Eu Enlargement And Its Economic Impact

European Union (EU) has become a commonwealth, covering Western Europe, Southern Europe, Northern Europe and Eastern Europe, altogether 27 countries, with a total population of over 490 million after its Eastern Enlargement. It is now the most economically powerful and the most integrated in the world and it's"Europe"in the real sense. The enlargement of the territory and the increase of the population provide more space and greater market for the EU economic development, which has greatly strengthened its economic competitiveness. Since there is a greater gap between the new member states and the EU economic prosperity, there is a strong economic complementarities, which is favorable for EU to expand its investment market. Its integration has been further deepened and its overall economic development has been promoted. Thus, EU's strategic position in the world political and economic pattern has been increased, and its impact on the world political and economic development has also been further strengthened.With the EU's economic strength growing, its political and economic influence on the international stage has been continuously increased, so it has a say in the international affairs, gains more latitude in the increasingly multi-polarized world, and establishes"Europe of Europeans"free from the United States'control. EU has become an important factor in the balance of international powers and one of the main balancing forces to develop the world into a multi-polarized one. To make a concrete analysis, we may find the impact of EU Eastern Enlargement on the United States, Russia and some African countries and regions will have new changes to different extent, its impact on China especially needs our active adjustment.EU and the United States are the two biggest economic bodies in today's world, whose total GDP accounts for 60% of the whole world. With EU Eastern Enlargement and the rapid economic development, the trade between EU and the United States has become closer and closer. While EU's trade surplus keeps a strong momentum, the trade frictions between the two have also become serious, especially the conflicts over agricultural products. The causes for the frictions are various. There are economic factors and non-economic ones. The economic factors originate from their respective trade protection. Over 60% of EU's import and export is traded in its internal market, which has determined its relative independence economically. It's liable to show trade protectionism when it makes foreign trade policies and has traded negotiations, which is opposite to the United Sates'unilateralism and thus becomes the origin of trade protectionism carried out by the two parties and the intensifying trade frictions.As far as the non-economic factors are concerned, the trade frictions between EU and the United States are closely related to their interest conflicts in politics and military. The economic and trade cooperation between Russia and EU is the most fruitful one in the various fields of Russia-EU strategic cooperation. After years of efforts, a Russia-EU economic cooperation framework has been basically developed. The trade between them has kept a very good momentum, especially their cooperation in energy. But, still a lot of problems exist in the economic cooperation between Russia and Europe. The proper settlement of these problems is the prerequisite for strengthening Russia's powerful position in Europe and further developing the Russia-EU relationship. In recent years, the political situation in Africa is fairly stable, economy develops rapidly, the economic contacts between Europe and Africa become increasingly close, and the bilateral trade between EU and Africa has greatly increased, so EU has realized the importance of improving the relationship between Europe and Africa. But there are still divergences and conflicts between Europe and Africa, inside EU and inside Africa, so there are some uncertain factors in developing a real"equal relationship".The relationship between Europe and China enjoys a very important position in EU's foreign relations. In the field of economic trade, EU and China has become the first and second trade partner respectively. EU is also the accumulated No. one supplier of technology and No. four real investor to China. There is a great asymmetry in economy between China and the old member states of EU. The rapid economic development in China has been a long and all-sided pound at the existing asymmetry in the Sino-Europe economic trade. The Council of Europe published A Report of the European Competitiveness in 2004. They thought that the development in China has both formed challenge to the European competitiveness and brought opportunities to EU. China has eliminated many market barriers in the process of its reform and open China has brought greater opportunities to the EU enterprises to invest in China. In the past, in terms of import, the competition faced by EU mainly came from the labor-intensive products from China. But now, the active industrial policies have made China a strong competitor of high technology but low cost, which is a severe challenge to EU. Another challenge is that the direct foreign investment absorbed by China is almost twice that of the new member states of Central and Eastern Europe. Of all the foreign investment, the direct investment from exceeds 10%, and it is continuously increasing. More and more capital from EU doesn't want to give up the Chinese market with great potentials. Under the impact of EU's trade protectionism, there are continuous frictions in Sino-Europe trade. New trade blocks have emerged. The problems of textiles, shoes and honey have become the theme in the game of Sino-Europe trade. Especially in 2007, EU adjusted its policies and the biggest adjustment was toward China.Based on the 6th document about its policies toward China issued in October 2006, EU has defined China no longer simply as a"cooperative partner"but as a"strong competitor". The overall policies of EU toward China are becoming more and more active, but at the same time, the specific policies measures guiding economic trade have become harsher and harsher. So there are continuous frictions between China and Europe around issues like trade deficit, the exchange rate of RMB and intellectual property rights. The most typical field is in safety technological standard, EU's anti-dumping against China and WTO's special protection mechanism.Thus, on the one hand we should see the great prospect of Sino-Europe economic relations. Because of the different situations in China and Europe, they can realize their respective interest through making use of their advantages. The mutual development of the two conforms to the mutual interest, so the Sino-Europe relation can keep a stable development for a long time. But on the other hand, we should respond actively to the change of EU's attitude toward China and make constant adjustment of economic strategies and countermeasures towards Europe. In recent years, there are more contacts between the Sino-Europe high-level officials and more channels of dialogue. China should not only strengthen the construction of the overall strategic partnership with EU but also improve ourselves, quicken the steps in restructuring industries, increase the national comprehensive strength, and improve China's international status and influence in the world.