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Last
week it was the Fairness Distributor In Chief threatening China with WTO action
over its unfair duties on US car imports. Before that it was Europe trying to
protect its crumbling trade at all costs with its primary trade partner. Now,
it is China’s turn to retort to the world’s beggars, and all those who just
happen to ravenously import its iWares with the reckless abandon of a gadget
junkie.
FT
reports: “Beijing has threatened swift retaliation against a range of European
Union industries if Brussels presses ahead with an investigation into
government subsidies granted to two Chinese telecoms equipment companies.
The
Chinese threat was delivered at a meeting with EU trade officials in Beijing
late last month that was arranged at the behest of Chen Deming, China’s
commerce minister, to try to defuse a brewing trade dispute that is straining
commercial relations between the two sides. Instead, it collapsed into
acrimony, with the Chinese warning their EU visitors that they would respond to
any investigation of Huawei and ZTE Corp by probing subsidies granted to
European agriculture, automotive, renewable energy and telecoms companies. “Put
it this way: it’s not like they went for a beer after and watched football,”one
person briefed on the meeting said.” None of this is new: recall China Lays Out Conditions Under
Which It Will Bail Out Europe;
Does Not Want To Be Seen As“Source Of Dumb Money“ in which Li Daokui “added
that Beijing might also ask European leaders to refrain from criticising
China’s currency policy, a frequent source of tension with trade partners.”
Looks like we can scrap those “China bails out Europe” (ignore the fact that
the Chinese economy itself is imploding for a second) rumor in perpetuity.
Karel
De Gucht, the EU trade commissioner, declined to comment. An EU official sought
to play down the meeting, saying that Brussels would wait to see what level of
co-operation the Chinese would provide in an effort to ward off a formal trade
complaint.
Nonetheless,
concerns about the Chinese reaction – and pressure from worried member states
–appear to have put on ice a case that once seemed imminent, according to
several EU diplomats. They said it was now unlikely that Mr De Gucht would act
before September.
In
the meantime, both sides are bracing for another trade confrontation in the
solar industry. European solar companies have been preparing a complaint
accusing Chinese competitors of using improper government subsidies to
underprice them, and requesting punitive tariffs. That complaint could
materialise as early as this week, according to people familiar with the
matter, and could also trigger Chinese retribution.
Combating
Chinese government subsidies has been one of Mr De Gucht’s top priorities. The
cutting-edge telecoms equipment industry, in which Huawei and ZTE have quickly
gained market share, would be a signature case.
Yet
it is one thing for bureaucrat to sabre rattle, it is something totally
different for idiotic trade war proposals to get traction with corporations:
Mr
De Gucht’s case has been undermined by a lack of support from European telecoms
companies – Ericsson, Siemens-Nokia, and Alcatel-Lucent – which fear that any
action from Brussels could harm their own business interests in China’s
fast-growing market.
In
an effort to get around that, he has drawn up plans to launch the complaint at
the commission’s initiative – and not based on a complaint from a company
–setting a new precedent in EU trade defence.
Trade
analysts in Brussels said that some member states had also expressed
reservations about the case after receiving complaints from Beijing. Germany is
understood to be wary of igniting a trade war with China before a planned visit
by Chancellor Angela Merkel in August.
And now that China has told Europe what it can do with its empty threats, it is time for it to shift its attention to the US.
(infowars)
Pakistan Cyber Force