EU-China Trade Project II (EUCTP II) informs improvements to China's regulatory and legislative framework:

The new Chinese government has made establishing the rule of law a key priority for ensuring greater transparency, good governance and higher standards within its legal system.  To support these aims, EUCTP II has engaged with both the State Council Legislative Affairs Office (SCLAO) and the Legislative Affairs Commission of the National People’s Congress (NPC), referencing EU experience in themes such as the rule of law and asset valuation to more deeply inform China’s relevant government authorities on approaches for effectively developing and implementing these legal mechanisms.

Supporting the State Council’s call for building a more comprehensive, law-based administration in China by 2020, a study assignment for high-level policy makers from SCLAO and the Ministry of Commerce (MOFCOM) ensured high quality and relevant discussions between Chinese and European counterparts via the advance preparation and dissemination of a comprehensive briefing note that outlined the Chinese delegation’s current legislative priorities, objectives, and questions. Meanwhile, to support the legislative process of China’s first Asset Valuation Law, EU experience informed China’s current needs in this field, focusing on the responsibilities and operation of asset valuation associations and relevant EU Directives and Member State laws. As China further enhances its legislative and regulatory environment, EUCTP II will continue contributing to these discussions through close cooperation with Chinese authorities, deepening the value of these exchanges and highlighting EU practices that are most relevant to China’s emerging needs.


 

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REGULATORY REFORM top
Informing China’s development of the rule of law: In 2010, China's National People's Congress (NPC) announced the basic completion of China’s Socialist System of Laws with Chinese Characteristics, responding to the increasing call for building a

The development and implementation of the rule of law are discussed during exchanges between officials from SCLAO and the Greek Parliament;
16 – 29 May, 2013
government under the Rule of Law, as economic and social challenges in the context of the country’s rapid growth have highlighted the need for better regulation and implementation. To more effectively deliver these aims, the State Council put forward guidelines for establishing a mechanism to improve the current legal system, its transparency and good governance. Informing these efforts, a Study Assignment on Regulation and Administrative Policy Making was organised in May 2013 for high-level officials from SCLAO and the WTO department of MOFCOM to focus on administrative policy, regulation and rule-making systems in the EU. The resulting study report produced by SCLAO confirmed the activity as highly relevant to their
current priorities for improving the transparency and quality of governance through strategies such as e-governance, administrative simplification, public consultation, post evaluation, supervision, and quality control of legislative drafting and publication. In addition, the value of developing a specific EU-China Dialogue in the Rule of Law was acknowledged by both sides and concrete suggestions for future cooperation were proposed by SCLAO regarding larger scale capacity building to Chinese legislative drafters in this area.

FINANCIAL STABILITY AND POLICY; OVERALL SERVICES top
Europe’s regulatory experience informs China’s legislative development, central bank budgeting, and risk management: The Legislative Affairs Commission of the NPC is in the process of reviewing the draft of China’s first Asset Valuation Law, which aims to raise the standards of asset valuation in China. To support and inform the legislative process, a Seminar on Asset Valuation Legal Framework was organised in Beijing, allowing relevant Chinese and European experts to share experiences on the responsibilities and operations of EU asset valuation associations, EU directives, and Member State laws on asset valuation. Following the seminar, and as recommended by officials within the NPC, the next review of the Asset Valuation Law will be a priority during 2013.
Support to China's development of its first Asset Valuation Law takes place in Beijing;
14 June, 2013

In addition to cooperation on informing legislative drafting, EUCTP II has also supported China’s efforts to raise the capacity of the People’s Bank of China (PBOC) – China’s central bank – in conducting monetary policy and managing its vast foreign-exchange reserves. A Seminar on Central Bank Financial Budget and Risk Management was organised in Dalian, China, responding to the PBOC’s interest in enhancing its accounting, budgeting and risk management system. As China’s contribution to global economic growth continues to increase, its ability to effectively manage these affairs will be of increasing importance to the health of the international economy. Subjects discussed included risk management of assets and liabilities as well as the development of International Financial Reporting Standards (IFRS).

