BEIJING, June 25, 2018 (BSS/AFP) – The European Union and China pledged on
Monday to uphold a rules-based international trade system, making an oblique
criticism of growing protectionism in Washington despite their own
disagreements.
The two sides held high-level economic meetings in Beijing as both face
rising trade tensions with the United States. Brussels and Beijing recently
announced new tariffs on US goods in retaliation for moves by the Trump
administration.
“Both sides agreed to resolutely oppose unilateralism and protectionism
and prevent such practices from impacting the world economy and even dragging
the world economy into recession,” said Chinese Vice Premier Liu He,
responsible for shepherding the world’s second largest economy.
Liu had led China’s three rounds of trade talks with the US, negotiations
that have broken down over the Trump administration’s pledge to move forward
with tariffs despite an agreement in May to put the duties on hold.
“Unilateralism and trade protectionism is on the rise and tensions have
appeared in the economic relations between major economies,” Liu told an
audience of European and Chinese officials.
European Commission Vice President Jyrki Katainen echoed Liu’s words,
describing the World Trade Organization “as the centre of the rules-based
international trading system”.
Even as the two sides seek common ground on combating the US moves, there
are deep divisions between them. EU companies and officials harbour concerns
about Beijing’s policies that are shared by their counterparts in Washington.
“We need more than just talk, we need to demonstrate adherence to
international trading rules,” said Katainen, proposing reforms to develop new
rules for a “global level playing field” in key areas such as “industrial
subsidies”.
Beijing’s industrial policies such as the “Made in China 2025” project,
which is designed to transform China from a maker of sports shoes and denims
into high-tech goods, is a major concern in Washington and stands at the
heart of proposed new US tariffs on China.
“The two sides committed to defend the multilateral trading system that is
centred on the WTO and based on rules,” said Liu, acknowledging the need to
maintain fair market access.
Katainen called on Liu to go further in removing market access barriers
for companies and preventing overcapacity in high-tech sectors “covered by
the Made in China 2025 strategy”. He demanded that all industries enjoy equal
treatment.