1 00:00:00,000 --> 00:00:09,880 This is Shenyang, China's 5th largest city and capital of Liaoning province, the industrial 2 00:00:09,880 --> 00:00:15,080 engine of an economy growing at a rate of more than 9% per annum. 3 00:00:15,080 --> 00:00:19,680 Where the bicycle once ruled, cars now dominate, and heavy pollution is the price China has 4 00:00:19,680 --> 00:00:24,160 had to pay for such rapid growth. 5 00:00:24,160 --> 00:00:28,360 Six years ago the Liao River was the most polluted in China, and Shenyang was known 6 00:00:28,360 --> 00:00:34,080 as Black Snow City, but thanks to an EU environmental programme that sees European and Chinese experts 7 00:00:34,080 --> 00:00:39,840 working side by side, things are improving rapidly. 8 00:00:39,840 --> 00:00:41,960 Our air quality is at a second level now. 9 00:00:41,960 --> 00:00:47,200 In Shenyang before there were only 200 days at this level, but now we've achieved 300 10 00:00:47,200 --> 00:00:48,200 days. 11 00:00:48,200 --> 00:00:54,200 Through a comprehensive five-year plan, sources of pollution have been identified and targeted. 12 00:00:54,200 --> 00:00:57,960 Environmental polluters were obviously the primary focus, but educating the province's 13 00:00:57,960 --> 00:01:03,240 large rural population about the impact of fertilisers has also played an important role. 14 00:01:03,240 --> 00:01:07,480 In villages like Yingpan, farmers have been educated about the alternative methods they 15 00:01:07,480 --> 00:01:13,480 can use to reduce chemical fertilisers, and to protect the water in nearby Dehaofang Reservoir. 16 00:01:13,480 --> 00:01:22,160 Hong Lianzheng has a large farm just outside the village, producing corn and beans. 17 00:01:22,160 --> 00:01:24,760 I'm the farmer here, and I have land here. 18 00:01:24,760 --> 00:01:28,120 According to the government's education and through work and experience, we've learned 19 00:01:28,120 --> 00:01:38,720 that to use chemicals is not green production. 20 00:01:38,720 --> 00:01:42,480 We want to maintain the results of this project and continue to use it. 21 00:01:42,480 --> 00:01:46,720 Now that we know how it works, we'll try to apply many EU projects into our environmental 22 00:01:46,720 --> 00:01:51,600 protection. 23 00:01:51,600 --> 00:01:56,360 The Liaoning Integrated Environmental Programme was the largest EU-supported project in the 24 00:01:56,360 --> 00:02:01,360 People's Republic to date, valued at 48.5 million euro. 25 00:02:01,360 --> 00:02:06,600 Run by both EU and Chinese experts, it forms just one part of the wider partnership and 26 00:02:06,600 --> 00:02:10,960 the diplomatic ties that exist between the EU and China. 27 00:02:10,960 --> 00:02:19,920 In 2005, that partnership celebrates 30 years, 30 years of considerable change. 28 00:02:19,920 --> 00:02:24,080 There are such non-traditional threats such as terrorism, proliferation of weapons of 29 00:02:24,080 --> 00:02:30,120 mass destruction, cross-border crimes, and the emergence of new epidemics and diseases. 30 00:02:30,120 --> 00:02:34,160 Against such a backdrop of globalisation, it is very important to have international 31 00:02:34,160 --> 00:02:40,920 cooperation to deal with these common threats. 32 00:02:40,920 --> 00:02:46,880 Both Europe and China have gone through dynamic changes over the last 30 years. 33 00:02:46,880 --> 00:02:55,200 The European Union now encompasses 25 member states, while China has rapidly emerged as 34 00:02:55,200 --> 00:02:59,280 a player of real importance on the global scene. 35 00:02:59,280 --> 00:03:04,720 It is very clear to me that developing a mutually beneficial European-Union-China relationship 36 00:03:04,720 --> 00:03:10,280 is one of the key challenges before us, both in our own interests and the interests of 37 00:03:10,280 --> 00:03:13,440 the world at large. 38 00:03:13,440 --> 00:03:17,520 Like the rest of the world, the EU has paid close attention to China's peaceful rise in 39 00:03:17,520 --> 00:03:18,520 trade terms. 40 00:03:18,520 --> 00:03:23,720 Today, the view from Shanghai's Bund district is a neon wall of skyscrapers and foreign 41 00:03:23,720 --> 00:03:24,720 advertising. 42 00:03:24,720 --> 00:03:30,320 In every Chinese city, cranes stand tall, new buildings appear overnight. 43 00:03:30,320 --> 00:03:34,680 The opening up of the Chinese economy has provided diverse opportunities in which the 44 00:03:34,680 --> 00:03:38,680 relationship between the two has deepened. 45 00:03:38,680 --> 00:03:49,480 The purpose of open reform was to change China from a planned to a market economy, 46 00:03:49,480 --> 00:03:53,280 and this change needs a lot of intellectual managers and management personnel. 47 00:03:53,280 --> 00:04:00,480 They can understand how to operate the business in a market economy. 48 00:04:00,480 --> 00:04:04,720 The China-Europe International Business School in Shanghai was established ten years ago 49 00:04:04,720 --> 00:04:08,140 to meet increasing demands for managerial competence. 50 00:04:08,140 --> 00:04:12,300 The Chinese government has been keen to invest in human resources and they've looked to Europe 51 00:04:12,300 --> 00:04:14,140 to help bridge that gap. 52 00:04:14,140 --> 00:04:18,220 Introducing international business standards and education has played a significant role 53 00:04:18,220 --> 00:04:21,140 in China's growth. 