There are three overarching aims which if achieved would enable us to meet the challenges set in Our key opportunities and challenges:

1. Getting the best for the UK from China’s growth
   
   
2. Fostering China’s emergence as a responsible global player
   
   
3. Promoting sustainable development, modernisation and internal reform in China

Under each of the three pillars, we envisage a number of key outcomes which we would like to see realised by the end of 2012. The list is aspirational – we do not control the means to ensure these outcomes. But well-targeted UK activity will increase the odds in their favour. The list is not exhaustive. It is fluid, and will be regularly reviewed and updated. And in the climate of economic uncertainty which is likely to prevail during the early part of the period covered by this Framework, achieving the targets in trade and economic co-operation will be particularly challenging. These outcomes are set out in the three sections below.

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1. Getting the best for the UK from China’s growth

This is about maximising the benefits, and mitigating the risks, which flow from our bilateral relationship. It is about securing the greatest possible value for the UK from the rise of China. This means encouraging the Chinese to see the UK as a global hub; boosting our business, educational, scientific and cultural gains from the bilateral relationship; putting the right domestic policies in place to take full advantage of the opportunities and to respond to the challenges that China’s rise represents for the UK; and equipping the British people to seize the China opportunity through better understanding of China and better Chinese language skills.

1. UK moves beyond current trade and investment targets – $60bn in bilateral trade in goods and services, 100 new investment projects, and 100 Chinese companies listed on the London Stock Exchange.
   
   
2. UK providers of banking and investment services, insurance, and pensions well established in China.
   
   
3. China substantially reduces tariff and non-tariff barriers, is protecting Intellectual Property Rights more effectively, and is co-operating with partners on taxation, leading to deeper and more balanced integration with major trading partners. Bilaterally, this also means a replacement double taxation agreement that is more favourable to cross-border services and investment.
   
   
4. City of London established as top overseas destination for Chinese external investment funds. Chinese investments are conducted on a transparent and responsible basis.
   
   
5. UK retains its position as the top EU investor in China, helped by mature, increasingly open Chinese markets with more efficient allocation of capital and management of risk.
   
   
6. UK/China Partners in Health initiative is a successful vehicle to promote health collaboration and success in the Chinese market for UK companies.
   
   
7. UK is a key strategic partner of China on climate change and sustainable development. Strong policy and practitioner links exist at all levels of government and with a wide range of stakeholders.
   
   
8. UK/China agreement on sustainable cities is fully implemented, with more collaboration and exchange of engineering, technical, academic and financial expertise. UK and Chinese companies and cities benefit as China’s rapid urbanisation process draws on UK experience of urban regeneration and low income housing.
   
   
9. UK retains its position as the top foreign provider of tertiary education in China. 100 000 Chinese students in the UK, and 100 education partnerships by 2010. Increased educational and scientific links at institutional level between universities, research bodies, colleges and schools, and a greater two way flow of students, academics and researchers.
   
   
10. Steep increase in UK/China scientific collaboration. One hundred more research and development partnerships between Chinese and British firms by 2010. Production of joint research papers doubled from 5 500 in the first half of the decade to 11 000 between 2008 and 2012.
    
    
11. Chinese public opinion sees UK as increasingly dynamic and creative as a result of a successful UK contribution to the Shanghai EXPO 2010, a major ‘UK Now’ cultural festival in China in 2012 mirroring ‘China Now’ in 2008, the second phase of ‘Connections through Culture’ to be rolled out over 2009-2012 and the London Olympics.
    
    
12. Full implementation of UK/China agreements on migration, resulting in healthy legal migration flows and the combating of illegal migration.
    
    
13. Criminal threats to UK originating in China (including Intellectual Property Rights theft, counterfeiting, excise and other fraud through to human smuggling and trafficking) reduced by more effective co-operation between UK and Chinese law enforcement agencies.
    
    
14. Substantially increased knowledge and understanding of China and Chinese language in the UK.

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2. Fostering China’s emergence as a responsible global player

This is about engaging with the Chinese Government, Communist Party, academics, media, business and the Chinese public to encourage an approach of responsible sovereignty on global issues. We would like China to define its interests broadly, recognizing that it stands to gain from strengthening the integrity of the international system and promoting sustainability and global public goods. But we are also determined to find a way to ensure that China and other major emerging economies have a bigger stake in a rules-based multilateral system. To do this, we will work for more systematic Chinese involvement in international leadership structures, without undermining their norms, or diluting their effectiveness. We can do some of this by using bilateral contacts and influence, but we will also want to work closely with our partners in the EU and international institutions to reinforce our approach.

