China-EU Geopolitics: News & Discussions

[TaiShang]

EP rejects granting China's MES against globalization
China.org.cn, May 15, 2016

Long Yongtu, former vice minister of China's Ministy of Foreign Trade and Economic Cooperation, addresses a sub-forum with the theme of "Has Globalization Reached its Peak" during the 2016 Boao Forum for Asia (BFA) in Boao, south China's Hainan Province, March 24, 2016. [Xinhua/Yang Guanyu]


The non-legislative resolution passed on Thursday by the European Parliament denying China's market economy status (MES) goes against globalization and signals the heavy presence of trade protectionism across the world, China's former chief negotiator for World Trade Organization (WTO) entry Long Yongtu said Sunday.

The EU lawmakers voted on Thursday (May 12) against granting China the status of ‘market economy’, pre-empting the proposal being prepared by the European Commission. Until China has fulfilled the EU's five criteria for market economy status, its exports to the EU must be treated in a "non-standard" way, said the MEPs.

The European Parliament made the resolution in the interests of European nations, but it chose the wrong topic and target, Long, former Chinese vice minister for trade, said at a forum on China and globalization.

A country does not need anyone else to recognize whether it is a market economy or not, Long said, stressing the European Parliament resolution is in essence protectionist and anti-globalization.

China's entry into the WTO has given people in many countries access to both inexpensive and fine-quality Chinese products, he added.

The resolution does not mean something has gone wrong with China's MES, and neither will it have any real impact on China, said Zheng Yongnian, director of the East Asian institute at the National University of Singapore.

The rise of populism in European and American countries that are now facing tremendous economic difficulties has taken the form of protectionism in external trade, Zheng noted.

China has replaced these countries as a main driver of globalization, and will remain so in the future, he said.

Long also stressed the importance of continuing globalization, saying that China will have a favorable environment for opening up only if globalization is sustained.

 

[TaiShang]

EU's trade protection and China's market economy
By Zhang Jingwei
China.org.cn, May 20, 2016

Recently, the Obama administration filed a lawsuit at the World Trade Organization (WTO) over China's broiler chicken products. Moreover, members of the European Parliament opposed recognition of China's market economy status last Thursday.

China's trade disputes with the U.S. and the EU have been ongoing since the country joined the WTO in 2001. However, people should not read too much into these disputes within the WTO framework. Trade disputes, being fundamentally different from geopolitics, are economic and market actions.

It must be noted that the EU's refusal of China's market economy status was a non-legislative resolution. Therefore, there might be some wiggle room for members of the European Parliament to pass a resolution to upgrade China's status.

According to Article 15 stipulated in WTO's Protocol on the Accession of China, the importing WTO member in anti-dumping and anti-subsidy investigations may use a "methodology" that is not based on a strict comparison with domestic prices or costs in China but choose a third country with market economy status as a comparison. The provision will expire on Dec. 11, 2016, 15 years after the date of China's accession.

China has suffered due to this provision. During anti-dumping investigations, the EU either chose emerging economies or small manufacturing countries, none of which can compete with China as a manufacturing giant. Quality of products from those "alternative" countries was poorer than China's and cost much more. Therefore, China will certainly be suspected of dumping.

Although unreasonable, the clause has been effective for 15 years under the framework of the WTO, so that China has had to face a large number of lawsuits and trade fights from the U.S. and the EU, as well as with emerging India and Mexico.

According to statistics, Chinese products have been involved in 56 cases of EU's total 73 anti-dumping investigations, including steel, iron, machines, chemical engineering and ceramics.

However, the EU has been divided on the anti-dumping and anti-subsidy investigations against China. For instance, Germany's former Vice Chancellor Philipp Rösler warned in 2013 that imposing anti-dumping duties on Chinese solar panels would be a grave mistake.

The EU was rocked by a sovereign debt crisis due to unbalanced economic development, the lack of financial restriction policies and member states' requests for the same market and welfare conditions. It is more difficult for EU members to reach a consensus on trade barriers.

The EU's trade barriers and trade protectionism are not necessarily a consensus of all the member states. For example, many trade fights against China were not launched by China's major trade partners but by some small EU countries merely for their own interests.

Despite EU's divergence on the issue of whether to recognize China's economy market status, the group must face the fact that its members have basic common interests with China.

First, the EU is reluctant to recognize China's market economy status and expects to maintain its privilege, as it has benefited from using "alternative countries" to conduct trade with China, EU's second largest trading partner.

Second, the EU is not yet out of its debt crisis, and the effect of its negative interest rate policy remains uncertain. Consequently, the idea of trade protectionism is spreading through the EU, pushing the group to protect the interests of its member states through trade barriers. This egoistic tendency also results in EU's disinclination to recognize China's market economy status.

