BRUSSELS: China asked for a meeting Monday with the top EU trade official amid a series of tit-for-tat disputes as economic powerhouse Germany led growing opposition to a planned punitive levy on imports of Chinese solar panels.
With news of yet another row, this time over chemicals, surfacing, Brussels said visiting Chinese Vice Minister of Commerce Zhong Shan had asked to see EU Trade Commissioner Karel De Gucht, just days before the expected June 5 announcement of the solar anti-dumping tariff.
John Clancy, spokesman for De Gucht, stressed that “the meeting is informal only,” adding that the levy would still be imposed before any formal talks with Beijing.
“As all parties are aware, formal discussions towards a negotiated settlement in the solar panels case can only begin — as stipulated by the legal trade defence framework — should a decision be taken to impose provisional measures.”
Berlin meanwhile made clear there was no need for such a penalty, saying it had told the European Commission, the EU’s executive arm, that it opposed the levy, put at a damaging 47 percent.
“There is, from our point of view, no longer a need for penalties,” German Economy Minister Philipp Roesler said in an address attended by visiting Chinese Premier Li Keqiang.
“We are against protectionist measures, for open markets and fair competition,” Roesler said ahead of a lunch with Li, on the final day of his visit to Germany, by far China’s biggest European trading partner.
Li welcomed the move, saying it was because Berlin “wanted to hear” China’s stance. “This position, that is what binds China with Germany and earns my appreciation,” he added.
The exchanges followed a pledge by Chancellor Angela Merkel Sunday that Germany would do everything it could to ensure a negotiated solution to the disputes amid fears they could lead to a trade war.
At all costs, both sides must avoid “lapsing into a kind of dispute which finally only ends in mutual tariffs,” Merkel said.
“I will, as head of the government, advocate that we, at the European level, as quickly as possible have intensive discussions with the Chinese side on the questions at issue,” Merkel told a joint press conference with Li.
Sources close to the issue said Monday that Germany was far from alone in opposition to the proposed levy.
“Seventeen other member states have come out in opposition,” said one source, who asked not to be named.
“In view of this considerable opposition, it is clear that the European Commission must step up efforts to find a negotiated solution,” the source said.
The Commission earlier confirmed that Beijing was investigating a complaint against several European chemical companies for alleged dumping in China.
This is the second anti-dumping move by China against European industry in less than two weeks after a complaint against European companies making unwelded pipes.
Besides solar panels and components, the EU has said it also plans to investigate Chinese manufacturers of telecoms equipment such as giants Huawei and ZTE.
The EU argues that cheap Chinese products are being dumped on its market, hurting European firms.
China replies in kind while Li said a punitive levy would not only threaten jobs in China but affect the interests of European companies, consumers and industry.
As the list of disputes has grown, so have concerns that the two sides could drift into a trade war despite hugely important ties worth more than 500 billion euros — the EU is China’s largest single export market and a major supplier of goods and services.
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