More ideas put into the tank

Chinese and European brainstorming on reform given new impetus as groups put heads together

Following a proposal in April by China's President Xi Jinping to build a "reform partnership" between China and European Union, three Chinese and European think tanks have entered into an agreement to explore overlapping reform priorities to spur economic growth on both sides.

The China Institute of Reform and Development in Haikou, Hainan province, the international development company GIZ of Germany, and the Center for European Policy Studies in Brussels signed a one-year agreement in Haikou on Oct 31 to do research on the synergy of each other's reform agenda.

"It's the first time influential think tanks in China and Europe have conducted in-depth research on our reform agenda to tap growth potential, which both sides are urgently searching for," says Chi Fulin, president of the China Institute of Reform and Development and an adviser to the central government.

In the economic slowdown, China has started to seek new economic impetus for the period of its 13th Five-Year Plan (2016-2020), Chi says, and the Institute of Reform and Development has been involved in the initial research.

The country's growth engines will change gear, and more of the heavy workload will shift to the service industry as the country continues to restructure the economy, which has long heavily depended on investment and exports, he says.

"The European Union, whose recovery from the financial and debt crisis has been very weak, also needs structural reform, so we decided to work together on research on the reform agenda."

The three think tanks have decided to organize three high-level seminars next year, when China and the EU will celebrate the 40th anniversary of their diplomatic ties. The first seminar will be held in Brussels in February, and the topic is the reform agenda.

"We haven't finalized the topics for the other two seminars but they will no doubt cover pressing issues and put forward proposals to decision makers on both sides."

Ideally one or two seminars will be held as side events at annual summits of Chinese and European leaders, Chi says. It is likely that two EU-China summits will be held next year as a result of this year's meeting being postponed amid top-level changes of leadership in the EU.

Chi says the new joint think-tank effort is a direct result of a speech Xi gave to the College of Europe in Belgium in April as he was completing visits to the Netherlands, France, Germany, Belgium and EU headquarters.

In the speech, Xi called on both sides to forge a partnership characterized by peace, growth, reform and respect for civilization. Chi heard the speech just before a forum on reform organized by the China Institute of Reform and Development, the College of Europe and China Daily was held April 1-2.

"Xi has pinned a lot of hope on the valuable, independent input of China's think tanks to spur the country's development. And he attaches a great deal of importance to think tanks working with one another."

Reform and collaboration between think tanks have both been high on the agenda of China's leaders, he says. "That and Xi's speech are what inspired us to seek out European think tanks with which to work, and we have been fortunate to find partners who are willing to offer the kind of collaboration we are looking for."

Chi says the initiative is also open to other think tanks in China and Europe, and the present agreement would be renewed after a year.

Karel Lannoo, chief executive of the Center for European Policy Studies, who signed the agreement with Chi, says both sides will focus on economic policy issues such as global imbalances, coordination, energy, trade and financial markets policy.

"Our cooperation will not be exclusive and we will try to coordinate with other think thanks and universities in Europe and in China, on issues related to economic policy."

Xi's emphasis on think tanks is obviously deliberate, Lannoo says, but both sides will need to wait for research results to see to what extent they can guide future policymaking.

Europe is far from "understanding China well", or what is going on in Asia, Lannoo says.

"Many Europeans do not understand how China functions, even if China is making extremely important steps toward Europe. The first step to implement the four bridges Xi proposed is exactly to start with better understanding."

Fredrik Erixon, director and founder of the European Centre for International Political Economy, a think tank in Brussels, says China already has a vibrant climate for think tanks and that can become even better.

"What is key for think tanks is independence from government, and financial independence. Their worst enemy is a culture of consensus. China and Europe have the same problem."

Erixon says think tanks in both China and Europe are far too dependent on government for funds, so the best brains move to the US, because they can offer more financial freedom and better access to a critical mass of the world's top-class think tank talent.

Of China-EU relations, he says: "I think there are many things that can be done, but the most important is to ensure that the expansion in business, academic and people-to-people collaboration continues. I don't think there is a grand strategy waiting around the corner for how to expand the relationship on these four fronts put up by Xi Jinping."

Contact the writers through fujing@chinadaily.com.cn

(China Daily European Weekly 11/14/2014 page23)