1. Wide of Chine Premier Li Keqiang and German Chancellor observing the signing of economic contracts
2. Tracking of Merkel and Li arriving for news conference
3. SOUNDBITE: (Mandarin) Li Keqiang, Chinese Prime Minister:
“As far as the trade protectionism is concerned, we are of the opinion that this is a measure which channels the flow in a neighbouring country. It is a measure which damages others and brings no use to oneself. Especially with the background of globalisation, such a measure will not lead to success. When the international financial crisis has not found an end yet and the worldwide economy has not yet been brought to life sufficiently, such measure is particularly questionable.”
4. Mid of Merkel and Li Keqiang
5. SOUNDBITE: (German) Angela Merkel, German Chancellor:
“Germany will support intense talks with China, so that we don’t come up with permanent import taxes and so we can clear up the issues between China and Europe on this subject as soon as possible. We don’t believe that it (permanent import tax) would help us a lot, we need to use the next six months effectively. Germany will do all it can to make sure there is progress in those talks.”
6. Close of Merkel and Li Keqiang shaking hands, pull out as they leave news conference
STORYLINE:
German Chancellor Angela Merkel said she would use her country’s economic clout to to try to stop the European Union from imposing punitive tariffs on some Chinese products to avoid a trade war.
Merkel told visiting Chinese Premier Li Keqiang in Berlin on Sunday that she would lobby for “intense talks” between the EU and China to seek a negotiated solution as swiftly as possible.
The European Commission, the 27-nation bloc’s executive arm, is proposing anti-dumping duties for Chinese solar panel imports.
If agreed, China could retaliate by imposing tariffs on other goods.
Li sharply criticised the EU’s approach, saying that “it is a measure which damages others and brings no use to oneself”.
“When the international financial crisis has not found an end yet and the worldwide economy has not yet been brought to life sufficiently, such a measure is particularly questionable,” Li said.
The EU, the world’s largest economy, is China’s second-biggest business partner after the US, with a trade volume of about 430 (b) billion euros in 2012.
The solar panel exports account for about seven percent of China’s total exports to the EU.
The EU Commission is expected to make a decision on the anti-dumping investigation after consulting all interested parties by the end of the year.
“We don’t believe that it (permanent import tax) would help us a lot, we need to use the next six months effectively. Germany will do all it can to make sure there is progress in those talks,” said Merkel.
Li thanked Merkel for her stance, saying China also hoped that talks between Beijing and Brussels would be able to avoid a trade stand-off and yield a solution.
Germany was the only stop in an EU member nation on Li’s inaugural trip abroad, in a sign that China seeks Berlin’s clout to influence the EU’s sometimes cumbersome decision-making process.
China is the world’s largest producer of solar panels, exporting more than half of its output to Europe, totalling 21 (b) billion euros in 2011.
The global solar panel market is suffering from over-capacity, which has led to stiff competition that has forced several European manufacturers out of business.
Still, Germany’s powerful industrial lobby groups oppose the EU anti-dumping measures against China because they fear an escalating trade war that would dent the country’s business ties.
China rejects the EU’s price-dumping allegations, but the problem is no novelty for Beijing.
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Post time: Feb-22-2017