EU urged to be 'prudent' in trade protection measures

The EU has been urged to be "more prudent" in its trade defence measures against China.

EU anti-dumping measures, when merchandise is sold in a foreign market at less than its normal value, have in the past been the cause of frequent conflict between Brussels and Beijing.

Speaking in parliament on Thursday, Song Zhe, China's ambassador to the EU, said both sides should "cooperate more" to establish "more balanced" trade relations.

He told the international trade committee that European companies stand to benefit in the coming years from the "huge" expansion in the Chinese economy.

But he cautioned against "protectionist" measures, "particularly at a time of crippling economic crisis."

The diplomat was giving an assessment of current EU-China economic and trade relations.

Relations between the two have only recently recovered from the battering they took following the EU's angry response to China's military action against Tibet and the decision to invite the Dalai Lama to address MEPs in Brussels.

Much to the dismay of Beijing, many in the EU, including EPP leader Joseph Daul, have called on China to allow Chinese dissident Liu Xiabobo to travel to Oslo next month to collect his Nobel peace prize.

In his address to MEPs, Zhe pointed out that between 2011 and 2015, China plans to invest some three trillion Chinese yuan in energy protection measures, adding that potentially "this will offer European businesses a huge market."

"I have to stress that this is a possibility and that is why it will be important for the EU and China to work together in order to translate this potential into concrete results," he said.

He pointed out that, under the Lisbon treaty, parliament now has co-decision powers with member states on international trade policy.

Calling for a "strategic partnership" with Europe, Zhe, China's top diplomat in Brussels, called for "an end to all conflict which will not help either side."

He said protectionism and a "beggar thy neighbour" approach to trade relations should be avoided, adding, "We want to uphold the principle of open markets and I hope the EU will do the same.

"We must build a consensus and remove current misunderstandings," he said.

He said China was ready to play its part, highlighting the current "massive" campaign underway in his country aimed at tackling the issues of IPR infringement and counterfeit goods.

"My hope is that this initiative will help refuel the confidence of European businesses to cooperate with China."

ECR deputy Robert Sturdy said that while he believes China offers "huge opportunities rather than a threat" to the EU, there remains "considerable concern" about the environmental impact of Chinese industry.

The UK deputy, a member of parliament's China friendship group, told Zhe, "Maybe it is the case that China does not do enough to allay such fears."