EU, China vow to uphold trade order amid US protectionism
S’ville port kicks off use of new terminal
THE European Union and China pledged on Monday to strengthen a rules-based international trading system amid US protectionism, although the EU highlighted its concerns about Beijing’s own restrictive market practices.
Officialsonbothsidespledged to strengthen the World Trade Organization, announcing a plan to cooperate on updating the body, which has come under blistering criticism from US President Donald Trump.
The WTO “provides the basic infrastructure for rules-based trade and rules-based world order. China and the EU both support this approach”, said European Commission Vice President Jyrki Katainen, noting the two sides would form a working group to modernise the organisation.
State subsidies to industry and forced technology transfer should be taken up by the WTO, Katainen said, adding that the EU shared Washington’s concerns about Chinese practices in these areas.
“The two issues together are some reasons why the US has taken unilateral action,” said Katainen.
The high-level economic meetings in Beijing came as both the EU and China face rising trade tensions with the United States. Brussels and Beijing recently announced new tariffs on US goods in retaliation for moves by the Trump administration.
“Both sides agreed to resolutely oppose unilateralism and protectionism and prevent such practices from impacting the world economy and even dragging the world economy into recession,” said Chinese Vice Premier Liu He, responsible for shepherding the world’s second largest economy.
Liu had led China’s three rounds of trade talks with the US, negotiations that have broken down over the Trump administration’s pledge to move forward with tariffs despite an agreement in May to put the duties on hold.
“Unilateralism and trade protectionism is on the rise and tensions have appeared in the economic relations between major economies,” Liu told an audience of European and Chinese officials.
Even as the two sides see some common ground on combating the US moves, there are deep divisions between them. EU companies and officials harbour concerns about Beijing’s policies that are shared by their counterparts in Washington.
“Industrial subsidy issues” and the “role of state-owned enterprises” should be included in an updated “toolbox of the WTO to be better suitable to the current world”, said Katainen.
Even as China is booming, European investment is falling, Katainen said. “There must be something which is not quite right.”
Brussels has preached multilateralism to resolve disputes, while Washington has opted for unilateral action to counter Beijing.
“We need more than just talk, we need to demonstrate adherence to international trading rules,” said Katainen, proposing reforms to develop new rules for a “global level playing field”.
Beijing’s industrial policies such as the “Made in China 2025” project, which is designed to transform China from a maker of sports shoes and denims into high-tech goods, is a major concern in Washington and stands at the heart of proposed new US tariffs on China. STATE-OWNED Sihanoukville Autonomous Port (PAS) launched its multipurpose terminal on Monday, which was praised by a government official as a way for the country to export faster and more efficiently.
The $74 million Japan-backed terminal will provide an additional 330 metres for ship docking and is able to accommodate larger vessels with its 13.5-metre depth, according to the Minister for Public Works and Transportation, Sun Chanthol.
At the inauguration, attended by Prime Minister Hun Sen, Chanthol said the terminal is a key water gateway for the country’s agricultural products to be exported to the international market.
“As it is linked to major roads and also improves port capacity, it will make Sihanoukville port play a more important role in speeding up the delivery of goods as well as boost competitiveness between Cambodia and neighbouring countries,” he said.
The terminal will facilitate 70 percent of imports and exports coming through the Kingdom and is able to load shipments weighing 40,000-50,000 tonnes. This is more than twice the limit of the existing terminals, Chanthol said.
He said the government also plans to build a new $203 million container terminal with financial support from the Japanese International Cooperation Agency (JICA).
Container traffic increased 12.65 percent over the past five years, and during the first five months of this year it increased to 207,047 20-foot equivalent units (TEUs) – up 20 percent compared to the same period last year.
PAS became the fifth listed firm on the Cambodia Stock Exchange (CSX) in June last year.
On Monday, its share price stood unchanged from the previous trading day at 5,160 riel ($1.27).