EU says China “patchy” on WTO

BEIJING – EU trade chief Peter Mandelson said China’s implementation of WTO promises was “patchy” as a deadline looms and warned Beijing’s handling of new rules aimed at foreign financial news services was “unsatisfactory.”

But Mandelson told Reuters in an interview in Beijing on Saturday that any disputes between the two trade powers should be solved through dialogue. “We are satisfied China is implementing the bulk of its WTO accession commitments, but there are gaps,” he said, citing China’s widespread piracy of intellectual property and limits on some foreign investment.”These are best addressed through dialogue and negotiation.”China joined the World Trade Organisation in 2001, and by the end of 2006 it must largely open banking and other financial services to foreign investors as a part of a five-year schedule of promised reforms.From December 11, foreign lenders will, in theory, be able to take yuan deposits and lend to Chinese retail customers for the first time.But widespread scepticism persists over the extent to which overseas banks will be allowed to make inroads, given Beijing’s desire to protect its brittle financial system.The European Union Trade Commissioner, however, warned against confrontation.”I think that the direction is clear but that progress is patchy, and we have to maintain a consistent dialogue with China,” he said.”China will be ready to open and liberalise further in key areas as long as the pace of reform is realistic for China’s stage of development.”Mandelson was in China to push preparations for a new trade and investment treaty Beijing and Brussels will begin negotiating early next year, replacing a 1985 agreement.He said Europe did not want a full-blown free trade deal but wanted clearer commitments on access to markets and protection of intellectual property rights from counterfeiters, who he blamed for costing European companies billions of euros in lost sales.Mandelson said he also complained to Chinese vice premier Wu Yi – the nation’s top trade official – about rules China’s Xinhua news agency announced in September demanding that foreign financial news services, including Reuters and Bloomberg LP, sell their wares to Chinese customers only through it.Xinhua also wants the right to censor content provided by these foreign companies.Mandelson said the demands violate an earlier agreement.In talks on Friday, Wu did not offer concessions on the dispute, but nor did she appear eager to make Xinhua’s cause her own.She told Mandelson she would tell Xinhua it needed to “to offer further clarification,” the EU trade chief said.Nampa-Reuters”We are satisfied China is implementing the bulk of its WTO accession commitments, but there are gaps,” he said, citing China’s widespread piracy of intellectual property and limits on some foreign investment.”These are best addressed through dialogue and negotiation.”China joined the World Trade Organisation in 2001, and by the end of 2006 it must largely open banking and other financial services to foreign investors as a part of a five-year schedule of promised reforms.From December 11, foreign lenders will, in theory, be able to take yuan deposits and lend to Chinese retail customers for the first time.But widespread scepticism persists over the extent to which overseas banks will be allowed to make inroads, given Beijing’s desire to protect its brittle financial system.The European Union Trade Commissioner, however, warned against confrontation.”I think that the direction is clear but that progress is patchy, and we have to maintain a consistent dialogue with China,” he said.”China will be ready to open and liberalise further in key areas as long as the pace of reform is realistic for China’s stage of development.”Mandelson was in China to push preparations for a new trade and investment treaty Beijing and Brussels will begin negotiating early next year, replacing a 1985 agreement.He said Europe did not want a full-blown free trade deal but wanted clearer commitments on access to markets and protection of intellectual property rights from counterfeiters, who he blamed for costing European companies billions of euros in lost sales.Mandelson said he also complained to Chinese vice premier Wu Yi – the nation’s top trade official – about rules China’s Xinhua news agency announced in September demanding that foreign financial news services, including Reuters and Bloomberg LP, sell their wares to Chinese customers only through it.Xinhua also wants the right to censor content provided by these foreign companies.Mandelson said the demands violate an earlier agreement.In talks on Friday, Wu did not offer concessions on the dispute, but nor did she appear eager to make Xinhua’s cause her own.She told Mandelson she would tell Xinhua it needed to “to offer further clarification,” the EU trade chief said.Nampa-Reuters