(TibetanReview.net, Dec 3, 2008) — China may have presented an impression of being the more important partner in relations with the EU by withdrawing from a summit meeting in Lyon, France, over the extraneous issue of President Sarkozy’s planned meeting with the Dalai Lama, a diplomatic discourtesy noted with much regret. However, China’s economy is heavily dependent on exports to the EU and the USA whose recent declines have led to closing down of factories and social unrest. China is now busy fighting off an EU move to impose anti-dumping duties of up to 87 percent on Chinese-made screws and steel fasteners, according to Reuters Dec 2.

The issue covers up to 200 Chinese companies exporting components widely used for cars, white goods or machinery in the EU and are worth some 575 million euros ($731.5 million) per year, the report said. "As it stands, it looks like the committee will vote in favour of the duties, but the Chinese have offered a deal to try and reach a compromise," a diplomat familiar with the matter was quoted as saying. Under the Chinese plan, the majority of exporters would observe a pricing level agreed with the European Commission, so that anti-dumping duty, if imposed, would apply only to few who don’t agree.

EU trade experts have been cited as saying Chinese exporters get an unfair cost advantage because of suspected subsidies in China's steel industry which gives them cheap raw materials.

Trade disputes between Brussels and Beijing have been on the rise with the EU's deficit with China having ballooned to160 billion euros (US $203.5 billion) last year.

Last updated on Dec 03, 2008 15:40:48

Source: www.tibetanreview.net