Wen Jiabao, China’s prime minister, arrives in Europe for a visit to Britain and Germany, at a time when the European Union is in crisis and China is booming. Neither the British nor German governments need any reminding of China’s importance to their economic prospects. Its demand for sophisticated machine tools has been a big part of Germany’s recent economic success. In Britain, Mr Wen, will go to Birmingham to visit the city’s famous Longbridge car plant, now owned by Shanghai Automotive, and will inspect a new MG sports car.
It is natural and important that the emphasis during Mr Wen’s visit should be on the benefits of co-operation between Europe and China. The future of both international politics and economics will turn on whether a rising China can sustain a co-operative relationship with the western world.
For that to happen, however, both the Chinese and the Europeans must engage with the difficult issues. The MG plant may be an example of a mutually beneficial project. But, as China looks for investment opportunities overseas, other projects may be less welcome – particularly if they involve state-owned companies which get cheap state funding or whose ownership is untransparent. Huawei, a telecoms company with global ambitions, has caused concern over its alleged links – which it denies – to the Chinese military.