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Germany: Merkel vows to avoid trade war with China

German Chancellor Angela Merkel said on Sunday that she would use her influence in the country's economy in order to prevent some of the EU impose punitive tariffs on Chinese products in order to avoid a trade war.
Germany will push "very much" the tension between the EU and China negotiations as quickly as possible in order to seek a negotiated settlement, the leaders of Europe's largest economy told visiting Chinese Premier Li Keqiang.
The European Commission, the EU executive body 27 countries, accusing China of solar panels and a number of mobile telecommunications equipment pricing is too cheap, thus flooding the European market, distorting competition and damage European manufacturers. Therefore, Brussels has been proposed levy on Chinese solar panels special tariffs average 47 percent, and continues to seek to enter the telecommunications industry.
He sharply criticized the EU approach, through an interpreter, said, "It sends a wrong signal, because we want to jointly oppose trade protectionism."
"We strongly oppose this decision," he insisted, referring to the proposed solar panel tariffs. "We hope that the EU will not use the trade protectionist measures, so small a reason," he said.
The EU is the world's largest economy, is China's second largest trading partner after the United States, and in 2012 to about 43 billion euros of trade. Solar panels export position, China's total exports to the EU by about 7%.
The European Commission is expected to make a decision anti-dumping investigations, consultation with all interested parties, by the end of this year.
Germany will strive to be resolved as soon as possible, because we do not believe (tariffs) will help us much, "Merkel said." "This is why we should be very strong to use in the next six months, Germany will make every effort to ensure that the talks really The will advance, "she added.
Li Zhaoxing sense Xiemokeer said, adding that China also hopes the talks between Beijing and Brussels will be able to avoid trade confrontation, resulting in "a friendly solution."
Germany is the EU member states only stop at Lee's inauguration travel abroad a sign that China's influence in Berlin to seek to influence the EU's decision-making times tedious progress. Lee took office in March, at one point, even said at a news conference with Merkel, he knew that Germany can not replace the European Commission.
China is the world's largest producer of solar panels, exports more than half of its output in Europe in 2011, a total of 21 one billion euros.
Global solar panel market suffered overcapacity, resulting in fierce competition has forced some European manufacturers of business.
Nonetheless, Germany's powerful industrial lobby groups opposed to discussing the EU's anti-dumping measures against China, because they are worried about the escalating trade war would undermine the country to boost business relations.
Li said that the EU's decision will not serve their own interests and would harm China and other countries. "It will put (solar) industry in Europe is in danger, European companies, European consumers and harm the interests of European industry," he said. "
China rejected the EU price dumping allegations, but the problem is no novelty Beijing. U.S. imports of solar panels last year punitive tariffs, we found that Chinese government subsidies to the influx of American corporate market.
Lee's arrival at the Chancellery in Berlin, he and Merkel met with students from the two countries signed a series of in monitoring economic cooperation agreements. They also held a closed-door talks, and were provided with a foreign capital late Sunday dinner at the Government Guest House.
Part of his trip, Li Changchun visited Switzerland on Friday. In Zurich, he signed China's first free trade agreement with the major western economies. It has been settled for several years. .
On Monday, he will meet with other officials and business leaders in Berlin. He is also the national elections in September, the Social Democratic Party candidate Steinbrueck challenger Angela Merkel met.
 
 



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