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China-Europe Relations

Chinese vice-premier cautions EU on protectionism

By Fu Jing in Hamburg, Germany ( chinadaily.com.cn ) Updated: 2016-11-25 01:10:54

Chinese vice-premier cautions EU on protectionism

Visiting Chinese Vice-Premier Liu Yandong urged the EU to promote free trade and abandon protectionism at Hamburg summit. [Photo by Fu Jing/chinadaily.com.cn]

Visiting Chinese Vice-Premier Liu Yandong urged the European Union on Thursday to promote free trade and abandon protectionism.

At the close of two-day China Meets Europe summit in Hamburg, she also called on the EU to fulfill its obligations under Article 15 of the Protocol on China's Accession to the World Trade Organization (WTO).

"I hope the European Union will fulfill its obligations on time, fully and thoroughly," said Liu, who has begun a three-day tour in Germany to boost bilateral cooperation.

Addressing officials and business leaders at the summit, she continued: "I also hope that the EU will abide by open and unbiased principles in changing its trade defense regulations."

Liu's remarks came after the European Commission came up with a new proposal for calculating anti-dumping measures.

Vice-Premier Ma Kai, during his visit in October and November, won support from the UK, France and Belgium, whose officials promised they would press the EU to fulfill its obligations under China's World Trade Organization accession pact signed 15 years ago.

Recently, the European Commission submitted its 10-page amendment proposal to the European Council and European Parliament. That was just one month before provisions on calculating dumping in the China's Accession Protocols of China expire on 11th December.

But China was not happy with the commission proposal. "We have taken note of this with concern," said Lu Kang, Chinese foreign affairs spokesman.

While encouraging more Chinese businesses to invest in European Union countries to boost jobs, Liu said she has taken note of some "negative opinions" about China's investment in some countries within the EU.

"But I have to emphasize that expanding free trade and increasing two-way investment are in the interests of China and the EU," said Liu. "Against the backdrop of tight global economic inter-dependency, protectionism will bring no winner but an all-losing result."

Liu said China and the EU have already greatly benefited from balanced and two-way investment and trade in previous decades. "So I hope our European friends will take more proactive attitudes when assessing China's outward investment into Europe," said Liu.

Liu also pledged that China will be scaling up its reform endeavors to improve the levels of openness and cultivate a sound legal, policy and market environment for the investors from Europe and the rest of the world.

"We are ready to hold dialogues with the European side regarding trade disputes and speed up talks on an investment pact," said Liu.

European Commission Vice-President Jyrki Kataine has pledged a rule-based and robust investment and trade relationship with China. "We want our relationship to be stronger not only in economic terms but in all ways,"said Kataine in a speech at the summit.

He said the ongoing comprehensive investment talks, once concluded, will bring "enormous" benefits for both sides.

Liu is scheduled to meet German Chancellor Angela Merkel on 25th November and she is also attending a seminar on boosting football cooperation between China and Germany on 26th before wrapping up a three-day visit to boost bilateral cooperation in science, technology, education, culture and sports.

In his address, Fritz Horst Melsheimer, president of the Hamburg Chamber of Commerce emphasized Hamburg's importance as a part of the "new Silk Road". He said: "There is no better location for the maritime and the land route to come together than Hamburg, China's gateway to Europe."

Melsheimer said mutual investment is an important step towards achieving closer cooperation. "I believe it has become very clear during this conference that Hamburg, as a spearhead of European-Chinese relations, has a claim to having open doors for Chinese investments," he said.

He said the shift in the Chinese economy to greater innovation and sustainability was not automatically a threat.

"Instead, this transition opens up new opportunities for investment and market access on both sides - provided there is a clear understanding of the conditions for this closer cooperation," said Melsheimer.

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