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EU warns on China influence, offers opening on solar dispute
by Staff Writers
Brussels (AFP) May 27, 2013


China opens dumping move against EU chemicals: report
Paris (AFP) May 27, 2013 - China has told the European Commission that it will open complaint procedures for dumping against some European chemical companies, notably Belgian group Solvay, the newspaper Les Echos reported on Monday.

The Chinese move, made a few days ago, targets products made from chlorine and in particular perchloroethylene and tetrachloroethylene, the report said.

China was believed to be taking similar action against the United States, the report said.

This is the second such anti-dumping procedure by China against European industry in less than two weeks.

China has also launched a complaint against companies making unwelded pipes.

One company targeted, French group Vallourec, has said that unwelded pipes account for only a small part of its business.

The term dumping refers to a strategy of selling products at below cost to win market share and eliminate competitors. It is considered to be an unfair trade practice.

Les Echos noted that the Chinese complaints came after European Union authorities proposed a customs duty averaging 47.0 percent against solar panels imported from China.

EU authorities have also said that they intend to investigate practices by the Chinese manufacturers of telephone exchanges, Huawei and ZTE, which it suspects are selling their products at a loss.

Germany says 'no' to EU tariffs against China
Berlin (AFP) May 27, 2013 - Germany told the European Commission Monday that it rejected a proposal to slap tariffs on Chinese solar panel imports, its economy minister said.

"There is, from our point of view, no longer a need for penalties and therefore Germany today after the expiry of the deadline... voted 'no'," Philipp Roesler said in a speech in Berlin attended by visiting Chinese Premier Li Keqiang.

He added that Berlin had asked the European Commission to extend its deadline until Monday morning for giving its response because Germany wanted to have the chance to "speak with our friends or partners".

"We are against protectionist measures, for open markets and fair competition," Roesler said ahead of a lunch with Li, on the final day of his visit to Germany, by far China's biggest European trading partner.

Li welcomed the German move to gain more time, saying it was because Berlin "wanted to hear" China's stance. "This position, that is what binds China with Germany and earns my appreciation," he said in his address.

His comments followed a pledge by Chancellor Angela Merkel Sunday that Germany would do everything it could to ensure a negotiated solution to the brewing trade conflict so that it did not lead to tariffs.

"I will, as head of the government, advocate that we, at the European level, as quickly as possible have intensive discussions with the Chinese side on the questions at issue," Merkel told a joint press conference with Li.

Roesler had already criticised the threat of punitive tariffs, telling a newspaper recently that the German economy had "rightly, big concerns" over possible Chinese retaliation.

Earlier this month, the European Commission proposed to EU member states that they approve by June 5 an average provisional 47-percent levy on imported Chinese solar panels.

The EU argues that cheap Chinese products are being dumped on its market, hurting European firms.

Li, who had also visited India, Pakistan and Switzerland on his first trip overseas since taking office in March, said China "resolutely" rejected the European Union's plans to impose taxes on solar panels as well as to probe the country's telecom products.

He said the move would not only threaten jobs in China but affect the interests of European companies, consumers and industry and called for dialogue to resolve the disputes.

The European Commission warned Monday against undue Chinese influence as Germany led growing opposition among EU member states to a planned punitive levy on imports of solar panels from China.

Brussels said visiting Chinese Vice Minister of Commerce Zhong Shan had asked to see EU Trade Commissioner Karel De Gucht, just days before the expected June 5 announcement of the solar anti-dumping tariff.

De Gucht spokesman John Clancy stressed that at what were strictly informal talks, the commissioner "expressed clearly that he was ready to negotiate a solution on the solar panels case."

But De Gucht also made it "very clear ... that he was aware of the pressure being exerted by China on a number of EU member states," Clancy said.

Such pressure "explains why they are positioning themselves as they are," he said, adding: "This is why it is so important ... that it is the European Commission which has the role of deciding on provisional tariffs.

"It is the role of the European Commission to remain independent, to resist any external pressure and to see the 'big picture' for the benefit of Europe, its companies and workers based upon the evidence alone," he said in a statement.

The statement did not name any countries but the remarks followed Germany's announcement earlier Monday to visiting Chinese Premier Li Keqiang that it opposed the solar panel levy, provisionally set at a very damaging 47 percent.

"There is, from our point of view, no longer a need for penalties," German Economy Minister Philipp Roesler said.

"We are against protectionist measures, for open markets and fair competition," Roesler said ahead of a lunch with Li, on the final day of his visit to Germany, by far China's biggest European trading partner.

Li welcomed the move, saying it was because Berlin "wanted to hear" China's stance. "This position, that is what binds China with Germany and earns my appreciation," he added.

The exchanges followed a pledge by Chancellor Angela Merkel Sunday that Germany would do everything it could to ensure a negotiated solution to a series of disputes amid fears they could lead to a trade war.

At all costs, both sides must avoid "lapsing into a kind of dispute which finally only ends in mutual tariffs," Merkel said.

"I will, as head of the government, advocate that we, at the European level, as quickly as possible have intensive discussions with the Chinese side on the questions at issue," Merkel told a joint press conference with Li.

Sources close to the issue said Monday that Germany was far from alone in opposition to the proposed levy.

"Seventeen other member states have come out in opposition," said one source, who asked not to be named.

"In view of this considerable opposition, it is clear that the European Commission must step up efforts to find a negotiated solution," the source said.

The Commission earlier confirmed that Beijing was investigating another complaint, this time against several European chemical companies for alleged dumping in China.

This is the second anti-dumping move by China against European industry in less than two weeks after a complaint against European companies making unwelded pipes.

Besides solar panels and components, the EU has said it also plans to investigate Chinese manufacturers of telecoms equipment such as giants Huawei and ZTE.

As the list of disputes has grown, so have concerns that the two sides could drift into a trade war despite hugely important ties worth more than 500 billion euros -- the EU is China's largest single export market and a major supplier of goods and services.

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