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A majority of EU member states led by Germany opposed the European Commission’s proposal to impose punitive duties on imported Chinese solar panels in a survey on May 27， the last day of Chinese Premier Li Keqiang’s maiden trip to Europe after assuming his new post in March.
Beyond doubt， Chinese observers said， Li’s visit was conducive to reducing the trade barriers between the two large markets， even though the problem cannot be resolved entirely. They added that Li’s visit was of great significance in deepening Sino-European economic ties. Notably， the completion of negotiations on a free trade agreement （FTA） between China and Switzerland would not only promote bilateral economic cooperation， but also have a “demonstration effect”for other European countries.
Upgrading economic ties
Observers said Li’s recent European trip focused on economic issues， noting the backbone role of Germany in the EU economy and the signing of the Sino-Swiss FTA lent Li’s visit a special significance in upgrading China-Europe economic relations.
After nine rounds of negotiations in the last three years， a memorandum of understanding on concluding FTA negotiations between China and Switzerland was finally signed during Premier Li’s trip to the European country. Henceforth， Switzerland became the first continental European country and the first among the world’s 20 largest economies to sign a free trade pact with China.
Mei Xinyu， a researcher with the Chinese Academy of International Trade and Economic Cooperation， said the pact will be of great benefit to the economic development of both sides.
China is a country that relies heavily on trade. And Switzerland is traditionally an exportoriented country. Their long-standing trade partnership has laid a sound foundation for the FTA， Mei said. More importantly， he added， the economic structures of the two countries are highly complementary， so little economic adjustment is needed to implement the FTA. In addition， with China’s economy growing larger and larger， the effect of the bilateral FTA to stimulate the Swiss economy will become more pronounced.
Chen Wenling， chief economist at the China Center for International Economic Exchanges， said the demonstration effect of the Sino-Swiss FTA will show other European countries the benefit of free trade with China. “Against the backdrop of the economic downturn of Europe， enhancing economic cooperation with China is necessary for European countries，” Chen said. Observers said the bilateral FTA may play a positive role in promoting the overall economic cooperation between China and Europe.
“With its unique role in Europe， Switzerland could serve as a bridge between China and Europe. The FTA may help Chinese enterprises further explore the European market，” Mei said.
Mei also noted that the FTA essentially means Switzerland has recognized China’s market economy status， a move that is crucial to the stable development of Chinese foreign trade.
Though Switzerland is not an EU member， it has wide economic cooperation with the bloc. In 2008， Switzerland became the 27th member of Schengen Agreement， which further facilitates its economic contacts with the EU. Currently， as the latter still has many restrictions on Chinese enterprises and products， Switzerland could become a foothold for Chinese enterprises and products to enter the EU market.
Qu Xing， President of the China Institute of International Studies， said that because of Switzerland’s unique position in Europe as neither a EU member nor a euro-zone country， Li’s visit demonstrated China’s aim to develop a comprehensive relationship with Europe. In addition， though China and Switzerland have maintained a positive official relationship， the Swiss public knows little about China. The visit could also help deepen mutual understanding.
Observers said choosing Germany as one of the stops of Li’s maiden trip overseas as China’s new premier was intended to further the SinoGerman relationship， which has undergone sound development in recent years. At a time of China’s economic restructuring and the EU’s recovering from the debt crisis， Li’s visit could help launch upgraded Sino-German economic cooperation. Meanwhile， a good relationship between the two countries could also set an example for Sino-EU cooperation.
Qu said Li’s visit to Berlin evidently aimed to build on past achievements.
“The trip makes clear that China wants to continue the good foundation of SinoGerman collaboration，” Qu said.
Chen said that the economies of the two countries are complementary to each other， allowing Germany to offer help in promoting China’s economic restructuring and urbanization. “The real economy of Germany is widely admired worldwide. Germany has advantages in high-end manufacturing and the environmental protection industry，” said Chen to Beijing Review. “The experience of Germany in those areas is valuable for China in its economic restructuring and urbanization.” A Sino-German joint statement signed during Li’s Berlin trip stated that the two sides believe the synchronous and coordinated development of industrialization and urbanization in China will provide new opportunities for the development of China-Germany and ChinaEU ties， and inject fresh impetus into the world economy. The two sides agreed to implement their urbanization partnership， and further enhance cooperation in such areas as agriculture and electric cars.