COMPETITION POLICY top

Exchanges on the growing interactions between IP, IT and competition policy are held during a Conference on Private Actions in Competition Policy;
23-24 May, 2013
Enhancing cooperation with Chinese and European academic institutions to deepen dialogues on competition policy: Project cooperation with academic institutions has been given increasing focus within the Competition Policy file, with recent activities including the joint support of both Chinese and European colleges. In May 2013, The EU-China Conference on Private Actions in Competition Policy was supported by EUCTP II and the Competition Law Center of the University of International Business and Economics (UIBE), taking place over two days in Beijing. The multi-day activity allowed for a private dialogue to be held between Chinese and EU competition law judges, as well as a larger conference to discuss the increasing interactions between Intellectual Property
(IP), Information Technology (IT), and Competition Policy. To encourage greater sustainability of the information shared, presentations were filmed and edited into bilingual training DVDs, which will be distributed through the internal networks of Chinese Judiciaries and Anti-Monopoly Enforcement Authorities (AMEAs).

In Bruges, Belgium, EUCTP II cooperation with the College of Europe brought together selected officials from China’s AMEAs – the National Development and Reform Commission (NDRC), the State Administration for Industry and Commerce (SAIC), and the Ministry of Commerce (MOFCOM) – for a two week intensive Training on Competition Policy.The curriculum covered the fundamentals of EU competition policy and included case studies and a one-day field visit to DG COMP. As the course was designed for all three AMEAs, this also helped to facilitate exchanges among the different Chinese authorities involved. To access more information on EU-China cooperation in Competition Policy, please visit the EU-China Competition Policy site at www.euchinacomp.org.

CREATIVE AND CULTURAL INDUSTRIES top

Strengthening the EU-China Policy Dialogue on Creative and Cultural Industries: The Chinese government has made the promotion of Creative and Cultural Industries (CCIs) one of its top priorities, as this industry represents promising growth potential for its local and provincial governments. However, the government is facing challenges with integrating strategies to promote CCIs at the local, regional and national levels, which may hinder the industry’s development. To support China’s efforts in this area, an EU-China Seminar on the Role of Culture and Creativity for Local and Regional Development was organised in Beijing. With CCIs being one of Europe’s most dynamic economic sectors, the workshop offered the opportunity to share the set of policies developed by the EU and individual Member States to promote local, regional and national cultural industries and preserve cultural diversity. In addition, it reinforced EU-China cultural cooperation and contributed to the development of the High-Level People-to-People Dialogue (HPPD).

Within CCIs, the publishing sector – with its emerging digital technologies – faces rapidly changing market dynamics in both China and the EU. Annual revenue for the Chinese digital publishing industry shows strong growth potential, having reached RMB 137.788 billion in 2011, up by 31% compared to 2010 figures. To better understand these developments, a Seminar on Digital Publishing was organised in Beijing, building on a previous Study Assignment on Publishing delivered in October 2012. The seminar strengthened the foundation for exchanges on good practices in this field, while facilitating the dialogue between relevant Chinese and European industry experts.
Participants from SGAPPRFT and the Beijing Institute of Graphic Communication share insights on the development of digital publishing in China;
3-4 July, 2013
FOOD SAFETY top
Harmonising Chinese and European standards while improving the surveillance systems for food safety: Following the adoption of the new Chinese Food Safety Law in June 2009, the National Health and Family Planning Commission (NHFPC) (formerly the Ministry of Health – MOH) established temporary limits for phthalates in foods in order to collect data for completion of its risk assessment. To clarify the terms of these limits and enhance NHFPC’s capacity in measuring risk analysis, EUCTP II supported a Workshop on Risk Assessment of Phthalates in Food, which led to a consensus between the attending Chinese and European institutions regarding a need for consistent exchange of information on risk analysis in this area.

