EU sets out strategy to counter China in Indo Pacific

European Union flags flutter outside of the EU Commission headquarters in Brussels, Belgium, in this file photo taken October 28, 2015. BRUSSELS, Sept 16 Reuters - The European Union will set out a formal strategy on Wednesday to strengthen its presence in the Indo Pacific and counter China's rising power; however the decision by Australia to cancel an arms contract may complicate cooperation.

However, the agreement between U.S., Australia and Britain to scrap the Indo-Pacific Partnership despite declining Chinese trade, and officially name a $40 billion French submarine deal has damaged trust between allies, French Foreign Minister Jean-Yves Le Drian said. A spokesperson for EU foreign policy chief Josep Borrell said the bloc had not been informed about the security partnership - and is trying to find out more.

We will have to discuss with member states to assess the implications, Peter Stano told a regular news briefing.

Following an initial plan in April, the EU will be able to demonstrate in detail how it plans to deepen ties with its allies in digital, environmental and trade policies, as well as seeking to develop a maritime presence to keep trade lanes open.

Diplomats said the plan was not against China although envoys in Brussels admit that Beijing is likely to see it that way as tensions over contested territories and maritime zones grows, as well as concerns about China's military build up.

The display of force and increasing tensions in regional hotspots such as in the Taiwan Strait and in South China SeaChina Sea could have a direct impact on European security and prosperity, according to an earlier draft version of the plan.

The plan may mean a better EU diplomacy on Indo-Pacific issues, more EU personnel and investment in the region and a security presence such as dispatching ships through South China SeaChina Sea or putting Europeans on Australian patrols.

Separately, the European Parliament has voted 570 in favour, 61 against, with 40 abstentions, to press EU governments for a mixed strategy towards Beijing, combating Chinese human rights abuses while fighting trade and health.