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EU told not to politicize trade disputes
By Sun Shangwu (China Daily)
Updated: 2006-09-12 20:26

HELSINKI -- China and European Union (EU) should observe the principle of mutual respect and consultation based on equality to address their trade frictions, said visiting Chinese Premier Wen Jiabao yesterday.

"Each side should accommodate the concern of the other side while pursuing its own interests, and should refrain from politicizing trade disputes," said Wen in a speech delivered at the China-EU Business Forum, which was held with the theme of "boosting innovation."

Chinese Premier Wen Jiabao speaks during the start of the EU-China Business Summit in Helsinki September 12, 2006.
Chinese Premier Wen Jiabao speaks during the start of the EU-China Business Summit in Helsinki September 12, 2006. [Reuters]

( Wen: China strives to maintain trade balance )
             ( Wen tables four-point proposal on boosting China-EU co-op )

Recent years have seen some increase in China-EU trade frictions, as shown by textile disputes as well as recent case where Chinese shoe makers were charged of dumping their products.

With the increasing economic exchanges, trade frictions seem unavoidable. Bilateral trade reached US$217.3 billion last year, and in the first seven months of this year, the trade volume totaled US$143.5 billion, increasing by 21 per cent over the same period of last year.

"China's policy is to maintain basic balance between import and export. It does not seek excessive surplus," said Wen.

China's overall trade surplus only accounts for 4.6 per cent of its gross domestic product (GDP), much lower than that of some European countries such as Germany, Norway, the Netherlands and Ireland, according to Wen.

"We hope the EU will relax its restrictions on the export of high-tech and dual products to China and work with us to bring about balance in China-EU trade," he said.

In the speech, Wen reiterated China's determination to protect intellectual property rights (IPR).

"IPR protection is necessary, both for China to fulfill its international obligations and to promote its development and enhance its capacity of independent innovation," said Wen.

China hopes to strengthen co-operation with EU by giving full play to the role of China-EU Dialogue Mechanism on IPR, according to the Chinese Premier.

"On the other hand, we are critical of the practice of maintaining technology monopoly by abusing IPR agreements and rules," said Wen, adding that knowledge of mankind should be used to better serve mankind.

On energy consumption, Wen said that China would promote technological progress and pursue a new path of industralization to ease shortage in energy supply.


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