Brussels, 23/05/2012 (Agence Europe) - The European Parliament is of the opinion that the EU should coordinate its fight against unfair competition from China and re-establish a balance of trade with its partner. MEPs suggest the creation of a body to monitor the investments of the Asian giant in Europe, in European businesses and in the purchase of public debt.
Approved by a show of hands at the Strasbourg plenary session of Wednesday 23 May, the report by Marielle de Sarnez (ALDE) pleads in favour of rebalancing trade relations between the EU and China, which remain firmly to the advantage of the latter, which has tripled its surplus with Europe, and in favour of a partnership based on the reciprocity of rules, balance and transparency in bilateral trade. The report by the French MEP, which supports the proposals announced in March by Trade Commissioner Karel De Gucht (mechanism for the reciprocity of public procurement contracts - see EUROPE 10579), urges China to open up its markets more broadly to European businesses, particularly its public procurement markets, and to accede to the multi-lateral WTO agreement on public procurement (GPA).
Speaking out against problems encountered by European businesses wishing to export to or invest in China, in particular in the banking, insurance and telecommunications sectors, whilst China is massively increasing its investments in Europe, the Parliament recommends the creation of a body to assess strategic foreign investments based on the model of the Committee on Foreign Investment in the United States (CFIUS) and a coordinated system between the ECB and member states to identify the owners of sovereign debt within the Eurozone. The Parliament also recommends moderating the Chinese system of co-enterprise and transfer of strategic technologies, criticising the unfair commercial advantages enjoyed by China, a member of the WTO, circumnavigating its rules, granting public subsidies and export aid to its businesses and industries.
Lastly, the de Sarnez report recommends a reinforcement of EU-China customs cooperation to improve the fight against piracy and counterfeiting, and recommends the use of trade defence instruments if these are needed, in particular to defend intellectual property rights. (EH/transl.fl)