Brussels, 08/11/2006 (Agence Europe) - After a meeting in Beijing on Tuesday with EU Trade Commissioner Peter Mandelson, on an official visit to China until 10 November to promote the EU's new policy paper on the future of relations with China (see EUROPE 9301), Chinese trade minister Bo Xilai slammed the EU for its aggressive trade policy with regard to China. At a press conference after his meeting with Peter Mandelson, Bo said, for example: 'Regarding EU implementing antidumping measures on Chinese leather shoes, we feel very regretful at this practice. There is a lot of dissatisfaction in the Chinese industry,' (see EUROPE 9279 and 9280). Bo also criticised the EU for taking China to the World Trade Organisation over car spare parts (see EUROPE 9296). Beijing is challenging the EU view that China's anti-competitive measures will favour Chinese car parts manufacturers. Visibly shaken by the firm stance taken by his EU counterpart, China's trade minister said that China had started moves to try and reach an out-of-court settlement but the EU had decided to turn to the WTO. He said there were three things the EU had to recognise: China's market economy status, China as a new member of the WTO and China as a developing country. The EU has not yet accepted this because it is unhappy with progress in reforms in China to date.
At a meeting in Beijing on Wednesday with officials of China's State Intellectual Property Office, Peter Mandelson urged the Chinese authorities to improve enforcement of anti-piracy laws, make it easier to prosecute violators and toughen punishments, warning that Chinese innovation would also be nipped in the bud if action wasn't taken. Confirming the crucial importance of intellectual property rights for the EU's relations with China, the EU Trade Commissioner said: 'It's the biggest problem for companies trying to do business here.' He added: 'I would like to see a strong public declaration by the Chinese government that they want to see the appropriate royalty payments being made in the future, without turning a blind eye to their non-payment as has been the case in the past.' Peter Mandelson warned that failing to tackle counterfeit goods and pirating would cause problems in China itself, saying China's own infant film industry was being strangled. 'Tolerating intellectual property theft is a dead end for China,' he said. Mandelson also urged the Chinese to follow through on earlier pledges to clean up markets like Beijing's notorious Silk Alley, where counterfeit goods are openly sold. Mandelson noted increasing Chinese willingness to address the issue and welcomed the establishment of a network of 50 Intellectual Property Rights complaints centres in China to assist aggrieved companies in identifying and addressing cases of intellectual property right theft. 'However, nothing will ultimately substitute for better enforcement of Chinese anti-counterfeiting laws on the ground,' Peter Mandelson said. (eh)