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In-Depth
Special> Premier Li's First Foreign Trip> In-Depth
UPDATED: June 3, 2013 NO. 23 JUNE 6, 2013
Enlisting the EU
Chinese premier's European trip focuses on straightening out economic relations
By Yu Lintao
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Observers said choosing Germany as one of the stops of Li's maiden trip overseas as China's new premier was intended to further the Sino-German relationship, which has undergone sound development in recent years. At a time of China's economic restructuring and the EU's recovering from the debt crisis, Li's visit could help launch upgraded Sino-German economic cooperation. Meanwhile, a good relationship between the two countries could also set an example for Sino-EU cooperation.

Qu said Li's visit to Berlin evidently aimed to build on past achievements.

"The trip makes clear that China wants to continue the good foundation of Sino-German collaboration," Qu said.

Chen said that the economies of the two countries are complementary to each other, allowing Germany to offer help in promoting China's economic restructuring and urbanization. "The real economy of Germany is widely admired worldwide. Germany has advantages in high-end manufacturing and the environmental protection industry," said Chen to Beijing Review. "The experience of Germany in those areas is valuable for China in its economic restructuring and urbanization."

A Sino-German joint statement signed during Li's Berlin trip stated that the two sides believe the synchronous and coordinated development of industrialization and urbanization in China will provide new opportunities for the development of China-Germany and China-EU ties, and inject fresh impetus into the world economy. The two sides agreed to implement their urbanization partnership, and further enhance cooperation in such areas as agriculture and electric cars.

Chen noted the urbanization and economic restructuring of China would provide huge business opportunities to German enterprises. The economic restructuring of China, Chen said, will create big demand in areas such as transportation equipment, machinery and chemical products, in which Germany has a competitive edge.

Given Germany's leading role in the EU and the extensive Sino-German economic ties, the traction of Beijing-Berlin cooperation will be felt across Europe.

Chen said that Li's visit would open a new chapter for Sino-EU economic and strategic cooperation. With the debt-ridden continent still trying to get back on its feet, Sino-EU collaboration has taken on an extra layer of urgency.

Opposing protectionism

At a joint press conference with German Chancellor Angela Merkel on May 26, Premier Li expressed China's firm opposition to the EU's plan to launch a trade probe into Chinese mobile telecom products and slap punitive duties on Chinese solar panels.

The European Commission backed a proposal in May to impose punitive tariffs averaging 47 percent on Chinese imports of solar panels to prevent alleged "dumping" in the European market. The EU's executive arm also proposed conducting anti-dumping and anti-subsidy investigations into mobile telecom equipment imported from China.

Li said the moves reveal to the world a signal of trade protectionism. They would not only hurt Chinese businesses and jobs, but also damage the interests of European industries, businesses and consumers.

"They harm others without benefiting themselves," said the premier.

Chen said that if such a proposal were passed, China would possibly take countermeasures that could affect the normal bilateral trade.

"The two sides should objectively find solutions to trade disputes through dialogue and consultation rather than turning to protectionism," Chen said. "At a time when Europe is still mired in recession due to the debt crisis, it is counterproductive for the EU to take protectionist measures against China."

Li's visit is unlikely to settle the problem of protectionism, but it helped promote mutual trust and understanding of the benefits of cooperation over protectionism, said Mei.

Email us at: yulintao@bjreview.com

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