Merkel declares that the EU does not want a trade war with China

Angela Merkel, who arrived in Beijing on Sunday (June 12, 2016) for a three-day visit to China and declares that she does not want a trade war with China. He also asked the country’s leadership to implement „reliable and transparent” rules. Which ensures fair competition conditions for foreign investors. The German chancellor’s visit comes at a time when Beijing, under pressure from foreign companies that complained about restrictive rules, is trying to forcefully reform its economy.

German Chancellor Angela Merkel asked China to speed up reforms in the steel industry and other economic sectors. In order to avoid a future break with Brussels. Time in which Beijing is waiting for the EU to grant it the status of a market economy.

Nobody wants a trade war with China

In a speech held at the Chinese Academy of Sciences in Beijing, Merkel said: „No one is interested in generating trade wars. But we must also talk openly about the remaining problems.” The chancellor referring to China’s overproduction of steel, which is being dumped on the international market.

Warning that this overcapacity is causing a big headache for the steel industry in Europe. He added that „we must have fair conditions.”

China has promised reforms to its key industries, but several countries claim Beijing is taking too long. Because these changes will result in the loss of hundreds of thousands of jobs.

Beijing is urging Brussels to recognize it as a market economy – a commitment made when China joined the World Trade Organization 15 years ago. This confirmation is expected to occur at the end of 2016. But some EU states are hesitant to change China’s trade status, considering the overproduction in several economic sectors.

Also, the German leader is expected to raise human rights issues with the Chinese leaders. As a result of the repression of human rights activists and lawyers, many of them have been detained since the summer of last year.

Article source: http://www.dw.com/en/merkel-says-eu-doesnt-want-trade-war-with-china/a-19324486

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