• Germany edition
 
Merkel pledges to avert EU-China trade war
Photo: DPA

Merkel pledges to avert EU-China trade war

Published: 27 May 2013 06:15 GMT+02:00
Updated: 27 May 2013 06:15 GMT+02:00

Germany will push in the next six months for discussions on resolving the disputes between Brussels and Beijing over Chinese telecom products and solar panels to avoid it ending in mutual tariffs, Merkel said.

Both she and Premier Li Keqiang, who is on his first foreign tour since taking office in March, told a joint press conference that they rejected trade protectionism which hurt both sides.

Under pressure from German industry, Merkel said Germany would do its utmost to resolve the issues by pushing for talks to avoid "lapsing into a kind of dispute which finally only ends in mutual tariffs".

"I will, as head of the government, advocate that we, at the European level, as quickly as possible have intensive discussions with the Chinese side on the questions at issue," Merkel added.

Germany is by far China's biggest European trading partner. While German motor vehicles and auto parts, machinery and electrical goods find a vast export market in the world's second-largest economy, China needs technology from Germany.

German exports to China amounted to €66.6 billion ($86 billion) last year, according to official German data.

But as both the EU and China suffer the knock-on effects of a sharp economic slowdown, the slew of looming trade disputes - over telecoms, solar panels and steel tubes - has turned up the heat.

Li, whose tour has also taken in Switzerland, India and Pakistan, said China "resolutely" rejected the European Union's plans to probe the country's telecom products and impose taxes on solar panels.

He said the move would not only threaten jobs in China and hit the branches concerned, but also affect the interests of European companies, consumers and industry.

"To this effect, this measure is a measure that doesn't serve the particular interests and also damages others," Li told reporters through an interpreter.

"Therefore we hope that through joint efforts and through dialogue and consultations, the trade disputes between China and the EU can be settled acceptably," he added.

And he said that the EU decisions sent the "wrong signal" that trade protectionism had made a "comeback".

Germany is the only stop among the EU's 27 member states for Li on the trip, in a sign that Beijing wants to continue their special relationship, analysts say.

"From the German side, it's all about trade. Germany sees China essentially as a large export market on which it's increasingly dependent," Germany expert Hans Kundnani, of the European Council on Foreign Relations, told news agency AFP.

Merkel made two trips to Beijing within just seven months last year and said Sunday the two sides wanted to further bolster their already "close" relations, citing four areas - industry, IT, urbanisation and agriculture.

But for China, Germany is not only economically important in providing much-needed technology but also plays a strategic part in helping to combat Beijing's fear of the US and Europe teaming up against it, Kundnani said.

Li said his visit to Germany was also about visiting the EU. "We want through the intensification of cooperation with Germany, to also advance the relations and cooperation with the EU," he said.

EU exports to China totalled $212 billion, with imports of $334 billion in 2012.

AFP/mry

The Local (news@thelocal.de)

Don't miss...X
Left Right

Your comments about this article

Today's headlines
Man shot in tax office dispute
DPA

Man shot in tax office dispute

A tax office worker in the Schleswig-Holstein town of Rendsburg died in hospital after being shot on Monday morning. READ  

Merkel details Iraq arms shipment to MPs
Angela Merkel addressing the Bundestag on Monday as her ministers look on. Photo: DPA

Merkel details Iraq arms shipment to MPs

UPDATE: Chancellor Angela Merkel addressed the Bundestag on Monday to explain her government's decision to send weapons to Iraqi Kurds fighting terrorist group Isis. READ  

Olympic visions compete in Berlin and Hamburg
Berlin and Hamburg mayors Klaus Wowereit and Olaf Scholz on Monday. Photos: DPA

Olympic visions compete in Berlin and Hamburg

Germany's capital and its gateway to the North Sea each released details of their Olympic bids on Monday as the race for the 2024 or 2028 summer games nominations picks up momentum. READ  

Vacationer killed by Baltic Sea bacteria
Photo: DPA

Vacationer killed by Baltic Sea bacteria

Six people were infected with a bacteria from the Caribbean which has made itself at home in the popular German vacation destination. One of them is now in a coma. READ  

UN applauds Germany's help to refugees
DPA

UN applauds Germany's help to refugees

UNHCR Commissioner Antonio Guterres is lauding Germany's role in accommodating the influx of refugees in Europe, while pointing at the imbalance of effort within the EU. The federal government has pledged to do more. READ  

Energy-sucking vacuums no longer welcome
Photo: DPA

Energy-sucking vacuums no longer welcome

Starting on Monday, vacuum cleaners drawing more than 1600 watts can no longer be brought into Germany. The ban is part of a an EU-wide environmental protection measure. READ  

Coalition horsetrading starts after Saxony vote
CDU leader Stanislav Tillich with SPD Martig Dulig. Photo: DPA

Coalition horsetrading starts after Saxony vote

Chancellor Angela Merkel's Christian Democratic (CDU) party is in search of a new partner after the expulsion of its former allies the Free Democrats (FDP) from the Saxon state parliament. READ  

Presented by Phorms Education
Bilingual education from nursery to graduation
Photo: Phorms Education

Bilingual education from nursery to graduation

A network of German based schools is changing how students learn languages by introducing English and Deutsch from day one, with the method yielding impressive academic results. The Local finds out more about Phorms Education. READ  

JobTalk Germany
'German bosses need to praise more'
More of this? Photo: Shutterstock

'German bosses need to praise more'

What do German bosses need to do to get more out of their staff? Frankfurt-based business consultant Justin Bariso has this advice. READ  

Train drivers take their turn to strike
A banner announcing a previous rail strike in June is displayed in a station. Photo: DPA

Train drivers take their turn to strike

A train drivers' union has warned of a nationwide strike to take place on Monday evening as it seeks leverage in negotiations with Deutsche Bahn. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Sponsored Article
Bilingual education from nursery to graduation at Phorms
Photo: Shutterstock
Gallery
Ten of the oddest things found by German border control
Photo: Gerkan, Marg and Partners/Tegel Projekt GmbH/J. Mayer
Berlin
How will Berlin look in five years' time?
Photo: DPA
Culture
Sprechen Sie Deutsch? 10 reasons why you should
Photo: DPA
Gallery
The best of Berlin's mayor Klaus Wowereit in 14 pictures
Photo: DPA
Politics
Germany sends burgers and sausages to Kurds
Photo: Matthias Kock
National
Tribes, ties and a movie: A German's Afghan life
Photo: DPA
Gallery
10 things to do before summer in Germany is really over
Photo: DPA
Gallery
The mysteries of Berlin's abandoned theme park
Photo: Europeana.de 1914 - 1918
Gallery
A German soldier's life behind WWI lines
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,430
jobs available
Toytown Germany
Germany's English-speaking crowd