Holding free trade and open market principles, Britain has great concerns over the rising trade protectionism against Chinese goods inside the European Union (EU), said the British Minister of State for Trade Ian Pearson.

 

"We do not like to see trade barriers, and we are completely against protectionism," Pearson said in an interview on Thursday in Beijing. "We are concerned that some EU states are using anti-dumping rules as a cloak to disguise their protectionist behavior."

 

The minister, who is on a business visit to China, also mentioned that the EU should grant the Chinese mainland market economy status as soon as possible, without which, Chinese exports are often left as victims of rampant anti-dumping measures.

 

The trade protectionism resulted in a couple of recent dumping restrictions that the EU imposed on some Chinese exports including shoes and TV sets.

 

The EU punitive measures on shoes will last half a year, include provisional tariffs from 4.8 percent to 19.4 percent on imports of Chinese leather shoes.

 

"We have strong concerns about the proposals for dumping restrictions on footwear," Pearson said, adding that his country decided to discuss the issue with the European Commission and try to negotiate as many exceptions as possible.

 

Britain was successful in getting the commission to agree to exemptions to what is called special-technology athletic footwear and children's shoes.

 

"We want the British consumers to benefit from it," said Pearson, who believes that the EU won't benefit in the long term by using high tariffs to block affordable Chinese goods.

 

Pearson said the British Government also wants China to get market economy status, and will promote the idea to be agreed upon at the EU level.

 

The minister said last July when he visited China that China should be treated equally as Russia, which was granted market economy status in 2002. "My view has not changed," Pearson said.

 

He said some EU states had concerns about giving China the status, and the European Commission felt that there had to be further discussions.

 

Without the status, the cost of Chinese enterprises will not be accepted in anti-dumping cases but will instead be replaced by cost in other countries such as India, Turkey and Mexico. Higher expenses in these countries usually leads to the conclusion that Chinese products are selling under the prices lower than cost.

 

At present, more than 50 countries have recognized China's market economy status. But a number of Western countries, including the EU and the United States, still have not granted the market label to Chinese products.

 

Britain now is China's largest investor among EU members, with a contracted investment of US$24 billion and 4,897 projects.

 

(China Daily April 8, 2006)