Chen noted the urbanization and economic restructuring of China would provide huge business opportunities to German enterprises. The economic restructuring of China， Chen said， will create big demand in areas such as transportation equipment， machinery and chemical products， in which Germany has a competitive edge.
Given Germany’s leading role in the EU and the extensive Sino-German economic ties， the traction of Beijing-Berlin cooperation will be felt across Europe.
Chen said that Li’s visit would open a new chapter for Sino-EU economic and strategic cooperation. With the debt-ridden continent still trying to get back on its feet， Sino-EU collaboration has taken on an extra layer of urgency.
Opposing protectionism
At a joint press conference with German Chancellor Angela Merkel on May 26， Premier Li expressed China’s firm opposition to the EU’s plan to launch a trade probe into Chinese mobile telecom products and slap punitive duties on Chinese solar panels.
The European Commission backed a proposal in May to impose punitive tariffs averaging 47 percent on Chinese imports of solar panels to prevent alleged “dumping”in the European market. The EU’s executive arm also proposed conducting anti-dumping and anti-subsidy investigations into mobile telecom equipment imported from China.
Li said the moves reveal to the world a signal of trade protectionism. They would not only hurt Chinese businesses and jobs， but also damage the interests of European industries， businesses and consumers.
“They harm others without benefiting themselves，” said the premier.
Chen said that if such a proposal were passed， China would possibly take countermeasures that could affect the normal bilateral trade.
“The two sides should objectively find solutions to trade disputes through dialogue and consultation rather than turning to protectionism，” Chen said. “At a time when Europe is still mired in recession due to the debt crisis， it is counterproductive for the EU to take protectionist measures against China.”
Li’s visit is unlikely to settle the problem of protectionism， but it helped promote mutual trust and understanding of the benefits of cooperation over protectionism， said Mei.
Beyond doubt， Chinese observers said， Li’s visit was conducive to reducing the trade barriers between the two large markets， even though the problem cannot be resolved entirely. They added that Li’s visit was of great significance in deepening Sino-European economic ties. Notably， the completion of negotiations on a free trade agreement （FTA） between China and Switzerland would not only promote bilateral economic cooperation， but also have a “demonstration effect”for other European countries.
Upgrading economic ties
Observers said Li’s recent European trip focused on economic issues， noting the backbone role of Germany in the EU economy and the signing of the Sino-Swiss FTA lent Li’s visit a special significance in upgrading China-Europe economic relations.
After nine rounds of negotiations in the last three years， a memorandum of understanding on concluding FTA negotiations between China and Switzerland was finally signed during Premier Li’s trip to the European country. Henceforth， Switzerland became the first continental European country and the first among the world’s 20 largest economies to sign a free trade pact with China.
Mei Xinyu， a researcher with the Chinese Academy of International Trade and Economic Cooperation， said the pact will be of great benefit to the economic development of both sides.
China is a country that relies heavily on trade. And Switzerland is traditionally an exportoriented country. Their long-standing trade partnership has laid a sound foundation for the FTA， Mei said. More importantly， he added， the economic structures of the two countries are highly complementary， so little economic adjustment is needed to implement the FTA. In addition， with China’s economy growing larger and larger， the effect of the bilateral FTA to stimulate the Swiss economy will become more pronounced.
Chen Wenling， chief economist at the China Center for International Economic Exchanges， said the demonstration effect of the Sino-Swiss FTA will show other European countries the benefit of free trade with China. “Against the backdrop of the economic downturn of Europe， enhancing economic cooperation with China is necessary for European countries，” Chen said. Observers said the bilateral FTA may play a positive role in promoting the overall economic cooperation between China and Europe.
