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Image header Agence Europe
Europe Daily Bulletin No. 9925
Contents Publication in full By article 16 / 29
GENERAL NEWS / (eu) eu/trade

China's recovery plan in Commission's sights

Brussels, 19/06/2009 (Agence Europe) - As we pointed out earlier this week, the European Commission calls for “extreme vigilance” in its last report on potentially trade restrictive measures adopted by third countries. The adoption of new trade restrictive measures, which are increasingly complex and diversified especially when they are elements of recovery packages, “continues to be on the rise”. China's recovery plan and its measures for several sectors (steel, automotive, ICT, textiles, non-ferrous metals, industrial equipment and petrochemicals) are being targeted, including support for SME exports and local content requirements for government procurement purposes (EUROPE 9922). Answering press questions on Thursday 18 June, Lutz Güllner, the spokesman for Trade Commissioner Catherine Ashton, said measures adopted by Beijing to promote the purchase of national products were being studied by the Commission. “We are examining provisions set out in the Chinese clauses to determine whether they are compatible with WTO rules”, he explained, specifying that Ms Ashton will be calling on the Chinese authorities for clarification. Amounting to 4,000 billion yuan (nearly €422 billion), the Chinese recovery plan makes it an obligation for publicly funded projects to receive express authorisation from Beijing before goods and services of foreign origin are bought. “Only Chinese products and services can be used for government needs, except when some goods or services are not available in the country or when the conditions for their purchase are not reasonable”, the Chinese directive stipulates. The Commission believes this clause may be detrimental to the interests of European companies and foreign investors in China. Also, the Commission does not rule out bringing the dossier before the WTO if it considers Chinese measures create competition distortion or trade barriers. (E.H./transl.jl)

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EUROPEAN COUNCIL
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