CHINA: Europe's trade chief Peter Mandelson meets China's Commerce Minister Bo Xilai in Beijing

Europe's trade chief on Tuesday (November 7) met with China's Commerce Minister Bo Xilai to urge the export giant to remove barriers to foreign investment more quickly and take on more responsibilities as a fast-emerging economic powerhouse. Intellectual Property Rights (IPR) has also featured on EU Trade Commissioner Peter Mandelson's agenda during his visit to the mainland. Earlier in the day he remarked that Chinese counterfeiting was a ball and chain dragging down Europe's competitiveness. After talks, Mandelson and Bo looked on as officials from the two sides signed an agreement that would bring the European Union into cooperation with China to help run IPR complaint centres in Guangdong and Jiangsu provinces. Mandelson was positive about talks with Bo - saying they had discussed a range of trade disputes, including restrictions announced in September on foreign media and financial information distributors, including Reuters. "I would also like to record my appreciation of (Bo Xilai's) response to other concerns and issues I raised concerning market access, investment conditions, in telecoms sector in China, construction design sector, issues concerning the Xinhua financial news agency, and the payment of royalties by Chinese companies," Mandelson told reporters following the signing ceremony. But he was less forthcoming about what he had discussed with Bo regarding a simmering auto sector row with Beijing. He was also reluctant to comment on an anti-dumping dispute over leather shoe imports from China. "Nor am I going to refer to the anti-dumping duty on leather footwear, or on anti-dumping issues generally except to say that of course the use of trade defence instruments is not restricted to the European Union. And we will forgive your anti-dumping duties if you will forgive us ours," said Mandelson. Mandelson was very clear that China's burgeoning economy made it necessary for the nation to step up as a responsible trading partner. "We recognise the Chinese characteristics of a developing country. But this is a developing country which is fast becoming the third biggest economy in the world, and the third biggest trade power in the world. It is also a developing country which sends men into space and puts together the A320 aircraft," said Mandelson. But Minister Bo said that as a new member of the WTO, China's couldn't be held to the same standards as earlier members. "The major economies in the world should give objective recognition to the status of China as a recently- acceded member of the WTO, and the treatment offered to new members and older member should be different," said Bo Xilai. And Bo insisted that China had scrupulously adhered to WTO standards in the auto sector. "We believe that the formulation of relevant policy in China regarding automobiles and automobile parts is in complete compliance with the WTO's stipulations and rules. After the occurrence of this dispute we have been proactively pursuing settlements or solutions through friendly consultations. However, to our regret, eventually the EU side brought this case to the WTO," said Bo. The EU, along with the United States and Canada, has taken China to the World Trade Organisation's (WTO) courts for the first time over the auto sector row. China is nearing the end of a five-year transition period to adjust to the requirements of its WTO membership. Early next year Brussels will spell out what it sees as unfair barriers to trade and foreign investment, although it notes progress in some areas such as banking reform.

ITN Source | November 8, 2006

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