Experts from CFNA, AQSIQ, and peanut producer associations participate in a roundtable in Brussels with experts from DG SANCO to examine approaches for ensuring the safety of nut products;
17 June, 2013
Aside from risk assessment, quality assessment has been another focus within the food safety file, specifically in assessment procedures for nut products. Reoccurring trigger alerts in the EU’s Rapid Alert System for Food and Feed (RASFF) have raised concerns of mycotoxin contamination in products originating from China. Following recommendations issued by the Food and Veterinary Office (FVO), the Chinese competent authority proposed an action plan to increase the capacity of institutions mandated to improve this situation in China. To support these initiatives, a Roundtable on EU Regulations related to the International Trade of Nut Products was delivered in June 2013 as follow-up from a previous Seminar on EU-Quality Assessment System for Imports of Peanut Products.
Following the roundtable exchanges, the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) confirmed it plans to implement a study engaging competent Chinese and European authorities to assess the impact of international transportation on the incidence of mycotoxin infection in peanut products imported to the EU.
ANIMAL HEALTH top
Solidifying EU-China cooperation to link animal health systems: China and the EU have worked closely to further develop China’s animal health systems under both the
MOU signed in 2007 and the Dialogue established in March 2012 between the Ministry of Agriculture (MOA) and the Directorate General for Health & Consumers of the EC (DG SANCO). Under this cooperation, laboratory quality assurance has seen marked progress, with bilateral efforts focusing on the twinning of the Chinese Animal Health and Epidemiology Center (CAHEC) located in Qingdao, China, and the ANSES Animal Health Laboratory located in Maisons-Alfort, France. With the support of EUCTP II, a series of in-depth activities have been carried out to enhance CAHEC’s capacity to become a national reference laboratory, including a Roundtable to Harmonise Animal Health Reference Laboratory Standards
CAHEC and ANSES laboratory experts assess laboratory diagnostic procedures at the CAHEC laboratory;
15-23 June, 2013
(April 2012), a Study Assignment to Standardise Animal Health Reference Laboratories (July 2012), a Consultation to Harmonise Animal Health Reference Laboratory Standards (October 2012), a Seminar on the Management and Surveillance of Zoonosis to Improve the Capacity of Animal Health Reference Laboratories (December 2012) and a Study Assignment to Enhance Laboratory Capacity to Support Animal Diseases Surveillance (March 2013). The most recent activity to build on this progress was a Consultation to Harmonise Animal Health Reference Laboratory Standards, held in June 2013, where European experts travelled to Inner Mongolia and Qingdao to work closely with Chinese experts in charge of the CAHEC laboratory dedicated to zoonotic diseases. In Inner Mongolia, a region with one of the highest incidence rates of the zoonotic disease brucellosis in China, experts assessed brucellosis surveillance and control systems currently operating in the region, and the current capacity of the brucellosis regional laboratory.

EUCTP II has also supported the improvement of China’s animal health safety through capacity building of its animal disease surveillance systems. In response to recommendations issued by FVO concerning China’s control systems for poultry products intended for export to the EU, MOA developed a strategic plan to increase capacity and implement adequate systems for zoonotic disease surveillance and control. Supporting this plan, EUCTP II and the UN Food and Agriculture Organization (FAO) delivered two


A workshop on animal health surveillance systems supports MOA's FETPV initiative;
22-26 July, 2013
five-day workshops in July 2013 - Impact of Animal and Human Health Control Systems on Animal Origin Food Safetyand “Increasing the Capacity of Animal Health Surveillance Systems.The first workshop enabled professionals from the animal health and public health sectors to understand the interface between livestock, wildlife, human, and environmental health, and how these factors impact social changes, animal origin food safety and overall trade. The second workshop was a follow-up from previous EUCTP II activities including a Seminar on the Management and Surveillance on Zoonosis to Improve the Capacity of Animal Health Reference Laboratories and an Epidemiology Training Workshop for Chinese Executives, which supported MOA’s Field Epidemiology Training Program for Veterinarians (FETPV).
 
