Brussels, 20/04/2010 (Agence Europe) - Before his first official visit to China as trade commissioner, Karel De Gucht has shown himself to be both tough and conciliatory towards Beijing. The undervaluation of the yuan and dumping continue to cast their substantial shadows over trade relations between the EU and China, and so continue to be of concern to both the European Commission and member states. De Gucht wants dialogue rather than reprisals. “There are a number of topics that worry us. We see dumping. We are presently investigating two cases. Also there is the undervaluation of the yuan, which subsidises exports,” he said in an interview with Reuters on Monday 19 April, adding that there were also concerns over China's policy on raw materials and export duties. De Gucht said that the EU would try to be constructive with China rather than take reprisal measures which could increase trade tensions between the EU and its second largest trading partner (bilateral trade was worth €326 billion in 2008), after the United States. Although worried by the EU's continuing trade deficit with China (almost €170 billion in 2008), the trade commissioner has called for caution and stressed the need for constructive dialogue with Beijing. “There are problems obviously. On the other hand, we should be cautious with the interpretation of all these and what it means. Therefore it is very important to continue to have in-depth discussions with the Chinese. I think it is very important that we have a strategic dialogue whereby the kind of problems that arise on trade are resolved pre-emptively. We are not interested in an escalation … I don't think that escalation is the answer,” he said. De Gucht will take part, alongside Commission President José Manuel Barroso, in a meeting of the economic and trade dialogue, which was begun in 2008, in Beijing at the end of April. (E.H./transl.rt)