1. Reduction in tensions across East Asia region.
   
   
2. Increased transparency over Chinese defence budget and policy
   
   
3. China increasingly aligned with P3 on key UN Security Council dossiers.
   
   
4. China contributes increased capabilities and resources to international peace support operations.
   
   
5. China works more effectively with the UK on counter-terrorism, including by supporting our CT objectives in neighbouring countries.
   
   
6. China participates fully in a more effective Counter proliferation architecture spanning all three pillars of the Non-Proliferation Treaty.
   
   
7. China signs up to ambitious action to combat climate change at Copenhagen at end-2009. China ratifies an ambitious and comprehensive post-2012 framework beyond that.
   
   
8. Chinese Government gives higher priority to sustainable development in the developing world, in line with the principles agreed at the World Summit on Sustainable Development.
   
   
9. China in deeper dialogue with the UK, the EU and other donor governments on MDGs and international development policy.
   
   
10. China joins more multilateral development initiatives like the Infrastructure Consortium for Africa; is increasingly engaged in trilateral co-operation around Africa with other donors and African governments; and similar initiatives are developed with China in other parts of the developing world.
    
    
11. China plays an active and constructive role in the economic, financial and institutional reforms agenda at the Summit with G20 leaders in London in 2009, and follow-up process.
    
    
12. China takes a full, active and responsible role in the International Financial Institutions, and in regional economic organisations such as the Asian Development Bank.
    
    
13. China co-operates more actively with the world’s other major economies to address global economic and financial instability.
    
    
14. China plays a more active and constructive role to sustain and advance global free trade, including promoting a successful outcome to the Doha round.
    
    
15. China co-operates fully on global health issues with the World Health Organisation, complying with best practice on avian influenza, and other health security issues.

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3. Promoting sustainable development, modernisation and internal reform in China

This is about influencing China’s evolving domestic policies, to make it easier to align international approaches over time. We should do what we can to help China manage the economic, political, environmental and social risks (to them and to us) of its rapid development. Greater respect for human rights and the rule of law are crucial to this. Our main influence will come through working with others, primarily within the EU, but our bilateral work will remain important. This also links to our first overarching aim. By encouraging the rule of law, we help develop a rules-based system within which our companies in China can operate. By increasing cultural understanding through educational exchange, we can foster links between future decision makers which could be of real significance for China’s development.

1. China strengthens its social welfare provision, lowering savings rates and boosting domestic demand.
   
   
2. China meets its 20% by 2010 energy efficiency target and has set equally ambitious targets to 2015. China is on track to have a commercial scale Carbon Capture and Storage demonstration by 2014.
   
   
3. China’s domestic development programmes on basic education, HIV/AIDS, TB, health reform, water and sanitation make good progress, deriving increasing benefit from World Bank policy and analysis.
   
   
4. China better integrates all three pillars of sustainable development – environmental and social, as well as economic – into its domestic policy making.
   
   
5. Agreement between China and the EU to work together on the creation of Low Carbon Development Zones in China, linked to the EU economy, with the aim of supporting and accelerating low carbon growth and development in China; and driving down the cost of key low carbon technologies.
   
   
6. China ratifies the International Covenant on Civil and Political Rights.
   
   
7. China develops stronger rule of law and more independent judiciary.
   
   
8. China abolishes, or at least greatly reduces, detention without trial under re-education through Labour and other systems of administrative detention.
   
   
9. China substantially reduces the application of the death penalty (and is providing transparency on death penalty statistics), and increased safeguards against torture. Forced confessions no longer admissible as evidence.
   
   
10. Well established dialogue between young UK politicians and Chinese Communist Party helps to inform wider internal Chinese debate.
    
    
11. Chinese society continues to become more open. Media freedoms increased. Mechanisms to hold authorities to account strengthened. Public space for policy debate and formulation is widened. NGOs havemore freedom to operate independently. Corporate responsibility strengthened.
    
    
12. Progress towards a system of meaningful autonomy for Tibet within framework of Chinese constitution.
    
    
13. Significant reform for the 2012 elections in Hong Kong, to prepare the way for the election of HK’s Chief Executive by universal suffrage in 2017 and fully democratic Legislative Council by 2020.
    
    
14. China continues to respect Hong Kong’s fundamental rights and freedoms under the UK/China Joint Declaration on Hong Kong.