LOW CARBON ECONOMY top
Advancing discussions on energy saving through cooperation with MOHURD and EU Member States: Large-scale commercial and residential buildings offer significant energy saving potential for China, presenting an ideal opportunity for investments in new technologies that would ensure enhanced energy efficiency. Under the cooperation framework signed between DG Energy and the Ministry of Housing and Urban & Rural Development (MOHURD), EUCTP II supported the delivery of a Conference on Policies for the Benchmarking of Large-scale Buildings.Following the outcomes of last year’s Conference on Integration of Participants attend a conference on policies for the benchmarking of buildings, held in cooperation with MOHURD's annual International Green Building Exhibition;
1-3 April, 2013
Technologies for Near Zero Energy Buildings, the three-day activity included a field visit to China’s first ultra-low energy consumption demonstration project in Qinhuangdao and a back-to-back conference held with MOHURD’s annual International Green Building Exhibition. The demonstration project visit enabled the European experts to offer Chinese policy makers and technical experts more strategic, consolidated feedback regarding next step options in energy efficiency for large scale buildings. In addition the conference, which attracted over 150 participants, allowed Chinese experts to share current developments of benchmarking schemes in China, while European experts introduced strategies for implementing the Energy Performance of Buildings Directive (EPBD) in the EU. All materials produced for the activity have been uploaded to the EU-China Low Carbon Economy Platform (www.chinalce.eu), a website containing news and information on the latest developments in EU-China low carbon cooperation.
TRADE FACILITATION top

Reference to EU good practices informs the development of Rules of Origin;
15-17 May, 2013
Informing Rules of Origin in response to globalisation: While the manufacturing of goods increasingly depends on global value chains to reduce costs and increase efficiency, these may complicate the determination of a product’s origins – a classification which plays an important role in bilateral and multilateral agreements. Against this background, a Workshop on the Administration of Rules of Origin was delivered, sourcing relevant experience and good practices from the EU in this area. Following the seminar, beneficiary feedback stated the activity “broadened…understanding of EU origin systems, their
historical development and the strategies [developed] in reaction to the challenges that lie ahead in a changing world,” while both sides identified the seminar as being “an effective information-sharing, benchmarking and brainstorming platform.”
SECTORAL EXCHANGES top

Facilitating bilateral efficiency in machinery conformity assessment and market surveillance efforts: When the EU Machinery Directive (2006/42/EC) took effect in Europe in December 2009, it was considered a crucial instrument in regulating the free circulation of machinery within the EU. However, despite growing global awareness, Chinese government regulators and machinery manufacturers and exporters to Europe still face some difficulties in understanding the requirements of this Directive, specifically regarding machinery conformity assessment and market surveillance. To address these concerns, and in line with the aims of the Mechanical and Electrical Products Working Group meeting between AQSIQ and the Directorate General for Enterprise and Industry of the EC (DG ENTR), a Symposium on the EU Machinery Directive was held, which strengthened bilateral cooperation and communication on machinery quality, safety and environmental management.

INTERNATIONALISATION OF STANDARDS top
Promoting train-the-trainer programs to ensure sustainability in international standardisation cooperation: The Standardization Administration of China (SAC) plays a key role in representing China internationally through standardisation organisations, international technical committees, sub committees and working groups, and in twinning arrangements with other ISO member bodies. Given SAC’s global involvement in standardisation, EUCTP II has supported a series of in-depth training exercises, including a Training on International Standardisation (October 2011) and Train-the-Trainer Support to SAC Leadership in International Standardisation (September 2012), to help further Chinese standardisers’ integration within the international standardisation system. To continue this progress, EUCTP II arranged a five-day follow-up training in July 2013 entitled, Support to SAC Leadership in International Standardisation. Six of
the trainers who presented at this activity were former trainees who had been trained on the content of the previous EUCTP II-supported activities. This training provided an ideal platform for new trainers to gain hands-on experience with presenting international standards via the train-the-trainer approach, while providing Chinese standardisers with relevant information in this area. In addition, materials from the activity were incorporated within the International Standardisation distance learning course developed by EUCTP II to ensure greater dissemination and sustainability of the information shared and lessons learned.
Chinese standardisation trainers gain first-hand experience in presenting international standardisation content;
15-19 July, 2013