China “puts Europe trade deal on back burner” to focus on countering U.S. tariffs
May 14, 2019 Category China News Round-up, Weekly
The China-U.S. trade war is holding back progress on economic talks with Europe, according to a source briefed on the negotiations. At their annual summit last month, China and the EU agreed to achieve “decisive” progress on a bilateral investment agreement this year, paving the way for a high-level deal in 2020. But the protracted trade talks with the United States had diverted Chinese attention from the agreement with Europe and discussions on overhauling the World Trade Organization (WTO), the source said, according to the South China Morning Post.
China and the United States appeared close to ending their year-long trade war until U.S. President Donald Trump decided to raise tariffs on USD200 billion of Chinese products to 25% from 10%. The fallout from the announcement had added “uncertainties” to the talks between China and the European Union, the source said. Shortly after the U.S.-China tariff war erupted in early July last year, leaders in the EU and China agreed on a package of cooperation projects, including speeding up talks on a geographical indications agreement, that would boost the EU’s agricultural exports to China, possibly at the expense of American farm products. Sources said China had moved slowly on wrapping up the issue with the EU amid pressure from Washington. Both sides planned to conclude the talks by the end of 2019.
Observers said the outcome of the China-U.S. talks might also affect the China-Britain economic and financial dialogue, which is expected take place in London next month. Britain and China have held such a dialogue each year since 2008, except for last year, reportedly due to Beijing’s anger at Britain’s naval presence in the South China Sea. “We advocate open and fair competition, open and fair market access. So although we can agree with some of the challenges here in China with the U.S. administration, we do not necessarily believe that tit-for-tat tariffs is the right way to go about it,” Nicholas Holt, Chairman of the British Chamber of Commerce in China, said. He said that more than half of the respondents in a Chamber survey said they had been negatively affected by the China-U.S. trade tension, though there were “sporadic cases” and “niche areas” in which British companies were doing well.
- KURT VANDEPUTTE (UMICORE) APPOINTED CHAIRMAN OF THE BOARD OF THE FLANDERS-CHINA CHAMBER OF COMMERCE (FCCC)
- Webinar: “Knowing Your Chinese Partner” – May 26, 2021, 10 am – 12 am
- EMA starts rolling review of CoronaVac, WHO approves Sinopharm vaccine for emergency use
- The Global Times warns not to politicize the Comprehensive Agreement on Investment (CAI)
- Hainan to become biggest duty-free market in the world