Chinese premier urges rewards from EU on economy - arms ban
Premier Wen Jiabao urged thursday the European Union to lift restrictions on arms and technology exports to China and to confer market economy status on the booming country.
But on both fronts, there is resistance in the EU to moves that would signal a landmark change in strategy towards China -- and put the 25-nation bloc on collision course with the United States.
"The Chinese government hopes that the EU will lift the arms embargo and recognise China as a fully functioning market economy," Wen said in Brussels on the 29th anniversary of relations between China and the EU's forerunner.
"If these two issues are resolved, it would do good not just for China but for the EU," he told a joint news conference with European Commission president Romano Prodi, wrapping up the second leg of a five-nation European tour.
In a speech to European business leaders, Wen vowed in turn to crack down on trademark piracy -- a major bugbear of foreign companies operating in China -- as part of its commitments since joining the World Trade Organisation in
"The EU is also expected to ease its restrictions on high-tech exports to China, and lift its import bans that are inconsistent with WTO rules," he said.
Conferral of market economy status would "undoubtedly boost a fresh round of expansion in China-EU trade and economic cooperation", he added, while extending his "warmest congratulations" after 10 more nations joined the EU.
The EU and China signed five agreements Thursday, including a customs cooperation accord and one formalising Chinese participation in Europe's Galileo satellite navigation system.
Wen said China was keen to work with Europe on space and nuclear research, underlining his country's interest in gaining access to cutting-edge European technology.
China's access to leading-edge research would be transformed by a resumption of European arms sales, which were suspended after the 1989 massacre of pro-democracy protestors in Beijing's Tiananmen Square.
Prodi stonewalled on the issue, explaining that he had told Wen that "the issue is currently under discussion among member states".
The EU is now reviewing the embargo after pressure, most notably from France, a major arms exporter that argues the ban is outdated.
But amid resistance from countries such as the Netherlands and Scandinavian members, the bloc is some way off from lifting it. The United States also opposes lifting restrictions on arms sales to China.
On the market economy question, Prodi said the EU executive would draft a "preliminary assessment" at the end of next month on whether China meets the conditions to merit the coveted status.
However, the status carries more political symbolism than economic advantage.
By recognising China as a functioning market economy, the EU would be able to calculate anti-dumping duties on Chinese exports more accurately by effectively declaring data offered by Chinese companies to be accurate.
"They have not so far been able to prove that their prices are based on market forces," an EU source said.
"Politically it's an important thing for the Chinese. It's a label. But it's not an economic instrument that would give the Chinese greater access to European or other markets."
The United States, backed by many in the EU, believes China is a long way from proving that it is free of political interference in the free market, or that its companies and banks come up to international standards.
Wen was heading on to Italy for the next leg of his European tour, which started in Germany and also takes in Britain and Ireland.
- EU
But on both fronts, there is resistance in the EU to moves that would signal a landmark change in strategy towards China -- and put the 25-nation bloc on collision course with the United States.
"The Chinese government hopes that the EU will lift the arms embargo and recognise China as a fully functioning market economy," Wen said in Brussels on the 29th anniversary of relations between China and the EU's forerunner.
"If these two issues are resolved, it would do good not just for China but for the EU," he told a joint news conference with European Commission president Romano Prodi, wrapping up the second leg of a five-nation European tour.
In a speech to European business leaders, Wen vowed in turn to crack down on trademark piracy -- a major bugbear of foreign companies operating in China -- as part of its commitments since joining the World Trade Organisation in
"The EU is also expected to ease its restrictions on high-tech exports to China, and lift its import bans that are inconsistent with WTO rules," he said.
Conferral of market economy status would "undoubtedly boost a fresh round of expansion in China-EU trade and economic cooperation", he added, while extending his "warmest congratulations" after 10 more nations joined the EU.
The EU and China signed five agreements Thursday, including a customs cooperation accord and one formalising Chinese participation in Europe's Galileo satellite navigation system.
Wen said China was keen to work with Europe on space and nuclear research, underlining his country's interest in gaining access to cutting-edge European technology.
China's access to leading-edge research would be transformed by a resumption of European arms sales, which were suspended after the 1989 massacre of pro-democracy protestors in Beijing's Tiananmen Square.
Prodi stonewalled on the issue, explaining that he had told Wen that "the issue is currently under discussion among member states".
The EU is now reviewing the embargo after pressure, most notably from France, a major arms exporter that argues the ban is outdated.
But amid resistance from countries such as the Netherlands and Scandinavian members, the bloc is some way off from lifting it. The United States also opposes lifting restrictions on arms sales to China.
On the market economy question, Prodi said the EU executive would draft a "preliminary assessment" at the end of next month on whether China meets the conditions to merit the coveted status.
However, the status carries more political symbolism than economic advantage.
By recognising China as a functioning market economy, the EU would be able to calculate anti-dumping duties on Chinese exports more accurately by effectively declaring data offered by Chinese companies to be accurate.
"They have not so far been able to prove that their prices are based on market forces," an EU source said.
"Politically it's an important thing for the Chinese. It's a label. But it's not an economic instrument that would give the Chinese greater access to European or other markets."
The United States, backed by many in the EU, believes China is a long way from proving that it is free of political interference in the free market, or that its companies and banks come up to international standards.
Wen was heading on to Italy for the next leg of his European tour, which started in Germany and also takes in Britain and Ireland.
- EU
publicado por MP às 18:52
