On the other side, the UK is sitting outside. It has burned its relations with Brussels and Beijing in a very short time, which account for more than 40% of the world economy. In 2016, the EU adopted a new strategy vis-à-vis China, which defines the European Union`s relations with China for the next five years. The strategy promotes reciprocity, a level playing field and fair competition in all areas of cooperation. The big question is how Europe will be able to conclude negotiations on the China-EU Comprehensive Investment Agreement (CAI) within a year, if there are glaring differences in market access, from Hong Kong and Xinjiang. Relations are governed by the 1985 EU-China Agreement on Trade and Cooperation. Since 2007, negotiations have been under way to form a new EU Association Agreement and 24 sectoral dialogues and agreements have already been set up, from environmental protection to education.  In 2016, bilateral merchandise trade between the EU and China amounted to EUR 514.8 billion.  Machinery and vehicles dominate both exports and imports.
China`s top five exports are computers, broadcasters, telephones, office machine parts and integrated circuits. China`s top five imports are crude oil, integrated circuits, iron ore, gold and cars. As regards imports of AMA/NAMA product groups into the EU, the share of industrial products amounted to €343.725 million and represents an impressive 98.1% (out of a total of €350.535 million). The same goes for exports to China, where industrial products are the highest on the list and account for €159.620 million (93.7% of the total export volume). China and the EU launched their first scientific and technological cooperation programme in 1983. They also designed a science and technology cooperation agreement in 1998 which was renewed in 2004 to link research organisations, industry, universities and individual researchers in specific projects funded by the EU budget.  Current cooperation between the EU and China in the field of science and technology has been made available through Horizon 2020. the European Commission`s Horizon 2020 initiative covers the following areas: (i) food, agriculture and biotechnology (FAB); (ii) sustainable urbanization; (iii) energy; (iv) aviation; (v) and other areas such as ICT, water, health, society, polar research, the SME Instrument and space.  China sees the EU primarily as a counterweight to the US, with which it is embedded in a damaging trade war. He successfully sowed division among European countries by concluding bilateral economic agreements with more fragile elements within the bloc like Greece and Italy.
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