The first plenary meeting of the China-EU Industrial Dialogue, held Tuesday in Beijing, was both useful and fruitful, said European Commission Enterprise Director-General Jean-Paul Mingasson.
In a closed-door meeting, representatives from both sides discussed the framework and procedures for dialogue, and went on to look at three particular sectors: automaking, metals and textiles.
Mingasson said that both parties agreed to develop regular dialogues, with their next meeting expected to be held in Brussels next September or October.
A team from the National Development and Reform Commission, under the direction of Vice Minister Zhang Guobao, is China’s official representative.
Spokespeople for the three industries and related associations participated in yesterday’s discussions.
Mingasson said that EU industry had taken note of China’s recently developed automaking policies and ambitions to become a global car manufacturer.
EU automakers want to be dealt with fairly. They have expressed concerns, for example, about Chinese regulations that require them to operate separate distribution channels for domestically made and imported vehicles.
Mingasson said they have delivered this message to the Chinese side and expect to have a solution soon.
He said that the textiles situation in the EU is complex and their industry is facing competition from many countries, including China.
“It is unavoidable, because of the comparative advantage, that China’s share will increase after the quota lift,” he said.
Under the Agreement on Textiles and Clothing (ATC), all quotas restricting textiles and clothing trade between WTO members will be eliminated by December 31, 2004.
The EU textile industry believes its future lies in the export of more technically advanced textiles and value-added clothing, said Mingasson. “They need a clear vision of opportunities in the future in China.”
China is developing its metals industry very quickly and absorbs large quantities of all materials.
Mingasson said the EU faces the same challenges in the industry and understands China’s goal of decreasing pollution in this sector, but both sides must compete fairly for materials such as coke.
A compromise was reached between China and the European Union on the coke trade in May. China promised to export 4.5 million tons to the EU in 2004, the same amount it imported in 2003, and deliver export licenses without cost or delay.
China began capping coal export quotas this year because of environmental concerns.
Mingasson said he did not expect the parties to solve all the issues at once. “But the dialogue will create the transparency and mutual understanding needed for solving them,” he said.
China-EU bilateral trade is expected to hit US$180 billion this year, compared to US$125 billion last year.
The figure jumped 36.6 percent year-on-year in the first eight months, to US$111.7 billion, enabling the EU to replace Japan as China’s largest trading partner after its recent enlargement into a 25-member bloc in May.
China is currently the EU’s second largest trading partner.
(China Daily September 22, 2004)