54 00:04:21,140 --> 00:04:25,060 Yes, we have had huge change. 55 00:04:25,060 --> 00:04:28,700 In China, the big change is that people have freedom to do what they want. 56 00:04:28,700 --> 00:04:35,260 They're willing to do what they want and create their own business. 57 00:04:35,380 --> 00:04:40,340 A graduate of the business school, David Yu is a good example of the new China. 58 00:04:40,340 --> 00:04:43,740 Five years ago, David was manager in a state-run enterprise. 59 00:04:43,740 --> 00:04:47,940 Today he is founder and president of what US Fortune magazine has called the coolest 60 00:04:47,940 --> 00:04:49,900 company in China. 61 00:04:49,900 --> 00:04:54,820 Target Media produces LCD advertising screens aimed at China's growing domestic market of 62 00:04:54,820 --> 00:04:58,580 middle class. 63 00:04:58,580 --> 00:05:03,980 But China is still a developing country and remains a country of very different lifestyles. 64 00:05:03,980 --> 00:05:07,820 Ten years ago, the first steps towards democracy were made in more than a million villages 65 00:05:07,820 --> 00:05:11,420 across China with the introduction of village elections. 66 00:05:11,420 --> 00:05:14,900 Guangjin is a rural village in the far north of China. 67 00:05:14,900 --> 00:05:21,900 Villagers have recently elected their new committee and village chairman. 68 00:05:21,900 --> 00:05:24,900 Having this system means that everyone can be scrutinized. 69 00:05:24,900 --> 00:05:28,140 The new system lets the villagers believe more in their leaders. 70 00:05:28,140 --> 00:05:30,380 Therefore this system is very good. 71 00:05:30,380 --> 00:05:37,380 This village governance program is a very good system. 72 00:05:39,500 --> 00:05:43,980 Through the program, training is first given on how to organize elections and newly elected 73 00:05:43,980 --> 00:05:49,340 officials are then trained on how to administer the village, plan services, solve civil conflicts 74 00:05:49,340 --> 00:05:54,340 and give advice on farm production. 75 00:05:54,340 --> 00:05:58,780 Before elections were introduced, all decisions were made by the local party branch. 76 00:05:58,780 --> 00:06:03,260 Now villages run themselves and, importantly, the income from farm production is kept by 77 00:06:03,260 --> 00:06:04,780 the farmers. 78 00:06:04,780 --> 00:06:09,660 It may seem a slow step, but economic freedom has had a real impact for Zhu Yongkang and 79 00:06:09,660 --> 00:06:10,980 his family. 80 00:06:10,980 --> 00:06:15,980 With the money from his farm, he built his own house two years ago. 81 00:06:15,980 --> 00:06:20,980 You are not born with democracy. 82 00:06:20,980 --> 00:06:26,740 900 million people are peasants in China, so China's business is the peasants' business. 83 00:06:26,740 --> 00:06:30,060 If we do well for the peasants, then we do well for China. 84 00:06:30,060 --> 00:06:37,060 Our EU program fits exactly into China's needs and fits into the Chinese reality. 85 00:06:42,380 --> 00:06:47,780 Adapting to the Chinese reality has been central to the partnership between the EU and China. 86 00:06:47,780 --> 00:06:51,420 And across Europe, that partnership has a strong presence. 87 00:06:51,420 --> 00:06:56,700 Hamburg is home to Europe's largest concentration of Chinese culture and business interests. 88 00:06:56,700 --> 00:07:01,340 It's estimated that a Chinese company opens a branch here every ten days. 89 00:07:01,340 --> 00:07:04,940 But Hamburg is a gateway not just for Chinese products. 90 00:07:04,940 --> 00:07:11,940 Over 10,000 Chinese have made a home for themselves in their Hanbao. 91 00:07:12,460 --> 00:07:16,140 At government level, the deepening of the partnership can be seen in the many agreements 92 00:07:16,140 --> 00:07:18,580 that have been signed in recent years. 93 00:07:18,580 --> 00:07:23,100 From trade, to science and technology, to the tourism agreement which came into operation 94 00:07:23,100 --> 00:07:28,580 last year, and should see large numbers of Chinese tourists visit Europe. 95 00:07:28,580 --> 00:07:32,820 On wider cultural and human rights issues, the EU's steady diplomatic relationship with 96 00:07:32,820 --> 00:07:35,100 China is pivotal internationally. 97 00:07:35,100 --> 00:07:39,700 It leaves the EU uniquely positioned to maintain an open and continuing dialogue with the People's 98 00:07:39,700 --> 00:07:43,300 Republic. 99 00:07:43,300 --> 00:07:47,340 Both sides have already accumulated experience on how to properly handle their differences 100 00:07:47,340 --> 00:07:48,980 and contradictions. 101 00:07:48,980 --> 00:07:53,740 It is on the basis of equality, dialogue, consultation as well as the improvement of 102 00:07:53,740 --> 00:07:55,780 mutual understanding. 103 00:07:55,780 --> 00:08:02,780 The two sides will properly handle their differences and their problems in their bilateral ties. 104 00:08:05,180 --> 00:08:09,560 As the EU consolidates its position through enlargement, it's also strengthening peaceful 105 00:08:09,560 --> 00:08:11,460 partnerships worldwide. 106 00:08:11,460 --> 00:08:16,180 At ongoing summits of EU and Chinese leaders, new reasons are found to continue discussions 107 00:08:16,180 --> 00:08:18,300 and balance development. 108 00:08:18,300 --> 00:08:19,660 The alliance continues.