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Economic and trade relations are an important part of the comprehensive strategic partnership between China and the EU. They are also the most dynamic and potential parts of Sino-European relations. Both parties have benefited from the results of China-EU economic and trade development. However, since last year, China-EU trade has continued to decline, with a 3.7% drop from 2012 and a further 1.9% drop in the first quarter of 2013. This is very worrying. The reason is that the European economy is in a downturn, market demand is weak, and the decline in product competitiveness is undoubtedly the main reason. It is undeniable that the EU continues to adopt some protectionist measures against China, and it has obviously also had a very negative impact on China-EU trade.
On May 8th, the European Commission made an initial ruling on China's anti-dumping measures against photovoltaic products, and proposed to impose an interim anti-dumping tax of up to 47% on average. Only one week later, the European Commission announced its decision in principle to initiate anti-dumping and countervailing investigations on China's wireless communication equipment products. In addition, the EU also rejects the application for market economy treatment of all Chinese companies in the investigation of trade remedy. The frequent use of trade remedy measures by the EU is inconsistent with the European Union's free trade philosophy and propositions, which has harmed the image of the European Union and contributed to trade protectionism, in violation of the G20 leaders’ commitment not to adopt protectionist measures.
The European Union has repeatedly provoked economic and trade frictions with China and I was shocked and puzzled. Regardless of photovoltaic products or wireless communication equipment, there are extensive cooperation and common interests between Chinese and European companies. The EU has not completely escaped the sovereign debt crisis and the economy is still in recession. At this time, adopting protectionist measures to suppress Chinese products will not only solve the problems of the EU’s own industries and the decline in product competitiveness, but will also further weaken the EU’s economic growth momentum and potential, and dampen the confidence of Chinese companies and European cooperation. . This is tantamount to lifting a rock and licking one's own feet and damaging one's own.
Lamy, the Director-General of the World Trade Organization, pointed out that according to the analysis of the value chain, “40% of a country’s exports actually originate from imports, so protectionist measures cannot play a protective roleâ€. China-EU trade is largely an integral part of the same value chain, which limits China's export to the EU market. It not only undermines the interests of European consumers, but also undermines the development of related European industries.
In fact, within the EU, many member companies and scholars of the member states have also made quite a few remarks about the EU’s initiative to provoke trade frictions. Recently, more than 1,500 PV product importers and installation companies in the European Union have sent a letter to the European Commission’s Trade Commissioner De Gucht, opposing the sacrifice of the EU’s overall interests for the benefit of a very few manufacturing companies. Some European research institutions have also warned that restricting China's PV products will cause the EU to lose nearly 200,000 jobs, and even trigger a trade war. Senior officials of EU member states have also said in recent days that they should seek political solutions to the case of EU-China PV products. The long-term solution should support the development of the photovoltaic industry, increase the competitiveness of photovoltaic products, dilute the production capacity by increasing market demand, and get rid of the competitive difficulties. I think these officials' views are rational and justified.
At present, the European economy is still in a sluggish state, facing greater downward pressure and many uncertainties. Creating an open economic and trade environment and releasing positive signals to the outside world are of great significance to boost confidence in China-EU cooperation and to promote economic recovery in Europe. The EU should devote more energy and attention to expanding bilateral economic and trade cooperation, actively exploring the use of their respective comparative advantages, utilizing China-EU economic complementarities, creating new highlights of Sino-European economic and trade cooperation, exploring new areas of Sino-European economic and trade cooperation, and giving full play to Sino-European economic and trade cooperation. The economic growth of the European Union has led the way.
China and the EU are strategic partners and important trading partners. Promoting and expanding bilateral trade is the common responsibility of both parties. China does not want to see Sino-European economic and trade cooperation affected, and hopes that the EU can sensibly and cautiously evaluate the pros and cons, actively and earnestly fulfill its commitments, resolve trade frictions through dialogue and consultation, and maintain the healthy and stable development of China-EU economic and trade relations. Wu Hailong â–² (The author is the head of the delegation of the People's Republic of China to the European Union)
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