By Liz Lee
BEIJING, Oct 29 (Reuters) – In its pursuit of economic self-sufficiency, China must not create one-sided dependence in other markets, Germany’s President Frank-Walter Steinmeier urged in an address at a top-tier university in Beijing on Thursday.
Steinmeier, who will meet with Chinese President Xi Jinping on Friday, was objecting to the trade imbalance between China and Europe, according to his speech text for delivery at the prestigious Peking University.
“It is understandable that China wants to protect its economy against external shocks and negative influences,” he said, but pressed that China’s greater independence must not lead to dependence and vulnerability of others on China.
The European Union has called its widening trade deficit with China unsustainable, and warned last month it will use every possible means to remedy it.
Germany, along with France, has also proposed that the EU enact a new rapid-action measure against countries that harm it, with China likely in focus.
European companies have found themselves with no or little access to the Chinese market, while European markets face large amounts of state-subsidised Chinese imports as well as Beijing’s controls and limits on its raw materials exports, Steinmeier said.
Steinmeier argued that Europe was determined to keep its industrial base, and that he was confident that Brussels and Beijing would be able to find solutions through dialogue.
“We do not want a new bloc confrontation. That would not only be dangerous for international security, but would also be an economic loss for everyone,” said the German president who is on a five-day visit until Saturday.
(Reporting by Liz Lee; Editing by Saad Sayeed)
Comments