Who talks to who? EU-China Business Summit, Nanjing.

Chinese banquets are peculiar events. Participants won’t remain seated at their table for long, instead they cruise the dining hall, toasting and greeting people of importance to them or their business. Relationships are strengthened and respect is paid. If you are looking to conclude your day with a quiet conversation at the table, you need to find another venue.

Some say this game has become more important lately, as the economic downturn has led China and many others on increasingly protectionist policy routes. This new – or old – protectionism was one of the hot issues discussed at the recently concluded EU-China Business Summit in Nanjing.

The Chinese feel the criticism is wrong. They feel sweeping generalizations of their policies are unfair, and that wrongdoings are dealt with if they are brought to the attention of the authorities. Besides, the Europeans are no better. It’s a difference in perception, and this difference came back as other issues were discussed.

Take the Yuan for example. The Chinese has kept their currency closely linked to the US dollar, in effect letting it fall towards the Euro. This angers the Europeans (as well as the Americans), as it makes Chinese goods artificially cheap. The Chinese in return feel wronged; as their perception is they are just doing what they can to “keep their house in order” by avoiding putting export companies out of business. Besides, they strongly object to being pushed to do something. “China is more likely to change its policy if foreign policymakers shut up”, as The Economist noted.

Both sides also cruise between different positions on what China really is. Is it a developed or a developing nation?

At the moment, China prefers being a developing nation. Chinese Premier Wen Jiabao stressed this in his speech at the summit. No doubt was this a preparation for next week’s COP15, as China got intimate with other developing nations such as India and Brazil and reached an agreement on what amount of emission cuts they would accept.

The Europeans feel the Chinese should do more; on protectionism, the Yuan and on climate change. The Chinese on their hand feel they are doing enough, and that the reasons to take directions from abroad are becoming fewer and fewer.