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China worried about EU trade protectionism

Updated: 2012-06-01 21:53
By Uking Sun (chinadaily.com.cn)

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China worried about EU trade protectionism

Zhang Yansheng, Secretary-General of the Academic Committee of the National Development and Reform Commission, makes a speech at the third China-Europe High Level Political Parties Forum in Brussels, May 30, 2012.

 

Brussels – China is worried about the increasing trade protectionism in Europe following the financial crisis while China's current trade surplus with the European Union may not last long, experts said at a forum in Brussels.

Zhang Yansheng, Secretary-General of the Academic Committee of the National Development and Reform Commission, urged the EU to take a rational approach in solving its trade imbalance with China. Europe is China's largest trade partner, largest export market, and also biggest source of imports.

China's trade surplus is partly due to two sectors - labor-intensive industries, such as textile, and consumer electronics where foreign investment accounts for 27 percent, Zhang said at the sidelines of the third China-EU High Level Political Parties Forum.

Besides the comparative advantage of low labor costs, a structural analysis will show China's domestic companies benefit little from the apparent trade surplus, according to Zhang.

"The EU should further develop its knowledge economy instead of competing with China over labor-intensive industries or closing the market access of Chinese companies."

Zhang also said China's trade surplus may come to a turning point in 2015 to become basically balanced as China reforms its economic growth and trade model.

Huo Jianguo, President of the Chinese Academy of International Trade and Economic Cooperation in the Ministry of Commerce, shared Zhang's concern about the China-EU trade conflicts.

The Chinese government encourages imports from abroad, supports investment in EU countries, and is also implementing stricter laws against IPR infringement, Huo said.

With regard to the EU's concerns over rare earth restrictions, Huo said the environmental protection and regulations certainly affect the supply of rare earths, causing price changes, but this will contribute to its sustainable development in China.

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China worried about EU trade protectionism

Philippe Lamberts (L), MEP and co-president of the European Green Party, makes a speech as Zhang Yansheng(C), Secretary-General of the Academic Committee of the National Development and Reform Commission, and Huo Jianguo(R), President of the Chinese Academy of International Trade and Economic Cooperation in the Ministry of Commerce listen during the third China-Europe High Level Political Parties Forum in Brussels, May 30, 2012. ?

 

 

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