China, EU Will Exchange Ideas at Summit

Data Analysis 01:33:46PM Feb 07, 2012 Source:SMM

2012-02-07 BRUSSELS (China Daily) - Europe is not ready to grant China market economy status or lift an arms embargo to obtain the country's help in overcoming the eurozone's sovereign-debt troubles.

Ahead of the EU-China summit scheduled for next Tuesday in Beijing, sources in the European Union said European politicians insist that giving China market economy status is not a "tradable" issue.

The granting of such a status would mean the country has been deemed to have a free market and that the economic information it provides can be taken at face value in trade disputes.

European politicians have also said they will not consider lifting an arms embargo, the sources said. They have taken that position even though Brussels is eager to obtain Beijing's support in dealing with the debt crisis, which is threatening the world economy.

Speculation has arisen in Europe that Beijing and Brussels may put such a deal on the table at the summit, which was originally scheduled for October was delayed because of the worsening situation in Europe.

The source said the timing of acquiring market economy status is "in the hands of China" and that it will be granted once China has met the relevant requirements. Beijing has long asked the EU to grant it such a status but disagreements within the union have prevented that.

The EU and India are now working to negotiate a free-trade arrangement, which will be a priority when the leaders meet this weekend, before the Beijing-Brussels summit.

Instead of discussing these thorny difficulties, Beijing and Brussels are going to be pragmatic next week in exchanging ideas about the economic and financial woes, the sources said.

Although they expect China to invest in its own financial protection, the EU said Beijing intends to use the International Monetary Fund (IMF) to help heavily indebted European countries.

So the global issues, in particular the G20 and climate change, will be high on the agenda, the source said.

"Facing the current world economic situation, Beijing, as a global economic player, will show more firm commitment to stabilizing the situation at the summit," said Jean-Marie Rousseau, director of the Brussels-based consultancy company Initiatives in Territorial Intelligence & Regional Innovation Strategies.

Rousseau said the participants will look at the current rise in trade protectionism, which may further dim the outlook for the global economy, and negotiate a way to increase bilateral trade and investment.

Apart from committing resources to the IMF, Rousseau said: "I think China will respond quickly to increase procurement from European markets after the summit." And in turn, Rousseau said, "China needs Europe to speed up the transfer of technology."
 

China, EU Will Exchange Ideas at Summit

Data Analysis 01:33:46PM Feb 07, 2012 Source:SMM

2012-02-07 BRUSSELS (China Daily) - Europe is not ready to grant China market economy status or lift an arms embargo to obtain the country's help in overcoming the eurozone's sovereign-debt troubles.

Ahead of the EU-China summit scheduled for next Tuesday in Beijing, sources in the European Union said European politicians insist that giving China market economy status is not a "tradable" issue.

The granting of such a status would mean the country has been deemed to have a free market and that the economic information it provides can be taken at face value in trade disputes.

European politicians have also said they will not consider lifting an arms embargo, the sources said. They have taken that position even though Brussels is eager to obtain Beijing's support in dealing with the debt crisis, which is threatening the world economy.

Speculation has arisen in Europe that Beijing and Brussels may put such a deal on the table at the summit, which was originally scheduled for October was delayed because of the worsening situation in Europe.

The source said the timing of acquiring market economy status is "in the hands of China" and that it will be granted once China has met the relevant requirements. Beijing has long asked the EU to grant it such a status but disagreements within the union have prevented that.

The EU and India are now working to negotiate a free-trade arrangement, which will be a priority when the leaders meet this weekend, before the Beijing-Brussels summit.

Instead of discussing these thorny difficulties, Beijing and Brussels are going to be pragmatic next week in exchanging ideas about the economic and financial woes, the sources said.

Although they expect China to invest in its own financial protection, the EU said Beijing intends to use the International Monetary Fund (IMF) to help heavily indebted European countries.

So the global issues, in particular the G20 and climate change, will be high on the agenda, the source said.

"Facing the current world economic situation, Beijing, as a global economic player, will show more firm commitment to stabilizing the situation at the summit," said Jean-Marie Rousseau, director of the Brussels-based consultancy company Initiatives in Territorial Intelligence & Regional Innovation Strategies.

Rousseau said the participants will look at the current rise in trade protectionism, which may further dim the outlook for the global economy, and negotiate a way to increase bilateral trade and investment.

Apart from committing resources to the IMF, Rousseau said: "I think China will respond quickly to increase procurement from European markets after the summit." And in turn, Rousseau said, "China needs Europe to speed up the transfer of technology."