EU Commissioner Vĕra Jourová

Vĕra Jourová, European Union (EU) Commissioner for Justice, Consumers and Equality, will launch the EU-China Legal Affairs Dialogue on 20^th June. In the article below she explains how its establishment will engender a deeper understanding of each side’s respective legal systems, which in turn will reinforce exchanges between the EU and China at all levels. The first subject that this dialogue will tackle is e-commerce, with a view to simplifying the existing legal framework, bolstering consumer trust and, ultimately, increasing online cross-border trade.

The EU is a unique organisation in that it brings together the people of 28 different Member States in an ever-closer union based on law. From its beginnings in the 1950’s, the EU’s actions have been based on legally enforceable treaties. The treaties allow EU legislation that now covers areas ranging from trade and competition policy to product standards and consumer protection. To ensure that the system works, an independent court of justice in Luxembourg adjudicates over any disagreements. In the event of any disputes, EU legislation takes priority over national law.

This legal glue makes the EU stronger on the international stage. Instead of 28 countries, each with their own borders and regulations, the EU has a single market where goods, services, capital and workers can move freely. The EU represents all of its Member States at the World Trade Organisation.

By constructing a shared legal framework Europeans have built the most important market in the world. Europeans are responsible for more consumer spending than either the US or the emerging economies of the Brazil, Russia, India and China combined.

EU-China trade has increased dramatically in recent years. China and Europe now trade well over EUR 1 billion a day. China is now the EU’s second largest trading partner behind the United States and the EU is China’s biggest. But the relationship between the EU and China goes far beyond trade. Over more than 40 years of bilateral relations, close cooperation has been developed across three pillars—political dialogue, economic and sectoral dialogue and people-to-people dialogue—and virtually all EU policies.

Our ongoing cooperation led to the realisation from both sides that we have a common interest in better understanding our respective legal systems. The ways in which our laws work lays the foundations for all other exchanges in sectors such as trade and investment, technology, agriculture, health and social issues, urbanisation and environmental protection.

It was for this reason that, at the 2015 EU-China Summit, Premier Li Keqiang and presidents Tusk and Juncker agreed “that it is necessary to deepen understanding of each other’s legal systems, and establish an EU-China Legal Affairs Dialogue for policy exchanges, mutual learning and cooperation in legal affairs.” It is therefore a great honour that, as the EU Commissioner responsible for justice and consumer policies, I will have the privilege of launching this dialogue with Minister Song Dahan in Beijing on 20^th June.

It is not always easy to do business in China. I have listened to EU companies and have read the European Chamber’s most recent position paper. I could not agree more with the conclusion that a better implementation of the rule of law is not only a top priority for European businesses but will also be “the top driver for China’s economic development in the coming years”.

The concerns of European companies are not new, but what is new is that they are now being increasingly shared by the Chinese leadership. In October 2014, the Fourth Plenum set the objectives of ‘judicial fairness’, ‘governing the country according to the law’, ‘equality under the law’ and ‘fair and civilised law enforcement’. China has recognised that a predictable and fair legal framework is necessary to support the long-term and sustainable economic growth that we look to become China’s ‘new normal’. The Chinese Government is looking to streamline government structures and improve the quality of legislative decision making – which means that the launch of the Legal Affairs Dialogue could not come at a better time.

The EU-China Legal Affairs Dialogue is intended to be a high level dialogue, held every year alternately in Brussels and in Beijing, between the relevant EU services on one side, and the Chinese State Council Legislative Affairs Office on the other. It will be complemented by expert workshops bringing together Chinese and European law practitioners, law-makers, legal academics and other stakeholders to discuss selected themes.

The starting point will be an exchange of information on draft legislation, existing laws and their implementation in China and in the EU, to help identify areas of common interest and open the door to concrete cooperation.

The subject for the first dialogue will be e-commerce. Ensuring that digitalisation benefits European citizens and that the Digital Single Market delivers for European consumers and businesses is a key political priority of the European Commission. The EU’s recent Digital Single Market Strategy tackles all major obstacles to the development of cross-border e-commerce in the EU. Removing these obstacles could contribute EUR 415 billion per year to Europe’s economy, create jobs and transform our public services.

To underpin this initiative the European Commission adopted two important legislative proposals in December last year: one on the contract rules for the supply of digital content (e.g. streaming music); and one for the online sale of goods (e.g. clothes). These proposals will simplify the existing legal framework and help increase online cross-border trade by building consumers’ trust.

China also realises that a large part of its future economy will be online, and to that end the Ministry of Commerce has worked together with other stakeholders in order to prepare a draft law on e-commerce.

This legislation—Chinese and European—will shape a large part of the global economy of the future. I am therefore very encouraged that the Legal Affairs Dialogue will help both sides discuss, compare notes and take inspiration from each other’s approach. It should also help facilitate digital trade between China and the EU.

Discussing substantial legal proposals at an early stage is an encouraging demonstration of a more transparent public consultation process. It will also lead to better quality legislation that is easier to implement.

This demonstration of openness is something that we will build upon and I hope it will become the ‘new normal’ when it comes to legislative cooperation. If we better understand our legal systems then we can improve the way we work together and create benefits for both the EU and China.