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Mandelson wields his carrot and stick

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August 2006

A change in the ground rules governing Europe's economic ties with China is set to re-define the trade relationship. But a new grand bargain may be difficult to achieve.

The European Commission has turned its attention to how it can make the best of trade with China. On more than one occasion recently, Peter Mandelson, the EU Trade Commissioner, has addressed the broader direction of the relationship between China and Europe.

In one speech at a conference in Brussels in July, Mandelson posed the question of whether it was possible to achieve a grand bargain between the EU and China. In exchange for a Chinese pledge "to work to meet its WTO obligations ...

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