Skip to comments.No trade war with China, EU presidency says
Posted on 03/16/2012 10:19:27 PM PDT by Olog-hai
Business between the EU and China is running as usual, despite highly-public trade differences between the two economic powerhouses, the Danish trade minister has said.
"I wouldn't say that [EU-China trade relations] are deteriorating, I think they are just more in the open now," Pia Olsen Dyhr, whose country currently holds the rotating EU chairmanship, told EUobserver in an interview on Thursday (16 March).
Her comments come two days after the EU joined the US and Japan in a fresh complaint to the World Trade Organisation (WTO) over China's restrictions on the export of so-called rare earth elements, used in the manufacture of high-tech devices.
"China has been a member of the WTO for 10 years now and some member countries are testing how it is implementing the rules," she said. "That is why we see these cases arising. In the beginning they had a transition period, but that is running out."
Continuing the tit-for-tat in trade relations, the EU is said to be readying legislation to allow member states to bar non-EU-based companies from public procurement contracts. China already has similar legislation in place.
French President Nicolas Sarkozy, campaigning for re-election, last week called for the introduction of what he called a "Buy European Act"a law that would oblige European governments to deal with European companies only.
China is also becoming more outspoken about the EU's economic problems. The governor of China's central bank recently said that Europe is the biggest uncertainty to the future of China's economy.
(Excerpt) Read more at euobserver.com ...
Should U.S. companies retaliate by building their own plants in China? China limits foreign manufacturers of auto assembly plants to only 50 percent ownership, and requires U.S. companies building plants to give China its U.S. patents and trade secrets.Now how is that worth anything to the USA? Better deal to keep manufacturing in the USA, aint it, especially when the more people you put out of work, the fewer can buy Chinas garbage?