China calls for diplomacy in EU trade case

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China is looking to diffuse tensions with Europe over the trade case launched against its manufacturers claimed to be dumping modules on the European market.

A source from the Chinese Ministry of Commerce said to be close to the matter told media platform China.org.cn that the imposition of any duties resulting from the European Commission's ongoing trade investigation would be mutually harmful.

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“China believes that trade problems and conflicts should be dealt with in a positive and mutually beneficial manner,” the source said.

“If the two sides get involved in a trade war, it would harm both sides, weakening each other's competitiveness in the global market.”

In September last year, spokesman for the Chinese government Chong Quan, had expressed a desire for China and the EU to “resolve trade frictions through consultation”.

However, in November China proceeded with its threatened retaliatory measures against the EU when it filed a complaint with the WTO claiming European Union member states “illegally” subsidised their manufacturers.

Not to be outdone, last summer German Chancellor Angela Merkel had also called for dialogue.

China.org.cn notes that 21 economies launched 77 trade investigations targeting Chinese exporters in 2012, up 11.6% from 2011.

Chinese exporters incurred losses worth US$27.7 billion last year, up 369% year-on-year.

Ministry spokesman Yao Jian attributed the surge in the figures to the solar product probes launched by the EU last year, which caused export losses of US$20.4 billion.
 

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