er el hosts i to address trade dispute
IN Chinas Premier Li Keqiang was to hold talks with German Chancellor Angela Merkel yesterday as the close economic partners seek to weather a brewing trade spat between Beijing and the EU and forge deeper ties.
The new premiers visit to Germany, by far Chinas biggest European trading partner, indicates Beijings wish to continue its special partnership with Europes biggest economy, analysts say.
Aside from a brief stop in Switzerland to ink an accord paving the way for a landmark free trade deal with the Alpine nation, Germany is the only stop among EU member states on Lis maiden foreign tour, which last week also took in India and Pakistan.
Li, in a speech to business and financial leaders in Switzerland on Friday, slammed the EU for plans to probe Chinas telecom products and impose taxes on its solar panels, Chinese state media reported on Saturday.
Cited by Xinhua news agency,
hen an economic indicator can already trigger such a tremor on the stock markets, what s lurking for the world economy if there s a trade war between China and Europe
GERMANY S BUSINESS DAILY HANDELSBLATT
Li said the planned measures would not only cause serious damage to related industries, enterprises and employment in China, but will also hurt the personal interests of users and consumers in Europe.
The German-Chinese trade relationship is an almost perfect symbiosis, based on mutual need but is set to change as China becomes more of a competitor than a market for Germany, according to Germany expert Hans Kundnani, of the European Council on Foreign Relations.
While German motor vehicles and auto parts, machinery and electrical goods find a vast export market in the worlds second-largest economy, China needs tech- nology from Germany.
German exports to China amounted to 66.6 billion euros (US$86 billion) last year, according to official German data.
German manufacturers are increasingly going to be squeezed, I think, by competition from China, and you are starting to see that already, the London-based expert said.
As both the EU and China suffer the knock-on effects of a sharp economic slowdown, a slew of looming trade disputes over telecoms, solar panels and steel tubes has turned up the heat.
Germanys business daily pointed to the impact that poor Chinese manufacturing data wreaked on world stock mar- kets this week, including a more than 7 per cent drop in Tokyo, a major trade partner.
When an economic indicator can already trigger such a tremor on the stock markets, whats lurking for the world economy if there s a trade war between China and Europe the paper fretted.
Punitive tariffs being mulled by the EU on imports of Chinese solar panels would be a wrong political signal, a new step towards protectionism, Chinas ambassador to Berlin Shi Mingde told the paper.
Germany may fear the consequences of a trade war on other sectors.
Volkswagen, Europe s biggest carmaker, announced in March that it planned to open seven more factories in China, VW s single biggest market where last year it delivered 2.81 million vehicles.
For China, Germanys importance extends beyond economic ties as it warily eyes the US. A P