Brussels, 03/04/2007 (Agence Europe) - After a four-day visit to China (see EUROPE 9399), EU Industry Commissioner Gunter Verheugen called on the Chinese authorities on Tuesday to establish a more transparent system that would make it easier for European countries to export to China. 'Procedures in Europe are well-functioning, transparent and easy to apply. Chinese exporters are already benefiting while import of European products to China is still subject to a number of complicated procedures. This situation should be improved. In this context, I have pleaded for more transparency to be able to do business with each other and have a good climate for investment,' said Verheugen. He rejected criticisms of EU protectionism, explaining that it was not about protecting Europe from competition from China and the best way of meeting the challenge of competition from China was to improve the EU's capacity to innovate, stressing the importance of protecting intellectual property rights: 'Both China and the EU must protect our consumers both when it comes to domestically produced and imported goods. We must also ensure that well-known brand names and trademarks are not put at risk from counterfeiting and dangerous products.'
According to diplomatic sources quoted by Reuters, the EU Industry Commissioner warned China that it would face a growing threat of trade penalties if it did not curb breakneck capacity expansion in steel and shipbuilding, two sensitive areas for the EU. The same source said that Verheugen had urged China to restrict capacity along with the granting of steel export licences. These allegations were denied by a European Commission spokesperson in Beijing, Michael Jennings, who said that Verheugen's mission to China has been one of dialogue and openness, adding that 'both sides discussed that overcapacity was an issue.' At a press conference, Verheugen said: 'We have discussed already today and yesterday certain areas like shipbuilding and steel, for instance, and others where there is a mutual interest to avoid overcapacity. That is something that is very important.' Verheugen expressed confidence that the EU-China industrial policy dialogue would allow the EU 'to benefit from economic development in China without interference or intervention.' (eh)