Europe wants China to play fair

Europe wants China to play fair    EU Trade Commissioner Peter Mandelson said that “China must fulfill its WTO obligations and commit to trading fairly,” at the release of an EC policy paper on EU-China trade and investment.
   Following China’s accession to the WTO in 2001, the Asian giant is now the world’s fourth largest economic power and the third biggest exporter.
   Europe has a steep trade deficit with China. In 2005, Chinese exports to the EU totaled 158 billion euros ($200.8 billion) while EU exports to China came to 52 billion euros ($66.1 billion).
   The policy document outlined that while Europe has benefited from China’s growth, European companies face tough hurdles to gain access to China’s market.
   “In key sectors such as automobiles, steel, semiconductors or shipbuilding, new policies are emerging which appear to be based on a ‘China first approach’ contrary to the non-discriminatory principles of the WTO,” the EC said.
   “China is not a globalization scare story, it is a globalization success story. China means cheaper goods in European shops, cheaper inputs for business, more competitive European companies, growing markets for Europe’s exporters and lower interest rates,” said Mandelson.
   “But China’s growing trade muscle means growing expectations. Europe must accept fierce competition. China must ensure it is fair competition.”