Brussels, 07/11/2006 (Agence Europe) - Two weeks after the adoption by the Commission of a new strategy on the future of Sino-European relations, particularly in the field of trade and investment (EUROPE 9292, 9294), the Commissioner for Trade, Peter Mandelson, began a four-day visit to China on Tuesday to discuss with the country's leaders greater opening up of the Chinese market to European exports and companies. Issues involving respect for Chinese commitments to the WTO, as well as intellectual property rights will also be widely discussed.
In a speech made on Tuesday to students from the Qinghua University of Beijing, the Commissioner called on China to assume its responsibilities, together with the EU and US, and fully respect its WTO commitments. Mandelson declared, “identify any global problem and you will find that China is an essential part of the solution”. He added, “It is no longer possible for China to shut out the world or behave as if it were outside the system looking in…We have a joint stake in managing the global economy and maintaining a stable and equitable world. And China is now in a position not only to accept new responsibility in these areas, but also to show strong leadership”. The European Commissioner also repeated that China should fully respect is commitments made in 2001 when it joined the WTO - commitments that enabled it to have guaranteed open and stable access to world markets, by opening up its markets more and making commitments to fair trade and national production conditions and market access. Highlighting the predictions that China was expected to be the worlds greatest exporter by 2010, Mandelson exhorted Beijing to “begin acting like an equal partner in preserving the global trade balance”.
One of the main aims of Mr Mandelson's visit to China (he met the Chinese minister for trade on Tuesday, Bo Xilai) is to present the Chinese authorities with the document adopted at the end of last month by the Commission, entitled, “A Strengthened Partnership, Increased Responsibilities”. In its new strategy, the Commission makes a specific request to China to further open up its economy to companies and for more balanced growth fuelled by domestic demand to absorb European exports. According to the Commissioner this would help to compensate the increasing European trade deficit (more than €106bn last year) with China, in order to avert protectionist threats being made in Europe. Addressing the students from Quinghua, the Commissioner for Trade therefore reaffirmed the fact that the EU would fight to obtain the elimination of all trade barriers, particularly tariff and regulatory barriers to the Chinese market. He also stated that the EU would defend itself against unfair trade, “just as China does all the time”. Mandelson did not rule out going to the WTO to settle the dispute with Beijing, such as the one involving car spare parts (EUROPE 9296). Mandelson insisted that, “if our trading relationship is not handled properly, it is capable of seriously impeding, even jeopardizing, the development of our wider relationship”. He explained that during a previous visit to Shenzhen this year he was “struck by the fact that for every four containers leaving China for Europe, three were returning empty…There is also a growing perception that in Europe, and I hope Chinese leaders will not ignore this, that China and Europe do not trade on genuinely reciprocal, equal terms. To be frank, I don't think European entrepreneurialism is the problem”. Finally, with regard to the protection of intellectual property rights, the Commissioner for Trade reaffirmed the EU's expectations in terms of “more decisive measures” for fighting against piracy and counterfeiting in China, a real scourge to European industry.
Mr Mandelson also underlined on Tuesday that China's role was not limited to economic and trade questions alone but also incorporated all the challenges created by globalisation and sustainable development. He insisted that, “A country like China that produces a new coal-fired power station every week, and will be the biggest emitter of carbon-dioxide by 2030, is a country with a central role in addressing the emergency of climate change”. China, as a developing country, is in fact the second biggest producer of greenhouse gases, behind the US, but is not obliged to reduce its emissions. It is only obliged to include them in an inventory with regard to the Kyoto Protocol. Mandelson highlighted the necessity to hold a “frank debate” between the EU and China on both fundamental and human rights.
Before returning to Brussels, Mr Mandelson will take part in several meetings this week on extending trade ties between the Union and China. In this connection he will on Wednesday be meeting officials from the office for protecting intellectual property rights and on Friday will be participating in a Sino-European discussion on climate change. (eh)