By Colin Brown -
Tensions over trade between the EU and China surfaced in behind-the-scenes talks in Beijing yesterday over the growth of counterfeit goods flooding into European markets.
The trade deal agreed last night by Peter Mandelson, the EU trade commissioner, to release impounded Chinese textile goods eased some immediate strains.
But the Chinese premier, Wen Jiabao admitted there had been "heated discussions" over the need for greater protection of intellectual property rights by European countries against piracy in China.
The threat to EU companies seeking to protect rights over their expensive branded products was stressed by Tony Blair and Sir Digby Jones, the director general of the CBI.But there were clear signs that Britain is shaping up for a renewed battle with EU member states, including France, who want protectionism. In a thinly veiled attack, Sir Digby said: "The importance of a level playing field and transparency is vital, but we in Europe must set an example. We must open up our markets further. We must allow our companies to be subject to international market forces.
"We must look to companies in other countries to do the same. That is globalisation in action. Much more effort needs to be taken to ensure intellectual property rights."
Mr Blair took a sideswipe at EU countries such as France who were seeking protectionism. "There is a place for managing change," he said. "What there is no case for is resisting change. The changes that are happening around us are changes that I see not as a threat but as an opportunity."
Mr Blair said China would benefit from lower labour costs but as it moved further up the "value added chain", China and Europe could gain from the opening up of markets. But he stressed free trade meant developing proper protection for intellectual property rights. British exports lag behind the three top EU exporters - Germany, France and Italy. The UK exported goods worth £2.4bn and services worth £1bn last year but imported goods valued at £10.6bn from China.
The Chinese premier said total EU-China trade would exceed $200bn (£108bn) this year, eight years ahead of his target. He said China would be keen to protect intellectual property rights in future.
"On intellectual property rights, this has been a heated discussion," he said. "The protection of them is not only to safeguard commerce but also for the purpose of enhancing China's development. At this moment, we are trying every possible means to protect property rights."
Source: Independent
Leave a comment