The European Union and "Chindia"

The rise of China and India is unparalleled in human history because never before has the world witnessed the simultaneous and consistent takeoffs of two nations, accounting for more one third of the planet’s population, which have been consistently registering high growth rates for two decades. Their rise has profound implications for the world economy and world politics. Both China and India – the two new big kids on the block – have no difficulty with a rule-based world order, what they want is “a different set of rules”.

European political elites seem to be indulging in a degree of scapegoating about the danger from “ChinIndia”, since the roots of European angst really lie, among others, in European difficulties in managing globalization, declining competitiveness, fear of change, and an unsustainable health, pension and social welfare system. The Europeans tends to perceive the Chinese juggernaut as a direct immediate threat to European jobs in some manufacturing sectors whereas India is seen as a latent and potential threat taking away service-sector jobs, though pressures would increase as both move up the value chain.

The European Union’s strategic partnership with China and India is essentially driven by trade and commerce. India has too much of catching up to do with China. India is clearly in the Commonwealth Games league whereas China is in the Olympic Games league.

The rise of China and India represents both challenges and opportunities for Europe. Rising powers like China and India are challenging the European Union. They will be in a position to shape and influence global agendas and decisions to a greater extent than at present. For both, Europe will remain an indispensable partner since it is a vital source of trade, advanced technology and foreign direct investment. China and India do pose challenges for Europe, but they also provide opportunities since their growth contributes to greater growth worldwide, which means more exports, especially to a swelling consumerist middle class, which will make more demands of European goods, technology, and services.

Rajendra K Jain is Professor of European Studies and Chairperson, Centre for European Studies, School of International Studies, Jawaharlal Nehru University, New Delhi. He is Secretary-General, Indian Association for European Union Studies. He has been Visiting Professor at Leipzig and Tuebingen university and at the Maison des Sciences de l’Homme, Paris. He is the author/editor of over two dozen books and has published 70 articles/chapters in books. He has most recently published India and the European Union: Building a Strategic Partnership (2007) (editor).