EU “Not Available” For Trade War with China, Says Official
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The European Union’s ambassador to China has rejected reports of a trade war between the two economic heavyweights – which together make up the world’s largest trade relationship – and instead pointed out that the proportion of trade disputes between the EU and China is “actually very small”.
The European Union’s ambassador to China has rejected reports of a trade war between the two economic heavyweights – which together make up the world’s largest trade relationship – and instead pointed out that the proportion of trade disputes between the EU and China is “actually very small”.
EU Ambassador to China Markus Ederer’s comments came days after the Financial Times said the European Commission has concluded in a report that Beijing illegally subsidises Chinese steel producers – a direct contravention of World Trade Organisation rules – and is recommending that European companies seek import duties of up to 50 percent on Chinese steel.
The report comes amid high tensions between China and the EU across a range of industries from solar panels to telecommunications equipment. Last year, the Commission imposed provisional anti-dumping duties of up to 58 percent on Chinese steel producers over a related complaint.
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One trade lawyer told the FT that the report – if formally adopted – would allow European companies in the eyes of the EU to “challenge anything metals-based coming out of China”, from cars to white goods.
However, Ederer said he was puzzled by and “flatly rejects” reports of a trade war between the two economies which together comprise the world’s largest trade relationship.
Ederer said:
[quote] I don’t want this to become a self-fulfilling prophecy. First of all, it takes two for a war, and I can declare here that the EU is not available for a trade war with China. [/quote]
“The proportion of trade disputes between the EU and China is actually very small and both sides should obey WTO regulations when dealing with trade problems,” Ederer said, adding that the China-made products involved in anti-dumping or anti-subsidy disputes make up less than 1 percent of Beijing’s total exports to the EU.
Ederer said the Commission’s investigations are not directed against China and “enterprises under EU investigation also include those from the United States and other trading partners.”
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[quote]The report, as well as the threat of punitive tariffs against Chinese firms, angered Beijing. On Tuesday, Shen Danyang, spokesman for the Ministry of Commerce, called on the EU to rescind its conclusion and cancel its investigation. [/quote]
“Such a conclusion based on unreasonable investigations will seriously hurt the legal rights and interests of Chinese firms,” Shen said. “There is a lack of evidence showing Chinese enterprises are dumping (in the EU) or receiving subsidies.”
Bilateral trade between China and the EU reached $334 billion in 2012, a year-on-year decline of 6.2 percent.
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