Third, China's daily trade volume exceeds 1 billion euros, and products exported to China are EU business tycoons' biggest source of profits. Comparing with the trade wars against China, it is more advantageous for EU to recognize China's market economy status.

It must be noted that China-EU trade disputes can be solved through negotiations. For instance, EU could either fulfill its commitment to China under the WTO's rules or reach a mutually beneficial agreement before Dec. 11, 2016. China should focus on issues that the EU really cares about, such as the relation between governments and enterprises, reform of the state-owned companies, accounting standards for business enterprises, regulation on bankruptcy, property preservation and market exchange rate.

The EU and China should jointly find a win-win solution to deal with their trade frictions rather than implementing trade protection measures.

Zhang Jingwei is a researcher with the Charhar Institute.

 

[Vergennes]

@flamer84 @Blue Marlin @mike2000 is back
-

• Defense minister says free navigation in area is key issue
• Breach of law in region may lead to issues elsewhere, he says

France will urge European Union nations to coordinate navy patrols to ensure a “regular and visible” presence in the disputed South China Sea, in the latest sign of international push back to China’s expanded military clout in the area.

The French government views the protection of freedom of the seas as critical from an economic standpoint and is concerned that a loss of such rights in the South China Sea may lead to similar problems in the Arctic Ocean or Mediterranean Sea, Defense Minister Jean-Yves Le Drian told attendees at a global defense forum, including top Chinese officials.

“If we want to contain the risk of conflict, we must defend this right, and defend it ourselves,” Le Drian said on Sunday at the Shangri-La dialogue in Singapore.

He said so far this year, France’s navy has been deployed three times through parts of the South China Sea. “Several times per year, French navy ships cross the waters of this region, and they’ll continue to do it.”

European nations have previously urged claimant states in the South China Sea -- China, Taiwan and some Southeast Asian nations -- to resolve their disputes peacefully, while calling for the continuation of free navigation through one of the world’s busiest shipping lanes.

‘Be Present’

Still, there has not so far been a major boost in the military presence from Europe. At the same time, China is increasing its navy and aerial patrols of the South China Sea and installing defense infrastructure on some reclaimed reefs, amid a broader focus on long-range military capacity in the western Pacific.

“This is a message that France will continue to be present at international forums,” Le Drian said. “It’s also a message that France will continue to act upon, by sailing its ships and flying its planes wherever international law will allow, and wherever operational needs request that we do so.”


Le Drian said he regretted that the Association of Southeast Asian Nations had notmade substantial progress toward a code of conduct with China on the South China Sea.

Minimizing Gaps

Speaking at the same forum Saturday, U.S. Defense Secretary Ash Carter said China risked erecting a “Great Wall of self-isolation” in Asia over its actions, and called China’s land reclamation in the area “unprecedented.”

A senior French official who traveled with the minister said the country will discuss plans with EU partners in coming weeks, with a focus on guaranteeing that EU navies regularly crisscross the waters.

With countries such as the U.K. and Netherlands sending ships to the area from time to time, France is interested in better coordinating patrols to ensure there is no long gap without an EU presence in the area, according to the official, who asked not to be identified, citing policy.

Another possibility, the official said, is smaller EU navies or those currently less engaged in the area may send ships that would be integrated in French task forces to minimize supply difficulties.

http://www.bloomberg.com/news/artic...for-coordinated-eu-patrols-in-south-china-sea

 

[monitor]

@flamer84 @Blue Marlin @mike2000 is back
-

• Defense minister says free navigation in area is key issue
• Breach of law in region may lead to issues elsewhere, he says

France will urge European Union nations to coordinate navy patrols to ensure a “regular and visible” presence in the disputed South China Sea, in the latest sign of international push back to China’s expanded military clout in the area.

The French government views the protection of freedom of the seas as critical from an economic standpoint and is concerned that a loss of such rights in the South China Sea may lead to similar problems in the Arctic Ocean or Mediterranean Sea, Defense Minister Jean-Yves Le Drian told attendees at a global defense forum, including top Chinese officials.

“If we want to contain the risk of conflict, we must defend this right, and defend it ourselves,” Le Drian said on Sunday at the Shangri-La dialogue in Singapore.

He said so far this year, France’s navy has been deployed three times through parts of the South China Sea. “Several times per year, French navy ships cross the waters of this region, and they’ll continue to do it.”

European nations have previously urged claimant states in the South China Sea -- China, Taiwan and some Southeast Asian nations -- to resolve their disputes peacefully, while calling for the continuation of free navigation through one of the world’s busiest shipping lanes.

‘Be Present’

Still, there has not so far been a major boost in the military presence from Europe. At the same time, China is increasing its navy and aerial patrols of the South China Sea and installing defense infrastructure on some reclaimed reefs, amid a broader focus on long-range military capacity in the western Pacific.

