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

This is the state of the world’s health, in numbers

Google and Apple suddenly realise that doing business in EU is tough?

Tunisia wants to change inheritance rules to boost gender equality

New malaria vaccine trial in Malawi marks ‘an innovation milestone’, declares UN health agency

Monday’s Daily Brief: numbers of hungry people rising, millions of children need vaccines, Mali children need more protection

COVID-19 sparked an economic crisis ‘like no other’ – but these measures can help now: WHO, IMF

Dignified health for all who live here

Health conditions for citizens of Yemen’s key port city ‘remain critical’ says UN agency

New report says better metrics could have prompted stronger response to the crisis

How data can help mining companies tackle their trust deficit

Schengen: new rules for temporary checks at national borders

What has changed in the French politico-economic horizon

Quality of air in Bucharest-Romania: is it fog or is it smog?

EU Commission expects consumer spending to unlock growth

Making the most of our ‘extra time’ – for ourselves and society

4 steps towards wiping out cervical cancer

The future of crypto-assets, from opportunities to policy implications

#Travelgoals: why Instagram is key to understanding millennial tourism

Trump fines China with $50 billion a year plus some more…

5 things to know about the exploding world of pro gaming

Why CFOs need to rethink what it means to create value

Brexit Update: EU endorses unprecedented compromise to help Cameron out of the referendum mess he got himself into

Medical students, climate change and health: an unorthodox combination

New labour laws in Qatar benefiting migrant workers a ‘momentous step forward’: ILO

Russia’s permafrost is melting and it could have a devastating global effect

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

Ebola outbreak in DR Congo conflict zone ‘remains dangerous and unpredictable’ – UN chiefs

Why capital markets have no more reservetions about Eurozone

We can build a carbon-neutral world by 2050. Here’s how

Stepped-up efforts needed to combat pneumonia; save nearly nine million children’s lives

Thai citizenship means ‘dream of a brighter future’ for cave rescue boys, says UN Refugee Agency

EU Trust Fund Bêkou for the Central African Republic extended until 2020

New UN Global Climate report ‘another strong wake-up call’ over global warming: Guterres

Commission tries to solidify the EU statistical system

EU-Turkey relations: EU considers imposing sanctions while Turkey keeps violating Cyprus’ sovereignty

Climate finance for developing countries reached USD 71 billion in 2017

Abandoned mines could become the farms of the future

The reverberation of permanent multiprofessional education in combating antimicrobial resistance: future generation prognostic change

Glaringly false reassurances about the repercussions of the EU-US free trade agreement

Eurozone: Uncertain future with unemployment ravaging the South

Brexit ‘no-deal’ preparedness: Final Commission call to all EU citizens and businesses to prepare for the UK’s withdrawal on 31 October 2019

Volkswagen scandal update: “We want clarity fast, but it is equally important to have the complete picture”, Commission’s spokesperson underscores from Brussels

How do we build a #sustainableworld?

How Europe beat the financial crisis – and the risks it still faces

Abuse of authority provisions adopted by the Senate raise concerns over Brazil’s capacity to ensure independence of prosecutors and judges in fighting corruption

rescEU: EU establishes initial firefighting fleet for next forest fire season

UN Chief ‘strongly rejects’ Guatemala decision to expel anti-corruption body

Help African farmers cope with climate change threats, UN food agency urges

The world wide web is 30 years old. What better time to fight for its future?

Stop illegal trade in cats and dogs, says European Parliament

COVID-19: Stopping the rise in domestic violence during lockdown

Successful carbon removal depends on these 3 conditions

These chefs are fighting hunger and poverty with gastronomy

These researchers want to use your computer in the search for a COVID-19 vaccine

These will be the main cybersecurity trends in 2020

Colombia’s former president says COVID-19 shows the importance of listening to indigenous peoples on how we treat the planet

Number of MEPs to be reduced after EU elections in 2019

Chart of the Day: These are the world’s most innovative economies

Memoirs from a unique trip to China: “my new old dragon” (Part I)

EU approves disbursement of €500 million in Macro-Financial Assistance to Ukraine

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