The question in the title of this article is being widely asked at a time when the European Union (EU) is grappling with financial difficulties and rapid Chinese economic growth has continued, taking Chinese foreign exchange reserves to record levels. The growing volume of diplomatic exchanges between China and the countries of Europe also means that the subject will remain high on the international agenda. To understand EU-Chinese relations correctly in the context of the crisis, we must not fall into the error of regarding Europe as absolutely in need and China as absolutely capable. Instead of that we need to analyze how far Europe needs the financing which China could supply and what the motivation of China would be in stretching out a helping hand to Europe and the mutual expectations that exist.
Europe is China’s biggest trading partner with an annual volume of trade of €500 billion in trade between them. China’s growth model still depends largely on foreign trade and so it is being hurt by the crisis in Europe. So for these reasons a stronger Europe is decisively important for China. Investing in Europe and securing easy access for China to technology, brands, and know-how and varying those entities which are main indixed against the dollar is extremely important for it. At the same lime many writers argue that China could take advantage of Europe’s present weakness to extract some concessions from Europe and that in this connection, the arms embargo could be lifted, and that within this framework the ban on arms sales could be lifted and the status of being a free market economy which is to be given to China in 2016 according to the Wold Bank’s protocol could be brought forward. In other words it would be greatly to China’s advantage for it to extend assistances to extent assistance to Europe and would be of great use.
The Asian Century Report 