“With its unique role in Europe， Switzerland could serve as a bridge between China and Europe. The FTA may help Chinese enterprises further explore the European market，” Mei said.
Mei also noted that the FTA essentially means Switzerland has recognized China’s market economy status， a move that is crucial to the stable development of Chinese foreign trade.
Though Switzerland is not an EU member， it has wide economic cooperation with the bloc. In 2008， Switzerland became the 27th member of Schengen Agreement， which further facilitates its economic contacts with the EU. Currently， as the latter still has many restrictions on Chinese enterprises and products， Switzerland could become a foothold for Chinese enterprises and products to enter the EU market.
Qu Xing， President of the China Institute of International Studies， said that because of Switzerland’s unique position in Europe as neither a EU member nor a euro-zone country， Li’s visit demonstrated China’s aim to develop a comprehensive relationship with Europe. In addition， though China and Switzerland have maintained a positive official relationship， the Swiss public knows little about China. The visit could also help deepen mutual understanding.
Observers said choosing Germany as one of the stops of Li’s maiden trip overseas as China’s new premier was intended to further the SinoGerman relationship， which has undergone sound development in recent years. At a time of China’s economic restructuring and the EU’s recovering from the debt crisis， Li’s visit could help launch upgraded Sino-German economic cooperation. Meanwhile， a good relationship between the two countries could also set an example for Sino-EU cooperation.
Qu said Li’s visit to Berlin evidently aimed to build on past achievements.
“The trip makes clear that China wants to continue the good foundation of SinoGerman collaboration，” Qu said.
Chen said that the economies of the two countries are complementary to each other， allowing Germany to offer help in promoting China’s economic restructuring and urbanization. “The real economy of Germany is widely admired worldwide. Germany has advantages in high-end manufacturing and the environmental protection industry，” said Chen to Beijing Review. “The experience of Germany in those areas is valuable for China in its economic restructuring and urbanization.” A Sino-German joint statement signed during Li’s Berlin trip stated that the two sides believe the synchronous and coordinated development of industrialization and urbanization in China will provide new opportunities for the development of China-Germany and ChinaEU ties， and inject fresh impetus into the world economy. The two sides agreed to implement their urbanization partnership， and further enhance cooperation in such areas as agriculture and electric cars.
Chen noted the urbanization and economic restructuring of China would provide huge business opportunities to German enterprises. The economic restructuring of China， Chen said， will create big demand in areas such as transportation equipment， machinery and chemical products， in which Germany has a competitive edge.
Given Germany’s leading role in the EU and the extensive Sino-German economic ties， the traction of Beijing-Berlin cooperation will be felt across Europe.
Chen said that Li’s visit would open a new chapter for Sino-EU economic and strategic cooperation. With the debt-ridden continent still trying to get back on its feet， Sino-EU collaboration has taken on an extra layer of urgency.
Opposing protectionism
At a joint press conference with German Chancellor Angela Merkel on May 26， Premier Li expressed China’s firm opposition to the EU’s plan to launch a trade probe into Chinese mobile telecom products and slap punitive duties on Chinese solar panels.
The European Commission backed a proposal in May to impose punitive tariffs averaging 47 percent on Chinese imports of solar panels to prevent alleged “dumping”in the European market. The EU’s executive arm also proposed conducting anti-dumping and anti-subsidy investigations into mobile telecom equipment imported from China.
Li said the moves reveal to the world a signal of trade protectionism. They would not only hurt Chinese businesses and jobs， but also damage the interests of European industries， businesses and consumers.
“They harm others without benefiting themselves，” said the premier.
Chen said that if such a proposal were passed， China would possibly take countermeasures that could affect the normal bilateral trade.
“The two sides should objectively find solutions to trade disputes through dialogue and consultation rather than turning to protectionism，” Chen said. “At a time when Europe is still mired in recession due to the debt crisis， it is counterproductive for the EU to take protectionist measures against China.”
Li’s visit is unlikely to settle the problem of protectionism， but it helped promote mutual trust and understanding of the benefits of cooperation over protectionism， said Mei.