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2011-12-13 | All chapters

EU urges Beijing to stick to open trade policy
Europolitics, 13th December 2011

The EU has called on China to resist any temptation to close down its economy to foreign investors on the occasion of the tenth anniversary of Beijing's accession to the World Trade Organisation. Amid growing concerns in Europe that Chinese leaders will seek to protect further their domestic market, Trade Commissioner Karel De Gucht diplomatically recalled that China’s remarkable economic growth had been possible thanks to the opening of its economy. "China's WTO membership has helped modernise its economy and elevate China to being a leading player in the global economy," recalled De Gucht in a statement. "This spectacular rise would not have been possible without the open global trading system that China was able to benefit from during the past ten years," added the EU’s top trade negotiator.

The EU Chamber of Commerce in China (EUCCC) also congratulated Beijing on the occasion but called on the government to lift restrictions placed on foreign businesses. "China’s progress over the last ten years has amazed the world, but much work still remains to be done to create a level playing field for all companies here," said Davide Cucino, president of the EUCCC.

Chinese President Hu Jintao responded to EU concerns by promising further liberalisation. "We will carry out an even more active opening strategy and expand into new areas for opening up," he said at a conference, on 11 December in Beijing, celebrating the anniversary. WTO Director-General Pascal Lamy also attended the event and praised the progress achieved by the world's second largest economy over the last decade.

Hu promised that China would increase its imports to a total of US$8 trillion in the next five years. "This will bring enormous opportunities to countries around the world," said the Chinese president.

While the EU has refrained from any direct criticism while it is begging for financial support in order to tackle the eurozone crisis, the US was more outspoken. US Ambassador to the WTO Michael Punke accused Beijing of using trade policy as a tool to "intimidate" its partners, during a meeting in Geneva, on 30 November. "China seems to be embracing state capitalism more strongly each year, rather than continuing to move toward the economic reform goals that originally drove its pursuit of WTO membership," added Punke. During the conference in Beijing, Lamy refused to take sides but admitted that the jury was still out regarding China’s real intentions. "The pace of that reform is a topic of debate within and outside China," Lamy said diplomatically.

Background

Chinese exports to the EU have tripled since 2001, now accounting for almost 20% of all imported goods to the EU, said the European Commission. The EU is now China's biggest export destination with trade worth 282 billion euro. Yet China still enjoys a massive trade surplus with Europe and the US.