“This is a message that France will continue to be present at international forums,” Le Drian said. “It’s also a message that France will continue to act upon, by sailing its ships and flying its planes wherever international law will allow, and wherever operational needs request that we do so.”


Le Drian said he regretted that the Association of Southeast Asian Nations had notmade substantial progress toward a code of conduct with China on the South China Sea.

Minimizing Gaps

Speaking at the same forum Saturday, U.S. Defense Secretary Ash Carter said China risked erecting a “Great Wall of self-isolation” in Asia over its actions, and called China’s land reclamation in the area “unprecedented.”

A senior French official who traveled with the minister said the country will discuss plans with EU partners in coming weeks, with a focus on guaranteeing that EU navies regularly crisscross the waters.

With countries such as the U.K. and Netherlands sending ships to the area from time to time, France is interested in better coordinating patrols to ensure there is no long gap without an EU presence in the area, according to the official, who asked not to be identified, citing policy.

Another possibility, the official said, is smaller EU navies or those currently less engaged in the area may send ships that would be integrated in French task forces to minimize supply difficulties.

http://www.bloomberg.com/news/artic...for-coordinated-eu-patrols-in-south-china-sea

Do you think China will fear European petrol in south China see. They even harassing US petrol ships plane.

 

[Vergennes]

Do you think China will fear European petrol in south China see. They even harassing US petrol ships plane.

It's not about 'scaring' china,it's about to ensure our freedom of navigation in the area and to ensure that this right is preserved.

no way!!! forget it. no. your sucking up to asain countries so that they can buy you kit. freedom of navigation ... ok yeah sure but going there just so to annoy china!! nah thats asking for trouble and its short term gain long term loss
frenchy i love ya i will keep buying volvic water too but no

The government of UK supports the EU statements about the situation in the south chinea sea.
Not sure the UK would be opposed to this.

 

[Blue Marlin]

It's not about 'scaring' china,it's about to ensure our freedom of navigation in the area and to ensure that this right is preserved.



The government of UK supports the EU statements about the situation in the south chinea sea.
Not sure the UK would be opposed to this.

what do you expect its david is saying it. the guy who put his d!ck in a severed pigs head as an initaition (fact)

 

[Emperor_of_Mankind]

France and the Eu has no say this this matter. This is like China conducting patrols through the English channel.

 

[Vergennes]

what do you expect its david is saying it. the guy who put his d!ck in a severed pigs head as an initaition (fact)

He still remains the prime minister of the UK,whatever he did in the past. You guys voted for him and his party anyway.

 

[Blue Marlin]

He still remains the prime minister of the UK,whatever he did in the past. You guys voted for him and his party anyway.

i did not vote for him both david and edd were both useless.

 

[Vergennes]

These French should take up comedy as their national sport as they seem to be very good at it.

Let me spell it out clearly for anyone who thinks they can mess with China in SCS:

1. China is already the worlds largest economy in PPP and will overtake the US in nominal before 2025.

2. China is assembling an arsenal of weapons that is making even the US Navy quake in their boots.

Lastly, UK will not join as it has made a deal with the Chinese who will support UK financial industry in return for UK
taking a pro-China position.

What you said doesn't matter. We aren't going to confront china,we are just ensuring that our freedom of navigation in the area remains and to maintain good relations with every countries in the area.
As if the chinese were going to attack our ships. At best they can send jets to buzz our ships. @Cossack25A1

 

[Steve781]

Why should we care who controls the islands?

 

[Cossack25A1]

What you said doesn't matter. We aren't going to confront china,we are just ensuring that our freedom of navigation in the area remains and to maintain good relations with every countries in the area.
As if the chinese were going to attack our ships. At best they can send jets to buzz our ships. @Cossack25A1

The Chinese here always believe that military action without consequence is the only answer, and that everyone is out to "humiliate" China again.

For the Chinese, Freedom of Navigation is a form of aggression against them.

 

[Huan]

Then let's have the Chinese PLA Navy patrol the waters around Europe. France should welcome this.

 

[kankan326]

China doesn't want to interrupt freedom of navigation. There is not a single case that China did that.
If(It's rather impossible) China wants to do so, France can not stop China.

Save the money on France's real problem, like terrorism.

 

[Kiss_of_the_Dragon]

The Chinese here always believe that military action without consequence is the only answer, and that everyone is out to "humiliate" China again.

For the Chinese, Freedom of Navigation is a form of aggression against them.

Sound like you're a mind reader...LMAO, and no we don't believe that everyone is out there to humiliate China, because that's only in Pinoy inferior complex to believe that we're there to humiliate Philippine so you feel insecure and need to cry over US's shoulder...just as reminder if you feel insecure doesn't mean we feel insecure.