges. EU enterprises are encouraged to gain more access to Chinese environmental protection market through fair competition.

5. IT Cooperation

The Chinese side would like to see the EU participation in China's IT promotion. The mechanism of the EU-China working group on information society will be strengthened. Exchanges and dialogue will be conducted on strategies, policies, rules and regulations of information society. Trade in IT products and industrial and technological cooperation will be actively boosted. Greater exchanges in intellectual property rights and technical standards will be encouraged. Cooperation in the field of "Digital Olympics" will be promoted.

6. Energy Cooperation

China-EU cooperation will be expanded in such fields as energy structure, clean energy, renewable energy, and energy efficiency and saving. Exchanges on energy development policies will be promoted. Efforts will be made to ensure a successful EU-China Energy Conference. The energy working group mechanism will be strengthened. Training on energy technology and cooperation in demonstration projects will be boosted to promote application and transfer of technology.

7. Transport Cooperation

A mechanism of China-EU regular meeting will be set up within the framework of the China-EU Agreement on Maritime Transport. Cooperation in maritime transport and other maritime fields will be developed and coordination and cooperation in international organizations such as the International Maritime Organization (IMO) will be strengthened. Bilateral exchanges will be deepened and broadened in respect of policies of inland river transport, navigation safety and shipping standardization. Cooperation and exchanges in highway technology and management will be expanded. Dialogue and exchanges on highway transport legislation will be strengthened.
China-EU exchanges in civil aviation will be deepened. Chinese and EU enterprises are encouraged to strengthen their cooperation on production, technology, management and training.

Part Three: Strengthen China-EU Cooperation in All Fields
V. The Military Aspect



China and the EU will maintain high-level military-to-military exchanges, develop and improve, step by step, a strategic security consultation mechanism, exchange more missions of military experts, and expand exchanges in respect of military officers' training and defense studies.
The EU should lift its ban on arms sales to China at an early date so as to remove barriers to greater bilateral cooperation on defense industry and technologies.