Germany to help China in trade disputes with Brussels

The German Chancellor Angela Merkel, seven government ministers and a large business delegation arrived in the morning of 29 August 2012 at Beijing Airport. On that occasion the two countries inked multifaceted economic, political and cultural agreements spanning in the years to come. (German Federal Government photographic library).

The German Chancellor Angela Merkel, seven government ministers and a large business delegation arrived in the morning of 29 August 2012 at Beijing Airport. On that occasion the two countries inked multifaceted economic, political and cultural agreements spanning in the years to come. (German Federal Government photographic library).

The visit of the new Prime Minister of the People’s Republic of China and party secretary of the State Council, Li Keqiang to Germany paid tangible dividends. After meeting with the German Chancellor Angela Merkel he got an official and public promise from her that Berlin will intervene in the Brussels procedures, to cool down European Commission’s aggressive action against alleged Chinese state subsidies to a number of companies and their possible price dumping practices in EU markets.

A trade war?

The European Sting on 16 May wrote that, “European Union Trade Commissioner, Karel De Gucht, announced yesterday that, “The European Commission has today taken a decision in principle to open an ex officio anti-dumping and an anti-subsidy investigation concerning imports of mobile telecommunications networks and their essential elements from China. Without naming individual firms this Commission decision is directly targeted against two international companies originating from China, the Huawei Technologies Co. giant and the smaller firm ZTE Corporation. The Commission opens this investigation on Chinese telecommunication equipment producers for allegedly using price dumping practices and receiving state subsidies”.

Apart from that the Commission has until this June to decide, if the EU will impose punitive import duties on Chinese solar panels imports. On the same line of action the Commission launched on 28 February an anti-dumping investigation into imports of solar glass from China. At the beginning of the year (28 January) the European Sting run an article on the possibility of a trade war with China.

According to this analysis “The key question is if we are witnessing the beginning of a trade war between the West and China. Is there any logic in it? Unfortunately, both the EU and the US economies seem very fragile. The European Union actually is in recession as from the second half of last year. Its relations with China constitute a major hope for returning to growth in 2013. If China chooses to wage ‘a trade war’, hopes for return to growth will be ruined for the export oriented Eurozone countries”.

Berlin backs Beijing

The answer to this question came this weekend from Berlin. Germany, the most export oriented EU country, was the first to pull back from any punitive trade action against China. Chancellor Merkel said plainly that Berlin will ‘intervene’ in the Brussels Commission bureaucracy to bring the EU and China to the negations table. According to press reports the German leader stressed “We should very intensely use the next six months, and Germany will do everything to ensure that the talks will really advance”.

This statement coming from Germany makes sense, because this country is probably the only one in Eurozone to run a positive trade account with China. Overall the EU27 trade deficit with China in January-February 2013 was estimated by €25.6 billion. It is quite logical then that Berlin is trying to cool down the aggressiveness of the rest of the EU countries towards the Chinese exports.

According to the German Chancellery, “forty years after diplomatic relations were established cooperation between Germany and China is closer than ever. The fortieth anniversary is to be marked by a China Year in Germany and a wide spectrum of cultural events in both countries. In 2012 Germany opened a new Goethe-Institut and another Consulate General in China”. The Chancellor visited China in August 2012.

Before Germany the Chinese Premier Li Keqiang visited Switzerland last week on the occasion of a conclusion of the free trade agreement between the two countries.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

EU to finance new investment projects with extra borrowing; French and Italian deficits to be tolerated

‘Stealing’ food from hungry Yemenis ‘must stop immediately’, says UN agency

Germany may have a stable and more cooperative government

‘Green economy’ pioneer Pavan Sukhdev wins 2020 Tyler Prize for Environmental Achievement

European Commission: the LED lights of your Audi A6 shall save our planet

Africa will develop with oil and gas – whether the West likes it or not

Madagascar villagers learn dangers of outdoor defecation

Nagorno Karabakh: EU allocates additional €3 million in emergency aid for civilians affected by the hostilities

Does upgrading our minds mean losing the spark of genius?

This is how much the US-China trade war could cost the world, according to new research

“Beating pollution for our planet”, a Sting Exclusive by Mr Erik Solheim, the Executive Director of the United Nations Environment

FROM THE FIELD: South Sudan’s green shoots, highlight environmental recovery from war

OECD economic scenarios to 2060 illustrate the long-run benefits of structural reforms

3 hard-won lessons from a decade of negative cleantech returns

JADE visits Lithuanian Junior Initiatives

Online platforms: improving transparency and fairness for EU businesses

Young people demand a transparent job market: new campaign launches on international interns day

What cybersecurity professionals can learn from triathletes

European Youth Forum welcomes strong stance on human rights in State of the Union

Soil pollution ‘jeopardizing’ life on Earth, UN agency warns on World Day

Statement by the European Commission following the extraordinary meeting of the EU-UK Joint Committee

At UN, Yemen Foreign Minister demands end to ‘Iranian-Houthi coup d’etat’

Most ‘precious’ and ‘scarce’ resource of our time is dialogue, UN chief tells Doha policy forum

3 reasons why AI won’t replace human translators… yet

The British “nonsense”, the relaxed Commissioner and the TTIP “chiaroscuro” at this week’s Council

Mental Health in times of a pandemic: what can each individual do to lessen the burden?

UN forum spotlights cities, where struggle for sustainability ‘will be won or lost’

Malaria could be gone by the middle of the century. Here’s how

As inequality grows, the UN fights for a fairer world

ECB’s trillion has to be printed and distributed fast before Armageddon comes

EU-China: Commission and China hold first High-level Digital Dialogue

Youth policy in Europe not delivering for young people

No great discovery was made without a bold guess – Isaac Newton

What my transgender child can teach us about the workforce of the future

EU to spend €6 billion on youth employment and training futile schemes

EU reconfirms support for Afghanistan at 2020 Geneva Conference

European Banking Union: Like the issue of a Eurobond?

Eurozone dignitaries play with people’s life savings

Why cybersecurity should be standard due diligence for investors

What we need is more (and better) multilateralism, not less

‘Be the change’ we desperately need, UN deputy chief urges global youth

The EU pretends not knowing what happens in the Western Balkans

COVID-19 underlines the importance of fintech in emerging markets

Deep chasm still divides Athens and Brussels; can Eurozone use the nuclear arm of liquidity against Greece?

Mental health and suicide prevention – what can be done to increase access to mental health services in my local area?

Pandemic and mental health: what to do in this context?

Renovation Wave: doubling the renovation rate to cut emissions, boost recovery and reduce energy poverty

TTIP update: postponed vote and INTA meeting shuffle cards again

Economic uncertainty, geopolitical tensions stall growth in Latin America and Caribbean region, UN says

More progress needed on reducing and redesigning agricultural support policies

The road ahead to building a more sustainable world

After the Italian ‘no’ and the Brexit, Germans must decide which Europe they want

Northern Ireland: Parliament wants to secure post-Brexit regional funding

Commission welcomes agreement on the modernisation of EU export controls

Celebrating Gaston Ramon – the vet who discovered vaccinology’s secret weapon

Security Council should ‘nurture’ Colombian consensus against return to violence, top UN official urges

How to make primary healthcare a favourable career choice for medical students: strategies and reflections

Media and entertainment in flux: it’s time for the close-up

Is 2019 the beginning of the end for coal in Europe?

Greferendum: the biggest political gaffe in western modern history to tear Europe apart? #Grexit #Graccident

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s