The EU's policy towards China and the arms embargo

Since the rise of the "Middle Kingdom" in recent years most European leaders consider this major Asian power as the most important opportunity and challenge in the years to come, not only economically and commercially but also politically and strategically. The EU's China policy is promising, and EU-China ties have been smooth and comprehensive despite bilateral trade and human rights disputes. Concerning Cross Strait relations the domestic political development in Taiwan has a strong impact on the peace and stability in the region because Beijing has never renounced the use of force against the island in case of its formal independence. Given its large bilateral trade deficit, the EU's potential arms exports to China remain significant to the European countries. But this prospect aroused great concern from the US, Russia and Japan. Nonetheless, the Anti-Secession Law from Beijing against Taiwan in mid March 2005 and the likely change of government in the German elections in autumn 2005 on top of the failures of the constitutional referenda in France and the Netherlands in June 2005 will affect the EU decision on the embargo. © Springer-Verlag 2005.