Tensions Over Trade: European Union and China take Dispute to WTO

The European Commission made an interim anti-dumping measure on imports of many of China’s panel products which comprised of solar panels, wafers and cells. The duty was set at 11.8 percent for all imports. China on the other hand, has been investigating the solar-grade poly silicon from the European Union. This dispute has been further triggered by the European Commission because of the high-grade steel tariff which has been placed by China, and a complaint was raised with the World Trade Organization. Further, Beijing has also been accused for imposing tax on imported steel. According to the WTO’s legal policy, China has been given a period of 60 days within which it has to come to a peaceful conclusion with EU. The root of the issue lies in the September complaint issued by the European Union Pro-Sun.
For over 50 years, Germany has been one of the most trustful and judicious supporters in making the European Union expand in terms of geographical extent in the scope of issues that it faces. The European companies in China are also concerned over the worsening of the situation.
But with the Union trade officials of both countries at each other’s throat, Germany has decided to go in the Chinese direction. Europe’s Trade Commissioner, Baroness Ashton, said that the Chinese restrictions on raw materials distort competition with the global price rise. This has further down trended the economy. Germany which has a number of companies relying on Europe has feared that such disputes might trigger a large scale war and the result might affect Germany badly.
A confidential technical-level talk has already begun in Brussels between the EU and Chinese experts to find a solution for the solar product dispute. The EU Trade Spokesman John Clancy said that EU aims on settling the issue but stressed that negotiation is still going on. With the conflict still unsettled, Karel De Gucht and Gao Hucheng, the Chinese Commerce Minister and the European Trade Commissioner set up a meeting in Beijing. The Commission has been put in an uncomfortable position with Germany supporting China and France backing the European Union. The issue will be discussed in the annual EU-China Joint Committee.
The focus of this meeting will revolve around market access barrier, licensing, rights to use the telecommunication services as well as the financial services. Ways to further improve the enforcement and cooperation with the intellectual property rights will also be discussed. Shen has insisted that both EU and China maintain cooperation and use this opportunity to unite their efforts and come to a mutually acceptable agreement. Experts say that EU and China needs to explore new ways to further deepen the bilateral cooperation. China’s vice minister, Zhong Shan has stated that if the EU goes ahead with the anti-dumping duties, “the Chinese government will not sit in the sideline and watch, but will stand up and defend the interests of the Nation.”
Eddie Miller, is a blogger, technologist, trader and the Man Behind BinaryPedia.com.